Hawaiian Electric Companies secured an approval from the Public Utilities Commission to implement a demand response initiative.
Under the initiative, consumers on Oahu and Maui islands will be rewarded for using their own equipment to participate in the management of the electricity grid.
Hawaiian Electric will partner with demand response aggregators to control the energy consumption of consumer equipment to reduce demand during peak periods.
The demand response programme will include residential customers being equipped with battery energy storage systems. The project is expected to help consumers improve their energy management and reduce energy costs.
Owners of electric vehicles (EV) will receive incentives for allowing the utility to charge and discharge energy on EV batteries to meet changing energy requirements of the grid.
The approval follows two years of technical and financial analysis.
Hawaiian Electric has tasked participating demand response aggregators to develop tariffs, rate schedules and grid services purchase agreements.
The demand response aggregators are recruiting participants, to have the first customer online by the second half of 2018.
The project is part of the utility’s Grid Modernisation Strategy in which Hawaii Electric will use latest technologies, including advanced meters and wireless networks, to communicate with controls on homes and businesses.
Shelee Kimura, senior vice president for business development and strategic planning for Hawaiian Electric, said: "Demand response is expected to play an essential role in achieving Hawaii's clean energy goals by creating opportunities to allow customers -- and their growing accumulation of distributed resources -- to help increase renewable energy resources on the grid while maintaining grid stability and reliability."
Image credit: Stock.