New renewable projects submitted to regulators will produce lower-cost electricity, advance clean energy

Rhea-AI Summary

On September 16, 2020, Hawaiian Electric submitted eight contracts for grid-scale renewable energy and storage projects in O'ahu and Maui to the Public Utilities Commission for approval. This initiative represents the largest renewable energy procurement in Hawaii's history, aiming to reduce monthly electric bills by approximately $1. The planned projects will support the retirement of the state's only coal plant and the Kahului oil-fired plant. If completed as scheduled, these projects are expected to add 9% to Hawaii's renewable energy portfolio by reaching a total of 30% by year-end.

Positive

• Submission of eight contracts for grid-scale renewable energy projects, marking Hawaii's largest renewable energy procurement.
• Expected reduction in monthly electric bills by about $1 for consumers.
• Support for retiring the only coal plant and an oil-fired plant, advancing clean energy initiatives.
• Addition of nearly 300 MW of renewable generation and 2,000 MWh of storage, potentially increasing the renewable portfolio by 9%.

Negative

• Three original projects withdrew from the procurement process.
• Contracts for three other projects are still under negotiation, indicating potential delays.

HONOLULU, Sept. 16, 2020 /PRNewswire/ -- Hawaiian Electric, a subsidiary of Hawaiian Electric Industries, Inc. (NYSE: HE), has submitted eight contracts for new grid-scale renewable energy and storage projects on O'ahu and Maui to the Public Utilities Commission (PUC) for review and approval.

The six projects on O'ahu and two on Maui are part of the largest renewable energy procurement ever for Hawai'i. If approved and completed, the combined projects are expected to lower electric bills on average by about $1 a month on O'ahu and Maui.

The O'ahu 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 Hawai'i 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 anticipated return to service of Puna Geothermal Venture on Hawai'i Island.

The projects and their prices are listed on the following page:

O'ahu
Developer	Project	Location	Technology	MW/MWh	Price
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	Waiʻanae	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	*	*
Maui
Developer	Project	Location	Technology	MW/MWh	Price
Longroad Development	Pulehu Solar	Pūlehu	Solar + Storage	40/160	9.2¢
Innergex Renewable Energy	Kahana Solar	Nāpili-Honokōwai	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 a third.

Contract documents filed by the company will be available on the PUC website at https://dms.puc.hawaii.gov/dms/.

CONTACT:	Peter Rosegg, 808.371.7474
	Peter.Rosegg@hawaiianelectric.com

 

 

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SOURCE Hawaiian Electric Industries, Inc.

FAQ

What are the new renewable energy projects submitted by Hawaiian Electric (HE)?

Hawaiian Electric submitted eight contracts for grid-scale renewable energy and storage projects in O'ahu and Maui, focusing on clean energy and reducing electric bills.

How will the renewable projects impact electric bills in Hawaii?

The projects are expected to lower electric bills by approximately $1 per month on average in O'ahu and Maui.

When is the retirement of Hawaii's coal plant scheduled?

The retirement of Hawaii's only coal plant is expected by September 2022.

What percentage of renewable energy will Hawaiian Electric achieve with these projects?

If completed on schedule, the projects are estimated to add approximately 9 percentage points to the renewable portfolio, bringing it to 30% by year-end.

What challenges did Hawaiian Electric face in the renewable procurement process?

Three original projects withdrew from the procurement, and contracts for three others are still being negotiated.