New Kaua’i Renewable Energy Project Earns PUC Approval

The Hawai‘i Public Utilities Commission (PUC) has given the green light to a new solar –plus-storage project on Kauaʻi, which will contribute significantly to Kaua‘i Island Utility Cooperative’s (KIUC) plans to reach 100% renewable generation. 

AES Hawaiʻi’s Kaawanui Solar project, located on land owned by Robinson Family Partners and managed by Gay & Robinson, Inc. in Makaweli, will include a 43 megawatt (MW) photovoltaic array, paired with 4 hours of battery storage capacity, and could store up to 172 megawatt hours (MWh) of electricity that can be used during non-solar periods. 

The Project will power the equivalent of more than 16,000 homes annually with clean, locally-produced energy, and will meet approximately 17.5% of Kaua‘i's energy needs. More than 179 million gallons of fossil fuel will be offset over its 25-year lifespan, avoiding 2.3 million metric tons of carbon dioxide emissions. 

“KIUC routinely operates at 100% renewable on sunny days,” said KIUC’s President and Chief Executive Officer, David Bissell. “Our main challenge in reaching the state’s mandate of 100% renewable by 2045 is eliminating our fossil fuel use during non-solar periods. Projects like this are critical to reaching that goal.”

In addition to the climate benefits, the Kaawanui Solar project will provide an estimated $365 million in savings to KIUC over the course of the 25-year fixed-price power purchase agreement (PPA) with AES. The savings for residential customers in the first year is estimated at $4.26 per month, increasing to an estimated $21.08 per month in savings in the last year of the 25-year PPA term.

The State Division of Consumer Advocacy, in its supportive position statement to the PUC, said “…the proposed AES Kaawanui PPA is anticipated to provide significant benefits to KIUC’s members/customers in monthly bill savings, decreasing fossil use and greenhouse gas (“GHG”) emissions, and contributing to the KIUC’s Renewable Portfolio Standard (“RPS”) goals and in doing so increasing reliability and energy resiliency with the addition of a firm-like resource.”

In order to interconnect the project to KIUC’s grid, a new switchyard will be constructed adjacent to the Kaawanui Solar project, enabling KIUC to decommission both the Kaumakani and Kekaha substations. 

The project will also include a component of compatible agriculture, and AES expects to partner with a local, Kauaʻi-based company who brings deep expertise in land stewardship, ranching, and sustainable practices to co-locate agricultural activities on site. 

“KIUC has set and continues to meet aggressive renewable energy goals well ahead of state-mandated targets, and at a pace that leads the state in reaching the ultimate goal of 100% renewable,” said Senate President Ron Kouchi, 8th District (Kaua‘i and Ni‘ihau). “I am very pleased that the PUC and the Consumer Advocate have worked with KIUC to issue a timely approval, so the project can be completed in a way that will bring maximum benefit to the cooperative’s members while also supporting our agricultural goals for Kaua‘i.”

“Today’s PUC approval is another significant milestone enabling AES and KIUC to continue delivering on their shared goal for clean, reliable energy for Kaua‘i,” said Nick Molinari, Senior Director of Development, AES. “We’re proud to partner with KIUC to help Kaua‘i reach its clean energy goals.” 

This will be the third renewable energy project developed by AES for KIUC. In 2019, AES and KIUC made history together by bringing online the Lāwa‘i Solar + Storage Project, which was the largest operational solar and energy storage system in the world at the time. In 2021, in collaboration with the U.S. Navy, AES’ Kekaha Solar + Storage project, also known as the AES PMRF Project, was placed into service. 

AES Hawai‘i is committed to engaging with the community throughout the Project’s lifespan. Open houses were held for Pākalā, Ka‘awanui, and Kaumakani villages, and a public community meeting was held in Hanapēpē in September 2025, where dozens of residents engaged with AES and KIUC representatives to pose questions and learn more about the project. A project website has been created and can be accessed at www.aes-hawaii.com/kaawanuisolar.