Hawaii Ends Coal

30-year contract expiration finishes coal on the island

The power purchase contract between Hawaiian Electric and AES Corporation expired on September 1st. The Campbell Industrial Park plant was the last facility in Hawaii using coal for power generation.

The 180 MW AES facility released 1.5 MT of CO2 equivalent annually. Under Act 23 of 2020, Hawaii banned any extension of the contract and any future use of coal for power generation.

Previously, the projected cost of discontinuing coal was relatively modest, about $2 more per month for typical customers. Now it’s $15 a month. This is because the Russian invasion of Ukraine has driven oil prices to historic levels.

“This is a critical turning point in the long-term transition of Hawaii’s energy landscape. Unfortunately, the timing has converged with global events that are currently increasing the cost of electricity,” says Shelee Kimura, President and CEO of Hawaiian Electric.