Big solar-plus-storage project will be one of Hawaii utility’s lowest-cost power sources

June 27, 2018
Facebook
Twitter
LinkedIn
Reddit
Email
The coast of Kaua'i. Battery storage is described as an essential component of Hawaii's 10% renewable energy ambitions. Image: Flikcr user Paul Bica.

Hawaii’s KIUC, the top-ranked US utility in 2017 for energy storage deployment per customer by SEPA (Smart Electric Power Alliance), will pay less than US$0.11 per kWh for power from a new solar-plus-storage facility.

A power purchase agreement (PPA) has been signed by the electric cooperative with project developer and constructor AES Distributed Energy for 25 years, brokered at a price of US$0.1085 per kilowatt-hour. The utility said the facility will become one of its “lowest-cost power sources”, with 19.3MW of solar paired to 70MWh of battery energy storage capacity.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

State regulator the Public Utilities’ Commission (PUC) gave KIUC (Kaua’i Island Utility Cooperative) approval for the project a few days ago for the newest project, which will be housed on land rented from the military at Pacific Missile Range Facility – Barking Sands (PMRF). It will also be available to the base's facilities to provide power in the event of blackouts and other disruptions as it can be 'islanded' from the grid.

Hawaii is regularly cited as a perfect ‘test bed’ for solar integration that could be applicable for the rest of the US and SEPA found that KIUC made 415.3 watts of energy storage deployments per customer in 2017, way ahead of Arizona utility Tucson Electric Power (TUC) in second on just 50 watts. Much of this has been centred around creating dispatchable solar using batteries to mitigate evening peak demand, an analyst with I.H.S Markit recently said, while KIUC representatives have said that battery storage is a “necessity” for Hawaii to reach a target of 100% renewable energy by 2045.

It comes in just under the cost of power for an even larger solar-plus-storage system already announced for KIUC to be built by AES DE, a 28MW PV farm with 20MW / 100MWh of energy storage, also on Kauai. The cost of power from that installation is slightly higher at US$0.11 per kWh, as reported by Energy-Storage.news in February as that project was announced. Integrated PV company SunPower will supply the PV portion of that project with its scalable Oasis Power Plant platform.

The two projects join Tesla’s 52MWh dispatchable solar-plus-storage project, completed in 2017 in KIUC’s large-scale energy storage portfolio and will later still be joined by a modest 25MW pumped hydro project under construction on the west of Kauai island.

Read Next

Premium
December 15, 2025
Imperial Star's DomesticIQ calculator aims to bring some clarity to the complexities of navigating US solar domestic content requirements.
December 15, 2025
Spanish renewables developer Acciona Energia has sold a 49% minority stake in a 1.3GW US solar PV project portfolio.
December 12, 2025
A roundup of three solar PV project financing stories from Australia, Texas and California, with updates from Potentia Energy, Origis Energy and Baywa r.e.  
December 12, 2025
Solar PV companies in the US are not waiting for guidance from the US Departments of the Treasury or Energy to act regarding Foreign Entity of Concern (FEOC), according to a survey conducted by Crux.
December 12, 2025
US solar PV module prices have stabilised at just over US$0.28/W in the three months to November 2025, according to Anza.
December 10, 2025
The US SEIA has named board chair Darren Van’t Hof as interim president and CEO, to begin work 20 January 2026.

Upcoming Events

Upcoming Webinars
December 17, 2025
2pm GMT / 3pm CET
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA