A Proposal for Real-Time Pricing Tariffs for Large Electricity CustomersAugust 27, 2024As Oahu’s electric grid transitions to clean energy, characterized by variable wind, solar, and storage resources, the marginal cost of electricity will become increasingly variable across time and location. Consequently, the value of using locational marginal prices (LMP) for customer billing and compensating distributed generation will increase significantly. This report outlines a proposal to implement… Read More
Optimal transmission expansion minimally reduces decarbonization costs of U.S. electricityFebruary 21, 2024Solar and wind power are cost-competitive with fossil fuels, yet their intermittent nature presents challenges. Significant temporal and geographic differences in land, wind, and solar resources suggest that long-distance transmission could be particularly beneficial. Using a detailed, open source model, we analyze optimal transmission expansion jointly with storage, generation, and hourly operations across the three… Read More
Embracing TOU: Nudges, Rates, and Renewable EnergyAugust 21, 2023By Michael Roberts, Nori Tarui and Ethan Hartely Hawaiian Electric Company is about to embark on a significant experiment: a pilot program introducing time-of-use (TOU) pricing. Designed to reduce electricity prices during daylight hours when solar power is abundant and increase them during the evening when the sun sets and demand rises, this initiative could… Read More
Real-Time Pricing and the Cost of Clean PowerAugust 9, 2022Solar and wind power are now cheaper than fossil fuels but are intermittent. The extra supply-side variability implies growing benefits of using real-time retail pricing (RTP). We evaluate the potential gains of RTP using a model that jointly solves investment, supply, storage, and demand to obtain a chronologically detailed dynamic equilibrium for the island of… Read More
Are We Building Too Much Natural Gas Pipeline? A comparison of actual US expansion of pipeline to an optimized plan of the interstate networkApril 25, 2022Interstate natural gas transmission and storage infrastructure is facilitated using regulated, private transactions. Pipeline companies obtain long-term contracts from producers and wholesale purchasers, typically local distribution companies (LDCs). Historically, the Federal Energy Regulatory Commission (FERC) accepted these counterparty contracts as sufficient justification of need. Typically the LDCs are themselves regulated firms, which sometimes possess affiliations… Read More
The Agricultural Economic Landscape in Hawai‘i and the Potential for Future Economic ViabilityJune 11, 2021By Sarah Rehkamp, Michael J. Roberts, and James M. MacDonald In a recent UHERO policy brief, Reviving Agriculture to Diversify Hawai‘i’s Economy, authors pointed to trends in Hawai‘i agriculture and state policies surrounding agricultural land management (La Croix & Mak, 2021). Hawai‘i’s agricultural history has centered around the pineapple and sugar plantations and these are… Read More
How Will Climate Change Affect Water Demand? Evidence from Hawai‘i MicroclimatesJanuary 1, 2021The effect that climate change will have on water resource sustainability is gaining international interest, particularly in regions where stocks are strained due to changing climate and increasing populations. Past studies focus mainly on how water availability will be affected by climate change, with little attention paid to how consumer behavior is likely to react.… Read More
Rooftop solar is now competitive with utility-scale power in HawaiʻiOctober 2, 2020By Michael Roberts We need to transition away from fossil fuels quickly, and with inexpensive renewables and batteries, we can do so in a cost effective manner, so long as we employ a sensible plan and the right policies. But what are the tradeoffs involved with how we do it? In most places, rooftop solar… Read More
Estimating water demand using price differences of wastewater servicesJuly 27, 2020Many homes in Hawai‘i use cesspools and other on-site disposal systems (OSDS) instead of the municipal sewer system. Because bills combine water and waste-water services, and homes with OSDS do not pay for sewer service, OSDS residences have lower monthly bills compared to those with sewer-connected systems. We use this price difference in conjunction with… Read More
How Will Climate Change Affect Water Demand? Evidence from Hawai‘i MicroclimatesJuly 27, 2020The effect that climate change will have on water resource sustainability is gaining international interest, particularly in regions where stocks are strained due to changing climate and increasing populations. Past studies focus mainly on how water availability will be affected by climate change, with little attention paid to how consumer behavior is likely to react.… Read More
Herd Immunity or Containment through Test and Trace?March 31, 2020Coronavirus Disease 2019 (COVID-19), a viral disease caused by the virus SARS-CoV-2, has arrived and is spreading in Hawai'i. In an attempt to “flatten the curve,” we have closed schools and many workplaces, while the entire state shelters at home. As a result, the economy is contracting fast. While sufficiently flattening the curve is the… Read More
Four Alternative Models for Regulating an Investor Owned Utility of the FutureApril 3, 2019How do you coerce a monopoly to act as if it were operating in a ruthlessly competitive industry? This is the billion-dollar question of Public Utilities Commissions (PUCs). It’s a tricky thing to do with a mixed history of success. And it’s getting trickier, especially here in Hawaiʻi, where renewable energy and so-called “distributed resources”… Read More