Hawaii Tries Green Tools in Remaking Power Grids

http://www.nytimes.com/2009/09/15/science/earth/15hawaii.html?ref=business

Hawaii is becoming America's living laboratory to test sustainable energy sources. Taking advantage of its brilliant natural resources, they are able to explore waves, wind, solar panels, and biomass as sources to generate electricity. The vice president of the Hawaiian Electricity Company claimed that they would have to embrace renewable energy sources even without the consideration of global warming.

1.5 External Environment: PEST analysis

We can analyze the company's decision to exploit green energy sources by using the PEST analysis.
+ is opportunity
- is threat

Political:
- Hawaii's governor has resolved to throw off the yoke of oil dependence and harness the state’s potential (+)
- Agreement reached with federal government (+)

Economic:
- Heavy reliance on imported oil has proved economically perilous (+)
- Hard to attract developers because renewable energy projects are expensive (-)

Social:
- New solutions to global warming (+)
- Agreement reached with majority of local community (+)
- Pressure group of locals found geothermal energy projects sacrilegious (-)
- May take many years to see the benefits (-)

Technological:
- Difficulties in transferring the power to people (-)
- Solar power and wind power sources are not as efficient as fossil fuel (-)


Although there are as many threats as there are opportunities, there is a necessity to develop renewable resources as soon as possible. Ted Peck, the point man for the Hawaii Clean Energy Initiative said it, "We don’t have anywhere else to go." USA is desperate for more ways of generating power, so they will do it despite of the heavy costs, and technological difficulties. Nevertheless, developing green energy sources is beneficial from both financial and ethical viewpoints. Fossil fuel is running out rapidly, and sooner or later we will have to rely on new energy. It is to the advantage of the power companies to start experimenting with these new technologies as soon as possible. It is also an ethical decision, because it encourages other firms to abandon fossil fuel and explore new green ways of generating electricity.