Hawai’i’s Strategic Importance in the Indo-Pacific Energy Security

February 3, 2025

Hawai’i, as the United States’ fulcrum in the Pacific and home to the U.S. military’s headquarters for Indo-Pacific operations, plays a pivotal role in ensuring energy security in the region. This island state possesses a unique energy infrastructure that presents significant security implications, particularly regarding the stability and resiliency needed to support U.S. Armed Forces stationed on the islands. More specifically, various challenges must be addressed, such as securing the state’s reliance on imported fossil fuels, mitigating the risks posed by natural disasters, and advancing renewable energy integration to bolster Hawai’i’s energy infrastructure.

Energy Infrastructure Challenges

Hawai’i faces extraordinary energy infrastructure challenges compared to other U.S. states. Each island operates an independent, non-interconnected power network predominantly managed by Hawaiian Electric Company (HECO). HECO is a long-standing regional monopoly that provides approximately 95 percent of the state’s electricity and maintains a critical relationship with the U.S. Armed Forces. Given that the military owns about 20 percent of land on O’ahu, they are among the largest electricity consumers on the island, making military energy demands a substantial component of HECO’s workload.

Due to its independent power grids, Hawai’i is particularly vulnerable to disruptions caused by natural disasters. For instance, a powerful storm on January 30 caused significant power outages across diverse islands, including O’ahu, Hawai’i, and Maui, affecting thousands of residents and raising concerns about the state’s energy reliability. This dependency on isolated grids exacerbates the potential for widespread power shortages during natural events, prompting the need for strategic enhancements.

Similarly, the severe wildfires on the island of Maui in March 2023 devastated HECO’s infrastructure and prompted island-wide power outages. The consequent damages led to an over 60 percent drop in HECO’s stock by August 2023, an issue that remains unresolved. The Maui wildfires, along with other disasters like the wildfires in Los Angeles, have intensified discussions on climate change and its implications for energy and water security. These events underline the critical need for resiliency in the state’s energy framework to withstand both natural and man-made crises.

HECO’s Historical and Present Role

Founded in the 1870s, HECO is not only older than Hawai’i’s statehood but has also historically been the sole major electricity provider in the islands. Across decades, HECO has been integral in energizing Hawai’i through significant historical events, including being targeted during the Japanese attack on Pearl Harbor. The U.S. government invested substantially to upgrade HECO’s infrastructure post-attack, recognizing its strategic importance in the region.

As geopolitical tensions in the South China Sea and Taiwan Strait rise and local challenges continue to expose the energy grid’s fragility, discussions around Hawai’i’s energy security have resurfaced. Collaborative efforts between HECO and the military to enhance energy resilience have emerged as a promising short-term solution to mitigate significant vulnerabilities. The longstanding relationship between HECO and the U.S. Armed Forces underscores the utility’s importance and the necessity for continuous improvement and collaboration.

Military and HECO Collaboration on Renewable Energy

Collaborations between HECO and the military have focused on developing renewable energy solutions as a strategy for energy security. In May 2018, the U.S. Army partnered with HECO to establish a biofuel-powered station at the Schofield Army Base in O’ahu. This station can sustain operations for up to 30 days using on-island resources and serves as a critical backup during emergencies. Its efficacy was demonstrated during power outages in January 2024 when it contributed 40 megawatts to O’ahu’s main grid, emphasizing the strategic advantage of such renewable initiatives in emergency scenarios.

This partnership is part of the Army’s Utilities Privatization Program, designed to outsource electricity demands to local providers. In November 2020, HECO received a 50-year contract worth $638.5 million to supply electricity to 12 Army installations in Hawai’i, deepening the military’s reliance on HECO. This symbiotic relationship underscores the importance of ensuring that HECO remains stable and capable of supporting military operations while expanding renewable energy solutions to enhance overall energy security.

Investments and Future Prospects

Given the vital energy needs, HECO has plans to invest $450 million to modernize its grid and mitigate risks from future wildfires. This announcement followed the company’s sale of 90 percent of its stake in American Savings Bank to fund the settlements from the Maui wildfire and bolster its modernization efforts. Alongside this, HECO has sought state support for its obligations on various wind and solar projects amidst concerns regarding its credit integrity. These modernization efforts aim to future-proof Hawai’i’s energy infrastructure.

Hawai’i aims to achieve 100 percent renewable power generation by 2045, aligning with the growing role of HECO in supplying power to military facilities. This ambitious goal creates substantial incentives for the Hawai’i state government and the Defense Department to ensure HECO’s operational stability and expansion of renewable projects. Attaining this target not only serves to address vulnerabilities but also cements Hawai’i’s position as a leader in renewable energy integration, contributing to broader U.S. energy security objectives in the Indo-Pacific.

Political and Policy Dynamics

The political environment under U.S. President Donald Trump, who entered his second term with a national freeze on renewable energy development on January 20, 2025, adds complexity to Hawai’i’s energy landscape. Despite Trump’s opposition to renewable energy, his administration must find a balance, as his policy on military energy needs could necessitate investing in renewable energy innovations to achieve energy independence and stability for U.S. military bases in the region.

Notably, Trump’s Cabinet appointees, including Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth, have prioritized countering China’s influence in the Indo-Pacific. Ensuring the stability of energy supply to U.S. military bases in the Pacific is integral to this strategy. This approach will require reconciling policy discrepancies to sustain a stable energy supply chain that strengthens the U.S.’s strategic position and minimizes dependencies on foreign energy imports.

Tulsi Gabbard’s Role

A notable exception within Trump’s Florida-centric administration is the appointment of Tulsi Gabbard, a former Hawaiian congresswoman, as the Director of National Intelligence. Gabbard’s background as a military veteran and proponent of renewable energy provides a nuanced perspective on Hawai’i’s energy issues. During her congressional tenure, she championed the Off Fossil Fuels for a Better Future Act, aspiring for the U.S. to achieve 80 percent clean energy by 2027 and 100 percent by 2035. Although joining the Republican Party and Trump’s inner circle may have shifted some of her positions, her influence and respect among military veterans and Republicans might advocate for renewable energy as critical to military energy security.

Conclusions

Hawai’i holds a critical position as the United States’ strategic base in the Pacific and as home to the U.S. military’s headquarters for Indo-Pacific operations. Its role is crucial in ensuring energy security within the region. The island state’s distinctive energy infrastructure carries major security implications, underscoring the need for stability and resiliency to support the U.S. Armed Forces stationed there.

Several challenges demand attention to safeguard this stability. Firstly, Hawai’i’s heavy reliance on imported fossil fuels makes it vulnerable, requiring measures to secure these energy imports. Additionally, natural disasters pose significant risks to the state’s energy infrastructure, necessitating robust strategies for disaster prevention and response. Advancing renewable energy sources is another key avenue for reinforcing Hawai’i’s energy resilience, reducing dependency on fossil fuels, and promoting sustainability.

Overall, Hawai’i’s strategic importance to U.S. military operations and regional stability hinges on addressing these energy security issues. By securing fossil fuel imports, enhancing disaster resiliency, and integrating renewable energy, Hawai’i can strengthen its energy infrastructure to support both its residents and military presence effectively.

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