Renewable Energy Procurement (RFP Docket No. 2017-0352) — Key Orders and Filings
Summary: The Commission denied Maui Electric’s request for a waiver from submitting a self-build proposal to meet the firm renewable component of the Stage 3 RFP, instead requiring that Maui Electric develop and submit a self-build proposal for firm renewable generation by April 19, 2023, the deadline established in the RFP.
February 17, 2023: Order No. 38865 – Granting the Hawaiian Electric Companies’ Request for Approval to Incorporate Elements of the Institute of Electrical and Electronics Engineers’ Standard for Interconnection and Interoperability of Inverter-Based Resources Interconnecting with Associated Transmission Electric Power Systems into the Stage 3 Requests for Proposals
Summary: The Commission approved modifications to the Stage 3 RFPs, reflecting additional IEEE 2800-2022 requirements related to grid reliability and stability, and revising the deadline for submission of proposals for the Hawaii Island Stage 3 RFP to April 20, 2023, alongside the deadline for the Maui and Oahu Stage 3 RFPs.
Summary: The Commission approved the Stage 3 RFPs for Oahu and Maui, directing Hawaiian Electric to make similar modifications as those required for the Stage 3 RFP for Hawaii Island, as well as additional modifications specific to Oahu and Maui. The Commission further provided inclinations regarding the scope and targets of the Stage 3 RFPs for Oahu and Maui, in particular the firm renewable capacity targets included in the RFPs.
June 30, 2022: Order No. 38479 – Approving the Hawaiian Electric Companies’ Final Stage 3 Request for Proposals for Hawaii Island with Modifications and Issuing Guidance on the Proposed Stage 3 Requests for Proposals for Oahu and Maui
Summary: The Commission approved the Stage 3 RFP for Hawaii Island, directing Hawaiian Electric to make several modifications, including to the evaluation criteria, community benefits package, community engagement website, and the carbon emissions analysis. The Commission also directed Hawaiian Electric to file additional analyses justifying the targets for procurement in the Stage 3 RFPs for Oahu and Maui.
Stage 2 Procurement
Summary: The Commission clarified several conditions related to the Standalone Storage PIM and Grid Services PIM established for Stage 2 resources, as well as eligibility requirements and thresholds for the established PIMs.
Summary: The Commission approved Hawaiian Electric’s Stage 2 RFPs, provided that Hawaiian Electric improve the basis for comparing pricing across technologies, submit any new value of service study for Commission review, evaluate the ability of projects from the Stage 1 RFPs to meet existing capacity and fast frequency response needs, and increase transparency of bid results.
Summary: The Commission provided additional guidance on the draft Stage 2 RFPs, directing Hawaiian Electric to ensure that procurement targets are consistent with the needs of the grid, conduct a fair and transparent solicitation process, and consider feedback provided by stakeholders. Note that these draft RFPs included targets for both renewable energy and grid services.
Summary: The Commission provided guidance to Hawaiian Electric prior to the filing of the Stage 2 RFPs, directing Hawaiian Electric to use this procurement as an opportunity to replace the capacity, energy, and ancillary services from exiting fossil generation expected to retire, including the AES Hawaii Power Plant on Oahu and the Kahului Power Plant on Maui.
Stage 1 Procurement
June 15, 2018: Order No. 35529 – Authorizing the Hawaiian Electric Companies to Expand the Number of Projects Selected for their Respective Final Award Groups Pursuant to the Final Variable Requests for Proposals Submissions
Summary: In addition to authorizing Hawaiian Electric to expand the number of projects selected for the Final Award Group for each island, the Commission encouraged Hawaiian Electric to accelerate project evaluation and directed Hawaiian Electric to begin the Stage 2 RFPs no later than January 2019.
February 27, 2018: Hawaiian Electric Companies’ Final Variable Request for Proposals
Summary: The Commission approved the Stage 1 RFPs, subject to the modification that Hawaiian Electric eliminate the requirement that one of the awarded projects on Maui be located at their Waena site.
Summary: The Commission provided guidance prior to the filing of the Stage 1 RFPs to acquire new, dispatchable and renewable energy resources for Oahu, Maui, and Hawaii Island, including that Hawaiian Electric should streamline the process so that projects may take advantage of declining federal tax credits and that the Commission is considering a number of performance-based regulatory mechanisms to encourage an accelerated procurement. The Commission also appointed independent observers for the Stage 1 procurement.
Other Key Orders and Filings
Summary: Hawaiian Electric evaluates services provided by contracts using methodology established in a Value of Service (“VOS”) Report. Following the submission of a VOS Report in September 2019, the Commission directed Hawaiian Electric to file a VOS Update Report subject to certain modifications related to the transparency of pricing information and resource assumptions. The VOS Report helps determine whether proposed contracts in the RFPs are cost-effective, i.e., whether the benefits to customers of the proposed contract outweigh the costs to customers.
Summary: The Commission approved Hawaiian Electric’s proposal to establish an additional performance incentive mechanism (“PIM”) for Stage 1 projects, but declined to adopt the proposal for an alternative design of the PIM.
October 6, 2017: Order No. 34856 – Opening the Docket
Summary: The Commission opened this docket to receive filings, review approval requests, and resolve disputes related to Hawaiian Electric’s competitive procurement of dispatchable firm generation and new renewable generation.
To see more and view all filed documents in the docket, see Docket No. 2017-0352.
See related pages:
- Renewable Energy Procurement (RFP Docket No. 2017-0352) – Homepage
- Renewable Energy Procurement (RFP Docket No. 2017-0352) – Procurement Process
- Renewable Energy Procurement (RFP Docket No. 2017-0352) – Renewable Procurement by Island
- Renewable Energy Procurement (RFP Docket No. 2017-0352) – Stage 3 RFPs & Interconnection Dispute Resolution Process