Barriers to Microgrid Development Spur Bill for Tariff in Hawaii

The Hawaii legislature last week sent a bill to Gov. David Ige’s desk that directs the state’s regulators to open a proceeding to create a microgrid services tariff.

The new tariff is meant to facilitate development and use of microgrids in Hawaii.

The bill states that while Hawaii leads in renewable energy development, few microgrids have been developed there, and “their development has been inhibited by a number of factors, including interconnection barriers and a lack of standard terms regarding the value of services exchanged between the microgrid operator and the utility.”

Related: Hawaii Takes Historic First Step Toward Creating ‘Utility of the Future’ Now

The tariff would provide fair compensation for electricity, electric grid services and other system benefits.

If Ige signs the bill, the Hawaii Public Utilities Commission will have until July 1 to open a proceeding.

Lead image credit: Tyler S. Miller | Flickr

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Jennifer Delony, analyst for TransmissionHub, started her career as a B2B news editor in the local and long-distance telecommunications industries in the '90s. Jennifer began covering renewable energy issues at the local level in 2005 and covered U.S. and Canadian utility-scale wind energy as editor of North American Windpower magazine from 2006-2009. She also provides analysis for the oil and natural gas sectors as editor of Oilman Magazine.

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