Venture firm Khosla Ventures and Hawaii’s largest electric utility will collaborate on testing and implementing such clean technologies as solar power and efficient lighting in the island state.
Under the deal announced Tuesday, Hawaiian Electric will evaluate and test technologies developed by startup companies backed by Khosla Ventures. The agreement will give the utility a first look at emerging technologies. And Hawaiian Electric’s feedback will help the startups prepare their products for commercial release, said Vinod Khosla, founder of Khosla Ventures, in a statement.
The Menlo Park, California, firm did not say which of its portfolio companies would be involved in the testing. But the firm said the testing would initially focus on solar, efficient lighting, battery and storage technologies.
Ron Pernick, co-founder of the research firm Clean Edge, called the agreement a “smart move.”
“Utilities in particular are going to be at the forefront of investments in and the deployment of many types of [clean] technologies,” Mr. Pernick said. “I think this deal makes sense. And Hawaii makes sense because of the cost of electricity there.”
Hawaii has the most expensive electricity in the United States. Residents pay nearly 35 cents per kilowatt-hour, compared with a U.S. average of about 12 cents/kWh, according to the U.S. Energy Information Administration.
The agreement comes as the Hawaiian government steps up efforts to promote renewable energy and clean technology in the state. The government has committed to meet 70 percent of its energy demand by 2030 through improved efficiency and renewable energy resources. It projects that the state will get 20 percent of its electric energy supply from renewable sources by 2020.
Founded in 2004, Khosla Ventures has increasingly focused its investments in clean technology, especially biofuels. The venture firm backs Mascoma, Range Fuels, and Coskata, among other startups.
Khosla Ventures has at least one existing relationship with a Hawaiian startup. The firm is “partnering” with Hawaii BioEnergy, a company formed by major landowners to develop and market energy crops like sugarcane and algae.