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Hawaii Tries Green Tools in Remaking Power Grids

Marco Garcia for The New York Times

On the Big Island of Hawaii, a wind farm shares the scene with cattle. The state hopes to be a laboratory for the country by cutting its dependence on fossil fuels. More Photos >

Published: September 14, 2009

NAALEHU, Hawaii — Two miles or so from this tiny town in the southernmost corner of the United States, across ranches where cattle herds graze beneath the distant Mauna Loa volcano, the giant turbines of a new wind farm cut through the air.

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Marco Garcia for The New York Times

Algae samples at a company that is exploring the use of algae to make biofuel. More Photos »

Marco Garcia for The New York Times

Every island has at least one energy accent. Here, solar panels on the Big Island of Hawaii. More Photos >

Marco Garcia for The New York Times

Viewers see lava hit the ocean miles from the power plant. More Photos >

Marco Garcia for The New York Times

A power plant extracts heat from volcanic rock to generate electricity. More Photos >

Sixty miles to the northeast, near a spot where golden-red lava streams meet the sea in clouds of steam, a small power plant extracts heat from the volcanic rock beneath it to generate electricity.

These projects are just a slice of the energy experiment unfolding across Hawaii’s six main islands. With the most diverse array of alternative energy potential of any state in the nation, Hawaii has set out to become a living laboratory for the rest of the country, hoping it can slash its dependence on fossil fuels while keeping the lights on.

Every island has at least one energy accent: waves in Maui, wind in Lanai and Molokai, solar panels in Oahu and eventually, if all goes well, biomass energy from crops grown on Kauai. Here on the Big Island of Hawaii, seawater is also being converted to electricity.

Still, the state faces enormous challenges in delivering the power to the people who need it. While the urban sprawl around Honolulu consumes the bulk of the energy, most potential renewable sources are far from the city, 150 miles southeast or 100 miles to the northwest.

Each of the state’s six electric grids belongs to its own island and is unconnected to the others. And according to state figures, Hawaii still relies on imported oil to generate 77 percent of its electricity, a level of dependency unique in the United States. Coal-fired power provides 14 percent, and 9 percent comes from renewable sources like the wind or the sun.

Hawaii’s governor, Linda Lingle, a Republican, has resolved to throw off the yoke of oil dependence and harness the state’s potential.

Under an agreement reached last year with the federal government and the dominant local utility, the Hawaiian Electric Company, Hawaii plans to generate 40 percent of its power from renewable sources by 2030. The state’s six grids will be connected by cables, and planners hope that conservation steps like reducing the air-conditioning load at high-rise hotels will cut Hawaii’s energy consumption by nearly a third.

“The goals are very, very aggressive,” said Debra Lew, a senior project leader for the federal National Renewable Energy Laboratory. Three decades ago, Hawaii mapped out a similar vision, if in less detail, that came to nothing. But this time, planners say, failure is not an option. “We don’t have anywhere else to go,” said Ted Peck, the point man for the Hawaii Clean Energy Initiative, overseen by the State Department of Business, Economic Development and Tourism.

Even if the state were indifferent to the environmental costs of burning oil and gas, including carbon-dioxide emissions that contribute to global warming, it would have to embrace renewable energy sources, said Robert Alm, a vice president of the Hawaiian Electric Company. “Our hedge won’t be buying oil futures, it will be buying wind,” Mr. Alm said.

Heavy reliance on imported oil has proved economically perilous. When oil prices hit $147 a barrel a year ago, electricity rates approached or briefly exceeded 50 cents per kilowatt hour on Maui and Kauai, about five times the national average.

The spike in prices lent urgency to the Hawaii Clean Energy Initiative, which Governor Lingle unveiled in January 2008.

The technical and political obstacles have since become clearer.

Hopscotching around this brightly colored archipelago by plane, a visitor gets a vivid sense of Hawaii’s essentially rural nature and the scope of the challenge.

The biggest priority is laying undersea cables between the outer islands and Oahu. Once those connections are made — first with cables stretching from Molokai and Lanai, the islands nearest Oahu — the capital will get power through them.

Then there is the daunting challenge of feeding fluctuating wind and solar power into the small electric grids on the individual islands while devising backup systems to keep the energy output smooth and reliable.

On Maui, for instance, General Electric is working on ways to modulate demand and store energy for later use either in electric batteries or by pump storage — filling an elevated reservoir in low-demand periods to produce hydropower when needed.

“The whole trick is making the system work in the right way, like conducting an orchestra,” said Bob Gilligan, G.E.’s vice president for transmission and distribution.

On the financial side, the state must attract developers with enough financing to help underwrite their own wind, solar, wave or other renewable projects, carry out the required environmental reviews and secure local approval. Addressing local concerns can be especially challenging. As in any state with a rural-urban divide, residents of Hawaii’s less populous outlying areas are wary about being pushed around by planners in Honolulu.

The outer islands have higher concentrations of Native Hawaiians who are well versed in a local history of exploitation, from the American overthrow of their monarch in 1893 to environmental costs of sugar plantations and tourism.

Some have formed groups like the Pele Defense Fund, which sprang up here in the 1980s to protect religious gathering rights in the rain forest on the Big Island. The fund seeks to prevent desecration of Pele, the native goddess of fire and volcanoes, and finds geothermal energy projects sacrilegious.

One avenue for developers, utilities and state officials is to offer outlying communities support or financing for needs that the local population identifies, like fish conservation. “We’re asking the small islands to be significantly burdened on behalf of Oahu, so Oahu needs to do well by them,” said Mr. Alm, the utility’s vice president.

For all the optimism, planners studiously remind themselves of the detritus of past failures, like the dismembered and rusting wind turbines of a defunct wind farm near the southern end of the Big Island.

“This transformation is going to take a generation,” said Ted Liu, director of the state economic development department. “There are no short-term easy solutions.”

 


 

Satcon Powers Hawaii’s Largest Solar Farm

BOSTON - 
      Satcon (NASDAQ CM: SATC), a leading provider of utility scale 
      distributed power solutions for the renewable energy market, announced 
      today that their industry leading PowerGate® Plus Spectrum micro grid 
      solution has been selected to power La Ola Hawaii’s largest solar
Posted : Thu, 28 May 2009 06:01:48 GMT
Author : Satcon Technology Corporation
Category : Press Release
News Alerts
Press Release News | 
BOSTON - (Business Wire) Satcon (NASDAQ CM: SATC), a leading provider of utility scale distributed power solutions for the renewable energy market, announced today that their industry leading PowerGate® Plus Spectrum micro grid solution has been selected to power La Ola Hawaii’s largest solar photovoltaic (PV) farm and Micro-Grid on the island of Lana’i. The 1.2 megawatt (MW) installation sits on a 10 acre site in south Lana’i on the Palawai Basin and is the first solar photovoltaic power plant to be controlled remotely by a utility, Maui Electric Company, Ltd. (MECO).

 

The micro grid developed, coordinated and operated by Lanai Sustainability Research, LLC, through its managing member, Castle & Cooke Solar Management, LLC, and designed and built by California-based SunPower, is expected to produce enough solar energy to supply up to 30 percent of the island’s electric demand. The advanced control capabilities and optimized power efficiencies of Satcon’s Spectrum micro grid solution, combined with SunPower’s solar tracking system, will increase the energy capture of the farm by more than 500,000 kilowatt hours (kWh) annually.

“Our goal of helping the state of Hawaii achieve energy independence has taken a significant step forward with the La Ola solar farm in Lana’i,” said Harry Saunders, President of Castle & Cooke Solar Management. “Satcon was the obvious partner choice for this project as we assembled a team of the industry’s most innovative minds to pioneer our micro grid solution. The combination of their deep expertise within solar power conversion, their experience with successful large scale renewable to grid interconnection, and their proven PowerGate Plus solutions helped enable our team to solve the challenges that faced us as we constructed a stable and reliable island grid built on a solar energy framework.”

The solar farm builds on the progress of Governor Lingle's Hawaii Clean Energy Initiative; an unprecedented state partnership launched in January 2008 with the U.S. Department of Energy which aims to have 70 percent of Hawaii’s energy needs come from clean sources by 2030. Satcon’s Spectrum channels renewable power into the Maui Electric Company grid, resulting in an increase of 14.4 percent of installed electric generating capacity to the island. La Ola offers an offset equivalent to burning 202,400 gallons of diesel fuel, thereby avoiding 4.5 million pounds of carbon dioxide emission annually.

“We are honored to be a part of this best in class team of solar power innovators who are successfully supplying stable, high quality renewable power locally, at the point of demand,” said Leo Casey, Chief Technology Officer of Satcon. “What we have achieved with MECO and Castle & Cooke is a significant advancement in solving renewable energy challenges of intermittency and power storage and will ensure uninterrupted utility-grade renewable energy to deliver the energy security, reliability, safety, sustainability and cost effectiveness required for the island.”

“The La Ola, Lanai’s Solar Farm, will offer visibility to utilities around the world about how to successfully integrate solar PV power plants into the grid at high penetration levels,” said Jean Wilson, Vice President and General Manager of Utilities and Power Plants at SunPower Corp. “Satcon’s inverters provide low voltage ride-through as well as the production and consumption of reactive power, both of which are crucial to grid operation in this application, as the solar farm will provide up to 30 percent of peak generation on Lana’i. We believe that the solar power plant solution Castle & Cooke, MECO, Satcon and SunPower jointly developed will be the foundation for planning rapid growth in deployment of solar PV power plants around the world.”

About Satcon

Satcon Technology Corporation is a leading provider of utility scale distributed power solutions for the renewable energy market, enabling the industry’s most advanced reliable and proven clean energy alternatives. For over 23 years, Satcon has designed and delivered the next generation of efficient energy systems for solar photovoltaic, stationary fuel cells, wind-turbines, and energy storage systems. To learn more about Satcon, please visit www.Satcon.com.

About Castle & Cooke

Castle & Cooke Solar Management, LLC is the managing member of Lanai Sustainability Research, LLC. Castle & Cooke and its affiliated companies have operations in more than 24 states. The company’s diversified businesses include the development and ownership of real estate, leasing of transportation equipment, manufacture of brick and building materials, and ownership of public warehouses. The real estate developments of the affiliated Castle & Cooke companies include master planned communities such as Mililani Town on the island of O‘ahu, Lake Sherwood in Thousand Oaks, Calif., Seven Oaks in Bakersfield, Calif. and Keene’s Pointe in Orlando, Fla.

Safe Harbor

Statements made in this press release that are not historical facts or which apply prospectively are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.

Satcon Technology Corporation
Alida Bangs, 510-226-3812
Media Relations
alida.bangs@satcon.com
or
Leah Gibson, 617-897-2400
Investor Relations Manager
leah.gibson@satcon.com

 

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Hawaii Endorses Plan for Electric Cars

Jonas Pryner Andersen/Polfoto, via Associated Press

The entrepreneur Shai Agassi, right, met with Anders Eldrup, center, a Danish energy executive, in Copenhagen last March.

Published: December 2, 2008

SAN FRANCISCO — The State of Hawaii and the Hawaiian Electric Company on Tuesday endorsed an effort to build an alternative transportation system based on electric vehicles with swappable batteries and an “intelligent” battery recharging network.

The plan, the brainchild of the former Silicon Valley software executive Shai Agassi, is an effort to overcome the major hurdles to electric cars — slow battery recharging and limited availability.

By using existing electric car technologies, coupled with an Internet-connected web of tens of thousands of recharging stations, he thinks his company, Better Place L.L.C. of Palo Alto, Calif., will make all-electric vehicles feasible.

Mr. Agassi has succeeded in assembling a growing consortium of national governments, regional planning organizations and one major car company. Tuesday’s announcement follows earlier endorsements from Israel, Denmark, Australia, Renault-Nissan and a coalition of Northern California localities supporting the idea leading to the deployment of an electric vehicle with a range of greater than 100 miles, beginning at the end of 2010 in Israel. The company plans test deployments of vehicles in 2009 and broad commercial sales in 2012.

Mr. Agassi has raised $200 million in private financing for his idea. In October, he obtained a commitment from the Macquarie Capital Group to raise an additional $1 billion for an Australian project.

On Tuesday, he said that he was optimistic about his project despite the dismal investment and credit markets because his network could provide investors with an annuity. Users of his recharging network would subscribe to the service, paying for access and for the miles they drive.

Given the downturn in the mortgage market, he said that investors are looking for new classes of assets that will provide dependable revenue streams over many years. “I believe the new asset class is batteries,” he said. “When you have a driver in a car using a battery, nobody is going to cut their subscription and stop driving.”

Mr. Agassi has argued that even if oil prices continued to decline, his electric recharging network — which ideally would use renewable energy sources like solar and wind — could provide competitively priced energy for a new class of vehicles.

He supposes that his network idea will be appropriate first for “island” economies that typically have significantly higher energy costs, and then will become more cost-competitive as it is scaled up.

“We always knew Hawaii would be the perfect model,” he said in a telephone interview. “The typical driving plan is low and leisurely, and people are smiling.”

Hawaii is a relatively small market with high energy costs. The state has about 1.2 million cars and replaces 70,000 to 120,000 vehicles annually.

Drivers on the islands also rarely make trips of more than 100 miles, meaning there will be less need for his proposed battery recharging stations. Part of Mr. Agassi’s model depends on quick-change service stations to swap batteries for drivers who need to use their cars before they have completely recharged their batteries.

Peter Rosegg, a spokesman for the Hawaiian Electric Company, said that Better Place would become a major customer for electricity and was also planning to invest in renewable energy sources that would be connected to the electric grid.

“It’s going to be a nonexclusive agreement, but so far they’re the only one that has shown up,” Mr. Rosegg said.

In late November, the mayors of San Francisco and other major Bay Area cities endorsed the Better Place network to help create an electric recharging network by 2012. The company estimates that it will cost $1 billion to build a charging network in the Bay Area that may create as many as half a million charging stations.

Despite challenges, the Better Place model is promising, said Daniel M. Kammen, a professor in the Energy and Resources Group at the University of California, Berkeley. It could appeal to owners of fleets of vehicles and to early adopter customers who are willing to work through the difficulties that will inevitably accompany a new transportation system. “It has a lot of promising features,” he said.

 

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