Preface & Task Force Recommendations Welcome The End of Cheap Oil Laney's Review of Loudat's 1997 Report Loudat's 2000 Report on Economic Impacts of Hawaii's Energy Tax Credit California's Renewable Energy Program Renewable Energy Policies in Other States North Carolina's Energy Programs Arizona Energy Policies Federal Policies Arithmetic, Population, and Energy Honolulu Community Action Program Solar Water Systems in Self-Help Housing in Waianae Solar in Hawaii HECO's Energy $olutions Program Priming the Energy Pump in Hawaii Being Cool at Iolani School

Publications > Proceedings of the Energy Symposium Priming the Energy Pump in Hawaii

Ray Starling President OFF-PEAK / ELITE ENERGY GROUP, LLC 2656 Waiwai Loop Honolulu, Hawaii 96719 PH: 808-263-1264 FX: 808-262-9967 E-mail: raystarling@off-peak.com Website: www.off-peak.com   OFF-PEAK / ELITE ENERGY GROUP, LLC is a small energy business in Hawaii that designs, builds and operates ice thermal storage systems for commercial air conditioning. We have installed and now operate three full ice systems in Honolulu, Maryknoll High School, Aiea Medical Building and Market City Shopping Center. We have another full ice system under construction at Mid-Pacific Institute scheduled for completion in December 2000. These are some of the basic Energy Facts that we live with in Hawaii. These Facts not only describe the fundamental energy problems that we face, but also give a hint at where to look for solutions to those problems. Hawaii is much too dependent on imported oil. Oil and electric energy costs continue to go up at alarming rates. Hawaiian Electric companies in the islands have to build new generation and transmission facilities to meet "peak" loads. Peak electric loads usually occur during the day as a result of air conditioning loads. Hawaiian Electric companies have significant idle generation and transmission capacity at nighttime (i.e., 1200MW daytime vs. 400MW nighttime at HECO). The Hawaiian Electric system efficiency is far more efficient at nighttime than in daytime due to availability of the most efficient equipment on the HE system. Better Hawaiian Electric efficiency results in lower electric cost for everyone using electricity on the HE system. A more efficient HE system is also much kinder to the earth, with less fossil fuel use, lower air emissions and less greenhouse gases.

Anytime an electric load can be shifted from on-peak to off-peak, our energy problems are reduced, HECO’s entire system efficiency is improved, fossil fuel use is reduced, air pollution is reduced, global warming is slowed, the need for new generators and transmission lines is reduced and the cost of electricity for everyone on the HE system is reduced. Ice thermal storage has a unique ability to shift very large electric loads from on-peak to off-peak times. By using the "battery" effect of ice storage, we can make and store ice at night (when generation costs are low and system efficiencies are high) and use that ice for cooling during the day (when generation costs are high and system efficiencies are low).

Because ice thermal storage in Hawaii is almost non-existent, this leaves a vast untapped opportunity to shift electric load, save wasted energy and reduce energy costs.

There are only 7 ice thermal storage facilities operating in all of Hawaii, with 6 of them built in the last 4 years. Only two engineering firms in Hawaii have ever attempted to design an ice system and only one Hawaii mechanical contractor has ever constructed a full ice system. More importantly, because of ignorance, fear and short-sightedness, many new conventional air conditioning systems are being installed each day in Hawaii without any serious consideration of ice thermal storage as an alternative.

As a practical matter, once a new conventional system is installed, that new electric load will be a burden on the ECO’s system "peak" for the next 20-25 years, costing us all. By comparison, ice thermal storage takes this burden off the electric system for the next 20-25 years. Because ignorance, fear and shortsightedness are still keeping Hawaii from enjoying the many benefits of ice thermal storage, continued priming of energy pump is needed, at least until ice gains more widespread acceptance.

The rest of the world is much farther along than Hawaii in its use of ice thermal storage. Pictures at the end of this slide series will show what the rest of the world is doing with ice storage technology. Hawaii’s uncertain economy still causes short-sighted decisions when building owners are faced with large investments for capital equipment. The higher "first cost" of ice thermal storage systems compared with conventional A/C systems leads many building owners to choose the less expensive conventional system, when the ice system would save much more in energy costs over its life than the conventional system. In fact, the ice storage system will actually save enough from electric load shifting over its life to pay for itself; the conventional system will never save anything from load shifting. Additionally, new energy ideas like ice thermal storage are difficult to sell in Hawaii. In particular, design engineers and architects have a built in bias towards the conventional A/C systems that they are used to and understand. They are generally not willing to take a chance on a new technology. The fact that ice thermal storage is practically non-existent in Hawaii is testament to this reluctance. In order for ice storage to become successful, a certain "critical mass" of acceptance is necessary. Continued priming of the energy pump is absolutely essential to achieving that critical mass of acceptance. Small energy firms have lost talent to the mainland because energy conservation efforts in Hawaii have diminished in the difficult economy of the 90s. Big energy firms have locked up prime government contracts, leaving nothing for small energy firms.

Existing energy pump priming has been very helpful in getting ice thermal storage started in Hawaii, but this needs to continue until a time when ice thermal storage has gained a sustainable "critical mass". Energy tax credits make the additional capital cost of ice thermal storage systems tolerable when compared to conventional systems. Payback periods are brought within the range of acceptability when compared to conventional systems. This has encouraged the first adventurers to give ice a try. It is essential that these tax credits remain in place until ice gains more widespread use in Hawaii.

Feasibility studies conducted before installation of ice systems are essential to proper system design and sizing. HE support for feasibility studies has insured that detailed analysis is accomplished. This has led to a very good record of adequate design of ice systems in Hawaii. This program also needs to be continued until the design/engineering of ice storage systems is second nature for design professionals. Likewise, equipment rebates are essential to encouraging initial use of ice thermal storage, before general acceptance is obtained. This program should be continued.

	Three kinds of NEW priming would help the cause of ice thermal storage: New emergency electric rates are needed to avoid excessive (and expensive) redundancy. These rates would allow for running of off-peak ice chillers during peak periods without unreasonable penalty if sufficient ice was not made during the off-peak ice-making period due to equipment problems.
New shoulder electric rates (medium cost rates between off and on-peak) would greatly reduce the size and expense of equipment needed to most effectively shift electric load. Finally, policies encouraging government use of ice storage would be very helpful in setting a good public example of support for this "earth friendly" technology.

The future of Hawaii’s energy policy can take two radically different paths, one leading to a successful priming of the energy pump and the other leading to a failure to adequately prime the energy pump. Each path has dramatically different results as shown, making this a very important issue for Hawaii. Which results do you want to see?

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