Up and Running at Koloa Substation - Kauai Island Utility Cooperative

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8 KIUC CURRENTS By Anne Barnes KIUC to Develop Kaua‘i’s Largest Solar Project KIUC is pursuing the development of an approximately 10megawatt photovoltaic project. Upon completion, the project will be the largest PV facility in Hawai‘i and the largest on the island of Kaua‘i by almost two times. The cooperative immediately will begin efforts to obtain approval from the U.S. Department of Agriculture’s Rural Utilities Service to reallocate up to $68 million of previously approved loan funds to construct an integrated PV and battery energy storage system on Kaua‘i. The funds originally were approved for a 10megawatt combustion turbine generator often referred to as “Gen X” or “CT2.” To qualify for federal tax incentives under the stimulus bill and Hawai‘i state tax incentives, KIUC’s board of directors approved formation of a new forprofit subsidiary, KIUC Renewable Solutions One LLC. The forprofit subsidiary is necessary because as a taxexempt cooperative, KIUC does not qualify for the federal or state incentives. KIUC expects up to 50 percent of the cost of the PV portion of the facility to be paid for by the incentives. The subsidiary company will be 100percent owned and controlled by the cooperative. “KIUC is following a model employed by other electric cooperatives, to use a subsidiary to qualify for tax incentives only available to forprofit companies” said KIUC president David Bissell. " We will combine the tax credits, our own lowcost financing, and the declining cost of solar photovoltaic systems to produce energy at significantly less than the cost of power generated from oil. The cost for a KIUCowned PV facility will also be lower than the recently signed power purchase agreement contracts due to our lower overall cost of capital.” A majority of KIUC’s generation today still comes from fossil fuels, but the coop has actively expanded its portfolio of renewable technologies. KIUC now has 17 megawatts of PV and biomassfired generation projects under power purchase agreements. About 35 megawatts of lowimpact hydropower projects are being studied, but KIUC has not determined whether additional clean, renewable hydropower can be feasibly developed on Kaua‘i. A request for proposal to contractors to build the PV facility was released this week. “We are on a very short timeline to qualify for the federal incentives,” said Brad Rockwell, KIUC manager of production. “With this facility we would have about 20 megawatts of solar on our system, and that is why we are integrating the battery energy storage system to handle that level of intermittent resource and still have excellent reliability. KIUC would have more solar PV concentration than any utility in the U.S. if this project can be successfully developed.” “The benefits are significant,” said KIUC board Chairman Phil Tacbian. “By using the RUS approved funds for solar development, the cooperative effectively shelves the combustion turbine plant and moves closer to giving our members the clean, renewable energy they have asked for.” The combustion turbine originally was to be fueled by renewable biodiesel, but that technology has not developed quickly enough to realistically use the RUS funds in the approved timeframe. A biomassfired boiler at the Port Allen Generating Station was studied earlier this year, but its cost appeared less attractive than a PV facility, according to KIUC’s engineering analysis. “With wind power not feasible due to endangered species concerns, combining solar PV with the battery energy storage system moves us closer to the board’s strategic goal of 50 percent renewable by 2023," added Tacbian. "If we are able to develop additional lowimpact, clean hydropower later this decade, we will get there ahead of schedule.”
Get Smart About The Smart Grid Learn the facts about this new technology Informational meetings will be held on February 9, 2012, and April 12, 2012, from 6 p.m. to 7 p.m. in KIUC’s Main Conference Room 4463 Pahe‘e Street, Suite 1 Līhu‘e, Hawai‘i 96766-2000 Learn more about the smart grid at www.kiucrenewablesolutions.coop Scan this code KIUC is an equal opportunity provider and employer. Live blogging of this event at www.kiucrenewablesolutions.coop www.kiucrenewablesoluons.coop with your smart phone and a QRreader applicaon to access this website. DECEMBER 2011 9
Page 1 and 2: 3-Time Award-Winning December 2011
Page 3 and 4: Table of Contents Light Up A Life .
Page 5 and 6: By Paul Daniels A Picture’s Worth
Page 7: At the end of September, the Hawai
Page 11 and 12: Photos by Shelley Paik KIUC’s ele
Page 13 and 14: California No-Crust Quiche and Then
Page 15 and 16: KIUC’s program to generate at lea
Page 17 and 18: Bissell completed his report with a
Page 19 and 20: “As a member, you have a voice in
Page 21 and 22: KIUC Honored for Community Service
Page 23 and 24: In late October, groups of children
Page 25 and 26: The KIUC Board of Directors appoint
Page 27 and 28: New Member Guide
Page 29 and 30: What is an Electric Cooperative? Se
Page 31 and 32: • Diverse Energy Solutions. It is
Page 33 and 34: National Rural Electric Cooperative
Page 35 and 36: Kaua‘i Smart Grid Initiative The
Page 37 and 38: Radio Frequency Comparison of Commo
Page 39 and 40: How will the co-op read the meters?
Page 41 and 42: Service Activations and Disconnects
Page 43 and 44: Storm Sense Hurricane season runs f
Page 45 and 46: Low-Income Home Energy Assistance P
Page 47 and 48: Social Media Reaching More Members
Page 49 and 50: 2012 Calendar of Student Art Judges
Page 51 and 52: Electric cooperatives are different
Page 53 and 54: Call it Cost-effective Economical P
Page 55 and 56: Simple Pleasures Joe Fontanilla rec

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