Hoku Scientific has shifted their focus from hydrogen fuel cell membrane enhancem ent to producing photovoltaic modules for solar power systems. There are several ventures pursuing wave power and wind power. We are also seeing evidence that companies within the retail and housing sectors are adopting solar to reduce their energy costs and carbon footprints. The administration has also announced plans that will support Hawaii's role as a crucible for projects that could help us achieve some level of energy independence.

All of these achievements are a step in the right direction that address this long standing problem for Hawaii, the need to reduce our reliance on fossil fuel imports. But as with most energy issues, it has taken an outrageous leap in the price of oil to make the economics of using alternatives make sense. Yet there are still challenges ahead. Closed loop alternative energy solutions that help individual businesses reduce their energy costs are great, but the real cost savings, the real paradigm shift, will not occur until ther e is excess energy from renewable sources being pumped back into the power grid. And therein lays the problem. For any large scale renewable energy project to make money it has to sell its energy to the owners of the power grid.

The Kaheawa Wind Power operation on Maui recently complained to the Public Utility Commission that it lost a bid to produce another 30 megawatts of capacity to a new Shell Wind power operation that HECO and MECO (the utility companies) said is in a location that takes advantage of different wind sources. The Public Utility Commission is reviewing the complaint. I cannot seem to figure out why under any circumstance; the utility companies would not want to buy as much power from renewable sources and providers as possible.

The state can also do more to support our local energy entrepreneurs including awarding the hydrogen fund contract and giving the same kind of public endorsement and support to local companies that it has given to companies from outside of Hawaii coming here to make money off of our vast renewable resources. Reducing the regulatory and political risk associated with permitting would also help local entrepreneurs.

Overall, we have a lot to do to become energy independent, but we also have vast amounts of renewable resources. Let's be sure to look to Hawaii entrepreneurs first for solutions and make sure that when these companies are ready to provide energy from our limitless renewable resources that the utility companies will be ready to pay for it.

Bill Spencer is the head of the Hawaii Venture Capital Association. See more at http://www.hvca.org

Source: Hawaii Reporter