Wednesday, September 02, 2015

David Ige's Energy Vision

For the second time this summer, Gov. David Ige shook up Hawaii's energy establishment when he announced Monday he is opposed to importing liquefied natural gas as a source of electric power.

That followed his statement last month that he won't support Florida-based NextEra Energy Inc.'s $4.3 billion proposed purchase of Hawaiian Electric Industries Inc.

In a nearly one-hour interview Friday with the Honolulu Star-Advertiser, Ige explained his reasons for the two potentially game-changing announcements.

Hawaii needs an electrical utility with a new business model to get the state to its goal of 100 percent electrical generation from renewable energy resources by 2045, Ige said.

"We are looking for a partner in the electric utility that really embraces 100 percent renewable and, I think, more importantly, changing the business model from the traditional electric utility to what would work in a fully distributed generation renewable future."

Ige, a former electrical engineer, envisions a future where the electrical utility doesn't generate power, but only distributes it. The power will be generated from renewable sources distributed throughout the community, such as the rooftops of Hawaii residents or solar farms developed by parties other than the state's utility.

The typical utility model Hawaiian Electric Co. grew up with has to retire along with the utility's fossil fuel plants, Ige said.

"I think the utility of the future that we would want to see supports 100 percent renewable. It is about distributed generation," he said.

That partner needs to share the state's renewable-energy vision, Ige said. It must embrace the idea that Hawaii is a test bed for renewable-energy research opportunities, help photovoltaic penetration as well as help the state get business and investment partners that will help build research and development.

"I'm not anti-HECO. I'm pro-partner," Ige said. "This environment, with the state setting aggressive policy, we would like to find a utility partner that wants to be part of that environment."

A utility that generates, distributes and sells electricity is not part of that vision. LNG is not part of that vision.

"I definitely would not support, at this point in time, LNG for electricity generation," Ige said, repeating his proclamation from Monday at the Asia Pacific Resilience Innovation Summits & Expo.

The statement caused a stir at the three-day conference on energy strategy. It was praised by environmentalists but criticized by those who argue LNG would serve the state well as a cheaper and cleaner alternative to the oil and coal currently used to generate 80 percent of the state's electricity. Supporters of LNG have said it can serve as a "bridge fuel" as the state shifts to renewable energy.

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