The Hawai‘i Public Utilities Commission has signed off on the Kaawanui Solar project on Kaua‘i, clearing the way for a utility-scale solar array paired with battery storage that local power planners have been eyeing for years. The Kaua‘i Island Utility Cooperative (KIUC) says the AES-developed facility is expected to deliver roughly 17.5% of the island’s electricity, or enough to power more than 16,000 homes, while helping to push down the cooperative’s long-term fuel costs. KIUC and AES describe the deal as a 25-year fixed-price power purchase agreement (PPA) that is intended to bring some stability to members’ electric rates.
PUC Sign-off and Local Reaction
The approval was first reported by Hawaii News Now, which spoke with KIUC leadership about how Kaawanui fits into the island’s broader clean energy push. KIUC President and CEO David Bissell told the outlet that “KIUC routinely operates at 100% renewable on sunny days,” adding that the remaining hurdle is phasing out fossil-fuel use during non-solar hours in order to hit statewide targets. With the PUC sign-off removing a key regulatory barrier, the project now moves closer to the detailed permitting and construction stages.
Project Specs and Schedule
According to AES Hawai‘i, Kaawanui is planned as a roughly 43-megawatt photovoltaic array paired with about 172 MWh of battery storage and a new substation that will connect the project into KIUC’s grid. Commercial operation is currently targeted around 2028. AES says the project site is on land managed by Gay & Robinson in the Makaweli/Pākalā area and will operate under a 25-year fixed-price PPA. The company also points to ongoing community engagement and plans for compatible agricultural uses at the site to satisfy land-use requirements.
Expected Savings and Grid Impact
KIUC told Hawaii News Now that the PPA could yield about $365 million in savings for the cooperative over 25 years. The utility estimates that could translate into roughly $4.26 off a typical monthly bill in the first year of operation, growing to about $21.08 by the end of the contract term. The project appears on the Hawai‘i State Energy Office’s proposed projects list as PPA docket 2025-0198, which tracks permitting and other regulatory milestones for Kaawanui; the docket details are available from the Hawai‘i State Energy Office. Utility and developer materials cited by media report that Kaawanui is expected to offset millions of gallons of imported fuel and avoid millions of metric tons of carbon over its 25-year life, a combination that officials say should help stabilize electric rates while cutting back on diesel-fired generation.
