Last Updated: March 16, 2023

Overview

The Hawaiian Islands chain stretches more than 1,500 miles across the central Pacific Ocean, from the largest island, Hawaii, in the southeast to the Kure Atoll in the northwest. The eight main islands and the more than 100 uninhabited reefs, shoals, and atolls are about 2,400 miles from California and 3,900 miles from Japan, making them farther from a major landmass than any other island group on earth.^1,2 Hawaii's geographic isolation makes its energy infrastructure unique among the states.³ Hawaii consumes almost seven times more energy than it produces.⁴ About four-fifths of Hawaii's energy consumption is petroleum, the highest share among the states.⁵

Hawaii's islands, which are the tops of volcanos that rise more than 30,000 feet above the sea floor, are located about 1,500 miles north of the equator.^6,7 Steady trade winds and the surrounding ocean moderate the temperatures on the tropical islands. Rainfall is heaviest on the windward side of the islands, where moisture is released as winds move up the mountain slopes, while the leeward slopes remain relatively dry. Hawaii is the only U.S. state with tropical rainforests. Extremes of heat, cold, rainfall and even snow can occur at higher elevations. However, at lower elevations the state's climate is generally pleasantly warm, with little variation year-round.^8,9 Although the largest island in the state is Hawaii, most of the state's population lives on the island of Oahu. On all of the islands, population centers cluster at lower elevations in the coastal areas where the weather is mild and access to services is greatest.^10,11

Hawaii's economy is not energy intensive and ranks fifth among the states that use the least energy per dollar of GDP.¹² Major contributors to the state's economy are real estate, tourism, construction, and government, including the U.S. military.¹³ Hawaii has the third-lowest total energy use among the states and ranks lowest in per capita energy consumption.^14,15 The transportation sector accounts for 47% of the energy consumed in Hawaii, mostly in the form of jet fuel and motor gasoline, followed by the industrial sector at 20%, the commercial sector at about 17%, and the residential sector at 16%. Hawaii's mild climate contributes to the state's residential sector energy consumption being the lowest in the nation.¹⁶

Petroleum

Hawaii has no proved crude oil reserves or production, but it does refine crude oil into petroleum products.^17,18 The state has one crude oil refinery, located in the Honolulu port area on Oahu, which can process about 94,000 barrels of crude oil per calendar day.^19,20 The refinery's crude oil comes primarily from Argentina and Libya.²¹ The local refinery supplies much of Hawaii's demand for petroleum products, but the state also imports refined petroleum products, including jet fuel, propane, and low-sulfur diesel fuel, and motor gasoline, from countries in Asia, the Caribbean, and South America.²² Suppliers offload crude oil into storage tanks in the Oahu refinery area through offshore mooring systems, and load refined products at Honolulu harbor terminals onto fuel barges for distribution to other islands. Hawaii has no inter-island pipelines, but there are pipeline systems on some islands that distribute petroleum products to customers.^23,24,25

The transportation sector uses about two-fifths of all petroleum consumed in Hawaii, and the electric power sector uses about three-tenths. Together, the industrial, commercial, and residential sectors make up the remaining one-tenth of the state's petroleum use.²⁶ Jet fuel accounts for nearly two-fifths of the petroleum products consumed in the state. Because of significant demand from military installations and commercial airlines, jet fuel makes up a larger share of total petroleum consumption in Hawaii than in any other state, except for Alaska. Motor gasoline accounts for one-third of the state's petroleum use.²⁷ In 2006, Hawaii imposed a requirement that all motor gasoline contain at least 10% ethanol, in part to help spur creation of a local ethanol industry, using locally grown feedstocks. However, no ethanol refineries have been built in the state, and the ethanol blending requirement ended in 2016.^28,29 To help reduce its reliance on petroleum, Hawaii implemented over the past decade a series of incentives for electric vehicles (EVs), including designated parking spots in public garages, free parking in government lots and at parking meters, and rebates for installing charging stations.^30,31

Electricity

Fossil fuels, mostly petroleum products, generate the majority of Hawaii's electricity, but renewable energy accounts for a growing share. In 2014, petroleum fueled less than 70% of the state's total electricity generation from utility-scale (1 megawatt or larger) and small-scale (less than 1 megawatt) generating systems for the first time, as solar power began to grow. In 2022, petroleum's share of state generation was down to 62%.³² Hawaii utilities plan to retire more of their petroleum-fired generating capacity and add renewable generating units and related battery storage.^33,34,35,36

Renewable energy sources—solar, wind, geothermal, biomass, and hydropower—supplied most of rest of the state's electricity. The share of Hawaii's total electricity generation produced by all renewable sources, including from small-scale solar such as rooftop solar panels, was 29% statewide in 2022. However, the share of renewable generation was higher on some of Hawaii's individual islands. Coal fueled 6% of the state's generation, and total generation from coal was the lowest since 1992.^37,38,39 In September 2022, the state's last utility-scale coal-fired power plant, a 180-megawatt facility on Oahu, closed as required by state law as part of Hawaii's efforts to transition to 100% electricity generation from renewables.^40,41 The state has no natural gas-fired generation or nuclear power plants.⁴²

About 95% of Hawaii's residents receive their power from Hawaiian Electric, which operates on five of the state's six main islands. An electric cooperative provides power on the island of Kauai. Each of the six islands has a separate electricity grid. The grids are not connected by undersea electricity transmission cables, so each island is responsible for generating its own power.^43,44

The state's large use of petroleum for generating electricity and its isolated island grids contribute to Hawaii having the highest average electricity price of any state and nearly triple the U.S. average.^45,46 Hawaii's electricity demand is the fourth-lowest in the nation, after Vermont, Alaska, and Rhode Island. The state also has the lowest per capita electricity consumption.^47,48 In 2022, the industrial sector accounted for the largest share of Hawaii's electricity sales, making up almost two-fifths of the total, followed by the residential sector and the commercial sector at about three-tenths each. In 2020, Hawaii's residential sector used more electricity than the commercial sector for the first time in more than two decades as mitigation efforts for the COVID-19 pandemic reduced tourism to the state. The commercial sector's electricity consumption increased in 2022 and slightly exceeded residential power use, with each sector accounting for about three-tenths of the state's total.⁴⁹ About 4 out of 10 households in Hawaii use electricity as their primary energy source for home heating. However, with Hawaii's mild tropical climate, heating is rarely needed and about 46% of households have no heating system, the highest share of any state.⁵⁰

Renewable energy

Hawaii has substantial renewable resources throughout the island chain.^51,52 In 2022, about three-tenths of Hawaii's total electricity (utility-scale and small-scale) was generated by renewable sources of energy. Solar power accounted for 58% of the state's renewable electricity generation and 17% of its total generation from all energy sources. Small-scale, customer-sited solar panel generation was about twice as large as the state's utility-scale solar generation.⁵³ Hawaii had the 10th-highest small-scale solar generation of any state in 2022.⁵⁴ At the beginning of 2023, Hawaii had about 1,100 megawatts of total solar power generating capacity, with about 70% of that capacity installed as customer-sited small-scale solar panel systems. There were nearly 97,000 small-scale residential and commercial generating systems on the five island grids operated by Hawaiian Electric. About 22% of Hawaiian Electric's residential customers had rooftop solar panels in 2022.^55,56 Hawaii has a net metering program, but it closed to new applicants in 2015. The program reached the maximum number of customers who can send excess electricity from their privately installed rooftop solar panels or other renewable systems to the grid for payment.⁵⁷

Hawaii's largest solar farm, which went online in late 2019 with nearly 500,000 solar panels on the island of Oahu, has a generating capacity of about 49 megawatts. One of the state's newest solar farms, its third-largest with 39 megawatts of capacity, began operating in mid-2022. About 640 megawatts in new utility-scale solar power generating capacity and battery energy storage, including what will be Hawaii's largest solar farm at 60 megawatts and the separate 185-megawatt Kapolei Energy Storage project, are scheduled to come online in 2023.^58,59,60 As part of Hawaii's commitment to renewable energy, since 2010 state building codes require all new single-family homes to have solar hot water heaters, with some exceptions.^61,62

Hawaii has significant onshore and offshore wind resources, and wind energy generated 20% of the state's renewable electricity and 6% of its total electricity in 2022.^63,64 The state has 233 megawatts of installed generating capacity at eight utility-scale wind farms.^65,66 Hawaii has no offshore wind power turbines, although energy companies have proposed several offshore wind projects for federal waters around Oahu and the U.S. Bureau of Ocean Energy Management sought additional nominations from companies interested in offshore commercial wind energy leases.⁶⁷

Hawaii is one of seven states with utility-scale electricity generation from geothermal resources, which provided about 10% of the state's renewable electricity and about 3% of total power supplies in 2022.^68,69 The state's single geothermal power plant, located on the Kilauea Volcano on the Big Island, temporarily shut down in May 2018 after ground fissures and lava blocked access to it following an eruption of Kilauea. In November 2020, the plant came back online and its owners plan to increase the capacity of the plant from 38 megawatts to 60 megawatts by installing upgraded power-generating units.^{70,71,72,73,74}

Biomass accounted for 9% of the Hawaii's renewable generation in 2022 and slightly less than 3% of the state's total generation.⁷⁵ Biomass, mainly agricultural wastes such as bagasse from sugarcane, has long been used in rural Hawaii to generate heat and electricity. However, that source of biomass declined with the closure of many sugar plantations.⁷⁶ Currently, Honolulu's 90-megawatt waste-to-energy power plant, which uses municipal solid waste to generate nearly one-tenth of Oahu Island's electricity, provides most of the state's biomass-fueled electricity.^77,78 Several other smaller waste-to-energy and biomass generators operate on Oahu and Maui.⁷⁹ A new biomass facility, located on a former sugar plantation, planned to burn local forest waste to generate electricity, but that project was delayed.^80,81 Biofuels also play an important role in Hawaii's power generation. The 120-megawatt Campbell Industrial Park Generating Station, which began service on Oahu in 2010, is believed to be the world's largest commercial power generator fueled exclusively with biodiesel.⁸² Hawaii's one operating biodiesel production plant has a capacity of 6 million gallons per year.⁸³

Hawaii does not have rivers with large water flows that can support hydroelectric dams, but the state still produces some hydropower.^84,85 The small hydroelectric turbines in use are run-of-river and run-of-the-ditch systems at sites on Maui, Kauai, and the Big Island. Hydropower provided about 4% of the state's renewable generation and 1% of total generation from all sources in 2022.⁸⁶ There are several other proposed and active hydro projects under development. Studies have identified other potential sites for small hydroelectric projects in the state.^87,88,89,90

In 2015, the Hawaii legislature amended the state's renewable portfolio standard (RPS) and made Hawaii the first state to set a legally required deadline, by the year 2045, to obtain 100% of its electricity sales from renewable energy sources. The legislature amended the RPS again in 2022, basing the RPS targets on electricity net generation instead of electricity sales starting in 2030.^91,92,93,94 Hawaii set a separate energy efficiency standard to reduce electricity consumption by 40% by 2030. Originally, the energy efficiency standard was part of the RPS, but, in 2015, the standards were separated because of the different technologies and measurements required to assess each goal.^95,96

Natural gas

Hawaii has no natural gas reserves and produces no conventional natural gas, but it produces synthetic natural gas (syngas).^97,98 Hawaii and North Dakota are the only two states that produce syngas.⁹⁹ An Oahu processing plant produces syngas, using naphtha feedstock from a local refinery, and delivers it via pipeline to parts of Oahu.¹⁰⁰ Renewable natural gas is also produced in Hawaii in the form of methane created by the biogas from decomposing organic matter at a Honolulu wastewater treatment plant.¹⁰¹

With its limited supply and distribution network, Hawaii has both the lowest total natural gas consumption in the nation and the lowest per capita consumption.¹⁰² In 2022, the commercial sector, which includes hotels and restaurants, consumed 77% of the natural gas in Hawaii. The residential sector accounted for 20% and the industrial sector used 3%.¹⁰³ Only about two-fifths of Hawaiian households have heating systems, and very few of those households, about 3 in 100, use natural gas as their primary heating fuel.¹⁰⁴

Coal

Hawaii has no coal reserves and does not produce coal, but did receive coal from ocean freighters in the past.¹⁰⁵ Hawaii's coal use began in the 1980s as a way to reduce the state's dependence on petroleum in both the industrial and electric power sectors.¹⁰⁶ Industrial plants used coal to supplement the agricultural waste burned to power sugarcane processing operations, but those operations ceased.¹⁰⁷ Coal was last used by Hawaii's electric power sector in late 2022, when the state's one utility-scale coal-fired power plant was retired.^108,109,110

Endnotes

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