The 2020 Hawaii Energy Conference (HEC), postponed in March due to Covid-19, aired in July as a live-stream online event. One of the nation’s leading energy conferences, HEC brought together professionals on energy policy, strategies, leadership, and innovation to focus on how the energy sector should respond to the challenges imposed by the pandemic.
Presented by the Maui Economic Development Board (MEDB) and supported by the Mayor’s Office of Economic Development, the virtual conference explored the theme Imagining a Just Recovery: What would that look like for the Grid? The free event included industry experts discussing how the energy sector can and should respond to our current challenges by creating a ‘just’ electrical grid.
“With HEC going virtual, it attracted a bigger and broader audience than its traditional base of energy industry leaders from Hawaii, Continental U.S., Japan, and Europe,” said Leslie Wilkins, MEDB President and CEO. “The conference welcomed over 600 participants from 24 different states and Puerto Rico. An exciting feature this year was our international participation. Six countries joined us, spanning time zones from Europe to Asia.”
The program included four panels plus brief video presentations with information related to the theme. Hawaii Clean Power Alliance presented The Macroeconomics of Change and Ulupono Initiative’s video presentation was on Why We Should All be Talking More About Performance Based Regulation.
“The HEC provides a vital service to our state by convening policy-makers and stakeholders to discuss our energy future,” said Murray Clay, President of Ulupono Initiative. “As we all work together to help Hawaii stabilize and recover from the Covid-19 pandemic, it is especially important to embrace innovative technology, policies and regulation within the renewable energy sector, which will help protect our natural environment, shielding our island state from volatile world fossil fuel markets, strengthening its overall resilience, and aid in its economic recovery.”
Given the importance of these issues across the globe, HEC recognized that Covid-19 has laid bare the stark reality of pre-existing inequalities in society. The elderly, the poor, and minorities have suffered tremendously in the pandemic’s wake. An equitable or ‘just’ recovery is the only path forward to heal communities. Participants discussed what strategies policymakers and regulators will use to achieve results that benefit broad sectors of society. Also, how will utilities and companies in the energy sector contribute?
KEYNOTE: SCOTT SEU
Scott Seu President & CEO, Hawaiian Electric Company
In his keynote, Why Energy Equity Matters, Especially to the Electric Company, Scott Seu, President and CEO of Hawaiian Electric Company explained, “Fairly serving all customers is essential to how we run our programs and offer just and reasonable rates. As we transform our energy system to one that is decarbonized, decentralized, and more resilient, the elements of equity, opportunity, and participation are as important as any field source or technology for our successful transition to renewable energy. Working our way through this crisis, I challenge our Hawaiian Electric team to lead with empathy and to consider the level of anxiety and even hopelessness that a lot of people are experiencing.”
Seu continued, “It is not enough anymore to simply say we will all benefit from cleaner, cheaper renewables someday. The duration and the depth of our current economic downturn is unlike anything we have ever experienced; so someday is not soon enough. The leaders of Hawaiian Electric are looking at what bold strategies we can use to benefit the most people, the most quickly.”
Seu added, “The renewable energy transformation must include everyone. That is what equity looks like to me. Then, no one gets left behind. Working our way through this crisis, I have challenged myself and our team to think outside our traditional role of keeping the lights on; to be bold, creative, and come up with ideas, such as a community solar program, that will strengthen our economy; to be the better Hawaii we can all imagine.”
PANEL 1: COVID and the Commissions
This panel provided a comprehensive overview of how four state Commissions have been tackling the response to Covid in their jurisdiction.
MODERATOR: Jennifer Potter, Commissioner, Hawaii Public Utility Utilities Commission Clifford Rechtschaffen, Commissioner, California Public Utilities Commission Mark Kolesar, Former Chair, Alberta Public Utilities Commission Mark Thompson, Commissioner, Oregon Public Utility Commission
Commissioner Potter stated, “The Commissioners represent states that have displayed innovation in their approach to keeping the utility services intact, addressing affordability during the pandemic, and strategies to evolve the regulatory stakeholder processes to accommodate remote participation. The HEC has regrouped at a critical time for Hawaii and our country. The incredible macroeconomic stress and individual financial burdens across our nation mean that there is no better time to have dialogue on affordability and equity. Building a recovery plan that includes all socioeconomic groups is imperative.”
Commissioner Rechtschaffen commented, “California signed a Memorandum of Understanding with five other states and Hawaii to fight climate change. We look forward to proceeding with these joint efforts. We have all been dealing with serious challenges since millions of people are out of work. In California, our immediate focus when the virus hit was to make emergency measures for residential and small business customers, including a moratorium on disconnections and mandatory payment plan options. We have also worked to expand our bill-payer subsidy program for our low-income customers. We have mandated that utilities engage in extended outreach and have prevented them from removing people from any programs.”
Rechtschaffen continued, “Covid-19 is a call to address equity in all our programs as we go forward. It has also affected the utilities in incredibly significant ways. The under-collections will be in the millions. How can we recover the lost costs? Also, our Commission has had to advance in online technology, having to use virtual for all meetings. Public participation and workshops are virtual. We have had webinars with 400-500 people participating, and are engaged with transparency in the community.”
Former Chair Kolesar observed, “Alberta is a complex market and regulatory regime. Since 1996, Alberta has operated Canada’s only truly competitive wholesale electricity market through which all electricity, whether generated in Alberta or imported into the province, is bought, and sold. We as a province have low oil prices, which has an economic impact. So, what we have is a decline in demand. Wind and solar came on when the pandemic hit.”
Kolesar continued, “The utilities are supporting their own customers by providing opportunities for them to change the way they pay their bills. It became pretty clear that the utilities do have an incentive to keep as many customers on and support them. On the large industrial and commercial side there was a lot of concern about the lack of short-term rate relief. I think that most of that centered around demand changes. If a business has to stay open with no revenue—that is a big concern, not yet resolved.”
Kolesar added, “Long term, there will be a significant revenue short-fall for a lot of the utilities here. I do not know how big that currently is, but it is a major and complex issue. There are a lot of questions around reduction in demand, revenues and costs incurred. For example, how do the utilities recover, and how much is there to recover?”
Commissioner Thompson expressed, “In the midst of other important events, the scope of our efforts is also to remodel social equity issues. We changed late fees to make the procedure easier, more inclusive, and efficient for customers to follow than in the past. We have created an internal group to reach out to stakeholders and social justice organizations with the goal to work holistically on these issues as we try to be responsive to their needs. We have had public meetings and workshops with different groups, and I can say that the scope of the work is that everything is on the table with a list of ideas to bring relief to all the stakeholders.”
Thompson concluded, “As a new Commissioner I have felt that this is the most meaningful work because the issues are key and the need is great. The way forward is not yet clear, but it is a chance to do good for all parties involved in a situation that is serious.”
PANEL 2: Solar Jobs—Being Part of the Solution?
This panel discussed how jobs in solar and other parts of the clean energy sector can contribute to a ‘Just Recovery’.
Moderated by Will Giese, Executive Director, Hawaii Solar Energy Association Scott Glenn, Chief Energy Officer, Hawaii State Energy Office Dawn Lippert, CEO, Elemental Excelerator Odette Mucha, Regulatory Director, Southeast, Vote Solar
Giese commented, “The Hawaii Solar Energy Association represents about 90 percent of the local solar contracting development in Hawaii. Across the world, Covid has shocked the system. In Hawaii, where our economy is primarily based on tourism, it is just not happening now, and we are seeing the impacts of it. I have been thinking about what Hawaii will look like in the next year or two. If we build an economy based on clean-energy jobs, what are the steps that we have to take to get there? Additionally, what steps do we need to take to get to the economy that we would all like to see? A good equity question is how do you get involved in a new industry and get the jobs into the community?”
Lippert observed, “I think large structural change is a really important piece of it. To recognize, as we talk about equity in particular, that equity does not lift everyone in the same way. Some people will have to give something up and experience loss as the result of having more equitable policies. Currently we have agreed on new energy and climate change goals, and we agreed that it is technically feasible to get there. I think now there is a general agreement about equity, but where the tradeoffs actually happen and what they look like is a much more difficult conversation. Some of the work we are trying to do is bring in those voices to think about how we can actually make those tradeoffs.”
Lippert continued, “The innovation ecosystem is really strong. The first quarter of 2020 there has been a lot of movement from climate innovators. There are a lot of question marks as Covid-19 came into play, as to what would happen to the innovation ecosystem. However, we see in the last couple of weeks, more is coming back into play with a lot of interest from funders in the climate and energy technology. The interest from youth and new talent coming from other fields into climate- and energy-related jobs is amazing. This year alone, for an internship that we opened, there were 350 applicants, most of which are from Hawaii, with much interest to work in solving climate problems. So, innovation is really strong. We need internships, fellowships, and different programs in strong industries such as energy, water, and regenerative agriculture to move forward. These are all needed because of the huge amount of interest.”
Lippert added, “In the future we have to get much more flexible on how we think of Hawaii’s place in the global economy. We are thinking about it from the innovation perspective. We can have Hawaii residents work here. We have an enormous opportunity right now to think differently about how to bring in talent, entrepreneurs, innovators, board members, and technical folks, to Hawaii from the technology and other industries. We are thinking about the Kama’aina Come HomeTM program in a completely different way. On the flip side, it is also much easier to access capital and talent from Hawaii then it ever has been before. We are actively doing business with Asia and all over the mainland where most of the funding for Elemental Excelerator comes from. It has been a benefit to be virtual because everyone is able to connect to Hawaii.”
Lippert concluded, “We see a lot of potential to work with universities and research institutions. We are seeing that beyond the Hawaii energy sector, we have a huge amount of agriculture innovation. That is where we see the university and academic institutions be the most active. There is certainly always more that we can do, specifically around having university and academic innovation spin out into the community. This is a good time to think about how to use that opportunity for our state.”
Glenn shared, “One of the things to start thinking about in the next one or two years is structural change. It often takes a long time to really manifest. You might make a change in one or two years before people realize what has happened. The way the Energy Office has been thinking about this and engaging with others is, what can we do in the next one to two years that can get people back to work? What are the kinds of more intermediary things and what are the longer-term things that we need to start doing now to get the payoff in five years or ten years? Focusing on this, the Department of Economic Development and Tourism is pending a state budget to rollout an internship program to bring on folks that are high school and college graduates, or displaced workers from the tourism industry, who are looking to have an earn-while-you-learn experience. Clean energy is first and foremost, but we are also looking at food production and agriculture and how we can get folks into these industries. What comes after this program when the Cares Act money is finished? What can we work on now so that we can provide real job pathways for people who were in tourism? We are hoping for internships with a clean-energy company to get some experience─ and then once the Cares Act program wraps up, have an opportunity to use that experience in a new path.”
Glen added, “We are looking at the labor suppliers, the colleges, the unions, and the different programs they are producing with needed skills for the projects that are coming over the next four to five years. Can we help with skill and labor supply matching? There is a lot in the works that will be coming up in the next few months. We need to figure out how to deal with Covid-19 and position ourselves to do something once we are able to move forward.”
Glen concluded, “Reflecting on what was already said by other conference guests about a new clean-energy efficiency economy, there is universal agreement so far that equity matters for decision and policy- makers. Common thought is that we do need to achieve our 100-percent Renewable Energy Portfolio Standard goals. It is how we get there and how we ensure that the benefits and the impacts of achieving these goals are equally distributed so that everyone has the opportunity to take advantage of it. No community should be overburdened with the impacts of this transition. We need to think, as decision- and policy-makers, what are those impacts and who benefits, and who is affected? I think we are now seeing that people are actively exploring these questions. We have groups that are having these conversations about how do we pursue a transformation of Hawaii with these big lofty goals, but in a way that is more equitable and grounded in a real community grass-roots level of support. These kinds of conversations are really important. Having business and community leaders at this conference is a way to have this conversation together.”
Mucha expressed, “Vote Solar has been engaged at the state level on the Covid-19 crisis and how to deal with the energy efficiency solutions now needed. In the long term, how do we get people back to work? I would challenge everyone to think about where we want to go in the future and how we invest today to get there. Another thought is, how do we bring equity to the forefront of the conversation to get people back to work and make sure the people get it who need it the most? How do we reduce the energy burden, if we think about equity, to make the future brighter for everyone?”
Mucha concluded, “In so many ways, Hawaii is leading when it comes to solar and when it comes to grid modernization. Plus, a long term energy project can actually develop new jobs and opportunities that could bring more people to Hawaii.”
Giese reflected, “It is an interesting and tough time for all of us, but it is encouraging to see people working to maintain and accelerate the goals that we have in a time when it is hard to think about what is coming tomorrow or next week. It is exciting to see how the state will deal with building a sustainable renewable economy.”
PANEL 3: Develop With Us, Not For Us
This panel welcomed both policy and pragmatic perspectives centered on how to design and develop with, and not just for, communities. Panelists discussed how societal harms exacerbated by ill-informed energy development can be remedied through co-creative clean-energy design.
Moderated by: Rachel James, Attorney, Hawaii Public Utilities Commission Ali Andrews, Co-Founder and CEO of Shake Energy Collaborative Alvaro Sanchez, Director, Environmental Equity, Greenlining Institute
James commented, “At Hawaii Public Utilities, we work with investors contributing to electrification, who want to find partners in communities to advance those goals. We connect them, and help the community group design the project, and work with the utility to make a business plan. We are trying to make a policy package that works for everyone, to be inclusive to address the inequities in our society.”
James continued, “We must articulate the specific actions that the institution and its layers are going to commit to do over the course of the future to be able to address the inequities that happen in the bureaucracy system, so we are focusing a lot of our time on providing guidance and recommendations. For example, what are the specific things that you need to do in your planning processes, evaluation, and analysis to advance equity processes? We need to work with equity at the core, it has to be the approach; it has to be front and center.”
Andrews expressed, “We are now required to think deeply about engaging in communities. As a new developer, I am learning so much coming into partnerships with communities in disadvantaged neighborhoods. I am working with communities to see what they need to better inform the utility in terms of what they want developers to do. We need to develop with communities and not just for them.”
Andrews continued, “Financial and emotional ownership over the project is key. We are doing research to try to understand how we are successful or not in creating that sense of emotional ownership. Looking at shortcomings of residential solar policies and the cost, we should look more towards community scale projects, sharing, and co-ownership and build a shared project that fits the community.”
Sanchez emphasized, “I not only want a more green and cleaner future, I also want a more just and equitable one. For us, community is the ecosystem that is responsible for making a better world possible. We need to hear from them, learn their perspectives, and recognize their priorities. We must listen to the community to get a better understanding of their needs before planning. The government agencies, the utility, the business groups, the businesses all play a different role in the way that projects take place in community. Everyone has something to contribute. For us, the community is the most impacted, and they have the most at stake in whether or not the projects are going to be successful.”
Sanchez continued, “A lot of the focus in my work is on this and I think right now we are seeing the issues more pronounced. Covid-19 demonstrated all the inequities that are built into our system, showing that there is something at the root that creates disproportionate impacts for some populations versus others. Greenlining Institute has been focusing on the impacts. Race has always been an influence in who is successful and who is not in this country. That is really something that we need to understand when we are coming into communities with a fresh new perspective and a new project. That entire legacy cannot be undone immediately, but I think it is important for us to understand that people are struggling every day. We need to be open to what we propose.”
Sanchez concluded, “We need to do equity, but we have to understand where those communities are coming from in order for our message to be heard. Equity for me is not just about doing something better for me moving forward, it is about acknowledging the past, understanding the current conditions, and intentionally addressing those impacts. That to me is the equity that we have to implement in the work that we do in clean energy projects.”
PANEL 4: Leadership Toward a Just Grid
This panel discussed emerging efforts aimed at bending the arc toward vulnerable populations now, not as a last resort. The discussion was on the big opportunities that can arise from big issues. For example, how can we use the pain from the last few months to create a grid that works for more of society?
Moderated by: Jonathan Koehn, Chief Sustainability and Resilience Officer, City of Boulder Carlos Martin, Senior Fellow, The Urban Institute Destenie Nock, Assistant Professor of Engineering and Public Policy, Carnegie Mellon University Kathryn Wright, Program Director, Building Energy, Urban Sustainability Directors Network
Koehn commented, “The clear message from today’s energy session is that to reach our clean-energy goals we really have to build and support solutions that truly include everyone. If nothing else, for me, 2020 has been a year of regaining perspective. There is a silver lining in times like these that makes us think of what matters most to us. I heard a determination today not to go back to normal because, even with the energy opportunities emerging, many are being left out. I have thought about the need to design a socially equitable and resilient energy system, and to have an economy that is built to last, and to fix inequities in our system.”
Wright pointed out, “Urban Sustainability has about 200 cities and counties across the U.S. and Canada including four in Hawaii, which are all working on the climate energy transition. Some of our research involves how Covid-19 is making the inequities in the energy system worse. One thing we have discovered is the relationship with energy burden, meaning how much of a household income goes towards paying utility bills? Currently, research shows that many people do not have emergency funds─ which is creating a lot of financial distress. In extreme heat season we are now seeing residential use has gone up for energy demand now that people are sheltering in place at home. There are additional energy burdens by communities already experiencing inequity. We are facing an intense challenge here. Some of our members are trying to attack this problem because they realize that even with the support that has been given towards moratoriums and disconnections, it simply is not enough to help people get through the process of sheltering in place, especially during extreme heat. This presents unique challenges that we are facing with the issues in our system.”
Wright continued, “In our equity research across the country, as well as in decarbonization, we learned it is especially important to put community at the very beginning of the process. Through our Zero Cities Project, a program supporting both cities and their most impacted communities to co-develop and implement actionable and equitable roadmaps and policy strategies to achieve zero net carbon, the building sector has spent a lot of time on what it means to transform a city environment. They are making sure that a lot of the neighborhood-based organizations and residences understand what the core issues are, so that they are able to prioritize. This plan gives the city responsive policy-making. I would say that any new policy has to start with community at the beginning and it involves a level of power-sharing and power-shifting that has not been a tradition of policy-making before in community engagement processes.”
Martin observed, “Community involvement is key no matter who the stakeholder is. The reality is that the utility burden is increasing in households today in the United States. Housing and residential segregation is something we also need to discuss. I measure inequity by housing situations, especially in energy performance. We need to look at all the inadequate housing in this country as problems we need to deal with.”
Martin added, “In my research, I look at the current state of measuring equity. It is about what the outcome is supposed to be and then how you align everything towards that process. Everything needs to be included: social aspects, social equity, and overall jobs. We look at different dimensions, understanding the historical legacies of disparities, and at energy jobs and energy options for long-term social economic outcome and equity.”
Nock asserted, “Thinking about energy burden, some of the people will not be able to take advantage of the programs offered. I am thinking as we are transitioning energy on the grid, the most important thing is not to have the energy burden increased as people are shifting to solar and wind. If they are jumping on and off the grid at a residential level somebody still has to pay for the reliability. The pole and wire prices do not change no matter how much electricity is used. Somebody still has to pay for them. We want to make sure that we are not transferring that burden of paying for the infrastructure side only to those who do not have the ability to jump off the grid.”
Nock continued, “I have been seeing inequities in my research on how our dependence on energy trickles down to the health impact of people. Communities are likely to live near power plants because land is cheaper, they are also less likely to adopt solar technologies because a lot are renter populations. People in high rise apartment structures also have limitations on the access to real solar technology so there are a lot of inequities there. Then we also have job inequities. In my group, we are talking about how we can make sure communities have access to jobs so that, when we are moving forward in energy transition, there is more access to renewable technologies, jobs, and solutions. Housing and quality of housing are key, and segregation patterns add yet another dimension into the picture.”
Nock reflected, “My work is focused on tradeoff analysis. One of the things we like to think about is what are the tradeoffs for different investments. Part of that is going into the community and talking to the stakeholders about what they want at the end of the day. There are always going to be tradeoffs, so we have to focus on a single best solution that is going to solve all of the problems. We have to have a deep understanding about stakeholder objectives and what we will agree or disagree on. This will help us understand the winners and losers of energy transition, and plan for the challenges that might arise, which will help the transition go more smoothly. With tradeoffs, you have to think about who are the winners and losers. We want policies that enable communities to develop local renewable energy generation and energy efficiency programs that help produce healthier neighborhoods, reduce the energy burden, and create good jobs for the local economy.”
CONCLUSION
The Hawaii Energy Conference serves to exchange ideas on how to better serve customers in a rapidly changing energy environment and discuss strategic developments in the policy, business, and technology of energy. This year’s conference focused on imagining a just and equitable recovery in the midst of a world changing event such as COVID-19. This unique opportinuity to hear from industry leaders and innovators attracted keen interest nationally and internationally. Attendees were able to network with each other through a conference browser app, and to access resources provided by sponsors through the virtual Exhibit Hall and digital swag bag.
Thank you to participating sponsors: Hawaii Clean Power Alliance, Hawaii Natural Energy Institute (HNEI), Ulupono Initiative, Hawaii Energy, Hawaiian Electric, Powin Energy, Progression Energy, 174 Power Global, Burns & McDonnell, Dudek, Elemental Accelerator, Greenlots, Kauai Island Utility Cooperative, OpusOne Solutions, Par Hawaii.
IMAGINING A JUST RECOVERY. WHAT WOULD THAT LOOK LIKE FOR THE GRID?
On July 30th the Hawaii Energy Conference went virtual for a robust discussion of how the energy sector can and should respond to our current challenges by creating a “just” electrical grid.
The Hawaii Energy Conference understands our energy systems do not exist in a vacuum. COVID-19 has laid bare the stark reality of pre-existing inequalities in our society. The elderly, the poor, and minorities have suffered tremendously in the pandemic’s wake. Peaceful, sometimes violent, forms of protest make it painfully evident that an equitable or just recovery is the only path forward to heal our communities.
Not everything is bad news. The planet experienced an unexpected respite from air pollution, and a slowdown in carbon loading to the atmosphere. But the lessened impact to our ecosystem came at an extraordinary economic cost. As we move forward, what strategies will policy makers and regulators use to achieve results that benefit broad swaths of society? How will utilities and companies in the energy sector contribute?
Download the 2020 Virtual Program
Video Replays
Program at a Glance
E KOMO MAI (Welcome)
FEATURED PRESENTATION | Why Energy Matters… Especially to the Electric Company | Scott Seu, President and CEO, Hawaiian Electric Company
PANEL | COVID and the Commissions | Moderated by Jennifer Potter, Commissioner, Hawaii Public Utilities Commission
THE MACROECONOMICS OF CHANGE | Presented by Hawaii Clean Power Alliance
PANEL | Solar Jobs – Being Part of the Solution | Moderated by Will Giese, Executive Director, Hawaii Solar Energy Association
WHY WE SHOULD ALL BE TALKING MORE ABOUT PERFORMANCE BASED REGULATION | Presented by Ulupono Initiative
PANEL | Develop With Us, Not For Us | Moderated by Rachel James, Attorney, Hawaii Public Utilities Commission
PANEL | Leadership Toward a Just Grid | Moderated by Jonathan Koehn, Chief Sustainability & Resilience Officer, City of Boulder
CLOSING
Meet the 2020 Program Committee
Caroline Carl | Deputy Director, Hawaii Energy Colton Ching | Senior Vice President, Planning & Technology, Hawaiian Electric Frank De Rego Jr. | Vice Chair, Conference Program Committee; Director of Business Development Projects, Maui Economic Development Board, Inc. Alex De Roode | Energy Commissioner, Office of Economic Development County of Maui William Giese | Executive Director, Hawaii Solar Energy Association Jonathan Koehn | Chief Sustainability & Resilience Officer, City of Boulder Doug McLeod | Chair, Conference Program Committee; Member, DKK Energy Services, LLC Jennifer Potter | Commissioner, Hawaii Public Utilities Commission Tricia Rohlfing | Vice President of Finance, Hawaii Pacific Solar
The 2020 Hawaii Energy Conference airs this week with the live streaming of the three-hour event on July 30. Postponed in March due to COVID-19, the free event starts at 9am HST and will feature industry experts discussing how the energy sector can and should respond to our current challenges by creating a “just” electrical grid.
Addressing the theme, ‘Imagining a Just Recovery. What would that look like for the grid?’ keynotes and panel discussions will answer the questions — What strategies will policy makers and regulators use to achieve results that benefit broad swaths of society? How will utilities and companies in the energy sector contribute?
Jennifer Potter Commissioner, Hawaii Public Utilities Commission
“The Hawaii Energy Conference has regrouped at a critical time for Hawaii and our country,” said Jennifer Potter, Commissioner with the Hawaii Public Utilities Commission and member of the conference program committee. “The incredible macroeconomic stress and individual financial burdens are reverberating across our nation and there is no greater time to have meaningful dialogue on affordability and equity. Building a recovery plan that is inclusive of all socioeconomic groups is imperative.”
Scott Seu, the President and CEO of Hawaiian Electric, will open the live stream conference with a Keynote titled “Why Energy Equity Matters… Especially to the Electric Company.”
The program includes four panels plus brief video presentations with important information related to the theme. Hawaii Clean Power Alliance will present “The Macroconomics of Change” and Ulupono Initiative’s video presentation will be on “Why We Should All be Talking More About Performance Based Regulation.”
Murray Clay President, Ulupono Initiative
“The Hawaii Energy Conference provides a vital service to our state by convening policymakers and stakeholders to discuss our energy future,” said Murray Clay, President of Ulupono Initiative. “As we all work together to help Hawaii stabilize and recover from the COVID-19 pandemic, it is especially important to embrace innovative technology, policies and regulation within the renewable energy sector, which will help protect our natural environment, shielding our island state from volatile world fossil fuel markets, strengthening its overall resilience, and aid in its economic recovery.”
The panel “COVID and the Commissions” will provide a comprehensive overview of how four state Commissions have been tackling the response to COVID in their jurisdictions. Moderator of this panel, Jennifer Potter, explained, “The Commissioners represent states that have displayed innovation in their approach to keeping the utility services intact, addressing affordability during the pandemic, and strategies to evolve the regulatory stakeholder processes to accommodate remote participation.”
The other three panels are:
Solar Jobs – Being Part of the Solution? — The Executive Director of the Hawaii Solar Energy Association leads a discussion of how jobs in solar and other parts of the “clean” energy sector can contribute to a Just Recovery.
Develop With Us, Not For Us — This panel will welcome both policy and pragmatic perspectives centered on how to design and develop WITH and not just FOR communities. Panelists will discuss how societal harms exacerbated by ill-informed energy development can be remedied through co-creative clean energy design.
Leadership Toward a Just Grid — As we embark on the path to “build back better” following the pandemic, our energy systems should be designed with resilience in ways that ensure equity. This panel will discuss emerging efforts aimed at bending the arc towards vulnerable populations now, not as a last resort.
The Hawaii Energy Conference, presented by Maui Economic Development Board (MEDB) and supported by the County of Maui Office of Economic Development, serves to exchange ideas on how to better serve customers in the Islands’ rapidly changing energy environment. Attendees will be able to network with each other through a conference browser app as well as access resources provided by sponsors through the virtual Exhibit Hall and digital swag bag.
Participating sponsors are: Hawaii Clean Power Alliance, Hawaii Natural Energy Institute (HNEI), Ulupono Initiative, Hawaii Energy, Hawaiian Electric, Powin Energy, Progression Energy, 174 Power Global, Burns & McDonnell, Dudek, Elemental Accelerator, Greenlots, Kauai Island Utility Cooperative, OpusOne Solutions, Par Hawaii.
This unique opportunity to hear from industry leaders and innovators has attracted keen interest nationally and internationally. For information on how to register for this free, virtual event and other details, go to https://hawaiienergyconference.com
A new date, a new program and an online venue has been set for the 2020 Hawaii Energy Conference. Presented by Maui Economic Development Board (MEDB) and supported by the County of Maui Office of Economic Development, the live stream presentation will explore the theme “Imagining a Just Recovery. What would that look like for the grid?”
Scott Seu, President & CEO, Hawaiian Electric Company will open the discussion on July 30.
The in-person event was postponed mid-March, just one week before the scheduled date, due to the escalating risks and ongoing uncertainty surround COVID-19. Alternative presentation methods were explored to continue the important discussions around equity and energy in 2020.
The Hawaii Energy Conference understands our energy systems do not exist in a vacuum. COVID-19 has laid bare the stark reality of pre-existing inequalities in our society. The elderly, the poor, and minorities have suffered tremendously in the pandemic’s wake. Peaceful, sometimes violent, forms of protest make it painfully evident that an equitable or just recovery is the only path forward to heal our communities.
Not everything is bad news. The planet experienced an unexpected respite from air pollution, and a slowdown in carbon loading to the atmosphere. But the lessened impact to our ecosystem came at an extraordinary economic cost. As we move forward, what strategies will policy makers and regulators use to achieve results that benefit broad swaths of society? How will utilities and companies in the energy sector contribute?
“This Program is a free three-hour event designed to give a sample of what the discussion is like at the leading energy conference in Hawaii,” said Doug McLeod, Conference Chair. “Scott Seu, the new President and CEO of Hawaiian Electric will begin the live stream discussion at 9am HST. Those joining us will hear what he and the other speakers have to say as part of our discussion of a Just Recovery.”
Commissioners from four states will engage in a live discussion on how the pandemic has changed the priorities for Public Utility regulation across the West. Hawaii PUC Commissioner, Jennifer Potter, will moderate the discussion with Clifford Rechtschaffen (California), Mark Kolesar (Alberta) and Mark Thompson (Oregon).
The Executive Director of the Hawaii Solar Energy Association, Will Giese, will lead another panel discussion on how jobs in solar and other parts of the “clean“ energy sector can contribute to a Just Recovery.
Rachel James, Attorney with the Hawaii PUC, will lead a panel titled “Develop with Us, Not for Us.” This panel will welcome both policy and pragmatic perspectives centered on how to design and develop WITH and not just FOR communities. Panelists will discuss how societal harms exacerbated by ill-informed energy development can be remedied through co-creative clean energy design.
The final panel will explore “Leadership towards a Just Grid”. Jonathan Koehn, Chief Sustainability and Resilience Officer for the City of Boulder will lead a discussion on the big opportunities that can arise from big issues. How can we use the pain from the last few months to create a grid that works for more of society?
With the Hawaii Energy Conference going virtual it is anticipated to attract a bigger and broader audience than its traditional base of energy industry leaders from Hawai’i, Continental US, Japan and Europe. The conference serves to exchange ideas on how to better serve customers in the Islands’ rapidly changing energy environment.
Recognizing the importance of these issues across the globe, and as a Mahalo (Thank you) for all those who have supported the Conference in the past, admission for this three-hour event will be FREE. This is a unique opportunity to hear from a industry leader and innovators.
The 7th Hawaii Energy Conference, presented by Maui Economic Development Board (MEDB) and supported by the County of Maui Office of Economic Development, has been rescheduled and will be a live stream event.
Imagining a Just Recovery. What would that look like for the grid?
Please join us online on July 30 for a robust discussion of how the energy sector can and should respond to our current challenges by creating a “just” electrical grid.
The Hawaiʻi Energy Conference understands our energy systems do not exist in a vacuum. COVID-19 has laid bare the stark reality of pre-existing inequalities in our society. The elderly, the poor, and minorities have suffered tremendously in the pandemic’s wake. Peaceful, sometimes violent, forms of protest make it painfully evident that an equitable or just recovery is the only path forward to heal our communities.
Not everything is bad news. The planet experienced an unexpected respite from air pollution, and a slowdown in carbon loading to the atmosphere. But the lessened impact to our ecosystem came at an extraordinary economic cost. As we move forward, what strategies will policy makers and regulators use to achieve results that benefit broad swaths of society? How will utilities and companies in the energy sector contribute?
Recognizing the importance of these issues across the globe, and as a Mahalo (Thank you) for all those who have supported the Conference in the past, admission for this three-hour event will be FREE.
Details of speakers and registration for the live stream Hawaii Energy Conference coming soon.
With the ongoing uncertainty surrounding COVID-19 and the escalating risks, the decision has been made to postpone the 7th Annual Hawaii Energy Conference. Presented by Maui Economic Development Board (MEDB) and supported by the County of Maui Office of Economic Development, the Hawaii Energy Conference was scheduled for next week, March 18 and 19 at the Maui Arts and Cultural Center.
The conference team had been closely monitoring the main advisories from national, state and local sources as well as input from our major stakeholders. The concerns of speakers and attendees, both local and travelling (from Continental USA, Canada and Australia), were all taken into consideration.
“Our highest priority is the health and well being of our community and conference attendees and we believe postponing is the best option.”said Leslie Wilkins, President and CEO of MEDB. “We express our thanks to the hard work of the Program Committee in putting together the conference and appreciate the speakers who were committed to coming to Maui to join in the important discussions around electrification and equity.”
The program was to explore the timely topics of beneficial electrification and the design of an equitable energy transition.
A new date will not be set until more is known about the impact of the virus on Hawaii.
Rachel Huang, Director of Energy Strategy, Research and Development for Sacramento Municipal Utility District (SMUD), will be the keynote speaker at the 2020 Hawaii Energy Conference
The Director of Energy Strategy, Research and Development for Sacramento Municipal Utility District (SMUD), Rachel Huang, will be the Keynote speaker for the 7th Annual Hawaii Energy Conference (HEC) on Day 1. Presented by Maui Economic Development Board (MEDB), the two-day conference is on March 18 & 19 at the Maui Arts and Cultural Center.
The HEC will take a deep dive into how electrification can be “beneficial” and what is required to design an equitable energy transition. SMUD, a nonprofit power company, is on the forward edge of power-grid technology, successfully integrating distributed renewable-energy resources into its energy mix.
In her role at SMUD, Huang oversees the development of strategy for new business models, demonstrations, and evolution of utility functions in the face of an increasingly distributed energy future. Her responsibilities include the development of the strategic roadmap for distributed energy resources, the research and demonstration of innovative and emerging technologies, and the coordination of their execution across the enterprise.
Jennifer Potter, member of the Hawaiʻi Public Utilities Commission, observed, “Rachel Haung hired me at SMUD 10 years ago as a demand side specialist. Under her leadership, I developed a deep understanding of what it means to provide outstanding service our community thorough programs and services developed for every customer, in every sector. She is a beacon of light for our industry.”
Huang also serves on the board for the Consortium for Energy Efficiency (CEE) and represents Region 6 on the American Public Power Association’s Demonstration of Energy & Efficiency Development (DEED) Program Board.
“For more than a decade, Rachel Haung has been a thought leader for customer focused programs and services,” remarked Frank De Rego Jr, Vice Chair of the Conference and MEDB’s Director of Business Development Projects. “She has led numerous teams at SMUD that have developed innovative solutions that streamline interconnection practices for DERs (Distributed Energy Resources), advanced programs that provide services to underserved communities, and effectuated SMUD’s research and development DER activities.”
The 2019 MOU signing between California and Hawaii committing to 100-percent clean-energy goals. L to R: James Griffin, Chairman Hawaii PUC; Michael Picker, President California PUC
The HEC program will also feature a signing of a Memorandum of Understanding (MOU) with California on climate change. “Hawaii will be the sixth state to join the Western Public Utility Commissions’ (PUC) Joint Action Framework on Climate Change,” said Potter. The MOU affirms a commitment to ensure that investor-owned utilities operate in a manner that protects human health and safety, the environment, and ratepayers from risks related to carbon pollution.
Clifford Rechtschaffen, Commissioner California PUC
James Griffin, Chairman of the Hawaii PUC will be joined on stage by Clifford Rechtschaffen, Commissioner for the California PUC, for the formal signing of the MOU. Rechtschaffen will also speak on a panel titled ‘Catching up with the Commission. Hawaii PUC Initiatives such as Performance Based Regulation.’ Moderated by Potter, the other two panelists will be Cara Goldenberg of the Rocky Mountain Institute and Mark Kolesar, Chair of the Alberta PUC.
Other confirmed speakers on the program include: Governor David Ige; Scott Seu, President of Hawaiian Electric; Jenna Tatum, Director, Building Electrification Initiative; Nate Hix, Founder, Living Wage Hawaii; Nicole Velasco, NORESCO and Murray Clay of Ulupono Initative.
Panels on electrification will answer the questions — What are the benefits, challenges, and practical limits of electrification? Given the wildfire issues affecting the West, will there be the same access to electricity for those who cannot afford microgrids or DERs? Can an electrified system be more resilient and efficient? What are the alternatives to electrification?
Regarding equity, panels will explore what does an equitable energy transition look like? How can we break through economic, cultural and linguistic barriers to ensure that we have an energy system that works for everyone? Where should we invest and put equity into equity? Is it possible to create a transition that respects local cultures, is socially just, and protects our most vulnerable?
“I enjoy the lively debates among panelists,” said Tricia Rohlfing, 2020 HEC Program Committee member and Vice President of Finance at Hawaii Pacific Solar. “I can recall one particular panel discussing the future of battery storage where panelists had very different takes on how that might look. Those differing opinions are important for everyone to hear and contemplate, especially those setting policy.”
The conference consistently attracts energy industry leaders from Hawai’i, Continental US, Japan and Europe to exchange ideas on how to better serve customers in the Islands’ rapidly changing energy environment. Participants can take advantage of the ample networking time and have access to the leading experts in the state.
The Hawaii Energy Conference is supported by the County of Maui Office of Economic Development and Sponsors: Hawaii Clean Power Alliance, Hawaii Natural Energy Institute and Ulupono Initiative; Hawaii Energy; Hawaii State Energy Office; Hawaiian Electric, Johnson Controls, Powin Energy; 174 Power Global; Burns & McDonnell; Carbon Lighthouse; Kauai Island Utility Cooperative, Opus One Solutions and Society of Petroleum Engineers.
Scott Seu, President and CEO of Hawaiian Electric, will speak on Day 2 at the 2020 Hawaii Energy Conference
Scott Seu, the new President and CEO of Hawaiian Electric Company, will be the featured speaker at the Hawaii Energy Conference on March 19, 2020. The conference will take a deep dive into how electrification can be “beneficial” and what is required to design an equitable energy transition.
In a “Conversation with Scott Seu,” he will share his views on the direction of Hawaiian Electric – including how the company will effectively modernize the electrical grid to meet the state’s 100% renewable energy portfolio standards by 2045 and the outreach necessary to balance the needs of a diverse customer base, particularly the most vulnerable in our community.
Outgoing president Alan Oshima remarked on the transition in leadership in a recent statement by Hawaiian Electric, “We have the plans in place to significantly reduce greenhouse gas emissions and our use of fossil fuels over the next decade and with his unique experience in operations and working with the community, I know Scott is the right person to get it done. This leadership transition ensures that our pace continues accelerating toward our clean energy goals.”
Seu has also helped lead the company’s resilience initiatives, focusing on community awareness and building stronger relationships with key public and private stakeholders. Hawaiian Electric was named “Utility of the Year” for 2019 by Utility Dive, a leading energy industry publication.
“Growing up in Hawaii and in the company, I feel a profound sense of duty to help chart the course for our future generations,” Seu said. “This is a critical time in our state’s clean energy transformation and as I talk to people it’s clear that there are many different visions of the best way forward. That means our work isn’t just about technology, but about pulling together as a community to collaborate and understand the choices we can make. I am humbled and honored to serve our community, our customers, and our employees as the next leader of Hawaiian Electric.”
Presented by Maui Economic Development Board in collaboration with the County of Maui Office of Economic Development, the 7th Annual Hawaii Energy Conference will explore the theme “Electrification and Equity.” The program includes keynote speakers, panel discussions and case studies.
Panel topics include:
Defining Beneficial Electrification. What Would an Equitable Energy System Look Like?
Who Benefits from Beneficial Electrification? Making It Real for Renters
Resilience – How to Apply Principles of Equity
Moving Beyond “Cost-Benefit” And Valuing Non-Monetary Benefits
Project Siting for Utility Scale Projects – How Can We Meet Demands for Just and Equitable Impacts?
Inclusive Efficiency. How To Benefit Different Groups
The conference consistently attracts energy industry leaders from Hawai’i, Continental US, Japan and Europe to exchange ideas on how to better serve customers in the Islands’ rapidly changing energy environment. Participants can take advantage of the ample networking time and have access to the leading experts in the state.
Early Bird rates for the Conference expire on January 31, 2019. This is a unique opportunity to hear from an industry leader and innovator.
Energy industry leaders participated in a panel at the 2019 Hawaii Energy Conference L to R: Abigail Anthony, Rhode Island PUC: Michael Picker, President of the California PUC; Governor David Ige; Jennifer Potter, Hawaii PUC; with moderator Matthew McDonnell, Navigant Energy Practice.
The 7th annual Hawai’i Energy Conference will explore the timely issues of beneficial electrification and the design of an equitable energy transition. The dates are March 18 and 19, 2020. Presented by the Maui Economic Development Board (MEDB) and supported by the County of Maui Office of Economic Development, the Hawai’i Energy Conference is the leading energy conference in the islands and brings together regional and national experts on energy policy, strategies, leadership and innovation.
Participants will take a deep dive into how electrification can be “beneficial”. As more functions are served by electricity, demand for electricity will rise. This opens pathways for more deployment of renewable generation, which supports the sort of ambitious decarbonization goals that state legislatures throughout the nation are enacting.
“Keynote and panel presenters will attempt to answer a number of questions regarding the benefits, challenges, and practical limits of electrification”, said Doug McLeod, Conference Chair. “How can this concept have meaning so that ‘beneficial’ does not become another throwaway word like ‘clean’ or ‘green’? How does beneficial electrification differ from low cost energy and ideas of what is just?”
Given the wildfire issues affecting the West, will there be the same access to electricity for those who cannot afford microgrids or DERs? Can an electrified system be more resilient and efficient? What are the alternatives to electrification?
When exploring equity, the conference will consider how we can break through economic, cultural and linguistic barriers to ensure that we have an energy system that works for everyone. Where should we invest and put equity into equity? What does an equitable energy transition look like? Is it possible to create a transition that respects local cultures, is socially just, and protects our most vulnerable?
The 2019 Hawaii Energy Conference featured an MOU signing with PUC’s of Hawaii and California. L to R: James Griffin, Chairman Hawaii PUC; Michael Picker, President California PUC
“These topics are not unique to Hawai’i,” says Frank De Rego, Jr., Director of Business Development Projects at MEDB and Program Committee Vice-Chair. “Whether someone lives on an island or not, they will benefit from participating in the conversation to explore pathways to creating an equitable, resilient energy system of the future.”
The HEC consistently attracts energy industry leaders from Hawai’i, the Mainland, Japan and Europe to exchange ideas on how to better serve customers in the Islands’ rapidly changing energy environment. Participants can take advantage of the ample networking time and have access to the leading experts in the state.
Registration for the March event, held at the Maui Arts and Cultural Center in Kahului, will be launched in December.
The 6th Annual Hawaii Energy Conference (HEC), held at the Maui Arts & Cultural Center on March 27-28, 2019, brought together a number of key decision makers from throughout the state, the nation, and abroad to exchange ideas on the challenges associated with replacing fossil fuels with diverse and renewable energy resources. Presented by Maui Economic Development Board (MEDB), the conference is a recognized leader in the exploration and discussion of creating new business opportunities for renewable energy, implementing innovations in regulatory and government policy, and gauging trends in renewable energy technology.
Hawaii has experienced enormous growth in distributed energy resources, primarily photovoltaic (PV) systems. This year’s conference took an in-depth look at the innovative policies and technologies that continue to allow rapid growth in PV, and compared Hawaii’s solutions with those in Colorado, California, and other states. Panel discussions covered Distributed Energy Resources, Performance-Based Regulation, and other new directions in state energy policy, innovations in regulatory policy, investment opportunities in energy, resilience in operating isolated grids, and more.
“The rapid development of new business models, regulatory processes and rules, alongside burgeoning technological improvements in energy production, delivery, and storage have wide-ranging implications for all energy stakeholders, especially those directly involved in building the energy sector of the future,” said Frank De Rego, Jr., HEC Program Committee Vice Chair, and MEDB Director of Business Development Projects. “MEDB has focused on the importance of investment, the technical and policy challenges, and the centrality of consumers in Hawaii’s 100-percent-renewable energy journey. HEC participants benefited from the conference’s thought-provoking keynote speakers, panel sessions, case studies, exhibits, and ample networking time.”
“This year’s HEC was so impressive, said Susan Tai, Hawaii Energy New Initiatives Manager. “The depth of topics, broad overview, and caliber of speakers were so informative. Industry participants from government, investment firms, and public and private partnerships, took part in challenging conversations. Discussions included regulation policies, investment opportunities, grid modernization, and more− exceeding anything I ever imagined. The wide-range of panels and speakers on how our state approaches its energy challenges, discussed the implementation of smart energy choices and emerging clean energy technologies.”
DAY 1 KEYNOTE
Edward Fenster, Executive Chairman of Sunrun, was the keynote on Day 1
Keynote speaker, Edward Fenster, Executive Chairman, Sunrun Inc., spoke about his company’s commitment to solar and storage in the United States. “I co-founded Sunrun with a disruptive business model; providing clean energy to homeowners without requiring them to purchase their own solar panels. We believed we could change a polluting, antiquated energy system into one that is local, responsive, and powered directly for and by consumers. Sunrun is one of the largest providers of residential solar electricity, with more than 233,000 customers,” he said. “In 2016, Sunrun launched a home battery solution, Brightbox, in Hawaii, and over 5,000 Brightboxes nationwide.”
Fenster continued, “Distributed solar and storage can help keep the lights on when the grid goes down for any reason, from hurricanes to wildfires. We need to build for resilience. Home solar and storage has the potential to revolutionize our energy system, improving the grid for everyone. We’re aggregating and optimizing residential solar and storage systems for grid services—it’s an exciting future.”
Discussing Performance-Based Regulation (PBR), Fenster noted, “Hawaii has already taken a fundamental step by requiring a break in the direct link between allowed revenues and investment levels. The need is to incentivize utilities to choose the lowest cost for energy consumers. We hope to democratize solar energy and make it accessible to everyone.”
Fenster discussed how energy sources were unavailable during Puerto Rico’s hurricane catastrophe and how we have to learn to be resilient. “We need distributed resources supporting the grid,” he said. “It is key to reduce impact of line losses of 10- percent between gross generation and net electricity sold to customers; reduce transmission capacity need and susceptibility to contingencies and natural disasters; and to provide clean, cost effective peaking capacity.”
In Puerto Rico, October 11, 2017, Sunrun distributed solar power systems and batteries to create a more resilient, reliable energy system. “What can Hawaii learn from Puerto Rico?” Fenster asked. “We need to think ahead. Is our grid strong enough to deliver power during extreme weather? If not, what can we do to mitigate a grid that’s not energized? Getting ahead and figuring out the challenge before we get hit is the lesson. Sunrun believes in building a future where energy is clean, affordable and accessible for all.”
MEMORANDUM OF UNDERSTANDING
L to R: James Griffin, Chairman Hawaii PUC; Michael Picker, President California PUC
A highlight of the HEC was the signing of a landmark MemorandumofUnderstanding (MOU) by James Griffin, Chairman of the Hawaii Public Utilities Commission (PUC), and Michael Picker, President of the California PUC. Hawaii and California are the first states to commit to 100-percent clean-energy goals and sign historic agreements to fight climate change.
According to Griffin, “The MOU establishes a framework for the Hawaii and California PUCs to collaborate toward the implementation of clean, renewable energy. It also gives us a more formal way of sharing resources between the commissions, especially because California is an energy industry leader. We follow the California regulatory agenda closely, but having the ability to call people up directly and work with them is really a huge benefit.”
Picker noted, “California and Hawaii have the same kind of challenges. Hawaii has large amounts of solar on very thin grids, which we have in many parts of our state. We have learned by watching carefully what you are doing, and are eager to work together, staff to staff.”
Governor Ige added, “Hawaii is at the forefront for a 100-percent renewable-energy future. The goal is for utilities, consumers, and investors to have the right incentives to create a win-win for all. Hawaii’s goal is to be truly sustainable and self-reliant.”
Hawaii Commissioner Jennifer Potter explained, “The California and Hawaii PUCs will now officially collaborate to address climate change, reduce the use of fossil fuels, and reduce greenhouse gas emissions. By entering into a MOU, staff at each Commission will undertake actions within their mandate to further these goals. This was a remarkable opportunity for the Hawaii PUC to make a strong public commitment to reducing carbon emissions and accelerate clean energy in our state. I am honored to have worked on the MOU.”
HEC attendee Jared Friedman, Director, REC Solar, said, “Coming from California, where we also have a great love and respect for the beauty of our land and environment, I find inspiration in the shared goals of our states. I see how much we can learn from one another, having a shared vision of a clean energy future with great perspectives on how to get there. Hawaii, while small by population, has shown itself to be a leader in the fight to act on climate change. The bold stance taken by Hawaii to move to clean energy and carbon neutrality has started a domino effect across the U.S. where people say, ‘If they can do it, so can we.’”
Friedman, excited to attend the HEC this year to see such a broad spectrum of other attendees who are helping design the solutions, noted, “This conference is a great venue for exchanging information, about what’s worked, what hasn’t and what might be next. The climate issues we face are clearly not going to be solved by any one person, company, city or state.”
PANELS
The experts exchanged ideas on responding to the challenges associated with replacing fossil fuels with diverse and renewable energy reserves.
Panel Discussion: MovingAwayfromConvention: Innovations in Regulatory Policy
L to R: Abigail Anthony, Rhode Island PUC: Michael Picker, President of the California PUC; Governor David Ige; Jennifer Potter, Hawaii PUC; with moderator Matthew McDonnell, Navigant Energy Practice.
Governor Ige joined the panel, with Abigail Anthony, Commissioner, Rhode Island Public Utilities Commission; Michael Picker, President, California Public Utilities Commission; and Jennifer Potter, Commissioner, Hawaii Public Utilities Commission.
One of the most important issues for the Hawaii Commission right now is Performance Based Regulation (PBR), an approach to utility regulation designed to strengthen utility performance incentives. The term PBR is synonymous with Incentive Regulation. Legislation was passed in 2018 that directed the PUC to implement PBR by 2020. This bill breaks the link between utility revenues and capital investments.
Governor Ige, an engineer and defender of Hawaii’s energy policy, signed SB 2939 SD2 (Act 005) in April 2018,which requires the PUC to create the framework that will tie electric utility revenues to performance metrics rather than to capital expenditures. The bill establishes performance metrics that the PUC will consider while it establishes performance incentives and penalty mechanisms. They include: affordability of electric rates and customer electric bills; service reliability; customer engagement and satisfaction information; rapid integration of renewable energy sources; and timely execution of competitive procurement.
“The bottom line is that SB 2939 is a victory for Hawaii’s energy consumers who will see more value for their hard-earned dollars,” said Gov. Ige. “ Through its expertise and oversight, the PUC will ensure that we move aggressively toward our renewable energy and consumer protection goals while maintaining a safe, reliable and resilient electric grid operated by a financially stable utility.”
Commissioner Potter added, “The Commission has been working closely with stakeholders, consumer advocates, and the utilities to define a set of goals, outcomes and metrics that will replace the cost-of-service and rate-based regulatory model of cost recovery for the utilities. These goals include: enhancing the customer experience; improving utility performance; and advancing societal goals. The outcomes include efforts like reducing greenhouse gases, using distributed energy resources, and investing in an efficient grid.”
On February 7, 2019, the Hawaii PUC staff issued a proposal to adopt updated utility regulations to encourage the HECO companies to cost-effectively achieve state energy goals and deliver cost savings to customers.
“The current regulatory model encourages companies to make large capital investments to earn a return,” Potter explained. “Our efforts will break that link so that utilities can earn a return on providing services and programs instead of just capital investments. We must think of a broader set of regulatory mechanisms that allow the utility to move with flexibility and accelerate our path to renewable energy. Regulation is where the rubber hits the road. How we perform our function as the PUC must improve the utility and align utility performance with community interest.”
Panel Discussion: What Are the Investment Opportunities Today in Energy?
L to R: Jeffrey Ubben, ValueAct Capital; Robert King, Pacific Biodiesel Technologies; Brice Nzeukou, Ampaire; Kyle Datta, New Energy Partners and Frank De Rego, Jr., MEDB.
Frank De Rego Jr. moderated the panel. Panelists included Kyle Datta, General Partner, New Energy Partners; Brice Nzeukou, Product Manager, Ampaire; Robert King, President, Pacific Biodiesel Technologies; and Jeffery W. Ubben, Founder and Chief Executive Officer, ValueAct Capital.
Ubben said, “As energy markets and technology change over time, it is important to know how to unlock new regulatory policies for investors. Our team at ValueAct combines a diverse set of skills with extensive industry and investment experience. We believe in investing for the long-term. This requires the highest standards of integrity and a consideration of relevant social, ethical and environmental issues.”
Datta said, “I have always worked to increase the quality of life for Hawaii’s residents through more local food production, generating more renewable energy, increasing clean transportation, and supporting better management of water and waste. We need to continue to work together strategically to tackle some of our state’s biggest challenges and implement the transformative change to help Hawaii be more resilient and self-sufficient for many years to come.”
Nzeukou added, “At Ampaire, a technology innovation company developing electric aircraft and electric propulsion system concepts, we are always looking at what’s practical right now. Currently, we are looking at a hybrid electric aircraft between Kahului and Hana that is cleaner and quieter. It would reduce fuel cost, maintenance cost, and airfares. It is the first test with this technology and is headed for Maui in the fall.”
King said, “Pacific Biodiesel was founded on Maui in 1995 and is the only commercial producer of liquid biofuels in Hawaii. From the beginning, our mission has remained constant to promote a clean, sustainable energy future through the community-based production of renewable fuels. Our company is currently moving forward with a model of agriculture for clean energy, food, and our new Kuleana ‘farm to face’ beauty products. We hope to supply more jobs as our economy grows greener.”
King mentioned, “Our biggest challenge is receiving mixed signals from the government. Although our industry is going through trying times on the federal government side, the PUC and HECO support our industry. Nevertheless, we need even stronger state and local commitments in order to figure numbers.”
Panel Discussion: Sustainable Air Tourism
Moderated by Joelle Simonpietri, Simonpietri Enterprises, panelists included Neville Fernandes, Head of Renewable Jet Fuel Development Project North America, Neste US, Inc.; Aaron Robinson, Senior Manager, Environmental Strategy and Sustainability, United Airlines; and Geoffrey Tauvette, Director, Environment and Fuel, WestJet.
Simonpietri explained, “Hawaii is the most isolated land mass. It is 2600 miles from the nearest continental land mass; therefore, the most common travel to the islands is by air. Aviation is the largest sector of energy use in the state, hence the need for strategic investors in renewable fuels projects and technologies.”
Robinson said, “United Airlines is focusing on more biofuel development, energy efficiency, emissions reductions, and external communications. For years, we have experimented with biofuels, aiming to reduce both carbon emissions and our reliance on fossil fuels. Airlines account for only about two percent of annual global carbon emissions, but the industry’s rapid growth and future expansion across emerging markets has made aviation’s environmental impact a top issue for executives and regulators.”
Robinson continued, “For short flights, airlines can begin to shift to electric planes. However, electric technology is not in the near future for larger, longer flights. It’s physics. The technology just isn’t there yet.”
Fernandes added, “Neste is a keen supporter of commercializing renewable jet fuel. We are passionate in our belief that sustainable low-carbon biofuels are an important contributor to responsible management of greenhouse gases and to the fight against climate change. Neste builds sustainable solutions for the needs of transport, businesses, and consumers.”
Tauvette noted, “Aviation biofuels represent the biggest and best opportunity for aviation to significantly reduce greenhouse gas emissions. The focus now is developing sustainable sources to make the aviation biofuel, namely, finding an efficient and economical way of getting fuel from production to aircraft. It is key to have a collaboration of energy industry leaders and innovators designed to accelerate the development of a ‘fit for the future’ energy system.”
DAY 2
Aki Marceau and Doug McLeod open Day 2 with reflections of Day 1
The day began with Aki Marceau, Managing Director, Policy & Community-Hawaii, Elemental Excelerator; and Doug McLeod, Chair, Conference Program Committee, DKK Energy Services LLC, reviewing Day 1 issues.
McLeod discussed the importance of the MOU with California. “We can’t reach clean energy goals without partnership. We have common goals with California and we’re showing the world that collaboration can move things in an accelerated fashion.”
Marceau, agreeing, said, “Hawaii is moving along nicely on its 100-percent path. Hawaii’s credentials in solar brought us on to the world stage. Energy, water, agriculture, and other characteristics about Hawaii make it attractive to investors. Highlights of the first day were the MOU, and the numerous innovative technologies, such as electric airplanes. With a high volume of short-haul flights, Hawaii is the perfect testing ground for an electric aviation company like Ampaire−whom Elemental Excelerator is supporting.
Marceau added, “At Elemental Excelerator I work closely with policymakers and government agencies. We fund start-up businesses serving Hawaii’s energy future and engage with other players to help advance our statewide renewable goals. The Hawaii Energy Conference lays a great foundation for this networking.”
PANELS
Panel Discussion: Conversation with the Commissioners
The panel, facilitated by Gavin Bade, Senior Reporter, Utility Dive, included Abigail Anthony, Commissioner, Rhode Island PUC; James Griffin, Chair, Hawaii PUC; and David Hochschild, Chair, California PUC.
Bade noted, “The HEC is a forum for leading minds in energy transition. Hawaii is in the forefront of distributed energy, with electric vehicles, rooftop solar, and, of course, the 100-percent-renewable energy mandate. Hawaii has moved from preparation to implementation. The Hawaii PUC recently announced nine orders relating to the clean energy transition, from utility solar farms to new rates for electric charging and PBR. Hawaii did it first, showing the nation what’s actually possible.”
Citing the MOU, Griffin said, “We are working closely with California and learning from other states how to produce significant savings by means of grid improvements, modernization, and clean energy. Hawaii entered a phase-one modernization strategy of renewable regeneration, including pilot rates for electric buses, and changing our electric vehicle network for the project to continue statewide. I am proud of the progress that we have made and am committed to building on this momentum.”
Anthony added, “Rhode Island is a small northeastern state working on a clean-energy transition. We have a robust tariff program and long-term contracts for renewable off-shore wind farms. We are creating a framework for decision-making in a most cost-effective way. Additionally, we have a lot of advocates for electrification.”
Hochschild discussed high costs and solutions for the Commissions. “As we electrify, costs will definitely come down. We currently are projecting that all new public buses in California be electric by 2029. Switching exclusively to electric buses has a ton of benefits, such as cleaner air, much quieter streets, and savings in fuel costs. Hawaii’s renewable ripple affects California and the nation. Moreover, as clean energy gets cleaner it will balance the grid and satisfy consumers.”
Griffin concluded, “Current high rates in Hawaii motivate me to urgency. We need to address our problems and fossil-fuel dependency. Resilience needs to be addressed: how to sustain ourselves if tragedy hits; and how best to balance the grid, cost and risk. It’s always a challenge. It is also important to advance public policy goals, and appropriate investments. We should be clear what is needed to achieve our goals.”
Panel Discussion: Operating Isolated Grids Efficiently While Being Resilient
Molokai panel L to R: Mathew McNeff, Maui Electric Company, Mahina Martin, Maui Electric Company; Iolani Kuoha, Molokai Middle School;Sharon Suzuki, Maui Electric and Hawaii Electric Light.
The panel focused on Molokai’s unique challenges to realize renewable-energy goals. With one of the highest average costs and lowest average daily uses of electricity, Molokai is one of six isolated island grids in Hawaii.
Moderated by Sharon Suzuki, President, Maui Electric and Hawaii Electric Light, panelists Iolani Kuoha, STEMworks™ Facilitator and Hawaiian Immersion Teacher, Molokai Middle School; Mahina Martin, Manger, Government and Community Relations, Maui Electric Company; and Mathew McNeff, Director, Power Supply, Maui Electric Company, discussed reaching out to educate Molokai’s consumers about 100-percent-renewables.
Suzuki opened with the issues facing Molokai’s consumers and getting them onboard with renewable energy. “Molokai needed a resource plan. However, it was and is important to work there from the outside in and listen to the community. Family, culture, and community engagement mean everything on Molokai.”
Kuoha said, “Although the four-district island is without traffic lights, it is teeming with natural resources. We tend to be self-sufficient. Taught by our elders, we learned how to ‘malama’− to care for our land and how to respect what it provides. We welcome change by working together.”
Martin said, “ MECO’s effort has increased on Molokai. The company held 13 roundtable sessions and the feedback helped advance renewable-energy planning. We had meaningful dialogue and were able to lay the foundation for inclusive planning by working together in the community. We need to be mindful about the cost to the culture, the people, and the location.”
McNeff added, “A partnership with Hawaii Natural Energy Institute to install a battery energy-storage system and a load bank on Molokai brought down the cost for consumers. “We must have competitive solutions for clean resources which include incentives for customer participation,” he said.
Panel Discussion: Lessons Learned from Building in Hawaii
L to R: Adair Hill, Photonworks Engineering; Brent Arakaki, Hunt Companies; Mary Fox, Johnson Controls and moderator Murray Clay, Ulupono Initiative.
The panel members shared their experiences in unleashing the power of clean energy in the housing markets. With housing accounting for approximately 40- percent of greenhouse gas emissions, the panelists asked if it’s really such an outrageous idea to think affordable housing can be built in smart, connected communities that effectively manage electricity demand while providing services to the grid.
Moderated by Murray Clay, Managing Partner, Ulupono Initiative, panelists included Brent Arakaki, Project Manager, Hunt Companies (Hunt Military Communities); Adair Hill, Project Manager, Photonworks Engineering; and Mary Fox, National Vertical Market Director Public Housing, Johnson Controls.
Clay said, “Use of renewable clean energy provides a safe environment and much needed green jobs in the affordable housing market. Some think solar and renewables are for the rich only. However, the examples shown on our panel today offer the exceptional use of clean energy in diversified communities.
Arakaki explained, “Clean energy and conservation benefit all communities, not just those who can afford it. Working with the military communities means you must face the challenge of high turnover. This presents a challenge to conservation education. Part of Hunt’s energy management strategy is an energy allowance band under which families pay for the inefficiencies while being rewarded for efficiencies. We built over 7,000 units on Oahu with energy efficiency built into the homes, educating the families how to operate efficiently with energy conservation programs.”
Hill shared, “PhotonWorks is a team of dedicated professionals working to make our island home less oil-dependent through renewable energy. We are proud of our Kahauiki Village, a project built on 13 acres of state land that represents an extraordinary partnership of people and resources, giving homeless working families a new beginning. By the final phase of the project, the community will include 153 modular homes with more than 600 residents. Working with the design of plantation-style roofs, PhotonWorks strategically placed photovoltaic panels on roofs to capture and produce energy. All of the residences share the energy collected, converted and stored in the system.”
Hill continued, “PhotonWorks has been providing shelter in different forms to different communities on the Big Island, Oahu, and Kauai. The company has always had a strong feeling of responsibility for bettering our community, and this gives us another way to contribute toward our mission.”
Fox said, “I work in the federally subsidized housing space. We can do sustainability in big ways, but it’s necessary to bring sustainability to affordable housing. Ninety-nine percent of Johnson Controls’ work is retrofitting existing buildings to affordable housing. However, one of the biggest impacts has been achieved through education policies that promote conservation of energy, air and water among tenant populations. The mainland can learn from Hawaii. The state’s process, at least for solar, is smoother than elsewhere. That’s not to say it’s fast by any means, but from procurement to fees, Hawaii has set the groundwork for success.”
Panel Discussion: Does Energy Efficiency Still Matter?
Commissioner Potter, on the last panel of the conference, summed up the situation by saying, “In Hawaii it is time to look at measures at the state level, including additional metrics, new policy objectives, what we are doing, and what we want to accomplish. Hawaii continues to be a leader in Distributed Energy Resource integration and is positioned to be a leader in utility-scale renewable projects in the next five years. We are working on regulatory reform, direct response markets, microgrid initiatives, integrated grid planning, resilience, and climate-change initiatives across local and state governments. The PUC looks forward to continuing innovative practices for Hawaii on our journey together to reach our 100-percent-renewable energy future.”
Joshua Strickler from Johnson Controls, a sponsor of the 2019 Hawaii Energy Conference added, “The two-day HEC was a great place to get together with the energy community. The event has progressed from the first Maui Energy conference I attended, with the implementation of new energy projects across the state. It provided a forum for best-practice sharing, with excellence in the application of environmental sustainability strategies, partnerships, performance, and governance.”
Concluding, Strickler said, “Hawaii is a shining example for energy. It’s a combination of abundance: wind, sun, and geo-thermal. We have a sense of community here. We want to take care of it by preserving Hawaii and the planet for our future generations.”
Save the Date for 2020:
The 7th Annual Hawaii Energy Conference will be held March 18, 19 at the Maui Arts & Cultural Center.
MODERATOR: Jennifer Potter, Commissioner, Hawaii Public Utility Utilities Commission
