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In 2011 Hawaii reached and then passed grid parity. The unsubsidized cost of photovoltaic energy matched and then dropped below the cost of utility electricity.

In February 2012 Hawaiian Electric Industries Inc. informed the U.S. Securities and Exchange Commission:

“HECO and its subsidiaries face competition from … customer self−generation … The electric utilities cannot predict the future impact of competition from … customer self−generation, or the rate at which technological developments facilitating non−utility generation of electricity will occur. New technological developments, such as the commercial development of energy storage, may render the operations of HEI’s electric utility subsidiaries less competitive or outdated.” (HEI Annual 10−K Report filed on February 17, 2012)

In some ways the grid parity price comparison is comparing apples to oranges.

Those who install solar photovoltaic remain attached to the grid. Solar owners can give surplus power to the grid during the day, and receive grid power in the evenings and nights. Owners are able to have net zero homes by using the grid as a battery.

A better price comparison would be between a fully distributed system with no grid interface versus a fully grid-connected distributed system.

The two paths (No Grid and Smart Grid) are both costly.

If you were to buy a new car, wouldn’t you compare prices? If you were to buy a new energy future wouldn’t you also compare prices?

Wouldn’t you want to know what impacts the two approaches have on democracy, economic growth, small business opportunities, employment, labor unions, reliability, and security?

While some may view the inclusion of democracy in the list as not relevant, expanding the existing grid system is funded by powerful multinational energy interests. Historically these interests have weighed in on every national U.S. presidential election for the past 9 decades. They have used their might to shape energy policies adopted by all governments, and to write fossil fuel friendly definitions of renewable energy.

In Hawai`i, renewable energy includes burning coal at H-Power, burning fossil fuel derived biodiesel at HECO power plants, and making palm oil biodiesel from destroying the Borneo Rainforest.

Since the Wall Street meltdown, the real financial assets of the Middle Class have dropped significantly, while the pay and bonuses given to HECO’s and HEI’s millionaire corporate elite have sharply increased.

Both the No Grid and Smart Grid energy paths have added costs associated with needed battery storage.

The U.S. Grid has storage equivalence to a tenth of a second. Turn off all U.S. generators, and the grid will last less than a second. Hawai`i’s picture is similar.

Modern grid proponents envision extensive energy storage systems located at renewable energy sites and nodes on the utility grid.

The No Grid path would result in the dismantling of all electric transmission towers, telephone poles and electric and telephone wires.

The Smart Grid path have eight additional costs that would not occur under the No Grid path.

(1) Smart Meters would provide real-time measurement of energy production and consumption for every utility customer.

(2) The Grid would be reconfigured so that electricity flows could go in either direction.

(3) Two-way telecommunication equipment would be added to every node on the grid.

(4) The Inter-Island Cable (O`ahu-Maui-Big Island) would link three island grids.

(5) Existing utility generators were designed to be on or off. They must be reconfigured so the output can swing (ramp) up and down to offset the changing output of large wind and solar systems which are affected by wind gusts and cloud cover.

(6) Frequency and voltage regulation must be added to the grid. Following blackouts the grid must have the capacity to be reinitiated with black start generators. These ancillary services can be outsourced.

(7) Many of Hawai`i’s generators are old. Some date from the Territorial days. They will need to be overhauled under new U.S. EPA emission regulations.

(8) Last, but not least, the Smart Grid computer management system must be able to withstand hacking and cyber attacks.

After getting caught with their pants down, DBEDT has promised to analyze alternatives in the new and revamp Inter-island cable Programmatic EIS process.

Let’s look forward to a robust analysis of the No Grid and Smart Grid paths.

About the authoer: Henry Curtis has been Executive Director of Life of the Land since 1995, and has a BA in Economics from Queens College, City University of New York. He is a community organizer, videographer, director, producer, peer reviewer, moot court judge, community facilitator, and provides expert testimony on ocean power, biofuels, energy, and externalities at the Public Utilities Commission, where he has represented Life of the Land in over twenty regulatory proceedings. He is committed to Hawaii’s energy self-reliance and well-being, and is motivated by the values of aloha aina, malama aina, and his love for Hawaii nei.