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Increasing Renewable Energy GenerationIncreasing Renewable Energy Generation on an Isolated Island Gridon an Isolated Island Grid

Presented at:

23rd Pacific Islands Environmental Conference

Saipan, CNMI

June 21-25, 2004

Dan V. Giovanni, Manager of Production Hawaii Electric Light Company, Inc. P.O. Box 1027 Hilo, Hawaii, USA 96721

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Hawaii Island’s Energy Frontier

� Isolated geography

� Challenging physical environment

� High growth rates in energy demand

� Low population density

� High potential for diverse, renewable energy development

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HELCO Transmission System

� Isolated transmission grid

� 4 major cross-island ties

� Limited capacity in some areas ..

l

69 kV Transmission System

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HELCO Power Supply System

� Diverse generating sources

� Geographical mismatch of sources and customer loads

� Mix of HELCO-owned and IPP facilities

� Aging equipment ..

Keahole

Waimea

Apollo (Wind)

HEP

HCPC

PGV

Hydropower O Wailuku O Waiau O Puueo

Lalamilo (Wind) Shipman

Kanoelehua

Puna

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HELCO Renewable and Fossil Fuel Generation Mix

Hydro 5%

Wind 2%Geothermal

16%

Fossil 77%

Hawaii Renewable Portfolio standard: 10% by 2010 20% by 2020

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Lower customer density = Higher costs of service

Customer Density

Oahu

Kauai

Molokai

Niihau

Maui

Lanai

KahoolaweComparative size of the Hawaiian Islands and customer density

Oahu 597 sq. mi., 474 per sq.mi.

Maui 1,128 sq. mi., 53 per sq.mi.

Big Island 4,028 sq. mi., 17 per sq.mi.

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Daily Load Profile

MW

80

100

120

140

160

180

200

0:001:002:003:004:005:006:007:008:009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:000:00

December 30, 2003

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Daily Peak Load – Annual Profile

178 176 174 172

172 171 167

169

168 165 163

164 162

168

169

176 174

173

177

178

180

182

182

183

185

187

164

150

155

160

165

170

175

180

185

190

NET

M E

G A

W A

TTS

2002 2003

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Weekly Maximum Generated Power

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Annual Peak Load

217

174

214209204199194187 171

178

100

120

140

160

180

200

220

240

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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Expanding the Use of Renewable Energy HELCO’s Challenges

� Wind resources at weak sections of the grid

� Wind, solar, and hydrorequire firm back-up

� Volatile power outputdisrupts power quality

� Geothermal resources difficult to manage

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Today’s Wind

•Lalamilo 2.3 MW

•Kamaoa 7.0 MW

Future Wind

•Hawi 10 MW

•Lalamilo 3 - 30 MW

•Kamaoa 20 MW

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HELCO Lalamilo Windfarm

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Kamaoa Windfarm

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Wind Energy Issues � As-available resource; needs back up

� Regulating units are worked harder to maintainsystem stability

� Ride through for faults and frequency excursions

� Excess wind energy leads to curtailments

� Energy storage could firm resource but is costly

� WTG’s are tallest structure on the view plane

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Increased Wind Energy on HELCO System

� HELCO Goal Æ Add wind energy to the HELCO power grid, and preserve Power Quality and Reliability

� Potential system impacts � Increased capacity of as-available power � Increased duty on regulating units � Need additional operating reserve

� Further curtailment of wind generation

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Current Daily Load Profile and Wind Energy Curtailment

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Regulating Reserve Down

Regulating Reserve Up

Non-regulating Generation (Geoterhmal an d Coal Plant)

Minimum Regulating Generation

Total Wind Production

Total Hydroelectric

System Load

Maximum Regulating Generation

Curtailment Area

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Future Daily Load Profile and Wind Energy Curtailment

0

20

40

60

80

100

120

140

160

Regulating Reserve Down

Curtailment Area

Non-regulating Generation (Geothermal and Coal Plant)

Minimum Regulating Generation

30 MW Wind Production

Maximum Hydroelectric System Load

Maximum Regulating Generation

Regulating Reserve Up

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HELCO System Frequency Deviation

Wind Farm Production (MW) and System Frequency (Five Minutes)

2.70

2.90

3.10

3.30

3.50

3.70

3.90

4.10

0 50 100 150 200 250

seconds

MW

59.94

59.96

59.98

60.00

60.02

60.04

60.06

Hz

Total Wind (Lalamilo+Kamaoa) System Frequency

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Electronic Shock Absorber � ESA to integrate fluctuating

wind power into the electric grid � Device and controls

would mitigate short durationfrequency and voltagedeviations

� HECO received U.S. patent

� Three phase demonstrationplanned; with private company

� Communicated with WTG manufacturers for ESA applications

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View Plane

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Photovoltaic (PV) Applications Grow

� Net metered PV education center

� Kona Gym 15-kw PV system

� NELHA GatewayCenter

� Large CustomerProjects (MaunaLani, Parker Ranch)

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Demand-Side Management

� Residential Water Heating Program with Solar Energy � Provides rebates for solar water heating systems, heat pumps

and also high-efficiency electric resistance water heaters

� Energy Efficiency Programs for Businesses � Incentives for the installation of efficient electric equipment

� Covers lighting (T8 and CFL fluorescents), air conditioning, refrigeration, HE motors, window film, and custom measures

� Load Curtailment – Rider M � Discounted rates for businesses who curtail loads during

HELCO’s daily peak, 5:00-9:00 pm

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DSM Good for Businesses

� Energy efficienttechnologies: � Lighting � Motors/drives � Window film

� Total rebates: $92,000

� Energy saved:1.8 million kWh/year

Hilton Waikoloa Village

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Energy Efficiency Partnerships

� Waikoloa Beach Marriott Hotel (Outrigger)– hightemperature solarthermal system

� Hapuna Beach Resort Laundry – ozone launderingsystem demo

� North Hawaii Community Hospital– feasibility of heat pipes for humiditycontrol

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HELCO’s Puueo Hydroelectric Plant

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Hydroelectric Power

� Run-of-stream resources are in East Hawaii

� Public resistance to diverting/damming streams

� Limited potential to upgrade units

� Small “In-Line” hydro units in water supply pipelines look promising

� Pumped-storage hydro to be considered

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In-Line Hydroelectric Power HELCO & Dept. of Water Supply

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Geothermal

� Firm, base-loaded generation

� Resources in Puna, far from major load centers

� Community acceptance increasing

� Significant technical and commercial risks

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Puna Geothermal Ventures

Hawaii Island

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Summary � >20% of Hawaii Island energy from renewable

resources today

� Wind energy levels expected to increase from 2%to >25% within next few years

� Many technical issues to overcome in order topreserve power quality

� Geothermal will continue to play major role

� Utility – Business partnerships critical to advancing new technologies

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Powering the Big IslandHawaii’s Energy Frontier

Thank youThank you

Hawaii Electric Light CompanyHawaii Electric Light Company18941894 -- 20042004

HELCO 110th Anniversary