Renewable Energy Technology Assessments - Kauai Island Utility ...

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Kaua’i Island Utility Cooperative Renewable Energy Technology Assessments 2.0 Introduction 2.0 Introduction The objective of this study is to identify the best renewable energy options for development on the island of Kauai. Kauai Island Utility Cooperative (KIUC) has retained Black & Veatch to undertake this assessment of renewable energy technologies and resources. This section provides an overview of the project objectives, project background, study approach, and general introduction to renewable energy including a description of Kauai’s current use of renewable resources. 2.1 Background In 2003, over 94 percent of Kauai’s electricity was generated from imported fossil fuels – the highest level of fossil fuel dependence in over 25 years. Kauai’s rising dependence comes during a period of record oil prices, political and military strife, and concerns about impacts on the global environment from increased consumption of fossil fuels. At the same time, Kauai is blessed with spectacular natural wonders, rich indigenous resources, and historical experience using renewable energy sources to meet a large share of its energy needs. This study examines a return to renewable energy resources as part of KIUC’s integrated planning framework. Kauai Island Utility Cooperative has been directed by the Hawaii Public Utilities Commission to update the Integrated Resource Plan (IRP) for the recently acquired Kauai Electric (KE). KE’s IRP was last updated in 1997. Recognizing the important role of energy diversity, KIUC has decided to assess and address the potential role of renewable energy resources to meet the future needs of Kauai in its IRP. In addition, KIUC anticipates utilizing the results of this study to develop a strategy to meet the renewable portfolio standard (RPS) established by the Hawaiian legislature. In June 2004, with the signing of SB2474, Hawaii’s RPS goal was replaced with an enforceable standard. The standard requires that 20 percent of electricity be generated from renewable sources by 2020, with the following interim targets: • 7 percent of net electricity sales by December 31, 2003 • 8 percent of net electricity sales by December 31, 2005 • 10 percent of net electricity sales by December 31, 2010 • 15 percent of net electricity sales by December 31, 2015 • 20 percent of net electricity sales by December 31, 2020 21 March 2005 2-1 Black & Veatch
Kaua’i Island Utility Cooperative Renewable Energy Technology Assessments 2.0 Introduction KIUC is currently ahead of this implementation timeline. In 2003, KIUC sourced 7.5 percent of its energy from renewable sources (including credit for solar thermal water heating). 2 Applicable technologies for the RPS include wind, solar energy, hydropower, landfill gas, waste to energy, geothermal, ocean thermal energy conversion, wave energy, biomass (including municipal solid waste, biofuels, or fuels derived from organic sources), hydrogen fuels derived from renewable energy, or fuel cells where the fuel source is derived from renewable sources. Cofiring renewable fuels with non-renewable fuels is allowed under the RPS, but only the electricity generated from renewable fuels counts towards the RPS. This study examines all of these resources. 2.2 Objective The objective of this project is to assess the technical, economic and market potential for reducing fossil-fueled electricity generation and peak supply on Kauai by implementing a wide range of renewable energy resource technologies. This report further aims to identify specific, promising, and actionable renewable energy projects and provide the necessary technical and economic details to support informed decision making. It is perceived that this report will form the basis of a successful and cost effective renewable energy development program over the short to mid-term. 2.3 Approach This study is being undertaken in two phases. This Final Report is a comprehensive account of both. A previous Interim Report covered Phase 1, describing the existing use of renewable energy on the island, generation technology options, and the developable potential of the different resources. Twenty-six different technology applications are assessed in this report in the following ten categories: 1. Solid biomass 2. Biogas 3. Biofuels 4. Waste to energy 5. Hydroelectric 6. Ocean energy 7. Solar 8. Wind 9. Geothermal 2 Alan Oshima of Oshima Chun Fong & Chung LLP, “Kauai Island Utility Cooperative 2003 Renewable Portfolio Standards Status Report”, March 30, 2004. 21 March 2005 2-2 Black & Veatch
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