Hawaii State Profile
Background
The same geological conditions associated with Hawaii's well-known volcanic features have also given rise to hydrothermal systems located throughout the Hawaiian island chain. These geothermal resources have been harnessed for the generation of electricity at a 30-megawatt power plant on the Island of Hawaii (the Big Island). Potential exists at several locations within the state for additional power production or applications in which thermal energy is transferred directly from hydrothermal resources for purposes such as space heating or agribusiness. The potential capacity of geothermal reserves for power production has been conservatively estimated at more than 500 megawatts (GeothermEx, 2005).
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Current Development
About 20 miles south of Hilo in the Puna district of the Big Island, Puna Geothermal Venture's (PGV) power plant uses the geothermal resource of the Kilauea Lower East Rift Subzone, a designated geothermal development area. The PGV plant has a power production capacity of 30 MWe (megawatts electric), and is permitted to double its capacity. The electricity produced at PGV is distributed to commercial and residential consumers, meeting nearly 20 percent of the Big Island's total electricity demand. As Hawaii's only geothermal power plant, PGV has been producing electricity since 1993, offsetting over 4 million barrels of oil in its first 10 years of operation.
Potential Development
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Geothermal power production is very clean compared to conventional fossil fuel technologies, with emissions that contain virtually no nitrogen oxides and are very low in sulfur dioxide and carbon dioxide. In light of rising fossil fuel costs and legislative mandates to increase renewable energy utilization, geothermal technologies are being increasingly accepted throughout western states as a viable alternative for power production.
In the early 1980s, the State of Hawaii evaluated 18 possible geothermal resource areas on four of the eight major islands of the Hawaiian chain, and the Big Island was identified as having the greatest potential for power production. Currently, the Big Island's vast geothermal resources exceed the electricity needs of the island's utility. Thus, the state is exploring strategies to maximize resource potential such as the production of hydrogen for stationary power and transportation. Recent studies of the potential for the use of hydrogen as an alternative fuel in Hawaii have confirmed that geothermal energy is one of the best options to economically produce large quantities of hydrogen in the nearer-term. The use of hydrogen from geothermal resources, produced via electrolysis, may offer a means to establish the Big Island as a model for a renewable hydrogen economy.
Low-temperature (below 125°C) resources suitable for direct thermal use have been identified on the Big Island, Maui, Oahu, Lanai, and Molokai. A number of direct-use projects have been proposed including fruit dehydration, greenhouse heating, lumber drying, and the development of health spas.
Economic Benefits
Hawaii is keenly dependent on imported fossil fuels, as more than 90 percent of the state's energy needs are met by imported oil. The use of geothermal energy contributes to greater state independence in meeting its power production needs. PGV's typical annual output of approximately 200,000 megawatt-hours represents the equivalent of $5.5 million in oil costs to achieve the same energy yield (assuming the average cost of oil in 2005). Additionally, a portion of the profits from the sale of electricity must be paid by PGV in the form of royalty payments for the use of the geothermal resource. In fiscal year 2005, Hawaii received geothermal royalties in the amount of $969, 980, of which 30 percent was returned to the County of Hawaii where PGV is located.
Technical Capabilities
Hawaii universities, state agencies, and private firms contribute technical capabilities to the local and national geothermal communities. The Hawaii Department of Business, Economic Development & Tourism facilitates the commercial development of geothermal resources and maintains geothermal resource information to support development projects. The Hawaii Department of Land and Natural Resources is responsible for the regulation and management of the resource. Additionally, the University of Hawaii at Manoa's School of Ocean and Earth Science and Technology, and the University of Hawaii at Hilo's Center for the Study of Active Volcanoes provide technical expertise.
Incentives
With the passage into law of the Energy Policy Act of 2005, the national Production Tax Credit (PTC) was extended to include geothermal facilities in operation by January 1, 2008. The PTC is an incentive of 1.5¢ per kWh for electricity produced from renewable sources during the first ten years of a new facility's operation.
Hawaii has enacted a Renewable Portfolio Standard applicable to each electric utility operating in the state. The standard requires that, by the end of 2010, at least 10 percent of in-state electricity sales must represent power produced from a qualifying renewable technology, including geothermal. Additionally, energy savings attributed to alternative technologies such as geothermal heat pumps can be applied toward achieving the requirement. The standard will increase to 15 percent by the end of 2015, ultimately reaching 20 percent by the end of 2020.
State Working Groups
Geothermal State Working Groups are networks of individuals typically including geothermal developers, utility representatives, local officials and policymakers, and other energy stakeholders within a given state or region. Geothermal State Working Groups are sponsored by the U.S. Department of Energy's GeoPowering the West Initiative and often work in conjunction with the State Energy Office of the group's respective state to accomplish networking conferences, analyze regulatory issues, and assess the progress of local geothermal projects.
Hawaii has established a Geothermal State Working Group with leadership from the Strategic Industries Division of the Hawaii Department of Business, Economic Development & Tourism. The Hawaii group brings together state and regional energy professionals for workshops and other outreach activities.
List of Projects
The Puna Geothermal Venture power plant operates a 30 MW facility and the Tropical Ponds Hawaii aquaculture facility uses heat from geothermal fluids. Both are located on Hawaii's Big Island.
Details regarding Puna Geothermal Venture can be found at www.punageothermalventure.com.
State Contacts
Hawaii Energy Office
Maurice H. Kaya
Chief Technology Officer
Strategic Industries Division
(808) 587-3807
GeoPowering the West — State Working Group
Priscilla Thompson
Department of Business, Economic Development & Tourism
Strategic Industries Division
(808) 586-2353
Department of Land and Natural Resources
Department of Business, Economic Development & Tourism
Strategic Industries Division
Hawaii Public Utilities Commission
School of Ocean and Earth Science and Technology
University of Hawaii at Manoa
Center for the Study of Active Volcanoes
University of Hawaii at Hilo
National DOE Contacts
U.S. Department of Energy
Curtis Framel
Senior Energy Project Officer
Golden Field Office
Golden, Colorado
(303) 275-4872
U.S. Department of Energy
Sandy Glatt
Senior Energy Project Officer
Central Regional Office
Golden, Colorado
(303) 275-4857