The State of Hawaii's Clean Energy policies call for 40% of the state's electricity to be supplied by renewable sources by 2030. A recent study focusing on the island of Oahu showed that meeting large amounts of the island's electricity needs with wind and solar introduced significant operational challenges, especially when renewable generation varies from forecasts. This paper focuses on the potential of demand response in balancing supply and demand on an hourly basis. Using the WILMAR model, various levels and prices of demand response were simulated. Results indicate that demand response has the potential to smooth overall power system operation, with production cost savings arising from both improved thermal power plant operations and increased wind production. Demand response program design and cost structure is then discussed drawing from industry experience in direct load control programs. (C) 2013 Elsevier Ltd. All rights reserved.