Under the Hawaii Renewable Portfolio Standards law, Hawaiian Electric Co. is required to supply up to 20% of all electricity for Oahu from renewable sources by 2020. HECO has come up with nine proposals for renewable energy projects that are subject to PUC approval. Now HECO is proceeding with 110-megawatt biomass power plan in Campbell Industrial Park. Among the proposals under consideration are solar, wind and ocean thermal energy.
All this progress toward renewable energy is welcome in environmental perspective. Increasing renewable energy production in Hawaii will reduce its dependence on oil and will be beneficial for Hawaii's economy in the long run.
However, all this transition toward renewable energy doesn't necessarily guarantee cheaper energy cost. I think we'll see high price for renewable energy to cover the start-up cost for the foreseeable future.
In the oligopolistic or monopolistic market of energy, expecting cheap price for electricity may be wishful thinking. Barrier to entry into renewable energy market is so high with requirements of large capital and technological expertise. However, the future of energy market will be promising with the Hawaii government's push for renewable energy.
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