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Hawaiian Electric Co. has submitted plans to state regulators to revive two utility-scale solar farms.
The electrical utility said Tuesday it reached power purchase agreements for two of three solar farms with the facilities’ new owner, after terminating the contracts for the projects last year. HECO is still negotiating an agreement for the third farm but said all three projects are expected to come online in 2019.
Alan Oshima, Hawaiian Electric president and CEO, said in a statement the deal with the new owner of the projects, NRG Energy Inc., was “an important step forward” for Oahu to reach the state’s goal of achieving
100 percent renewable energy dependence by 2045.
The three solar projects combined will have the capacity to power more than 17,974 homes at peak, with a total of 109.6 megawatts of solar generation.
In February HECO backed out of its contract with Maryland Heights, Mo.-based SunEdison Inc. for the three utility-scale solar facilities, which were approved by the state Public Utilities Commission in July. NRG acquired the projects in November after SunEdison filed for bankruptcy in April.
HECO applied to buy the solar power produced by the 14.7-megawatt Lanikuhana Solar plant from NRG at 11.4 cents per kilowatt-hour. The utility applied to purchase power from the 45.9-MW Waipio Solar plant at 10.4 cents per kWh. The PUC’s approval is required for the projects to move forward.
SunEdison’s facilities would have sold solar power to HECO for 13.5 cents a kilowatt-hour for the duration of their 22-year life spans.
NRG and Hawaiian Electric are still negotiating the power purchase agreement for the 49-MW Kawailoa Solar facility.
HECO said the prices depend on the project qualifying for a state tax credit. Hawaii offers a 35 percent tax credit off the total cost of the solar system. It is capped at $500,000 for every commercial system.