Can renewable energy lower our electricity bills? After all, there are so many sources out there that are cheap or essentially free — the sun, the volcano, the deep waters offshore, marine algae, hydrogen, wind. But from Hawaiian Electric Company’s point of view, renewable energy isn’t cheap. In fact, in the near future, it will cost more.

HECO, which received a $70 million rate increase six months ago, says it may seek another one to help pay for its new biofuel-run power plant at Campbell Industrial Park. It is also proposing a ratepayer surcharge — estimated at $1 per month — to recover costs for renewable energy projects it develops in conjunction with third parties, as well as other projects such as smart meters in homes to improve monitoring and control of household electricity use.

It won’t help HECO’s public relations that its most recent earnings report shows it making more money: it reported 2008 first-quarter profits of $34 million, up from $6.8 million it made in the first quarter of last year.

Nonetheless, HECO makes the argument that the transition from a fossil fuel-based electricity grid to a renewable-fuels one will require a significant investment. No doubt this is true.

It’s clear that the big-idea solutions, such as marine algae for fuel, large-scale wind farms, photovoltaics with battery storage for cloudy days, are not yet ready for prime time. Developing them on a scale that will provide reliable electricity for all the islands remains a challenge.

HECO makes the point, through its advertising and via the news media, that it intends to wean itself from its 90-percent dependency on fossil fuels and adopt clean renewable energy sources as soon as it’s practical. HECO’s critics will argue that the company’s quasi-monopoly status gives it little incentive to significantly change the way it generates and distributes electricity. If you depend on HECO, it’s argued, change will come, but it will be slow and expensive.

The truth no doubt lies somewhere in between. HECO and the affiliated Neighbor Island companies must deliver electricity reliably to the 1.2 million people on an isolated archipelago. A wholesale change in how that electricity is generated is no small challenge. How that change will be managed remains a question; for many of us, how we will pay for it remains a question as well.

Tags: Hawaiian Electric, renewable energy

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