With its mild tropical climate, Hawaii has the third lowest per capita energy use in the Nation. The transportation sector leads Hawaiian energy demand, due in large part to heavy use by commercial and military aviation fuel. In 2010, Hawaii imported 94 percent of its energy and had the highest electricity prices in the Nation. Because Hawaii is isolated from the U.S. mainland, its energy infrastructure and consumption are unique among the States. Hawaii depends heavily on imported fossil fuels to meet energy demand. Close to nine-tenths of Hawaii's energy comes from petroleum. Hawaii uses small amounts of coal and very little natural gas. Hawaii's main industry is tourism, and the State economy is not energy intensive.
Hawaii has two oil refineries that depend on crude oil shipped from Alaska and imported from foreign countries. The refineries, located near Honolulu on the island of Oahu, supply petroleum products to local markets. Petroleum-fired power plants supply more than three-fourths of Hawaii's electricity generation. Generation from coal and several renewable sources supply the remainder of the State's electricity generation. Although Hawaiian natural gas consumption is the lowest in the country, the State has the distinction of being one of three States that produce synthetic natural gas. Hawaii's synthetic natural gas plant, which is located in Oahu, converts a refinery byproduct stream into a commercially viable synthetic natural gas. .
Hawaii's energy policy seeks to ensure dependable, efficient, and economical energy; increased energy self-sufficiency; greater energy security; and reduction of greenhouse gas emissions. Energy planning considers Hawaii's unique resources, challenges, and opportunities in accordance with the state's energy policy. Data is also collected and analyzed for Hawaii's energy supplies, prices, and energy use.
Hawaii's overall goal for energy efficiency is to meet the Energy Efficiency Portfolio standard of 30% by reducing electricity demands by 2030.