06-16-2012, 12:06 PM
quote:
Originally posted by DanielP
I cannot imagine that an underwater cable thru those waters and distance would be feasable.
Conclusion
The interconnection within the Hawaiian Islands via submarine transmission cables would be ideal for the utilities in Hawaii. With the uncertainty of oil prices and the push for renewable energy generation in Hawaii, the feasibility of an interisland cable system is likely. There are numerous proven examples such as the Neptune Project connecting Long Island Power Authority to New Jersey's Mid-Atlantic grid. While many environmental and technical studies indicate viability, the construction aspect of the project is not a huge undertaking compared to securing financing to fund the project. Although the problem of firming renewable energy generation hasn't been perfected yet, both energy storage and submarine transmission cables can help solve Hawaii's energy problem in the near distant future.
In 2009, Hawaii State Legislature passed HB 1464 that expanded their renewable portfolio standard. Under HB 1464, Hawaii has a strict renewable portfolio standard of 40% of renewable generation by 2030 and 25% by 2020. [5] Hawaii is looking to develop wind farms, solar arrays and geothermal plants in Molokai, Lani and Big Island and deliver up to 400 MW through a submarine transmission cable to help meet the state's goal [4]. Since renewable energy such as solar and wind are an intermittent source, firming its power distribution can make renewable energy an attractive base load. However, energy storage is very expensive, which makes grid parity unlikely until prices come down. Also, efficiencies and life cycle analysis are being researched to ensure that the intermittencies are addressed. Other prospective firm renewable energy like geothermal have great baseload power distribution. Until the energy storage problem is solved, the viability of a submarine transmission cable might have to tackle huge economic and political hurdles.
The magnitude of this project will be hard for Hawaii to finance given the deficit it's facing. Alternate methods of financing may include project financing with an equity sponsor that is typically a non-recourse loan. Other methods may be privatizing the asset while charging a fee for utilities to use the transmission cables. Regardless of which financing option, public funding and investment banks will have to develop a consortium to secure financing to fund this project.
The Neptune Project: and other links of interest.
http://large.stanford.edu/courses/2010/ph240/ho1/