January 7, 2019 Read More →

Solar-plus-storage contracts in Hawaii hit record low prices

Greentech Media:

This week Hawaiian Electric Company sent seven new solar-plus-storage contracts to state regulators. Six come in at record-low prices for the state, under 10 cents per kilowatt-hour.

The projects, which now await regulatory approval, would add 262 megawatts of solar and 1,048 megawatt-hours of storage distributed over three islands. The company said the projects will provide power “in place of volatile prices of fossil fuels,” which it quotes at about 15 cents per kilowatt-hour. AES, Innergex, Clearway and 174 Power Global are developing the projects.

“It’s hard to overstate the scale of this announcement,” said Dan Finn-Foley, a senior energy storage analyst at Wood Mackenzie Power & Renewables.

If the state’s public utility commission approves the power-purchase agreement contracts, it would mean a big boost for the U.S. storage market. WoodMac currently logs 1.4 gigawatt-hours of energy storage installed in the nation, with just 75 megawatt-hours in Hawaii. According to Finn-Foley, Hawaiian Electric’s projects would nearly double what’s installed in the U.S. and grow Hawaii’s market exponentially. Taken together, the projects would also rank as the second-largest storage announcement ever, just behind the recently approved Moss Landing project in California.

But that’s not even the most thrilling part of this announcement for clean energy analysts. “What’s even more notable is the range of PPA prices,” said Finn-Foley.

Past solar-plus-storage prices in Hawaii came in at 13.9 cents per kilowatt-hour in 2016 and 11 cents per kilowatt-hour in 2017. One of the projects announced this week by Hawaiian Electric is more expensive than the latter price — 15 megawatts of solar and 60 megawatt-hours of storage at 12 cents per kilowatt-hour. But another 90 megawatts of solar and 360 megawatt-hours of storage came in at what Finn-Foley called a “jaw-dropping” 8 cents per kilowatt-hour. That means that from 2016 to 2019 solar-plus-storage PPA prices in the state dropped by 42 percent.

More: Hawaiian Electric announces ‘mind-blowing’ solar-plus-storage contracts

 

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