Column: Liquid natural gas is smart energy path
Oahu is facing an energy crisis. Hawaii residents continue to pay the highest electricity rates in the country, nearly three times the national average.
Blackouts are growing more and more common, with the Hawaii State Energy Office (HSEO) stating that about 20% of Hawaiian Electric’s generation fleet has been recently offline or operating at a significantly derated capacity.
Hawaii is the only state in the country to use oil as its main source of electricity. And Oahu has the nation’s highest average greenhouse gas emissions, largely due to the use of low-sulfur fuel oil — the most polluting fuel source we have.
While neighbor islands — such as Kauai — have transitioned to more renewable sources to reduce their reliance on imported oil, Oahu’s underlying energy demand is approximately 19 times greater than Kauai’s and is expected to double in the next 20 years. Additionally, Oahu has aging power plants and limited land for large-scale renewable projects, further complicating the state’s goal of economywide decarbonization by 2045.
Recognizing this, the Green administration has outlined a practical path forward that prioritizes the expansion of renewable energy while incorporating natural gas as a near-term fuel — a move away from oil that would immediately cut costs, lower emissions, and improve grid reliability.
Switching from oil to natural gas offers significant cost savings. According to HSEO, ratepayers could see a 15% decrease in electricity prices, saving the average household approximately $340 per year.
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Beyond the financial benefits, natural gas would also deliver immediate environmental gains. We could cut Hawaii’s lifecycle carbon intensity nearly in half by upgrading our inefficient oil-fired power plants to natural gas. And unlike oil, these plants could later be converted to run on zero-carbon fuels like hydrogen, whose only emission is water, providing a degree of future proofing.
Some critics argue that natural gas poses a safety risk, but the industry has a strong record of safety in the U.S. and globally. As a liquid, natural gas is neither flammable or explosive and has been safely transported without any major incidents in port or at sea over the past 50 years.
Critics also claim that investing in natural gas would slow down renewables. The reality is the opposite. This plan complements — not competes with — solar, wind and battery storage expansion.
Because renewable energy sources are inherently intermittent, Oahu’s grid has to become more flexible to handle changes in supply. Gas turbines provide that flexibility, quickly responding to unexpected swings in renewable output to keep power reliable.
Natural gas would fill the gaps currently filled by oil, ensuring Hawaii has reliable, 24/7 power — especially crucial during extreme weather events and times of low battery storage.
Without a firm energy backbone, we risk even more frequent blackouts and price spikes. If we continue pushing for renewables without natural gas, we’ll see rising electricity bills, unreliable power and a continued reliance on oil imported from Libya and other countries.
Instead, we should embrace a balanced approach that uses natural gas to cut costs and emissions in the short term, while continuing to scale up renewables. This isn’t about choosing one solution over another — it’s about increasing our options to make smart, strategic decisions that will help Hawaii create a more affordable and sustainable future.
Michael W. Perry is a radio morning show host and a board member for Practical Policy Institute of Hawaii; Brickwood Galuteria is a former state chairman of the Democratic Party of Hawaii and current Office of Hawaiian Affairs trustee.