

Energy Efficiency in Hawaii. An idea whose time has come?As the most geographically remote spot on the planet, not to mention the United States, Hawaii faces many unique problems. Not the least of these is the state's nearly complete dependence on imported fossil fuels for energy generation, transportation and industrial fuels. As a result Hawaii has, for several years, been actively developing an Integrated Resource Planning (IRP) process. One goal is to create a "blueprint" and associated regulatory changes which will make the development and implementation of "demand side" efficiency and conservation programs economically feasible. In short, Hawaii's energy utilities will be "paying" their customers to use less of their product. The payoff will be two-fold. First, customers will directly save money by utilizing energy efficiency and conservation equipment. Second, Hawaii's utilities may be able to defer or cancel plans for new powerplants. The underlying strategy is that it is cheaper to create new energy resources through efficiency and conservation than through building more production capacity. The major environmental payback is a reduction in the carbon emissions that are the major culprits in global climate change. This effort has been notable for a variety of reasons, not the least of which is the active participation by Hawaii's energy utilities, other energy producers, state regulators and many citizen-based environmental groups with significant expertise in all areas covered in the planning process. Although the IRP process has been long and arduous, and marked by areas where consensus was not reached, Hawaii is now poised to begin implementation. As of this writing utility-sponsored programs undertaken by Hawaiian Electric Company (HECO) on the island of Oahu have been approved. They include three basic programs: an Energy Efficiency Program focused on existing facilities; a Customized Incentive Program, also targeting existing facilities; and, a New Construction Program. The overall goals are to offer commercial and industrial utility customers financial incentives to install energy efficient equipment. This will result in reducing demand for electricity, defer construction of new powerplants and reduce costs for the utility, reduce the State's dependence on imported fuels and help protect Hawaii's environment. The total budget for all three programs is $15 million. HECO projects the following results will be achieved over the five year term of the project:
Taken together this mix of commercial and residential energy efficiency and demand-side management plans will benefit all of Hawaii's citizens and businesses. An impressive start to what most observers will be a long-lived and productive effort to make energy efficiency and conservation a vital part of life in Hawaii for decades to come. |

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