Navigant Research Blog

Hawaii’s Smart Grid a Matter of Necessity

— October 1, 2013

Take a disjointed cluster of island power grids, add a rapidly increasing portfolio of wind and solar generation, and combine it with the highest cost of electricity in the nation, and what you get is an ideal setting for introducing an efficient smart grid.  The islands of Hawaii are doing just that, adding technologies that can manage the variability of renewable power generation and eliminate energy waste.

In addition to support from the U.S. federal government through ARRA grants, the governments of South Korea and Japan both recognize the possibilities of Hawaii as smart grid test bed and have provided funding and technology.  Today, those efforts are bearing fruit in the form of smart grid pilot projects, including the Japanese-funded JUMPSmartMaui, a 5-year effort that makes electric vehicles (EVs) central to reaping the benefits of an efficient smart grid.

The program utilizes the smart charging of Nissan LEAFs and the deployment of home energy management systems to respond to grid conditions, including slowing or accelerating charging based on the amount of renewable power being produced.  I received a demonstration of smart charging courtesy of Tadahiro Togami of Hitachi.  The company’s direct current (DC) fast chargers are part of the program to collect vehicle charging data.

Hitachi’s smart chargers can respond to grid changes in frequency or voltage, as well as participate in demand response programs.  The public utilities commission of Hawaii has made DC fast chargers immune from paying demand charges, a potentially costly fee structure when high rates of power are delivered during times of peak demand.  In the future, Hitachi will implement bi-directional charging, in which Nissan LEAFs will provide power to the grid as part of a vehicle-to-grid demonstration.  Togami said that the power authority in Japan (TEPCO) is conservative in evaluating new technologies, so the Japanese government is paying to evaluate smart charging on Maui as part of the $500,000 smart charging project.

EVs are critical to Hawaii’s power grid because of the increasing amount of intermittent wind and solar power.  For example, the amount of photovoltaics in Maui has doubled in the past 2 years to 37 MW, and there is currently 72 MW of wind power.  All of that variability requires ample spinning reserves of diesel-powered generators, and much of the renewable power must be curtailed because the supply sometimes far exceeds demand.  Only 45% of the power produced by a recently installed wind farm on Maui is actually used, so the local utilities are considering an undersea grid interconnect with neighboring islands.  EVs are seen as another part of the solution, as their charging can be scheduled to partially align with renewable power production.

Hawaii pays a high price for the current inefficiency, as customers pay between $0.31 and $0.46 per kWh for electricity and 90% of the state’s energy is imported.  That’s approximately $5 billion leaving the local economy each year in the form of fossil fuels that negatively affect the environment of this environmentally conscious state.


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