LIHUE — The Kauai Island Utility Cooperative announced Friday in a press release that its critical Grid Reliability Projects were in jeopardy of losing funding.
KIUC has been notified that federal grants for two projects that would have boosted electric grid reliability and reduced Kauai’s vulnerability to supply-chain issues and foreign oil pricing may have been canceled.
The projects, both funded through the Grid Resilience and Innovative Partnership (GRIP) program, leverage existing power generation equipment with new technology to reduce Kauai’s dependence on imported oil and support reliable island grid operation. KIUC was positioned to receive $18.2 million in federal assistance toward the $35.8 million cost of the combined two projects.
To date, KIUC has spent more than $1.3 million implementing the projects with $550,000 of that amount pending reimbursement.
The Utility Solar Grid Forming Technology (USGFT) project, estimated at $32.5 million, would add battery storage and advanced grid forming inverters to three existing solar power plants in Anahola, Koloa and Port Allen.
The Synchronous Condenser Conversion Technology (SCCT) project, estimated to cost $3.3 million, adds grid-forming capability to an existing generator at the Port Allen power station to accommodate stable operation of high penetration distributed variable renewable generation such as daytime solar on Kauai’s electric grid.
Both grants were secured by the Hawaii State Energy Office (HSEO), with KIUC as the sole subcontractor.
Grantees have the option to appeal a decision to terminate the projects. If the grants are canceled, and not reinstated through a successful appeal, KIUC would need to decide whether to abandon the projects, or spend the additional $18.2 million in lost federal funds to complete the two projects.
Source: The Garden Island