LIHUE >> Kauai’s utility plans to build a $54 million solar power project on 60 acres in Anahola.

The Kauai Island Utility Cooperative says the 12-megawatt solar project will power 4,000 homes.

It’s expected to supply 20 percent of Kauai’s electricity during daylight hours. It will also provide five percent of Kauai’s annual electricity needs.

The utility said Friday its board and members of the Hawaiian Homes Commission voted to approve the terms of a 25-year lease for the land under the project.

Ownership of the solar array will transfer to the Department of Hawaiian Home Lands after 25 years.

The utility has committed to using renewable resources to generate 50 percent of its energy by 2023.