Hawaii integrated energy policy

Abstract

As the most energy-vulnerable state in the nation, Hawaii depends on imported oil for over 90% of its energy. About half of that oil comes from Alaska and the other half from Asia/Pacific oil producing nations. Both oil production in Alaska and the export capacities of Asia/Pacific sources are projected to decline by roughly 50% by the year 2000. This will likely increase Hawaii's dependence on oil reserves of the politically unstable Middle East region. Environmental protection is also a major concern for Hawaii and its residents. Energy production from fossil fuels is the major source of local and global air pollutants, while petroleum shipping and handling pose risks to fragile marine habitats and coastal resort areas. An energy policy that internalizes the environmental and social costs of fossil fuels will place added value on energy efficiency and renewable energy, but could result in an increase in the market price of energy to consumers. Hawaii has a significant, and yet relatively untapped; renewable energy and energy-efficiency resource potential. Biomass, wind, solar, geothermal, hydroelectric, and ocean resources can provide clean, stable sources of energy supply. The islands' energy savings potential is likely to allow utilities to defer the need to construct additional fossil fuel-fired power plants by reducing electricity demand through conservation and increased energy efficiency. Efficiency gains in the transportation sector are also possible. All of these considerations, coupled with the fact that Hawaii is no less dependent on imported oil today than it was during the first oil crisis of 1973-74, point to the need for the State's government to create a more effective energy policy development and planning process. Hawaii recognized that such a process would have to involve both the general public and the direct representation of Hawaii's "energy community."