Share
LinkedIn sharing Hawaiian Electric
X sharing Hawaiian Electric
Facebook sharing Hawaiian Electric
Email sharing Hawaiian Electric

Stage 3 RFP Interconnection Process

The journey toward achieving our renewable energy goals is well underway and Hawaii is experiencing unprecedented growth in utility scale generation. Hawaiian Electric recognizes the growing need for an improved interconnection process. This page describes our interconnection process for utility-scale generation, including a description of each step in the process, lists of key deliverables, and helpful resources and examples to guide you. The steps below specifically relate to the Stage 3 Requests for Proposals. Hawaiian Electric notes that the interconnection process for future procurements may vary.

Quick Reference Guide

ACTIVE Requests for Proposal (RFPs)

The Framework for Competitive Bidding was adopted by the Public Utilities Commission (PUC) as a mechanism for acquiring or building new energy generation in Hawaii. The process is initiated by Hawaiian Electric with the issuance of a Request for Proposals (RFPs). All projects with a net output greater than 5 MW on Oahu, 2.5 MW on Maui and Hawaii and 250 kW on Molokai and Lanai, including that of independent power producers, are subject to the PUC's Framework for Competitive Bidding.

View Active RFPs

Part 1: RFP and Selection Process

Target Timeline: 11 months

Involved Stakeholders: Hawaiian Electric, Developer, Community, and Public Utilities Commission (PUC)

Part 1 begins the process with PUC approval of a RFP. Hawaiian Electric solicits competitive bids from electric power generation developers to meet specific energy and capacity needs across our service territory. Part 1 includes RFP approval by the Commission, issuance of the RFP by Hawaiian Electric, evaluation and selection of proposals to the final award group for the RFP, with oversight by the PUC.


Step 1: RFP Issuance

Hawaiian Electric submits an RFP to the PUC for approval. The RFP sets target amounts of resources to procure to meet the island’s future energy needs. If successful, the PUC will approve the RFP. Hawaiian Electric will issue the PUC-approved RFP and open it for competitive bidding.

  1. RFP issued: The RFP includes the following information.
    1. Description of need
    2. Developer’s Response Package/Project Interconnection Data Request
    3. Code of Conduct Procedures Manual
    4. PowerAdvocate User Information
    5. Mutual Confidentiality and Non-Disclosure Agreement
    6. Interconnection Facilities and Cost Information
    7. Oahu Near-Term Grid Needs Assessment Update
    8. Model PV+BESS RDG Power Purchase Agreement (PPA)
    9. Model Wind+BESS RDG PPA
    10. Model Firm PPA
    11. Model ESPA
  2. Developers register in PowerAdvocate: Developers must register for an account in Hawaiian Electric’s Electronic Procurement Platform, Sourcing Intelligence®, developed by PowerAdvocate®. All proposals and all relevant information must be submitted via the Electronic Procurement Platform, in the manner described in the RFP. Once the RFP event is opened, registered Developers will have online access to general notices and RFP-related documents via the Electronic Procurement Platform. Developers should also monitor the RFP website throughout the RFP event.

Step 2: Proposal and Selection Process

Hawaiian Electric and the Developer will enter into a Mutual Confidentiality and Non-Disclosure Agreement. Next, the Developer will submit the Developer's Response Package, Hawaiian Electric will review the submittals, select Developer(s), and the Power Purchase Agreement (PPA) process will begin.

  1. Confidentiality and Non-Disclosure: Hawaiian Electric and the Developer(s) will execute Mutual Confidentiality and Non-Disclosure Agreement.
  2. Developer’s Response Package submitted: Developer submits Developer’s Response Package. View Appendix B – Developer’s Response Package/Project Interconnection Data Request for details on each of these items.
    1. Proposal Summary Table (Section 2)
    2. Required Forms Accompanying Proposal (Section 2.1)
    3. Proposal Summary/Contact Information (Section 2.2)
    4. Financial information (Section 2.3)
    5. Contract Exceptions (Section 2.4)
    6. Site Information (Section 2.5)
    7. Environmental Compliance and Permitting Plan (Section 2.6)
    8. Cultural Resource Impacts (Section 2.7)
    9. Community Outreach (Section 2.8 and Attachments 5 and 6)
    10. Operations and Maintenance (Section 2.9)
    11. Performance Standards (Section 2.10)
    12. Interconnection Requirement Study (Section 2.11 and Attachment 4)
    13. Proven Technology (Section 2.12)
    14. Experience and Qualifications (Section 2.13)
    15. State Of Project Development and Schedule (Section 2.14)
    16. Carbon Emission Questionnaire (Section 2.15)
    17. (Optional) Minor Proposal Variations
  3. Proposal Evaluation: Hawaiian Electric will assess the proposal submittals for cost and non-cost items. Proposal submittals are reviewed for the Interconnection Requirements Study (IRS), including:
    1. Hawaiian Electric performs technical model checkout and review of Single Line Diagram (SLD)
    2. Hawaiian Electric evaluates Appendix H costs and Proposer-built costs for Company-Owned Interconnection Facilities that are included in the Proposal.
  4. Selection: Hawaiian Electric selects proposals to the final award group and issues final award letters

Part 2: Power Purchase Agreement and PUC Application

Target Timeline: 13 months

Involved Stakeholders: Hawaiian Electric, Developer, Community, and PUC

Part 2 includes negotiation of the PPA and developing the supporting information for the PPA and PUC Application. PUC approval of the PUC Application for the PPA is the desired result of Part 2. 


Step 3: PPA Negotiation

    1. Kickoff meeting: Kickoff meeting with Hawaiian Electric and the Developer
    2. PPA negotiation: Negotiate PPA terms
    3. IPP/Vendor Information Packet submitted: Developer submits IPP/Vendor Information Packet.
        1. Vendor information (page 2)
        2. IRS Form W-9/W-8 form (page 3)
        3. Remittance Options and Net Terms (page 4)
        4. IPP/Vendor ACH Enrollment Form and Agreement (page 6-9)
        5. Contact and Miscellaneous Information (page 10)
        6. Business Classification Certification Statement (page 11-13)
        7. Invoicing Requirements (page 14-15)
        8. Credit References (page 16)

      *The Developer must set up a project specific entity and bank accounts and all payments have to come to the Company through that entity


Step 4: IRS Kickoff

The IRS runs in parallel with the PPA Negotiation described above in Step 1.

  1. IRS Letter Agreement: Hawaiian Electric issues letter agreement which includes the scope of work and cost estimate for the IRS.
    1. Scope of Work
    2. Cost Estimate
  2. IRS Letter Agreement Execution and Payment: Developer executes IRS Letter Agreement and issues payment for costs in IRS Letter Agreement from project specific entity to Hawaiian Electric.
  3. IRS Deliverables submitted: Within 30 days of selection to final award group, Developer submits IRS Deliverables. View Appendix B, Attachment 2a (Interconnection Data Request), Attachment 3 (Facility Technical Model Requirements), and Attachment 4 (Stage 3 Model and Interconnection Requirements Study) of the RFP for details on each of these items. The IRS deliverables include, but are not limited to the following:
    1. Project schedule in MS Project format
    2. Plan map with Hawaiian Electric line extension route, interconnection point, Company owned interconnection facilities (COIF) location, etc.
    3. Generation and load information
    4. Single-Line Diagram(s) (SLD), Three-Line Diagram(s) (TLD), and Protective Relay List and Trip Schedule
    5. PV Inverter Based Generating Facility data, if applicable
    6. BESS Inverter Based Generating Facility data, if applicable
    7. Energy Storage System info, if applicable
    8. PV collector system information, if applicable
    9. BESS collector system data, if applicable
    10. Software models
    11. Main transformer/step-up transformer information
    12. Circuit breaker and fault-clearing switching device information
    13. Power fuse information
    14. Protective relaying information

Step 5: IRS and Report

Hawaiian Electric will perform an IRS consisting of the System Impact Study and Facility Study.

  1. System Impact Study: Analyzes the Facility's effects on the grid and specifies requirements to interconnect
    1. Technical model checkout - May iterate with Developer providing corrections for any model deficiencies
    2. Perform System Impact Study
  2. Facility Study: Provides cost estimate and schedule for the interconnection requirements
    1. Preliminary Facility Study
    2. Final Facility Study
  3. IRS Results: Collation of System Impact Study report and Facility Study report. Results from IRS are incorporated into relevant portions of the PPA.

Step 6: Greenhouse Gas (GHG) Emissions Analysis

The PUC Application for the PPA must include a GHG emissions analysis of the project.

  1. GHG Letter Agreement: Hawaiian Electric issues letter agreement which includes the scope of work and cost estimate for the GHG emissions analysis.
  2. GHG Letter Agreement Execution and Payment: Developer executes GHG Letter Agreement and issues payment for costs in GHG Letter Agreement from project specific entity to Hawaiian Electric.
  3. GHG Data Package: Developer submits GHG Data Package.
  4. GHG analysis: Hawaiian Electric performs GHG emissions analysis and incorporates findings into PUC application.

Step 7: Early Engineering (optional)

  1. Early engineering letter agreement: Developer executes early engineering letter agreement.
    • Early Engineering occurs after Preliminary Facility Study issued in step 5.
  2. Payment: Developer submits payment from Project Specific Entity to Hawaiian Electric for early engineering efforts.

Step 8: Community Outreach

The PUC Application for the PPA must include a community outreach effort summary of the project.

  1. Community Outreach Plan: Developer issues Community Outreach Plan (Appendix B Section 2.8 and Attachments 5 and 6).
  2. Community meetings: Developer holds at least 1 community meeting at least 3 months before PPA execution and gathers public feedback for 30 days after the meeting. Feedback to be provided to the Company within 30 days of public comment period to include in PUC Application.
  3. Outreach summary: Developer submits outreach summary to Hawaiian Electric for incorporation into PUC Application.

Step 9: PPA Execution and Submittal of PUC Application

The results from Steps 1-6 above provide the basis for the PUC Application for approval of the PPA.

  1. PPA Execution:
    1. Hawaiian Electric and Developer negotiate attachments to PPA (B, G, K, L, etc...)
      1. RDG PSAs (Appendix J-1) Oahu | Maui/Hawaii
      2. ESPA PSA (Appendix M-1) Oahu | Maui/Hawaii
    2. Hawaiian Electric and Developer execute PPA.
  2. PUC Application: Hawaiian Electric Drafts PUC Application.
  3. Filing: Hawaiian Electric files completed PUC Application. After filing there is an intervention period, issuance of and responses to information requests and filing of statements of position, before the Application is ready for decision-making by the PUC. 
  4. The PUC reviews and either approves or denies the PPA and the PUC Application.
  5. Developer to provide letter of credit once the PUC approves the PPA.

Part 3: Engineering, Procurement, Construction (EPC), and Operation

Target Timeline: 1 to 9 years, depending on project

Involved Stakeholders: Developer and Hawaiian Electric

Part 3 begins after PUC approval of the PPA and is primarily driven by the Developer, who is responsible for most of the work described in this Part 3. The Company is responsible for the construction of the Company Owned Interconnection Facility (COIF). Commercial operations is the result of Part 3. 


Step 10: Engineering and Procurement Process

  1. Developer EPC: Developer submits COIF engineering and procurement drawing and specifications to Hawaiian Electric in compliance with Hawaiian Electric specifications, rules, requirements.
    1. Hawaiian Electric to review 30%, 60%, 90%, 100%, and Issued for Construction (IFC) drawings.
  2. Hawaiian Electric EPC: Hawaiian Electric begins Engineering and Procurement for Company responsible work identified in IRS.
  3. Cyber Security Plan: Developer provides cyber security plan to Company.

Step 11: Permitting

  1. Permitting process: Developer submits designs (as required) including COIF to respective permitting agencies. Required permits may include, but are not limited to, Land Use Permits, Construction and Building Permits, Special Management Area Permits, Air Permits, Environmental Permits, and State Historic Preservation Division.
  2. Approval: Permitting agencies review and approve permits required for the project.

Step 12: Land Rights

  1. Land rights and easements: Developer legally documents necessary land rights in formal purchase, lease or easement documents.

Step 13: Site Services

  1. Site services: Developer obtains sites services.
    1. Construction power
    2. Station service power
    3. Telecommunications
    4. Other services required for operation and maintenance

Step 14: Interconnection Facilities Construction

Construction begins on the interconnection facilities.

  1. Construction: Developer constructs generation facilities and seller owned interconnection facility. Developer and Company construct COIF.
    1. Construct company switchyard, overhead/ underground line extension and work at remote substations
    2. Telecommunications installation
    3. Meter installation
  2. Inspection: Hawaiian Electric inspects throughout construction.
    1. Acceptance Test Plan: Developer and Company agree to the testing procedures. Developers can contact Company for an example test plan subject to NDA execution in Part 1 above.
  3. Acceptance Testing: Developer performs acceptance testing prior to energization of the interconnection facilities.
  4. Energization of interconnection facilities: Hawaiian Electric energizes interconnection facilities.
  5. Developer Plant Commissioning: Developer completes commissioning and testing of plant.

Step 15: Testing and Operations

  1. Control System Acceptance Testing (CSAT) Plan: Developer and Hawaiian Electric develop CSAT Plan (Appendix J, Attachments B and Attachment O).
    1. Developer and Hawaiian Electric perform CSAT.
  2. Commercial Operations: Commercial operations begins. All open items must be closed out and all terms must be met including finalized land rights, building permit closeout, punchlist completion and others in order to reach commercial operations.