• 9.1 TWh Energy Demand
  • 2.9 GW Installed Capacity
  • 14 % Renewable Share

Hawaii

Hawaii’s power needs is primarily serviced by two electric utilities: Hawaiian Electric Industries Inc. (HEI) and Kauai Island Utility Cooperative (KIUC). HEI is the largest supplier of electricity in the state and serves 95% Hawaii’s population through its subsidiaries, Hawaiian Electric Company (HECO), Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO).

Hawaii relies heavily on oil/petroleum for its energy needs which, together with coal, represent more than 80% of the state’s total electric generation. While wind supplied the largest share of utility-scale renewable generation in 2016, distributed solar PV generated more than any utility-scale renewable technologies (826.8 GWh = 0.09 aGW).

Market Design

How is the market structured?

Hawaii has a vertically integrated electricity market. The majority of the state is served by the HECO Companies (Hawaii Electric Light Company, Hawaiian Electric Company and Maui Electric Company). The island of Kauai is supplied by the Kauai Island Utility Cooperative. Independent power producers may provide power to utilities under power purchase agreements.

The market covers the state of Hawaii. There are no interconnections between the Hawaiian islands or between Hawaii and the U.S. mainland.

The Hawaii Public Utilities Commission is responsible for setting electricity prices in Hawaii. Nodal pricing does not exist.

There is no liquid market for buyers to hedge price risk in Hawaii.

Consumers receive power from their local utility (the utility covering the geographic area in which the load is located). The majority of the state is served by the HECO Companies (Hawaii Electric Light Company, Hawaiian Electric Company and Maui Electric Company). The island of Kauai is supplied by the Kauai Island Utility Cooperative.

Retail choice is not available in Hawaii.

In general, a bill can be broken into three components: generation, transmission and distribution. In a vertically integrated market, these costs reflect the local cost of the utility.

A REC (Renewable Energy Certificate) tracking system has not been adopted in Hawaii. Generators located anywhere in the U.S. or Canada may register with the North American Renewables Registry.

How are RECs (Renewable Energy Certificates) procured? N/A

Are renewable Power Purchase Agreements (PPAs) available? Yes

Are Green Tariffs available?  No A green tariff is not available in Hawaii at this time. The HECO Companies have formed a working group with the University of Hawaii to explore developing a green tariff.

System Operators:

  • The HECO Companies (Hawaii Electric Light Company, Hawaiian Electric Company and Maui Electric Company) and the Kauai Island Utility Cooperative.

Key Government Departments:

  • The Hawaii State Energy Office is responsible for setting the policy and legislative framework for Hawaii’s electricity system.
  • The Hawaii Public Utilities Commission regulates and oversees electricity industry within the state.

Regulator:

  • The Federal Energy Regulatory Commission (FERC) is the federal agency that regulates the transmission and wholesale sales of electricity in interstate commerce.
  • The North American Electric Reliability Corporation (NERC) is a not-for-profit international regulatory authority whose mission is to assure the reliability and security of the bulk power system in North America.
  • The North American Electric Reliability Corporation (NERC) is a not-for-profit international regulatory authority whose mission is to assure the reliability and security of the bulk power system in North America.
  • Total Capacity
  • Total Generation
Hawaii State Energy Office, 2017, US Energy Information Agency, 2017

Total
Capacity
3 GW