Critical Grid Reliability Projects on Kaua‘i in Jeopardy of Losing Funding

Kaua‘i Island Utility Cooperative (KIUC) has been notified that federal grants for two projects that would have boosted electric grid reliability and reduced Kaua‘i’s vulnerability to supply-chain issues and foreign oil pricing may have been cancelled.

Both projects, funded through the Grid Resilience and Innovation Partnerships (GRIP) program, leverage existing power generation equipment with new technology to reduce Kaua‘i’s dependence on imported oil and support reliable island grid operation. KIUC was positioned to receive $18.2 million in federal assistance toward the $35.8 million cost of the two projects combined. To date, KIUC has spent more than $1.3 million implementing the projects, with $550,000 of that amount pending reimbursement.

The Utility Solar Grid Forming Technology (USGFT) project, estimated at $32.5 million, would add battery storage and advanced grid forming inverters to three existing solar power plants in Anahola, Kōloa and Port Allen. The Synchronous Condenser Conversion Technology (SCCT) project, estimated to cost $3.3 million, adds grid-forming capability to an existing generator at the Port Allen power station to accommodate stable operation of high penetration distributed variable renewable generation (i.e., daytime solar) on Kaua‘i’s electric grid. Both grants were secured by the Hawai‘i State Energy Office (HSEO), with KIUC as the sole subcontractor.  

Grantees have the option to appeal a decision to terminate the projects. If the grants are cancelled and not reinstated through a successful appeal, KIUC would need to decide whether to abandon the projects or spend the additional $18.2 million in lost federal funds to complete the two projects. 

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