Latest round of Hawaiian Electric clean energy procurement includes bids for firm generation to boost grid reliability 15 proposed projects will make it easier to retire older fossil fuel generators

Latest round of Hawaiian Electric clean energy procurement
includes bids for firm generation to boost grid reliability
15 proposed projects will make it easier to retire older fossil fuel generators
HONOLULU, Dec. 8, 2023 – Hawaiian Electric will begin contract negotiations with the
developers of 15 renewable energy projects on O‘ahu, Hawai‘i Island and Maui that will further
reduce Hawai‘i’s dependence on imported oil for power generation. Several of the projects on
O‘ahu and Hawai‘i Island utilize firm renewable generation that can produce clean electricity
when the sun isn’t shining or the wind isn’t blowing.
The projects, seven on O‘ahu, four on Hawai‘i Island, and four on Maui, are part of Hawaiian
Electric’s latest phase of renewable energy procurements. The negotiations are expected to
produce long-term contracts for approximately 517 megawatts (MW) of variable generation, 654
MW of firm generation, and 2.1 gigawatt-hours (GWh) of storage. The proposals employ a
variety of renewable energy resources and project design types. Estimated completion dates for
the projects range from 2026 to 2033.
The projects include:
• O‘ahu: Three solar-plus-storage projects and four firm (biofuel) projects totaling 413
GWh of variable generation, 594 MW of firm generation, and 990 megawatt-hours
(MWh) of storage.
• Maui: Three solar-plus-storage projects and one wind project totaling
approximately 324 GWh of variable generation, and 320 MWh of storage.
• Hawai‘i Island: Three solar-plus-storage projects and one firm (biofuel) project
totaling 512 GWh of variable generation, 60 MW of firm generation, and 834 MWh
of storage.
“These projects will help move Hawai‘i closer to its clean energy goals, while adding critical grid
reliability with firm renewable energy,” said Rebecca Dayhuff Matsushima, vice president of
Resource Procurement for Hawaiian Electric. “Adding energy storage and generation from firm
renewables to our portfolio will make it easier for Hawaiian Electric to retire older, less flexible
fossil fuel-fired plants.”
Proposals for firm renewable capacity on Maui are being handled separately, with final selection
set for January 2024. Firm renewable energy differs from variable resources such as solar and
wind, in that it is available at all times. While previous solicitations have focused on variable
resources, procurement of firm generation seeks to broaden the future generation mix to ensure
the islands have a diverse portfolio of generation resources.

In addition to proposals featuring firm renewable generation, Hawaiian Electric accepted bids for
projects with variable renewable dispatchable energy. Dispatchable means the company
controls when the resource is used. An example is a solar facility with a battery that stores
energy that can be dispatched to the grid as needed.
Hawaiian Electric will now enter contract negotiations with the developers, who will begin
outreach to the communities where they plan to build. For the first time, developers were
required to submit community outreach and benefit plans that were evaluated along with
technical and financial criteria. Developers also were required to set aside for community
benefits at least $3,000 per megawatt of generation capacity annually. The funding will be used
for actions and programs aimed at addressing specific needs identified by the host community.
Developers will provide an updated community outreach plan for the company’s review. The
updated community outreach plans will be made public on each developer’s website.
Once the contracts between Hawaiian Electric and the developers are finalized, they will be
submitted to the Public Utilities Commission (PUC) for review and approval. At the time, more
details on price and bill impact will be made public. The process for selecting bid finalists was
overseen by an Independent Observer and Independent Engineer, selected by the PUC to
ensure that all proposals – including projects proposed by Hawaiian Electric – were reviewed
fairly and objectively.
On O‘ahu, the Waiau Repower project and the Kalaeloa Partners project aim to transform
existing facilities that use imported fossil fuels into facilities that run on biofuels. The Waiau
project, proposed by Hawaiian Electric at the site of its existing 85-year-old facility in Pearl City,
could potentially use renewable gas or hydrogen when it becomes commercially available. On
Hawai‘i Island, the Hamakua Firm Renewable project would also transition the existing dual-fuel
plant to 100% biofuel.
The projects selected are the result of a procurement effort that Hawaiian Electric began in May
2022 for O‘ahu and Maui and in November 2021 for Hawai‘i Island. For a list of the projects and
links to each project website, please see the Renewable Project Status Board page:
hawaiianelectric.com/statusboard

Stage 3 Oahu, Hawaii Island, Maui Variable – Final Award Group Projects

In Negotiation