HEI issued RfP for 900 MW new renewables including 594 MW PV
Post date: 27/08/2019 - 19:52
The Hawaiian Electric Companies, subsidiaries of Hawaiian Electric Industries, Inc. (HEI), are beginning Hawai'i's largest procurement effort for renewable energy resources to end the use of coal and reduce reliance on imported oil for power generation, moving the state closer to its goal of using 100 percent renewable energy by 2045. According to the company, »Hawaiian Electric has made huge strides toward our renewable energy goals and will end this year achieving a renewable generation portfolio of 30 percent,« said Alan Oshima, president and CEO of Hawaiian Electric.
With the approval of the Public Utilities Commission (PUC), the companies have issued requests for proposals (RfP) for renewable energy and grid services from developers locally and globally. Approximately 900 MW of new renewables or renewables paired with storage – generating about 2 million megawatt-hours annually – are sought. It is among the largest single renewable energy procurements undertaken by a U.S. utility. This includes estimated targets of technologies equal to 594 MW of solar for O'ahu, 135 MW for Maui and up to 203 MW for Hawai'i Island, depending on whether other renewable energy projects are available on that island.
Projects for Maui must include energy storage. On Hawai'i Island, solar must include storage but is optional for other technologies. On O'ahu, pairing generation with energy storage is optional. Storage on O'ahu and Maui is also being sought to replace firm generating units. This can be provided by renewable generation paired with storage or standalone storage. Contingency storage is also being sought for O’ahu and Hawai'i islands.
For O'ahu, new renewable generation and storage is needed to replace the 180 MW coal-fired AES Hawaii plant in Campbell Industrial Park due to close by September 2022. It is the largest single generator on O'ahu, meeting 16 percent of peak demand. For Maui, new renewable generation and storage is needed for the planned retirement of Kahului Power Plant by the end of 2024.
Final requests for proposals are expected to be issued later this year for the equivalent of 4 MW of solar or 3.6 MW of small wind for Moloka'i, paired with energy storage, and an equivalent up to 9.5 MW of solar paired with energy storage for Lana’i, pending approval by the PUC.
In the first phase of the renewable procurement, completed in 2018, the companies negotiated contracts for eight projects on three islands. The PUC approved seven projects on O'ahu, Maui and Hawai'i Island that will add approximately 260 MW of solar energy with over 1 gigawatt-hour of storage by the end of 2021. One project is pending commission approval.
The stable, long-term prices negotiated for those projects average 9.38 cents per kilowatt-hour and are significantly lower than the current cost of fossil fuel generation, which is about 15 cents per kilowatt-hour.