U.S. utility AES Corporation has announced that it is starting construction of two large-scale solar power projects in Kuehran, Hawaii, and will deploy two battery energy storage systems.
AES released the news on August 4. The company has broken ground on the Kuihelani solar + energy storage project, which includes a 60MW solar farm and a 240MWh containerized battery energy storage system (BESS). . The project is deployed on Maui, the second largest island in Hawaii.
German renewable energy developer Baywar.e. also said a few days ago that it has become the engineering, procurement and construction (EPC) contractor for another AES solar-plus-storage project in Hawaii, which will be deployed by Baywar.e .Company done. Power Solutions is a division of Baywar.e., which Baywar.e. formed through its 2020 acquisition of U.S. solar and energy storage EPC maker Enable Energy.
The solar-plus-storage project, called Waikoloa, is located on the island of Hawaii and will deploy a 30MW solar farm and 30MW/120MWh battery storage system in the island's South Kohala district.
Baywa r.e. said the project is expected to be largely completed this year as permits are obtained and construction begins. The Waikoloa solar + storage project will create approximately 200 construction jobs and provide approximately $47 million in investment to the local economy.
Both of AES's solar-plus-storage projects have a 25-year power purchase agreement (PPA) with the state's utility, Hawaiian Electric Company (HECO). Hawaiian Electric Company (HECO) awarded the project to AES in 2018 before signing a power purchase agreement in 2019.
Both projects will be in commercial operation by 2023 and will be connected to the grids of Hawaii and Maui, respectively, according to information posted on AES's website.
AES noted that the electricity rates for the two projects are $0.08/kWh, well below the cost of imported fossil fuels on which the state of Hawaii largely depends.
The Hawaiian Electric Company (HECO) has long believed that solar power generation and battery storage systems, as well as some independently deployed battery storage systems, are the best way to reduce electricity costs and reduce carbon emissions. In fact, Hawaii's last coal-fired power plant is about to retire, and the other primary fuel source is diesel.
The company said last year that it expects solar power projects in upcoming tenders to require energy storage. In terms of deploying distributed energy, the Hawaiian Electric Company (HECO) has implemented a “battery incentive” program to incentivize users in Hawaii who use residential rooftop solar power facilities to also deploy battery energy storage systems.
Hawaii Electric Company (HECO) announced the winner of its most recent large-scale renewable energy tender in late 2020, and despite the many delays and challenges posed by the COVID-19 pandemic, has finally signed up for nearly 300MW of solar power and 2GWh of battery storage. energy purchase agreement.
European utility group ENGIE won the bid and signed the contract to deploy the Puako Solar+Storage project in the last tender held by the Hawaii Electric Company (HECO) a few months ago, with plans to deploy 60MW of solar power and 240MWh of battery storage project, however ENGIE has announced the cancellation of the winning project.
ENGIE attributed the project’s cancellation to higher grid interconnection costs, headwinds facing the solar power industry, such as the trade tariff dispute over imported PV modules at the time, and other global supply chain and production issues.
