Hawaii Energy Resource Technologies for Energy Security

1. Hawaii Energy Resource Technologies for Energy Security Rick Rocheleau – HNEI, UH Terry Surles – HNEI, UH Art Seki - HECO Bill Parks – US DOE Presentation for 2nd Friday Tech Download Hawaii Science & Technology Council December 8, 2006

2. Who/What • R. Rocheleau – Setting the stage • A. Seki – Utility perspective • B. Parks - Why this is important on a national level • R. Rocheleau – HNEI programs • T. Surles – Hawaii Energy Resource Technologies for Energy Security

3. Hawaii’s Renewable Energy Sources • Wind (commercially viable on all islands - siting and integration) • Solar PV and hot water (commercial - PV cost) • Geothermal (30MW, permit for 60MW - utility need) • Biomass (transportation and electricity use - land use, crop selection and conversion technology) • Municipal Solid Waste (commercial but limited) • Run-of-river hydro (commercial - very limited resource) • Pumped hydro storage (good potential - siting) • Ocean thermal (excellent resource - technology and cost) • Wave (excellent resource - technology and cost) • Current (via tides, limited potential)

4. Renewable Resource Mix and Energy Issues Provides Unique Opportunities for Hawaii • Varied and substantial mix of renewable resources • Unusually high dependence on petroleum for electricity – over 80% • Very high cost of electricity – over $0.30/kwh ( some islands) • Highest in nation gasoline costs – over $ 2.70 per gallon • Substantive transmission and distribution issues – mountainous terrain, sparse system. • Unique and substantive difference between peak load vs. base load requirements - available renewable energy taken off line • Changing housing requirements leading to need for linking solar/efficiency • State government focused on contributing to energy solutions • Hawaiian different from mainland utilities

5. Special Considerations for UsingRenewable Energy in Hawaii • Hawaiian utilities are different from mainland utilities • Relatively small utility systems • No grid interconnections • Reliability is critical • Many renewables not continuously available (solar, wind, hydroelectric) • Still need generation we can dispatch on demand

6. Partnerships are Needed • Research, development & demonstration projects with the Federal and State government, universities • MOD-OA and MOD-5B Wind turbines at Kahuku, Oahu • HGP-A geothermal power plant in Puna, Hawaii • OTEC study at Kahe power plant, Oahu • Biomass feasibility studies on Maui and Hawaii • Hawaii deep water cable program • Pumped storage hydroelectric studies

7. Renewable Energy Challenges • As-available and firm power • Wind penetration limits • Curtailment during the off-peak • Technology costs are high • Various stage of technical development or maturity • Site specific or land intensive issues • Environmental impacts

8. Why is Grid Modernization Important? Outages and Power Quality Disturbances Cost the U.S. $79B Annually LBNL Base-Case Estimate of the Cost of Power Interruptions by Types of Interruption Frequency of Outages and Disturbances $26 Billion $52Billion * *Interruptions lasting five minutes or less are considered momentary interruptions. Source: LaCommare, Kristina Hamachi and Eto, Joseph H. Understanding the Cost of Power Interruptions to U.S. Electricity Consumers. (Accessed May 19,2005). Source: NERC Systems Disturbance Reports, 1992-2003. Public Interest at Risk • Reliable electric service • Costs of manufactured goods • Productivity of businesses and industry • Costs to states and local governments

9. Distributed Energy Resources Interconnection Technologies Electric Power Systems Fuel Cell Utility Grid Inverter Microgrids • Functions • Power Conversion • Power Conditioning (PQ) • Protection • DER and Load Control • Ancillary Services • Communications • Metering Wind Microturbine Energy Storage Loads Generator PV Local Loads Load Simulators Switchgear, Relays, & Controls Systems Integration

10. Microgrids • Definition • A microgrid is an integrated energy system consisting of interconnected loads and distributed energy resources which as an integrated system can operate in parallel with the grid or in an intentional island mode • Significance • Microgrids can deliver several value propositions including reduced cost, increased reliability & security, green power, service differentiation, and power system optimization.

11. Hawaii Natural Energy Institute • Established by the Hawaii Legislature in 1974 to assist the state in developing Hawaii’s renewable energy resources; • Research unit in the University of Hawaii’s School of Ocean and Earth Science and Technology; • Staff includes permanent faculty, scientific staff, post-doctoral fellows, graduate students, and administrative support (about 60 total); • Research programs: • Hydrogen – renewable hydrogen production; • Fuel Cells– testing, modeling, and development; • Ocean resources – seabed methane hydrates; • Photovoltaics – thin film solar cells; deployment and testing • Biomass and biotechnology – gaseous, liquid and solid fuels; • Renewable & distributed energy systems - deployment, demonstration, and integration

12. Hawaii –New Mexico Partnership Builds upon Existing Partnerships • 2000 – Hawaii Hydrogen Feasibility Study: id’d need for partnering • 2000 – HI Act 283: $250K to establish H2 Partnerships • 2001 – Hawaii Energy and Environmental Technology Initiative: ONR funding for fuel cells and methane hydrates • 2001 – Hawaii Gateway Energy Center focus put on distributed energy systems • 2002 – Hawaii Hydrogen Power Park: significant commercial cost-share • 2004 – Hawaii Hydrogen Center for Development and Deployment of Distributed Energy Technologies: expansion of partnerships beyond H2 and Fuel Cells • *2006 – Hawaii – New Mexico Sustainable Partnership for Energy Security: addresses grid issues • *2006 – Supplemental Funding for Section 355 EPAct 2005

13. Hawaii H2 Feasibility Study (2000) • Identified nearer term hydrogen opportunities • Proposed development of public-private partnerships

14. Hawaii Gateway Energy Center (HGEC) at NELHA • 2001 - Center given focus ; development of hydrogen and distributed energy systems • 2003 – HGEC construction begins; • Oct 2004 – HGEC facility dedicated; business partnering meeting to identify potential customers; • Aug 2005 – HNEI completes business plan for HGEC; • Mar 2006 – HNEI leases HGEC for testing of renewable and distributed energy technologies

15. Hawaii Hydrogen Power Park • Test bed for integration and validation of hydrogen generation, storage, and use in a real world environment • DOE/SEP project with HNEI as the implementing partner (02) • One-to-one cost share by partners (DBEDT, C&C, Stuart Energy, HECO, HELCO, Gas Company,UH) • Education and outreach opportunities • Integrated electrolyzer-storage-fuel cell system operated at HFCTF • Integrated wind-electrolysis system under construction at Kahua Ranch (1st Q 07 start-up) • DOE commits $800,000 for renewable H2 fueling facility at HGEC (3rd Q 06) • ‘Comfort’ letter from State H2 Capital Investment fund for one-to-one cost share • Negotiations with DOI for fueling of hydrogen powered shuttle buses

16. Hawaii Hydrogen Center for Development and Deployment of Distributed Energy Systems • Tasks include: • Hawaii Hydrogen Power Park • Effect of hydrogen fuel impurities on fuel cell performance • Renewable hydrogen production – solar and biomass • Renewable hydrogen partnerships • Heavily leveraged by cost shared: C&C of Honolulu, Hawaiian Electric Company, Gas Company, Clearfuels LLC., New Mexico Tech, MVSystems, Center for a Sustainable Future, PICHTR, GE Global Research Center • 2006 – Original DOE agreement amended to bring in GE GRC for “Hawaii Roadmapping Phase I – Assessment of Electric and Transportation Infrastructure”. Key building block for Hawaii-New Mexico Sustainable Partnership for Energy Security (akaHawaii Energy Resource Technologies for Energy Security)

17. Public-Private Partnerships Needed For Solving Critical Issues Facing Our Electricity System Electric System of the Future Environment Quality Grid Modernization Global Climate Change Energy Security Environment Quality None Of These Issues Can Be Resolved Without Partnerships

18. Hawaii Energy Resource Technologies for Energy Security • Continuation and expansion of HNEI activities to develop, demonstrate, and deploy technologies to facilitate penetration of Hawaii’s renewable resources into its energy systems • Three USDOE-funded tasks: • Hawaii (Big Island) Road-mapping – Assessment of Electrical and Transportation Infrastructure and Microgrid Applications • Research, Development and Testing of Critical DER and Microgrid Technologies at Hawaii Gateway Energy Center. • Development of Public Policy and Outreach to Accelerate DER/Microgrid Acceptance – support for Hawaii Energy Policy Forum • Partners include GE, HELCO/HECO, New Mexico Tech, DBEDT • Multiyear –multi-program goals include • Facilitate greater use of Hawaii’s indigenous renewable energy resources • Reduce the state’s dependence on fossil fuels • Support national as well as state goals – energy security, grid modernization, climate change, environmental quality

19. Task 1: Big Island Roadmapping – Assessment of Electrical and Transportation Infrastructure • Develop strategic energy roadmap to identify economically viable technology steps to transform Big Island energy infrastructure • Ties to national grid modernization programs • Identification at least three candidate sites on the Big Island for deployment of microgrid systems, leading to a site-specific conceptual design • Design will provide for systems integration – distributed energy resources, interconnection technologies, advanced monitoring and communications systems • Address site specific and stakeholder issues: institutional, operational, environmental, cultural, and societal • Work closely with partners: GE, DBEDT, HECO/HELCO

20. Task 2: RD&D, Testing, Evaluation, and Validation of DER Technologies • Build-out of Gateway Center for testing and evaluation of distributed energy systems • Identify and evaluate emerging technologies with industrial partners • Energy storage: flow batteries, ultra-capacitors • Hydrogen energy systems • Renewables: biomass, PV, wind • Deployment of technologies to address transmission congestion, peak demand, and renewable intermittency • First systems will be in place in early 2007

21. Task 3: Integrated Assessment and Policy Analysis • Partner with Hawaii Energy Policy Forum • Develop better mechanisms for linking RDD&D to state policy and regulatory initiatives • Allows for broad feedback on project activities • Provides mechanism for providing information to public officials for informed decision-making • Address economic impacts to state of petroleum dependency - Section 355 under Energy Policy Act • Funded by USDOE and DBEDT • Participants include: HEPF, NREL, UHERO, Chevron, Tesoro, FACTS

22. Basic Research & Development Collaborative Technology Development Integration Application Technology Commercialization National Laboratories Universities Industry R&D Suppliers Vendors End Users Linking R&D and Public Policy to Commercialization Process Institutional Issues Regulations Incentives Government

23. These Multi-Sector Activities Build Upon State Attributes and Needs Move toward greater utilization of state renewable resources for electricity generation • Incorporate new transportation systems and fuels – biofuels, plug-in hybrids • Focus on local energy solutions – incorporation of energy efficiency with renewable systems • New technologies for addressing peak demand • Address transmission and distribution issues through development of micro-grids

24. Our Sustainable and Economic Future: The “E”s are Linked • Environment • Energy • Economics • Equity • Education