Hawaii’s Energy Shift: From LNG to Smart Buildings — What It Means for your HVAC-R Systems

Hawaii’s energy landscape is evolving fast. Two major developments are redefining how businesses manage power, efficiency, and sustainability. Earlier this month, the State of Hawaii signed a partnership agreement with JERA Co., Inc., a Japanese energy giant and the world’s largest importer of liquefied natural gas (LNG). Around the same time, industry leaders renewed the push for a Building Performance Standard (BPS) that would require large buildings to meet stricter efficiency targets.

At first glance, these moves might seem unrelated, but together they’re shaping the future of how buildings are powered, cooled, and maintained. They carry major implications for HVAC-R reliant businesses across the state—from hotels and supermarkets to hospitals and manufacturing facilities.

A New Chapter: JERA and Hawaii’s Energy Future

On October 6, 2025, the State of Hawaii and JERA Co. entered a strategic partnership aimed at lowering energy costs and stabilizing power generation across the islands. The public announcement on October 14 marked a key shift in Hawaii’s approach to energy diversification, reintroducing natural gas as a transitional fuel while renewable capacity continues to expand.

This partnership matters because it can:

• Reduce electricity costs, giving businesses room to reinvest in better HVAC-R infrastructure.

• Improve grid reliability, lowering the risk of outages that threaten refrigeration and cooling systems.

• Encourage system upgrades, as energy becomes more affordable and sustainability goals more achievable.

  
  

For HVAC-R-reliant industries, that means fewer unexpected disruptions, better control over operating costs, and a more predictable environment for energy-intensive systems.

Raising the Bar:

The Building Performance Standard Push

At the same time, Hawaii is advancing its Building Performance Standard (BPS) initiative—a policy that would set minimum energy performance benchmarks for large commercial and industrial buildings. Under BPS, properties would need to track, report, and improve their energy efficiency over time, starting with major systems like HVAC and refrigeration.

This initiative is significant because it will:

• Drive demand for system retrofits, replacing outdated air conditioning and refrigeration units.

• Boost interest in smart controls, helping building owners automate energy management.

• Increase the value of monitoring and maintenance, as consistent performance data becomes a compliance requirement.

  
  

Businesses won’t just need one-time upgrades—they’ll need ongoing monitoring, preventive maintenance, and documented performance tracking. That’s exactly where advanced services like Alltemp’s HVAC monitoring system come in.

Where the Two Trends Meet

The JERA partnership and the BPS initiative represent two sides of Hawaii’s energy evolution. LNG brings much-needed power stability and more predictable energy costs, while BPS pushes buildings to operate smarter, cleaner, and more efficiently. Together, they shape a future where businesses can trust the power behind their systems—and will be expected to manage that power responsibly.

For HVAC-R-reliant businesses, this intersection is a turning point.

• Stable energy means fewer temperature-critical shutdowns, reduced spoilage risks, and more reliable uptime for refrigeration and cooling equipment.

• Higher efficiency requirements will drive upgrades to modern systems with better automation, airflow control, and energy-tracking capabilities.

• Data-backed performance becomes essential, as businesses will need proof of efficiency—not just equipment on the roof.

  
  

In short, as Hawaii’s power infrastructure becomes more dependable, the pressure moves to the building side—where HVAC-R is one of the biggest energy users. The companies that modernize early will see lower operating costs, longer equipment life, and far fewer breakdowns tied to unstable power. HVAC-R isn’t just a utility anymore—it’s a compliance tool, an efficiency investment, and a competitive advantage.

What It Means for HVAC-R Reliant Businesses

Every sector that depends on controlled cooling will feel these shifts. Hotels, restaurants, supermarkets, hospitals, and office buildings will soon face new requirements for energy performance reporting. Meanwhile, LNG’s potential to lower electricity rates could help offset the costs of system modernization and compliance.

This makes now the ideal time to act. Businesses can prepare by:

• Upgrading to high-efficiency systems before BPS standards are enforced.

• Integrating performance monitoring, allowing real-time insights and early fault detection.

• Partnering with trusted service providers to stay compliant and energy-efficient long-term.

  
  

Alltemp’s HVAC monitoring platform already provides these capabilities—offering real-time system data, predictive maintenance alerts, and remote access for multi-site management.

Alltemp’s Take

At Alltemp, we view these developments as an opportunity to redefine how Hawaii’s commercial and industrial facilities operate. The JERA partnership brings the reliability and affordability our islands have long needed, while the Building Performance Standard will ensure that progress translates into measurable efficiency and sustainability.

In our eyes, these trends aren’t separate—they’re complementary steps toward a smarter, cleaner Hawaii. HVAC-R systems sit at the center of this evolution, supporting both energy reliability and environmental responsibility. The future belongs to businesses that modernize early, monitor continuously, and manage efficiently.

 As Hawaii transitions toward smarter energy and smarter buildings, the HVAC-R systems supporting them must evolve too. Now is the time to upgrade, monitor, and optimize—before these new standards and opportunities become the new norm.