Selling Power to the Utility

Stage 3 Hawaii RFP

On January 21, 2021, the Commission provided the Companies guidance to develop a Stage 3 RFP specifically for Hawaii Island. The Commission intends that this will be an “all-source” procurement, based upon an updated assessment of grid needs for the island. In compliance with that guidance, the Companies are proceeding with work on a Stage 3 RFP draft for Hawaii Island.

Details on the Stage 3 Hawaii RFP can be found in Docket No. 2017-0352 and in the information below:

RFP Process

RFP Development
Bid Submission
Bid Evaluation
Project Selection

Updates to the Stage 3 Hawaii RFP

January 6, 2023

On December 22, 2022 the Companies filed the proposed final versions of the Stage 3 Maui and Oahu RFPs that addressed the Commission’s December 1, 2022 Order No. 38735 Approving the Companies’ Final Stage 3 RFPs for Oahu and Maui, with Modification in Docket No. 2017-0352. In the proposed final versions, the Companies made several changes to related language that was common to this Stage 3 Hawaii RFP. These updates are part of the Stage 3 Hawaii RFP and the additional information should help prospective Proposers develop more accurate proposals. Besides providing more information, these updates will also maintain consistency between the RFPs and ensure Proposers to the Stage 3 Hawaii RFP have the same updates and clarity offered to proposers of the other Stage 3 RFPs.

Click on this link for a copy of the transmittal letter filing to the Commission.

The yellow highlighted information in this post is information being added to the Stage 3 Hawaii RFP:

  1. Interconnection of a 69 kV overhead final span unit cost item that is an addition to the interconnection facilities cost provided in Appendix H. An additional unit cost is made available to Proposers for the Company to terminate the overhead final span into an existing Offered Substation in the RFP (not including the Keamuku rebuild).

    131 69kV OH Final Span for Termination to Existing Substation by Company
    • Includes 1 span (100ft) of 69kV conductors and 2 spans (100ft each) of shield wire from last pole to substation termination structure
    $59,000 each
    Notes:
    1. Costs provided are in 2022 dollars.
    2. Includes Company costs for engineering, materials, construction, and testing of Company-responsible items. See Section 3 for Proposer-Build responsibilities.
    3. Interconnection will typically require one of these items depending on the existing facilities in the area and/or the type of construction for any line extension.
    4. OH or UG line extensions (if > 100ft) – Add applicable costs per Section 2.3D.
    5. OH/UG route and civil infrastructure drawings provided by Proposer.
    6. Civil infrastructure (pads, MH/HHs, conduits, etc.) is designed, procured, and installed by Proposer.
    7. Includes review of Proposer civil infrastructure designs and materials and inspection of Proposer civil infrastructure construction.
    8. Does not include vegetation clearing, grading, dewatering, permitting or land rights.
  2. Within Section 1.2.2 of the RFP, it says,

    “…Proposers must also describe their fuel supply plan that will ensure sufficient fuel for unconstrained dispatch and fuel storage for at least thirty (30) days14 on Hawaii Island. All Proposals with a generation component that operate on fuel must also commit to provide fuel for the entire proposed term of the Firm PPA and, with the exception of biofuel, provide evidence, such as in the form of contracts, that the fuel will be secured for the duration of the Firm PPA term.15 All Proposals utilizing a fuel source must also specify any minimum monthly, quarterly, and/or annual fuel purchases in their fuel contract. Proposers for facilities that elect to use a liquid or gaseous fuel source must also be capable of operating using fossil fuel, including obtaining the proper permitting, and include the costs for the use of such fuel in its Proposal. The Company will maintain the right to consent to any fuel supply changes during the term of the PPA.”

    To help Proposers refine their Proposal prices for any generation proposal requiring fuel, this requirement is updated to clarify the minimum fuel floor requirement required to operate the proposed facility with assumptions of dispatch and operations. This change was made to the Stage 3 Maui RFP based on PUC guidance in Order No. 38735 to provide further information on dispatch or other clarifying information to help developers determine their minimum fuel requirements. The paragraph within Section 1.2.2 will now say,

    “…Proposers must also describe their fuel supply plan that will ensure sufficient fuel and other necessary consumables required for unconstrained dispatch and fuel storage on site for at least fourteen (14) days of 16 hours of Full Load operation per day. (Full Load is defined as the Contract Firm Capacity as defined in the Model Firm PPA.) If offsite storage connected via pipeline is utilized, or is otherwise immediately accessible, the on-site requirement can be reduced to seven (7) days of 16 hours of Full Load operation with the additional 7 days off site. In no event will there be less than seven days of fuel (based on 16 hours of operation) available on site. (Days refer to calendar days, unless the term “business day” is used, which means calendar day excluding weekends and federal and State of Hawaii holidays.)

    This shall be calculated using the following Fuel Floor Requirement Calculation:

    Average Fuel Usage Per Day (Based on 16 hours Full Load) x Minimum Floor Requirement (7 or14 days - Minimum Number of days required on Hand. See below to determine the Minimum Floor Requirement Amount.)

    • Example for Illustration Purposes (numbers below are for illustration purposes only):
      • Average Fuel Usage Per Day (Based on 16 Hours Full Load) = 2,000 barrels
      • Minimum Floor Requirement = 14 days (2 weeks) for fuel being stored on-site; 7 days (1 week) for fuel being stored offsite but connected via a pipeline.
      • 2,000 barrels x 14 days = 28,000 barrels

    28,000 barrels is the minimum Floor Requirement based on average fuel usage of 16 hours full load.

    In addition, Proposers must provide the following:

    • Storage of 30 days of fuel and necessary consumables on island based on normal expected operation. (Over the term of the Project, the future normal expected operation shall be based upon (i) the average level of Company Dispatch during the previous six (6) months and (ii) the expected level of Company Dispatch during the following month as indicated by Company.) Fuel may be owned or under guaranteed contract and stored onsite or offsite but in all cases must be on island. Reserve fuel may be any fuel the developer is permitted to consume.
    • A fuel management plan that guarantees that fuel and necessary consumables stored offsite will be delivered to the Project site, particularly during an emergency event when fuel is required.

    Alternative fuel management plans that demonstrate the resilience sought by the above requirements may be considered. The fuel requirements may be revisited and adjusted downward in the future if needs so require.

    All Proposals with a generation component that operate on fuel must also commit to provide fuel for the entire proposed term of the Firm PPA and, with the exception of biofuel, provide evidence, such as in the form of contracts, that the fuel will be secured for the duration of the Firm PPA term. (Proposals operating on biofuel must commit to providing fuel for the entire duration, but do not have to provide evidence of a fuel supply contract for the entire duration of the contract. However, Proposals utilizing biofuel must commit to provide evidence of a fuel supply for at least the first 3 years of the Firm PPA term.) All Proposals utilizing a fuel source must also specify any minimum monthly, quarterly, and/or annual fuel purchases in their fuel contract. Proposers for facilities that elect to use a liquid or gaseous fuel source must also be capable of operating using fossil fuel, including obtaining the proper permitting, and include the costs for the use of such fuel in its Proposal. The Company will maintain the right to consent to any fuel supply changes during the term of the PPA. It is the responsibility of the Seller to operate within the limits of any applicable permits while being able to operate per the terms in the Firm PPA. Any operational constraints need to be identified in the Proposal. In the event that there are changes to operational limitations, such changes will be memorialized through an amendment to the Firm PPA. At a minimum Proposers are responsible for researching permitting and environmental requirements in existence and identifying such requirements and any resulting operational limits in their Proposal.

    And correspondingly, in the Appendix B Proposal Response Package in Section 2.2.4 High Level Overview of the Proposed Facility, the Proposer’s “Fuel storage design and fuel storage plan must be provided that will ensure sufficient fuel for unconstrained dispatch and fuel storage.” The plan must:

    • Include Fuel Floor Requirement Calculation (see Section 1.2.3 of the RFP for the calculation).
    • Confirm 30 days of fuel and necessary consumables on island based on normal expected operation. Fuel may be owned or under guaranteed contract and stored onsite or offsite but in all cases must be on island; reserve fuel may be any fuel the developer is permitted to consume.
    • Provide a fuel management plan that guarantees fuel and necessary consumables stored offsite will be delivered to the Project site, particularly during an emergency event when fuel is required.
  3. Section 2.1 of the RFP provides:

    Proposals must meet the Performance Standards and attributes set forth in this RFP, and the Performance Standards and requirements set forth in the respective model Stage 3 Contract. This RFP and the applicable Stage 3 Contract set forth the minimum requirements that all Proposals must satisfy to be eligible for consideration in this RFP. Additional Performance Standards may be required based on the results of the IRS.

    In the Interconnection Requirements Study that is to be performed on all projects selected to the final award group at the conclusion of the RFP, a recently published IEEE 2800-2022 standard may be incorporated to the extent relevant to Hawaii. IEEE 2800-2022 is the IEEE Standard for Interconnection and Interoperability of Inverter-Based Resources (IBRs) Interconnecting with Associated Transmission Electric Power Systems. Correspondingly, Section 2.1 is updated to provide the following additional clarification:

    Proposals must meet the Performance Standards and attributes set forth in this RFP, and the Performance Standards and requirements set forth in the respective model Stage 3 Contract. This RFP and the applicable Stage 3 Contract set forth the minimum requirements that all Proposals must satisfy to be eligible for consideration in this RFP. Additional Performance Standards may be required based on the results of the IRS. The Company has not yet fully adopted IEEE 2800-2022 as it was recently published. However, the inverters being procured in this RFP may need to conform to certain functions of IEEE 2800-2022 as identified in studied completed within this RFP, or in the future operations of the project. The interconnection study will incorporate IEEE 2800 to the extent applicable to our island systems.

  4. Hawaii Powered – Renewable Energy Zones Feedback. The Company has begun a process to identify areas with potential for future renewable energy development. While the whole of this work is not yet complete and available for this RFP, as part of this process the Company has started community outreach and invited members of the community to provide feedback on areas of the island that the Community is or is not amenable to use for renewable energy projects and to provide other feedback that would be helpful in siting renewable energy projects. This information is available at www.hawaiipowered.com/rez. While intended to be used as part of the development of Renewable Energy Zones for future RFPs beyond this Stage 3 RFP, such community feedback may be instructive for Proposers in this RFP. Proposers are encouraged to carefully review such information when selecting sites and developing their community outreach plans. In addition, the Hawaii State Energy Office has developed a community engagement strategy called Energize Kakou which includes a guide for best practices for community engagement. (The Energize Kakou website is available at https://energy.hawaii.gov/get-engaged/energize-kakou/. The Playbook of community engagement best practices is available at https://energy.hawaii.gov/wp-content/uploads/2022/10/Energize-Kakou-Playbook_FINAL.pdf.)
  5. Several references in the November 21, 2022 final version of the Stage 3 Hawaii RFP are incorrect. The correct references are identified below:

    1. In RFP Section 3.10.1.3, “…Proposals must also specify their Allowed Losses (kWh/24-hour period) which will be utilized for purposes of establishing the limit in Section 2.13 of the ESPA.”
    2. In RFP Section 3.10.2, “… This RTE value will be used in the RFP evaluation process and therefore Proposers will be held to this provided value as it will become the RTE Performance Metric in Section 2.11 of the RDG PPA or ESPA. …”
    3. In RFP Section 4.3, within the Site Control Threshold Requirement last paragraph, “While land rights for the interconnection route are not required at the time of submission of the Proposal, (1) the Proposal must thoroughly describe the interconnection route as set forth in Attachment B, Section 2.5.4, and…”
  6. The Companies are providing updated versions of the following 6 model Stage 3 Contracts that incorporate the fuel clarifications identified above for this Stage 3 Hawaii RFP, clarification of a ride-through requirement, conforming modifications from the proposed final Stage 3 Maui RFP to maintain consistence of the model contracts where applicable, and clean-up edits found during the finalization of the Stage 3 Maui RFP model contracts. Both a clean pdf version of the updated model contract and a pdf document showing the redline changes from the November 21, 2022 version of each model contract updated can be found on the Stage 3 Hawaii RFP Documents page (navigated to by clicking on the “RFP DOCUMENTS” button above). MSWord versions of each model contract updated can also be downloaded from the Stage 3 Hawaii RFP Electronic Procurement Platform (the Electronic Procurement Platform can be found at www.poweradvocate.com). The updated Stage 3 Contracts are

    1. Model Firm PPA (for Hawaii Island)
    2. Model PPA for Renewable Dispatchable Generation (PV + BESS) All Islands
    3. Model PPA for Renewable Dispatchable Generation (Wind + BESS) All Islands
    4. Model Project Specific Addendum for Renewable Dispatchable Generation (for Maui or Hawaii Island)
    5. Model Energy Storage Purchase Agreement All Islands
    6. Model Project Specific Addendum for Standalone Storage (for Maui or Hawaii Island)

Updated Exhibit 1 Filed

January 25, 2023

On December 2, 2022, in accordance with the Commission’s November 17, 2022 letter, the Companies filed an updated clean and redline version of Exhibit 1 to the transmittal letter filing for the Stage 3 Hawaii RFP’s final changes.


Electronic Procurement Platform Open

December 1, 2022

The Stage 3 Hawaii RFP Electronic Procurement Platform (Sourcing Intelligence) is now open. As outlined in Section 1.1 of the RFP Appendix B, after registering on Sourcing Intelligence as a Supplier, the Proposer shall request access to the Stage 3 Hawaii RFP event via email (“Email Us” button above or at hawaiirenewablerfp@hawaiianelectric.com). Identify in the email the company name and username under which the Proposer has registered. The Proposer will then be added to the event. The Stage 3 Hawaii RFP is event 138383.

The Electronic Procurement Platform can be found at www.poweradvocate.com.

Native format files that can assist the Proposer have been added to the “1. Download Documents” tab.


Stage 3 Hawaii RFP Opens

November 21, 2022

The Stage 3 Hawaii RFP is now open. Please see the final RFP documents by clicking on the RFP DOCUMENTS button above. Note that these RFP documents contain no change from the RFP documents filed with the Commission on November 7, 2022, other than non-substantive administrative edits (e.g., removing “draft” and updating the dates on the cover sheets).


Proposed Final Draft of the Stage 3 Hawaii RFP

November 7, 2022

Pursuant to Order No. 38653 filed on October 17, 2022, the Companies’ filed its Proposed Final Stage 3 Hawaii RFP on November 7, 2022. The Company’s filing includes:

This filing will be considered the final, approved version of the Hawaii Island Stage 3 RFP ten (10) days after the date of this November 7th filing, unless ordered otherwise by the Commission.

The Company plans to open the RFP and provide all final versions of the RFP and model agreements on this webpage on Monday, November 21, 2022.


Next steps in the Stage 3 Hawaii RFP

October 18, 2022

On October 17, 2022 the PUC issued Order No. 38653 denying all but one of the Hawaiian Electric Companies’ request for reconsideration; grants, in part, one of Hawaiian Electric’s requests for reconsideration, and grants, in part, Hawaiian Electric’s requests for clarification set forth in its Motion for Partial Reconsideration and/or Clarification of Order NO. 38479. Pursuant to Order No. 38531, the Companies’ deadline to file its Final Stage 3 Hawaii RFP is fifteen (15) business days from the filing date of this Order. The filing will be considered the final, approved version of the Hawaii Island Stage 3 RFP ten (10) days after the date of filing, unless ordered otherwise by the Commission.

The Company is working on the Final Stage 3 Hawaii RFP for this target filing date of November 7, 2022.


Next steps in the Stage 3 Hawaii RFP

July 29, 2022

On June 30, 2022 the PUC issued Order No. 38479 Approving the Hawaiian Electric Companies’ Final Stage 3 Request for Proposals for Hawaii Island with Modifications and Issuing Guidance on the Proposed Stage 3 Requests for Proposals for Oahu and Maui (“Order 38479”).

On July 11, 2022 the Companies filed a Motion for Partial Reconsideration and/or Clarification of Order No. 38479 (“Motion”) seeking reconsideration and/or clarification on a number of modifications to the Stage 3 RFP that the Commission directed in Order 38479.

On July 20, 2022 the Companies also filed a Request for Extension to file Final Stage 3 RFP for Hawaii Island requesting the PUC grant an extension of the Companies’ deadline to file the Final Stage 3 Request for Proposals for Hawaii Island.

On July 29, 2022 the PUC issued Order No. 38531 Granting the Hawaiian Electric Companies’ Motion for Enlargement of Time to File the Final Stage 3 Request for Proposals for Hawaii Island (“Order 38531”). Order 38531 sets the Companies’ deadline to file its Final Stage 3 RFP fifteen (15) business days from the filing date of the PUC’s decision on the Motion.

The Company awaits the PUC decision on the Motion.


Keamuku Substation Developers Conference

June 22, 2022

Hawaiian Electric is extending an invitation to all developers interested in participating in the upcoming Stage 3 RFP for Hawaii island and who are interested in interconnecting to the Keamuku substation location. The Company plans to host an online Teams meeting developer conference to share information on the advantages of interconnecting at Keamuku, to review what information the RFP already provides to assist in developing the interconnection and cost estimates, and to answer questions developers have specifically on Keamuku.

So that the Company and developers can ask more detailed questions, and the Company can offer more specific and sometimes confidential responses, only developers and their contractors who are interesting in the Keamuku interconnection location and who fully execute a Stage 3 Mutual Confidentiality and Non-Disclosure Agreement (“NDA”) before the meeting will be allowed into the meeting.

The Company is scheduling this online Teams meeting for Thursday, July 28, 2022 at 10:00 am HST.

For those developers interested in participating, please contact the Company at hawaiirenewablerfp@hawaiianelectric.com – after we confirm an NDA has been fully executed, we will provide the link to the Teams meeting. If a developer has not yet executed an NDA with the Company, we request submission of the signed NDA before July 20, to ensure we can fully execute the NDA and provide the developer the link to the meeting in sufficient time.


3rd Draft Stage 3 Hawaii RFP

May 31, 2022

On May 31, 2022 Hawaiian Electric submitted an updated draft Stage 3 Hawaii RFP to the PUC.

The Hawaiian Electric May 31, 2022 filing:

[Exhibits 2 through 8 were also filed. Please see the “RFP Documents” button above for the final version of all RFP documents released.]


Grid Needs Assessment Update

April 21, 2022

Aligning to the Commission’s guidance, the Company completed and filed an update to the Hawaii Island Grid Needs Assessment (“GNA Update”) originally submitted in July 2021. The GNA Update was discussed in the April 14, 2022 Technical Conference and highlights the grid needs that will help to inform the Stage 3 Hawaii RFP.


Technical Conference held for 2nd Draft Stage 3 Hawaii RFP

April 15, 2022

As proposed in the March 18, 2022 filing of the 2nd draft of the Stage 3 Hawaii RFP, the Company held a virtual Technical Conference on April 14, 2022 via Microsoft Teams to share information and answer question from prospective proposers and interested stakeholders of the planned Stage 3 Hawaii RFP. A recording of the Technical Conference has been posted to YouTube for those who might have missed it or wish to view it again.


Word Version of Mutual Confidentiality and Non-Disclosure Agreement

April 5, 2022

A Microsoft Word version of the Stage 3 Hawaii RFP’s Appendix E Mutual Confidentiality and Non-Disclosure Agreement can be downloaded here. Please submit your filled out Mutual Confidentiality and Non-Disclosure Agreement to hawaiirenewablerfp@hawaiianelectric.com for execution.


2nd Draft Stage 3 Hawaii RFP

March 21, 2022

As directed by the Commission in its February 20, 2022 letter, Hawaiian Electric submits an updated draft Stage 3 Hawaii RFP to the PUC.

The Hawaiian Electric March 18, 2022 filing:

[Exhibits 2 through 8 were also filed. Please see the “RFP Documents” button above for the final version of all RFP documents released.]


Proposed Next Steps

February 14, 2022

The Company filed a letter on February 11, 2022 proposing the following next steps in the development of the Stage 3 Hawaii RFP:

  • File an updated draft RFP – March 18, 2022
  • Technical Conference – Week of April 11, 2022
  • File an updated Grid Needs Assessment – April 15, 2022

Commission Guidance

February 9, 2022

The Commission issued a letter on January 20, 2022 saying it reviewed the documents filed by the Company in development of the Stage 3 Hawaii RFP, subsequent public comments submitted on November 19,2021, the Company’s November 22, 2021 letter, and feedback from past RFPs and filings on interconnection-related matters. The Commission provides guidance in this letter to Hawaiian Electric on how to proceed with the development of the draft Stage 3 RFP.


Company Responds to Comments

February 9, 2022

The Company filed a letter on January 19, 2022 addressing the stakeholder comments received by November 19, 2021 on the draft Stage 3 RFP filed on October 15, 2021. The Company proposed changes to address concerns, noted proactive modifications already incorporated, and provided explanations as to why certain suggested changes could or should not be made while offering alternative solutions where appropriate.


Allowed RFP Project Locations

December 8, 2021

The Company filed a letter on November 22, 2021 addressing the withdrawal of a Stage 2 project on Hawaii island and its impact on the Stage 3 Hawaii RFP. The Company will now broaden the RFP requirements for where Projects can be located to include portions of the western area of the island, and offer three additional substations (on the west side) for potential interconnection.


Virtual Community Meeting

October 28, 2021

Hawaiian Electric hosted a virtual community meeting to discuss the Draft Stage 3 Hawaii RFP with the Hawaii Island community. A recording of that meeting can be found on our Facebook page.


Draft Stage 3 Hawaii RFP

October 15, 2021

As directed by the Commission in its April 20, 2021 letter, Hawaiian Electric submits a draft Stage 3 Hawaii RFP to the PUC.

The Hawaiian Electric October 15, 2021 filing:

[Exhibits 2 through 9 were also filed. Please see the “RFP Documents” button above for the final version of all RFP documents released.]


Grid Needs Assessment Report

July 15, 2021

Hawaiian Electric submits its July 2021 Hawaii Island Near-Term Grid Needs Assessment report. This draft report describes the methodology and inputs used to study scenarios whose results were then used to inform recommendations for Grid Needs for solution sourcing for the Stage 3 Request for Proposals (“RFP”) for Hawaii Island. In the Commission’s letter dated April 20, 2021, the Commission supported the Hawaiian Electric Companies’ efforts to conduct studies to guide the development of the Stage 3 RFP for Hawaii Island, and this report provides the latest update on its progress. Hawaiian Electric will present these results to the IGP stakeholder technical working group through a virtual meeting scheduled for August 4, 2021. Additional participants will be invited to the virtual meeting, and a recording of the meeting will be made available at a later date.


Develop Stage 3 RFP for Hawaii Island

April 20, 2021

On January 21, 2021, the Commission issued a letter requesting Hawaiian Electric to proceed with developing a Stage 3 RFP for Hawaii island. The Commission intends the RFP to be an “all-source” procurement based upon an updated assessment of grid needs for the island and they plan to hold a status conference to discuss the initial plans. On February 25, 2021, Hawaiian Electric filed a letter responding to the Commission that the preliminary planning process for a Stage 3 RFP for Hawaii island has begun. In the letter, the Company offered explanatory details about its plans and timelines in advance of any forthcoming status conference. On April 20, 2021, the Commission issued a letter recognizing receipt of the February 25, 2021 letter and provided feedback and guidance. The Commission stated Hawaiian Electric should continue prioritizing the studies for Hawaii island, and that the Company should endeavor to complete these studies by July 15, 2021, and unless directed otherwise, the draft Stage 3 RFP should be filed no later than October 15, 2021.