State panel gives its OK to 3 sun-energy projects

COURTESY SUNEDISON INC. / FEBRUARY 2016

The state Public Utilities Commission on Thursday approved three solar projects to be built by NRG Renew LLC. The three projects are Kawailoa Solar, Waipio Solar (pictured above) and Lanikuhana Solar.

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Solar energy projects with the combined capability of powering more than 17,900 homes have been approved to connect to Hawaiian Electric Co.’s grid.

The state Public Utilities Commission approved three solar projects, which will be built and operated by a subsidiary of Houston-based NRG Energy Inc., on Thursday.

“The three NRG Renew LLC-owned PV projects collectively represent approximately 110 (megawatts) of cost-effective, solar-generated renewable energy that will be supplied to HECO’s grid,” the PUC said in the order approving the project.

The projects include a 49-megawatt facility near Waialua called Kawailoa Solar, a 45.9-megawatt facility near Waiawa called Waipio Solar and a 14.7-megawatt facility near Mililani called Lanikuhana Solar.

The Kawailoa Solar farm will be the largest solar facility in the state. Currently the largest is the 27.6-megawatt Waianae Solar owned by San Diego-based Eurus Energy America Corp.

NRG will sell the power from Kawailoa Solar farm to HECO for 11 cents a kilowatt-hour. NRG will sell solar power produced at its 14.7-megawatt Lanikuhana Solar plant for 11.4 cents a kilowatt-hour and for 10.4 cents a kilowatt-hour from the 45.9-megawatt Waipio Solar.

HECO said combining the projects’ capacity will help increase its renewable portfolio progress by 3 percentage points. Currently, renewable energy makes up 19.4 percent of Oahu’s fuel mix.

The facilities are expected to be in service no later than 2019. The contracts run for 22 years after the start of service.

HECO will buy the power from NRG at a lower price compared with the contract negotiated with the company that started the project. Maryland Heights, Mo.-based SunEdison previously owned the three solar farms before it ran into financial problems and eventually filed for bankruptcy in April 2016. SunEdison was going to charge 13.5 cents per kilowatt-hour for the power produced by the three facilities.

When SunEdison ran into financial trouble, HECO terminated the contract for the three solar farms. Initially the decision was met with backlash. One of the projects was already under construction when HECO ended the contracts. At the time of the termination, Randy Iwase, PUC chairman, said he was disappointed with HECO’s decision because of the amount of renewable energy lost.

During the PUC review of the new contracts, the state Consumer Advocate recommend the agency approve the projects, saying they “reflect the continued downward pricing for renewable energy projects that Hawaii should strongly encourage.”