Hawaiian Electric’s Waiau Repower Project Selected

Rhea-AI Summary

Hawaiian Electric Company, Inc. (HEI) has announced the selection of its proposal to replace aging fossil-fuel generators at its Waiau Power Plant with more efficient, fuel-flexible units. The 253-megawatt project is part of a competitive procurement process for firm renewable generation on Oʻahu, and will be the largest generation project in the company's 132-year history. The project aims to transition to cleaner renewable fuels and is expected to result in significant cost savings over 30 years.

Positive

• Selection of the proposal to replace aging generators reflects the company's commitment to transitioning to cleaner renewable fuels
• Significant cost savings expected over 30 years due to elimination of maintenance and repair costs for older units and increased efficiency of new units

Negative

• None.

Efficient new technology will replace units built between 1947 and 1968

HONOLULU--(BUSINESS WIRE)-- Hawaiian Electric Company, Inc. (“Hawaiian Electric”), a subsidiary of Hawaiian Electric Industries, Inc. (NYSE: HE) (“HEI”), announced today that its proposal to replace six aging fossil-fuel generators at its Waiau Power Plant in Pearl City with more efficient, fuel-flexible units has been selected to advance to the next stage of an energy procurement process overseen by the Public Utilities Commission (PUC).

Rendering of proposed Waiau Repower project, subject to change, when all six new units are in service. Image courtesy of Hawaiian Electric.

The 253-megawatt project was one of several selected as part of a competitive procurement process for firm renewable generation on Oʻahu. This firm renewable generation resource will be available 24/7, is flexible to meet the needs of a modern grid using solar and wind and can run on renewable biofuels. The proposed repowering of the Waiau facility will be the largest generation project in Hawaiian Electric’s 132-year history.

“Our obligation is to reliably serve Oʻahu customers for the coming decades while also transitioning to cleaner renewable fuels and this is a unique, cost-effective opportunity to upgrade existing infrastructure with minimal impact to the community,” said Michael DeCaprio, Hawaiian Electric’s vice president of power supply.

The project still requires final approval by the PUC. Details on the price of the project and estimated cost to customers will be made available when the company files its application for approval. Because maintenance and repair costs for the older units will be eliminated, and because the new units are more efficient and will run less frequently, significant savings are expected over 30 years compared to the cost of continuing to run and repair the aging units.

The six new units are combustion turbines or CTs, which are similar to jet engines that turn turbines at high speeds to generate electricity. They are intended to support generation resources, including variable renewable energy like wind, solar and battery storage, when they are unavailable or unable to meet system demand. At approximately 42 megawatts, each CT unit is smaller and more efficient than the oil-fired steam boiler it will replace, and each can respond quickly to fluctuations on the electric grid. Initially, the CTs will use biodiesel and can potentially use renewable gas or hydrogen when it becomes commercially available.

Waiau Units 3 and 4, aged 76 and 73 years respectively and scheduled to be retired in 2024, will be the first units to be replaced with the new technology over the next several years with an expected in-service date of 2029.

The other four units, which came into service between 1959 and 1968, will be replaced in phases with all units expected to be online by 2033.

To learn more, visit hawaiianelectric.com/waiaurepower.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231211827739/en/

media@hawaiianelectric.com

Source: Hawaiian Electric Industries, Inc.

FAQ

What is the name of the company mentioned in the press release and its ticker symbol?

Hawaiian Electric Company, Inc. (HEI) is the company mentioned in the press release, and its ticker symbol is NYSE: HE.

What is the project mentioned in the press release?

The press release mentions the proposal to replace aging fossil-fuel generators at the Waiau Power Plant with more efficient, fuel-flexible units.

What is the expected cost savings over 30 years from the project?

Significant cost savings are expected over 30 years compared to the cost of continuing to run and repair the aging units.

What are the intended fuel sources for the new units at the Waiau Power Plant?

The new units are initially intended to use biodiesel and can potentially use renewable gas or hydrogen when it becomes commercially available.

What is the expected in-service date for the replacement of the first units at the Waiau Power Plant?

The expected in-service date for the replacement of the first units at the Waiau Power Plant is 2029.

Where can more information about the Waiau Repower project be found?

More information about the Waiau Repower project can be found at hawaiianelectric.com/waiaurepower.