Hawaii, Connecticut Support Alternative Energy Tech Demos

They may be separated by more than 6,000 miles, but tech-based economic development initiatives in Hawaii and Connecticut have adopted similar strategies to encourage the commercialization of alternative energy technologies: they're buying them. 



Using the purchasing power of the public sector to affect change has been an effective tool in the past for socio-political projects ranging from helping topple the apartheid regime in South Africa to addressing environmental goals such as providing a large enough market for recycled paper products to warrant the substantial private investment needed in pulp mill construction and refurbishment. 



Combining public purse strings with the need to demonstrate commercially unproven-yet-promising technologies such as all-electric cars and fuel cells, however, is a less commonly applied strategy. Public transportation projects, such as buses run on natural gas, provide perhaps the most widely known application of the concept. 



An advantage to technology demonstration projects using public acquisition programs is the relative cost savings. Tech-based economic development initiatives can pay the "surcharge" or increment a new technology costs over the regular government purchase schedule, maximizing the tech program's budget to support feasibility and demonstration projects. 



Another advantage is the government's ability to negotiate through multiple levels of regulation and bureaucracy with greater ease than the general public outside the system. Tech-based economic development programs – with the support and endorsement of the Governor – are able to facilitate and create inter-agency partnerships and public-private coordination. 



The stories in Hawaii and Connecticut provide two examples in practice. 



Hawaii 

This summer, the Hawaii High Technology Development Corporation (HTDC) and the State of Hawaii took delivery of the first 15 battery-powered Hyundai Santa Fe Sport Utility Vehicles. In 1998, HTDC initiated a program to make Hawaii the first "Electric Vehicle-ready" state in the country through the installation of rapid charging stations. The goal of this initiative was to show Hawaii's commitment to provide the needed infrastructure for consumer acceptance of battery-powered vehicles. 



HTDC will use the test vehicles, donated by Hyundai and valued at $100,000 each, to demonstrate and evaluate the charging infrastructure that has been set in place. To date, seven rapid chargers have been installed on Oahu, with another 13 planned installations by the end of this year. The SUVs will be used by four participating sectors on Oahu — Hickam Air Force Base, the Hawaii Electric Company, the City & County of Honolulu, and the State of Hawaii. 



According to Nola Miyasaki, Executive Director & CEO of HTDC, the corporation's Hawaii Electric Vehicle Demonstration Project has secured more than $20 million in federal funds over the past eight years and, in turn, funded 15 Hawaii-based organizations, working towards the goal of growing an electric vehicle industry in Hawaii. 



More information on the initiative is available on the HTDC website at http://www.htdc.org/010710Hyundai.html

Connecticut 

Connecticut Innovations, Inc. is providing funding to support the demonstration and testing of fuel cell energy applications through the Connecticut Clean Energy Fund (CEF). Created by the state General Assembly in 1998, the fund invests in enterprises and other initiatives that promote and develop sustainable markets for energy from renewables and fuel cells that will benefit the ratepayers of Connecticut. 



For example, CEF is providing $2 million for the community of South Windsor to install a fuel cell system to generate emergency power at the high school as part of the city's disaster-relief plan. Once in place, and fully tested, the fuel cells are expected to save the community $76,000 a year in back-up power costs, according to an Associated Press wire story on the project. 



CEF also provided $1.25 million to support the purchase of a 250 kW demonstration power plant for installation at the University of Connecticut. In addition to reduced air pollution, the project is expected to provide information on applicability and benefits of using fuel cell technology for larger-scale energy production. 



On August 28, Connecticut Innovations issued a Request for Proposal (RFP) for CEF, seeking bidders to conduct commercial and demonstration projects under the CEF Fuel Cell Initiative. First year funding levels for the three categories of projects included in the RFP are expected to reach $5 million, with an additional $1million in funding from the state's Conservation and Load Management Fund (CLMF). 



More information on CEF is available at http://www.ctcleanenergy.com/