PUC Approves AES Kaʻawanui 43MW Solar-Storage Project, Powering 16,000 Kaua‘i Homes

The Hawai‘i Public Utilities Commission granted approval in early March 2026 for AES Hawai‘i’s Kaʻawanui solar-plus-storage project, a 43 megawatt photovoltaic array paired with four hours of battery storage, or up to 172 megawatt-hours of capacity, that Kaua‘i Island Utility Cooperative plans to use to serve roughly 16,000 homes and about 17.5 percent of the island’s electricity needs. KIUC projects the two AES procurements, Kaʻawanui and the companion Mānā project, will put the utility near 80 percent renewable generation by 2028 and further toward its 100 percent goal.

The power will be supplied under a 25-year fixed-price power purchase agreement between KIUC and AES Hawai‘i. KIUC has estimated $365 million in total savings to the co-op over the 25-year PPA and projected average residential bill impacts starting at $4.26 per month in year one and rising to $21.08 per month in the final year of the contract. Public filings contain differing PPA price figures for Kaʻawanui — one figure at $133.40 per megawatt-hour and another entry at 0.15029 $/kWh, or $150.29 per megawatt-hour — a discrepancy tied to PUC filings and docket entries that KIUC and AES will need to reconcile as the contract moves into construction.

The Kaʻawanui site is tied to Makaweli and Pākalā (Pakala) Village land, with tax map keys listed as (4) 1-7-006-010 and (4) 1-7-006-006 and land owned by Robinson Family Partners and managed by Gay & Robinson, Inc. KIUC says a new switchyard will be built adjacent to the project to interconnect the facility to the co-op’s grid; completion of that switchyard will allow KIUC to decommission the Kaumakani and Kekaha substations, shifting infrastructure footprint on the western side of the island.

KIUC’s planned dispatch strategy for Kaʻawanui’s batteries includes ramping toward the afternoon-evening peak, shaving the evening peak by displacing oil-fueled generation, offsetting overnight oil use, and providing grid stabilization. KIUC serves about 40,000 customer accounts; utility filings envisioned the AES projects contributing 35 to 40 percent of KIUC’s annual energy production when combined with existing resources.

Environmental and fuel-displacement metrics tied to the Kaʻawanui PPA are substantial: KIUC and AES estimate more than 179 million gallons of fossil fuel avoided and approximately 2.3 million metric tons of CO2 not emitted over the project’s 25-year life. The State Division of Consumer Advocacy 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.”

AES Hawai‘i has held local outreach for the project, including open houses for Pākalā, Kaʻawanui, and Kaumakani villages and a public meeting in Hanapēpē in September 2025 where dozens of residents asked questions; AES Hawai‘i said, "AES Hawai‘i is committed to engaging with the community throughout the project’s lifespan." Kaʻawanui will be AES’s third renewable project for KIUC after the 20-MW Lāwa‘i Solar + Storage project that began service in 2019.

Next steps include finalizing construction timelines, switchyard build schedule, and the commercial operations sequence targeted in industry data for 2028, while PUC docket 2025-0198 contains the approval record and contract text that will confirm final PPA pricing and any conditions attached to the early March 2026 approval. KIUC member services remain available Monday through Friday, 8 a.m. to 4 p.m., excluding holidays, for questions about the project and bill impacts.