Getting ahead of the wave: Hawaii's renewables transformation

February 17, 2016 | By Barbara Vergetis Lundin

Driven by market forces and evolving customer demands, Hawaii has, in a relatively short time, integrated a significant amount of distributed renewables.

Lanai lookout on Oahu Island. Credit: ErgoSum88/Wikimedia Commons

To better understand the renewable transformation currently underway in Hawaii, the Solar Electric Power Association (SEPA) and energy consulting firm ScottMadden Inc. led a group of international energy industry executives to explore the state's renewable energy market through face-to-face meetings with thought leaders and decision makers -- including the Hawaiian electric utility, transmission and renewable energy industries; government, trade, and industry associations; and market experts -- who are adapting to the state's dynamic and challenging environment.

As a result of this trip, the team identified key learnings in three main areas: operational and technical issues, customers and stakeholders and leadership.

How, specifically, has Hawaii done so much in so little time? Physical integration, stakeholder management, internal alignment and customer focus, according to a joint SEPA/ScottMadden report resulting from the trip, which shares lessons learned from Hawaii's grid transformation.

"Hawaii provides insights into the integration of high penetration of renewables," said Chris Vlahoplus, ScottMadden partner and clean tech and sustainability practice leader. "One lesson is to approach these situations with a 'test and adjust' framework instead of the more conventional 'prove and deploy' strategy."

The evolving role of the Hawaiian utilities and the quickly changing solar market are, as officials there like to say, "postcards from the future" for mainland energy markets. The changes underway send a clear message about the solar market and what the mainland should expect in its future.

Utilities and regulators can either get ahead of the wave -- with a focus on customer and grid solutions -- or risk being overtaken by it, the report concludes.

"The team found that the system can take a lot more than you think," said Vlahoplus. "If you don't get on board, you will be playing catch up for a long time."

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