Hawaiian Electric Company Extends “Intent to Bid” Deadline for O’ahu Energy Storage RFP

As energy storage matures both technologically and commercially, several investor owned and municipal utilities have begun formal processes to procure storage. Recent examples include Southern California Edison’s request for energy storage to satisfy local capacity requirements in the Los Angeles basin, the Imperial Irrigation District’s request for qualifications with respect to 40 MW of energy storage (summary available here), Southern California Public Power Authority’s request for energy storage proposals pursuant to its rolling RFP process (summary available here and here), Long Island Power Authority’s request for proposals for up to 150 MW of energy storage, and the Kauai Island Utility Cooperative’s recent storage RFP.

Hawaiian Electric Company’s solicitation for large-scale energy storage systems is the latest large energy storage RFP and represents another significant step in the ongoing commercialization of the energy storage sector. Hawaiian Electric’s procurement deserves to be watched carefully.

The RFP seeks proposals for one or more large-scale, grid-connected energy storage systems capable of storing 60 to 200 MW for 30 minutes. Although several of the procurements noted above contemplate the use of power purchase agreements (typically structured like gas tolling agreements) to secure access to storage, Hawaiian Electric has asked for a firm lump-sum price proposal to engineer, procure and construct one or more systems to be located on the island of O’ahu. The RFP package includes the utility’s proposed form of engineering, procurement and construction services (EPC) contract.

Hawaiian Electric intends to use energy storage to continue integrating variable renewable energy generation. Renewable energy on O’ahu consists primarily of wind and solar photovoltaic (PV). The utility anticipates that energy storage will provide certain services, such as sub-second frequency response and minute-to-minute load following, that will allow more of O’ahu’s electricity to come from variable resources. The system(s) are expected to be located within Hawaiian Electric substation facilities and properties, and the utility’s goal is to place the system(s) into service in the first quarter of 2017, if not sooner.

Hawaiian Electric recently extended the deadline to submit an “Intent to Bid Form” to 10:00 am Hawaii Standard Time on May 29, 2014. The deadline for the response to the RFP itself is 10:00 am Hawaii Standard Time on July 21, 2014.

The RFP can be found here.