LIHUE — On Tuesday, the Kauai Island Utility Cooperative announced that it is proposing two new renewable energy projects that will bring Kauai close to 80 percent renewable energy by 2028.
“Our board of directors has set an aggressive goal of reaching 100 percent renewable by 2033,” said KIUC President and Chief Executive Officer David Bissell. “Successful completion of these projects will allow us to progress towards achieving the State of Hawaii mandate 12 years ahead of schedule.”
The two solar-plus-battery-storage projects submitted to the Hawaii Public Utilities Commission for approval would be developed by AES Hawaii under power purchase agreements, or PPA. The projects include the Mana + Storage and Ka mana o ka lā o Kaʻawanui.
Mana Solar + Storage is a 35 megawatts, or MW solar, with a 4-hour storage capacity to produce an average of 86,000 megawatt hours annually of dispatchable renewable energy over the 25-year PPA. The project is proposed to be located on land owned by the Agribusiness Development Corporation on the Mana Plain. It is expected to displace the use of 5.9 million gallons of diesel per year. For $0.127 per kilowatt-hour, Mana Solar + Storage is estimated to save KIUC members $6.4 million in the first year of operation, with a cumulative total estimated savings of $370 million over the life of the 25-year PPA.
Ka mana o ka lā o Kaʻawanui, or Kaʻawanui Solar + Storage, is 43 MW solar with a 4-hour storage capacity to produce an average of more than 100,000 MWh annually of dispatchable renewable energy over the 25-year PPA. The project is proposed to be located on land managed by Gay & Robinson, Inc. in Makaweli and is expected to displace the use of 12.9 million gallons of diesel per year. For $0.1334 per kilowatt-hour, Kaawanui Solar + Storage is estimated to save KIUC members $7 million in the first year of operation, with a cumulative total estimated savings of $429 million over the life of the 25-year PPA.
“AES Hawaii looks forward to continuing our successful collaboration with KIUC with the Mana Solar + Storage and Kaʻawanui Solar + Storage projects,” said Nick Milinari, Director of Development for AES Hawaii. “These innovative projects will provide Kauai residents with affordable, reliable power while substantially accelerating progress toward our state’s clean energy goals.”
The two projects are expected to generate enough electricity to power more than 30,000 homes and account for 35 to 40 percent of KIUC’s annual energy production.
“We’ve already experienced significant rate stabilization over the past five years due to the high percentage of power generation from renewable projects on fixed-price PPA’s,” said Bissell. “Our rates have gone from being the highest in the state by a large margin to among the lowest in just 20 years. With these projects, we’ll be essentially buffered from oil price volatility.”
Brad Rockwell, the KIUC Chief of Operations, said AES Hawaii has been a reliable renewable energy partner for us since we opened the AES Lawai facility in 2019 and the AES PMRF facility in 2021. Assuming no delays in obtaining all necessary permits and approvals, he said these projects can come online as early as 2028.
