Hawaiian Electric-Maui Electric - BESS for Maui - What's in Store for the People - Riding the Bull
1. HECO SEEKS APPROVAL FOR BATTERY PROJECT
40-MW, 160-MWH SYSTEM WOULD BE BUILT NEAR LANDFILL
By Colleen Uechi, Assistant City Editor, The Maui News, September 11, 2020
<https://www.mauinews.com/news/local-news/2020/09/heco-seeks-approval-for-battery-project/>
HAWAIIAN ELECTRIC SEEKS PUC APPROVAL -
FOR MAUI ENERGY STORAGE PROJECT
By Maui Now, September 9, 2020
<https://mauinow.com/2020/09/09/hawaiian-electric-seeks-puc-approval-for-maui-energy-storage-project/>
WAENA BESS
(Battery Energy Storage System)
WHAT'S IN STORE FOR MAUI
RIDING THE BULL â MAUI STYLE
Adding more bull to bull yields bigger bull
ďś Cathy Burnham Martin ďś
WITH HC&S CLOSING, MECO NEEDS MORE ON-DEMAND POWER
By The Maui News, September 9, 2016
<https://www.mauinews.com/news/local-news/2016/09/with-hc-s-closing-meco-needs-more-on-demand-power/>
According to a MECO application filed Tuesday with the state Public Utilities Commission,
HC&S' pending closure late this year and the ending of its purchase power agreement with the
utility will reduce the island's reserve power capacity. Now, the burning of bagasse, coal and oil
at the Puunene Mill provides up to 4 megawatts of âfirmâ power and an additional 12
megawatts of emergency power, according to the utility.
âWith this reduction to the system, the company is in need of additional firm generation sooner
than anticipated to maintain reliability as customer demand increases,â MECOâs filing says.
(âFirm powerâ refers to electricity that a supplier guarantees will be available when needed.
Wind and solar power are variable, or âas available,â sources of power. âReserve capacityâ is
extra power-generating capacity available to meet unanticipated demands for electricity, if
needed, such as if a generator were to break down.)
The utility says the temporary power generation project is âa key component of a larger portfolio
of measures that are needed to help mitigate increasing reserve capacity shortfalls that are
anticipated to arise on the company's Maui island system as early as March 2017 . . . and
continue until the installation of the next dispatchable firm capacity resource in 2022.â
The highest reserve capacity shortfall is expected in April and May of next year, when MECO's
largest power generators at Maalaea are taken offline for scheduled maintenance.
Earlier this year, the PUC approved MECOâs request to build a new, $13 million substation in a
sugar cane field adjacent to the intersection of Kuihelani Highway and Maui Lani Parkway.
Construction is targeted for completion as early as June. The diesel generators would be installed
at the same time and location as the Kuihelani substation.
2. MECO already has identified a 4-megawatt shortfall of power generation capacity as of
April, as well as additional, ongoing near-term reserve capacity shortfalls for 2018 to 2022.
The three temporary generators would burn âultra-low sulfur dieselâ â with each rated at being
able to deliver 1.65 megawatts, for a total of 4.95 megawatts of firm power generation for the
utility's reserve-capacity use, according to the filing.
âThe pending land acquisition of approximately 2.6 acres for the Kuihelani substation will
provide sufficient space to allow for the placement of the temporary distributed generation units,â
the utility says. âThe temporary distributed generation units will provide customer benefits
through increased service reliability, improved operational flexibility and support of the projected
reserve capacity shortfall beginning in March 2017.â
The generators are expected to operate only during peak-load hours, typically between 5 and 9
p.m., according to the utility.
The power-generation units are expected to be removed and sold for nearly $1.7 million after
about five years when the reserve capacity shortfall is anticipated to be eliminated by the
installation of new firm power generation.
According to MECO, other reserve capacity shortfall mitigation measures include:
* Repurposing the company's existing battery energy storage system.
* Relying on as-available wind resources.
* Pursuing company- or customer-owned, utility-dispatched distributed generation
projects.
* Requesting voluntary customer power cutbacks.
* Accelerating the installation of the next firm generating unit or energy storage
systems.
* Expanding the company's fast-demand-response program from 0.2 megawatts to 5
megawatts.
(The fast-demand-response program allows eligible commercial customers to reduce power
consumption proactively during times when electricity demand exceeds generation capacity.
Customers enrolled in the program are rewarded with financial incentives.)
[Emphasis Supplied]
____________________________________
MAUI ELECTRIC COMPANY, LIMITED
2020 ADEQUACY OF SUPPLY REPORT SUMMARY
<https://puc.hawaii.gov/wp-content/uploads/2020/07/AOS2020-MECO.pdf>
3. ⢠The generation capacity of Maui Electric Company, Limited (âMaui Electricâ or the
âCompanyâ) for the island of Molokai for the next five years (2020 through 2024) is sufficiently
large to meet all reasonably expected demands for service and provide reasonable reserves for
emergencies.
⢠For the island of Maui, with the peak reduction benefits of demand response (âDRâ) and the
equivalent firm capacity value of wind generation, Maui Electric expects to have a reserve
capacity shortfall in 2020, and from 2023. Maui Electric is evaluating several measures to
mitigate the anticipated reserve capacity shortfall.
⢠Maui Electric anticipates urgently needing a significant amount of additional capacity on
the Maui system in the 2022 timeframe with the planned Kahului Power Plant (âKPPâ)
retirement.
[Emphasis Supplied
]
____________________________________
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII
MAUI ELECTRIC COMPANY, LTD. (hereinafter âMaui Electricâ or the âCompanyâ) respectfully
requests Commission approval to commit funds in excess of $2,500,000 (currently estimated at
$60,003,000) for its Waena Battery Energy Storage System (âBESSâ) Project (the âProjectâ or
âWaena BESS Projectâ). The Company requests a Commission Decision approving the commitment
of funds for the Project by mid-February 2021, to meet the Project schedule and the Guaranteed
Commercial Operations Date (GCOD) of April 28, 2023.
EXHIBIT 8: PUBLIC COMMENTS, QUESTIONS, AND RESPONSES
RECEIVED FROM DATE QUESTION/COMMENT RESPONSES
Councilmember 2/26/2020 Will I see a reduction in my electric bill? That will need to be
provided after the
projects are selected
and the detailed
financials are
complete.
Cultural Stakeholders 2/26/2020 When power goes to the battery and to the For the proposed project,
customer, are we going to pay for it? the cost to build and
maintain the battery
system for the 20 year
life of the project is what
will be included in `
customer bills.
4. By the time this is paid for, what year is that? To meet the 100%
Looking at it from a customer's point of view. renewable energy goal in
The pitch is always cost savings, lower bills. 2045, equipment is
My bill has never gone down with wind and needed to convert
solar farms that have come on line. What's in renewable energy such
it for the public? You're getting energy for free. as sun and rain into
All of these proposals are good for business, electrical energy
but what's in it for the public? When does it end? that can be used
When we do we get to see our bills go down for by the customers.
your harnessing our wind and sun? I want to see As the renewable
those projections. It comes out of our pocket for projects get selected the
you guys to do business. company will estimate
the financial and system
impacts and how that
affects customers. Not
relying on fossil fuel for
energy will be a huge
benefit to customers.
With this storage system, will people be seeing At this time we don't
an increase or decrease in their bills? know the impacts of the
customer's bills. Once the
projects have been
selected the company
will assess the impacts to
customers.
Sent via WebEx Chat 4/8/2020 What's the cost and payback on the system? We are not able to
provide financial
information until all
projects have been
selected.
_____________________________________________________________
IS GRID-SCALE BATTERY STORAGE NEEDED
FOR RENEWABLE ENERGY INTEGRATION?
Battery storage is one of several technology options that can enhance power system flexibility
and enable high levels of renewable energy integration. Studies and real-world experience
have demonstrated that interconnected power systems can safely and reliably integrate high
levels of renewable energy from variable renewable energy (VRE) sources without new
energy storage resources. There is no rule-of thumb for how much battery storage is needed to
integrate high levels of renewable energy.
5. WHAT ARE THE KEY CHARACTERISTICS OF BATTERY STORAGE SYSTEMS?
Firm Capacity or Peaking Capacity: System operators must ensure they have an adequate
supply of generation capacity to reliably meet demand during the highest-demand periods in a
given year, or the peak demand. This peak demand is typically met with higher-cost
generators, such as gas plants; however, depending on the shape of the load curve, BESS can
also be used to ensure adequate peaking generation capacity. While VRE resources can also
be used to meet this requirement, these resources do not typically fully count toward
firm capacity, as their generation relies on the availability of fluctuating resources and
may not always coincide with peak demand. But system operators can improve VRE's
ability to contribute to firm capacity requirements through pairing with BESS. Pairing
VRE resources with BESS can enable these resources to shift their generation to be
coincident with peak demand, improving their capacity value and system reliability.
Firm Capacity, Capacity Credit, and Capacity Value are important concepts for
understanding the potential contribution of utility-scale energy storage for meeting peak
demand. Firm Capacity (kW, MW): The amount of installed capacity that can be relied
upon to meet demand during peak periods or other high-risk periods. The share of firm
capacity to the total installed capacity of a generator is known as its capacity credit
(%).NCapacity Value ($): The monetary value of the contribution of a generator
(conventional, renewable, or storage) to balancing supply and demand when generation is
scarce.
[Extract, Emphasis Supplied, Citations Omitted]
Source: âGrid-Scale Battery Storage Frequently Asked Questions â Greening The Gridâ By Thomas
Bowen, Ilya Chernyakhovskiy, Paul Denholm, National Renewable Energy Laboratory
<https://www.nrel.gov/docs/fy19osti/74426.pdf>
RODEO-ING IS ABOUT THE ONLY SPORT YOU CAN'T FIX
YOU'D HAVE TO TALK TO THE BULLS AND HORSES,
AND THEY WOULDN'T UNDERSTAND YOU
ďŻWilliam E. Linderman, American Rodeo Cowboy ďŻ
1955 Rodeo Hall of Fame of the National Cowboy and Western Heritage Museum,
1979 ProRodeo Hall of Fame, 2001 Ellensburg Rodeo Hall of Fame,
2006 Cheyenne Frontier Days Hall of Fame, 2012 Montana Cowboy Hall of Fame,
2012 Montana Pro Rodeo Hall and Wall of Fame