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New renewable projects submitted to regulators will produce lower-cost electricity, advance clean energy
Will end use of coal in Hawaii, enable retirement of Kahului plant
Release Date: 9/16/2020
HONOLULU, Sept. 16, 2020 – Hawaiian Electric has submitted eight contracts for new grid-scale renewable energy and storage projects on Oahu and Maui to the Public Utilities Commission (PUC) for review and approval.
The six projects on Oahu and two on Maui are part of the largest renewable energy procurement ever for Hawaii. If approved and completed, the combined projects are expected to, on average, lower electric bills by about $1 a month on Oahu and Maui.
The Oahu projects are expected to provide generation and storage needed to retire the state’s only coal plant, the 180-megawatt (MW) plant at Campbell Industrial Park owned by AES, by September 2022. On Maui, the successful completion of renewable energy projects will help enable the retirement of the 38 MW oil-fired Kahului plant in 2024.
These projects were part of the second phase of Hawaiian Electric’s renewable procurement effort that began in February 2018. Three of the original projects withdrew and contracts for three other projects are still being negotiated with Hawaiian Electric.
“As planned, these projects will significantly advance our state’s renewable energy transformation and benefit everyone by reducing our exposure to volatile oil prices," said Jim Alberts, Hawaiian Electric senior vice president of business development and strategic planning.
In addition to the projects planned by independent developers, Hawaiian Electric plans to build two standalone energy storage projects, one on Maui and one on Hawaii Island. Those projects were submitted earlier to the PUC for review and approval.
The eight contracts submitted for regulatory review represent nearly 300 MW of new renewable generation and about 2,000 megawatt hours (MWh) of storage. If completed on schedule in 2022 and 2023, they are estimated to add approximately 9 percentage points to the renewable portfolio on the five islands served by Hawaiian Electric.
The company’s renewable portfolio is expected to reach 30 percent by the end of this year with the expected return to service of Puna Geothermal Venture on Hawaii Island.
The projects and their prices are listed here:
|174 Power Global||Kupehau Solar||Kunia||Solar + Storage||60/240||12.8¢ per kWh|
|AES Distributed Energy||Waiawa Phase 2 Solar||Waiawa||Solar + Storage||30/240||12.4¢|
|AES Distributed Energy||Mountain View Dairy Solar||Waianae||Solar + Storage||7/35||13.0¢|
|Innergex Renewable Energy||Barbers Point Solar||Kalaeloa||Solar + Storage||15/60||11.2¢|
|Longroad Development||Mahi Solar||Kunia||Solar + Storage||120/480||9.7¢|
|Energy Storage Resource||Kapolei Energy Storage||Barbers Point Harbor||Storage||*||*|
|Longroad Development||Pulehu Solar||Pulehu||Solar + Storage||40/160||9.2¢|
|Innergex Renewable Energy||Kahana Solar||Napili-Honokowai||Solar + Storage||20/80||8.9¢|
* Kapolei Energy Storage does not produce energy so has no per unit price. A fixed monthly payment is made for energy stored in a single battery system intended to provide a four-hour, 135 MW, 540 MWh load-shift of energy to the evening hours when demand increases but solar generation diminishes and a 30-minute, 50 MW, 25 MWh fast frequency response in case of a system contingency to allow operators time for other resources to stabilize the grid.
Hawaiian Electric has made community outreach a formal part of the procurement process and requires developers to engage with residents in the communities where their projects are planned. Community members will have the opportunity to provide comments and feedback as part of the regulatory review process.
At the end of 2019, Hawaiian Electric had 902 MW of solar capacity on its five island grids, including approximately 684 MW of solar capacity from customer-sited rooftop solar systems that now number over 85,000. These new projects, if approved and completed, will increase solar capacity by over a third.
Contract documents filed by the company will be available on the PUC website at https://dms.puc.hawaii.gov/dms/.