U.S. Department of Energy cancels grant funding for 2 Kaua‘i critical grid reliability projects

Kaua‘i Island Utility Cooperative got notification this week that federal grants for two projects that would boost electric grid reliability and reduce Kaua‘i’s vulnerability to supply-chain issues and foreign oil pricing were canceled.

Both projects — funded through the Grid Resilience and Innovation Partnerships program — leverage existing power generation equipment with new technology to reduce Kaua‘i’s dependence on imported oil and support reliable grid operation on the Garden Island.

Kaua‘i Island Utility Cooperative would have received $18.2 million in federal assistance to apply toward the combined $35.8 million total cost of the two projects.

More than $1.3 million has already been spent implementing the projects, with $550,000 pending reimbursement.

The Utility Solar Grid Forming Technology project, estimated to cost $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 project, estimated at a cost of $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, in other words daytime solar, on Kaua‘i’s electric grid.

Both grants were secured by Hawai‘i State Energy Office, with Kaua‘i Island Utility Cooperative as the sole subcontractor.

Hawai‘i State Energy Office has the option to appeal the decision to terminate the projects.

Kaua‘i Island Utility Cooperative would need to decide whether to abandon the projects or spend the additional $18.2 million in lost federal funds to complete them if the grants are not reinstated through a successful appeal.