Hawaii was forced by the global oil crisis to find alternative sources of petroleum. Oil was a key fuel source for islands. It was also imported in large amounts. Hawaii imported 29 million barrels worth of crude oil from foreign countries in 2016. The state is working hard to increase solar and wind energy production, even though it's unlikely Hawaii will ever build a nuclear power station.
In 2008, the Hawaiian Clean Energy Initiative was established with the aim of meeting Hawaii's 70% electricity demand by 2030. The initiative brings together leaders from business, policymakers, as well as community members, to help accelerate the transition towards renewable energy. It was also launched in partnership by the U.S. Department of Energy. The Initiative covers not only wind and sun, but also solar thermal energy, concentrating solar power, biofuel form algae, desalinating drinking waters for export, and solar thermal power.
Hawaiian Electric Companies (the state's largest electricity utility) has stated that it aims to become 100% renewable in 2045. Hawaiian Electric also plans closing the last Hawaii coal-fired power plant by 2022. Hawaiian Electric still relies on oil for its battery charging until the development of renewable energy. The utility expressed concern to Hawaii Public Utilities Commission recently about the potential dangers of charging its battery with power from oil-fired power plant.
Hawaiian Electric also pledged to close Barbers Point, a coal plant on West Oahu. In doing so, it will take 40 full-time jobs away from the community. The company plans to reassign these employees to other positions in Hawaii. Recently, the utility announced plans to overhaul the state grid.
Hawaiian Electric Companies engaged more stakeholders as part of their grid modernization strategy. The company submitted recently a plan to Hawaii Public Utilities Commission. This plan described the company's priorities. It also highlighted the importance and necessity of a comprehensive grid-modernization strategy. It also detailed how the company would incorporate customer inputs into its planning process.
The company intends to put a large energy storage unit on its system. The system is essentially a giant battery. It is intended that Hawaii will have a steady source of electricity in the event of the closing of AES's coal plant in 2022. The system will be able to produce more than 3 million megawatts, have 4.5 megawatts and store over three thousand megawatts.
Hawaiian Electric was recently asked by the PUC for a report on how Hawaiian Electric is meeting its renewable energy targets. It also said that the company could not require community-based programs for renewable energy to have battery storage.
Initially, the Hawaiian Electric Companies planned for the state to have a one-way flow of energy. This plan is now being revised to address concerns about two-way flow of energy. In order to increase the flow of electricity, the company plans to collaborate with other Hawaiian Electric Companies. It proposes a system-based approach to energy planning.