According to foreign media reports, US utility manufacturer AES Corporation has announced that it is starting construction of two large solar power projects in Kuihelani, Hawaii, and will deploy two battery storage systems to accompany them.
AES Corp. released the news on August 4 via Twitter that the company had broken ground on the Kuihelani Solar + Energy Storage project, which includes a 60MW installed capacity solar farm and a 240MWh containerized battery energy storage system (BESS). The project is being deployed on Maui, the second largest island in Hawaii.
AES Corporation broke ground on two large solar + energy storage projects in the state of Hawaii, with executives from AES Corporation and representatives from its Hawaiian subsidiary attending the groundbreaking ceremony along with the Mayor of Maui, local community members and other stakeholders.
German renewable energy developer Baywar.e. also said recently that it has become the engineering, procurement and construction (EPC) contractor for another AES Corporation solar+storage project in Hawaii, which will be deployed by Baywar.e. Power Solutions, a division of Baywar.e., is The division was created by Baywar.e. through its acquisition of US solar and storage EPC manufacturer Enable Energy, Inc. in 2020.
The solar+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 South Kohala district of the island.
The Waikoloa Solar+Storage project will create approximately 200 construction jobs and provide approximately $47 million in investment in the local economy, Baywa r.e. said, adding that the project is expected to be substantially completed this year as permits are obtained and construction begins.
Both of AES's solar+storage projects have 25-year power purchase agreements (PPAs) with the state's utility, Hawaiian Electric Company (HECO). Hawaiian Electric Company (HECO) awarded the projects to AES Corporation in 2018 and then signed the power purchase agreements in 2019.
According to information posted on AES Corporation's website, both projects will be commercially operational by 2023 and will be connected to the power grids of Hawaii Island and Maui, respectively.
AES notes that the price of electricity from both projects is $0.08/kWh, well below the cost of imported fossil fuels, on which the state of Hawaii is largely dependent.
The Hawaiian Electric Company (HECO) has long argued that solar power facilities with battery storage systems and some stand-alone deployments are the best way to reduce the cost of electricity and reduce carbon emissions. In fact, Hawaii's last coal-fired power plant is about to be retired, while the other main source of fuel is diesel.
The company said last year that it expects all solar power projects in upcoming bids to require the deployment of energy storage systems to accompany them. As for the deployment of distributed energy, the Hawaiian Electric Company (HECO) has implemented a "Battery Incentive" program to incentivize customers in Hawaii who use residential rooftop solar power facilities to also deploy battery storage systems.
HECO announced the winner of its most recent large-scale renewable energy tender in late 2020, which resulted in the signing of nearly 300MW of solar power facilities and 2GWh of battery storage power procurement agreements, despite delays and challenges caused by the new crown epidemic.
In the last tender exercise conducted by the Hawaiian Electric Company (HECO) a few months ago, European utility group ENGIE won the tender and signed a contract to deploy the Puako solar + storage project, which was planned to deploy 60MW of solar power facilities and 240MWh of battery storage, however ENGIE has announced the cancellation of its bid.
ENGIE attributed the cancellation of the project to higher grid interconnection costs, adverse factors facing the solar power industry, such as a trade tariff dispute over imported PV modules at the time, and other global supply chain and production issues