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As Hawaii strives to cut its dependence on imported oil, researchers at the University of Hawaii say that state policymakers are missing a major part of the equation when it comes to energy efficiency goals.

The , signed into law in 2009, mandates that Hawaii reduce electricity consumption by 30 percent by 2030. It’s an aggressive goal. It equates to shutting off all power on the neighbor islands plus one-third of Oahu, .

But the state could make a big dent in the amount of oil it’s importing to supply residents’ electricity needs if it also focused on upgrading decades-old power plants, and in the process drive down electricity rates, according to Sherilyn Wee and Iman Nasseri, doctoral students at the University of Hawaii.

The state imports roughly 15 million barrels of oil for electricity use annually. Of that, only 5 million barrels are converted to electricity and 10 million barrels are wasted, according to their research.

That’s because on average the utilities’ generating units are only 30 percent efficient, said Nasseri. If the electric utilities switched out their steam-powered generating units to more efficient gas turbines, he said, efficiency could double, reducing the amount of oil needed to produce electricity by about half.

Hawaiian Electric Co., which operates the utilities on Oahu, Maui and the Big Island, says it is looking into converting some of its generating units to gas.

But the state’s energy efficiency standards don’t focus on the operations of the electric utility companies. Instead they only apply to reducing the amount of electricity residents consume and ignore the efficiencies that can be gained throughout the generation, transmission and distribution process.

Ray Starling, who heads , the state’s energy efficiency program, said that when state policymakers discussed including the utilities’ production facilities. But Hawaiian Electric Co. fought it, he said.

“In the (regulatory process), the utility basically took a position that they already do the stuff they need to be doing to be efficient and that the efficiency of the utility should not be something that is part of the (energy efficiency) mandate,” he said.

HECO spokesman Darren Pai said in an email that the intent of the energy efficiency standards was to focus on reducing the sale of electricity, not how it is generated. “Generating unit efficiency, which is very important and something we work hard at because it can reduce fuel use and costs to our customers, is focused on a different aspect of the energy picture,” he said.

But Starling said that the utility could be doing a lot to make its operations more efficient, including upgrading generating units, which would both reduce oil imports and cut electricity rates. He said a better policy would be to look at whether or not the state was importing fewer barrels of oil, not whether customers were consuming less electricity.

“(The utility) could do a lot of things that would save a lot of energy. But the way we measure energy is saving kilowatt hours. I think we are measuring the wrong thing,” he said. “You really want to measure how many barrels of oil you are burning. That’s the measure of whether you are really saving or not.”

Starling said that electric utilities have traditionally been focused on providing reliable electricity to customers and efficiency has not been a priority. He said that the for=profit business model of regulated utilities doesn’t encourage energy savings.

“If they’re not as efficient as they could be, from their standpoint, it’s not a big deal because they are going to recover their costs and get a profit on the amount of money their investors have invested in the company,” he said. “Because of the business model of any regulated utility, there is not a lot of incentive for them to be highly efficient.”

Pai says the utility is focused on efficiency measures.

“From an operational perspective, we are continually improving the efficiency of existing generating units and the transmission and distribution systems,” he wrote by email. “This helps customers by reducing the fuel needed to meet their energy needs — and thereby the costs to them.”

Hawaiian Electric Co. has 110 generating units spread across more than a dozen power plants which utilize different technologies, according to research conducted by Blue Planet Foundation, a private organization focused on eliminating fossil fuel use.

Jeff Mikulina, Blue Planet executive director, said that when it comes to energy efficiency policies, the full cycle of electricity production and delivery needs to be taken into account.

“We have to look at the entire system from the fuel source all the way to the end use — every efficiency throughout the entire system,” he said. “We have some of the most inefficient, outdated plants possible. We have power plants that date back to the 1940s.”

What to do with HECO’s power plants in the long term is taking on a greater sense of urgency.

The utility, assisted by a 60-member advisory panel, is in the midst of charting a long-term energy strategy that’s expected to include plans for its generating units. Pai said HECO is looking at a mix of options.

In addition to the planning process, other factors have brought discussions about HECO’s generating units to the forefront.

Gov. Neil Abercrombie is encouraging importing liquefied natural gas to Hawaii, which would require HECO to convert at least some of its units to run on gas. Almost all of HECO’s units burn oil.

More renewable energy projects are also coming online which are expected to replace oil-powered generators. Solar and wind facilities are increasing the need for technologies that can help stabilize electricity generation. And the Environmental Protection Agency is requiring upgrades to oil-based generating units beginning in 2015 to meet stricter environmental controls. Thus, HECO is expected to have to spend significant capital on upgrades anyway.

Adding scrubbers and air control devices to meet the new regulations could cost the utility $1 billion to $3 billion, according to Nasseri, who argues that switching to gas turbines makes more economic sense. By comparison, he said that switching steam-powered generators to gas turbines would cost about $150,000 per 100 megawatts, which in the end would be significantly cheaper.

“It better benefits the state, HECO and customers to switch these old steam turbines into new modern, efficient gas turbines,” he said. “Of course natural gas could be an option. But even if you burn diesel instead of low sulfur fuel oil in those units, you still have higher efficiency, less cost and a cleaner burn.”