LANAI, Hawaii — After a competitive bidding evaluation, Hawaiian Electric has selected a developer for the largest utility-scale renewable energy project on Lanai, New York-based Onyx Development Group LLC, the development arm of Onyx Renewable Partners L.P., according to a HECO news release.

What You Need To Know

  • New York-based Onyx Development Group LLC will build and maintain Mikiola Solar that will offer Lanai’s first shared solar program, commonly known as community-based renewable energy

  • The CBRE program allows customers — such as renters, apartment residents, small business owners and organizations — to purchase shares to offset monthly energy costs via a credit reflected in their utility bills

  • Contract negotiations between Hawaiian Electric and Onyx will begin, and once the 20-year contract is finalized, it will be submitted to the Public Utilities Commission for approval

  • The project site is on 73 acres of land owned by Pulama Lanai and is expected to come online in late 2024

The bidding evaluation was based on customer savings, completion timelines and factors that included community outreach.

Onyx will build and maintain Mikiola Solar that will offer the island’s first shared solar program, commonly known as community-based renewable energy. According to the Dept. of Commerce and Consumer Affairs, the CBRE program’s purpose is to promote customer participation in renewable energy projects by allowing customers — such as renters, apartment residents, small business owners and organizations — to purchase shares to offset monthly energy costs via a credit reflected in their utility bills. The option provides an alternative to customers who have not installed their own systems either because of the significant upfront payment required, location, building type, access to the electric utility grid or other obstacle.

The project site is on 73 acres of land owned by Pulama Lanai, adjacent to Hawaiian Electric’s Miki Basin facilities along Miki Road. It could provide up to 17.6 megawatts of solar energy with 3 MW reserved for the shared solar program, paired with a 73 megawatt-hour battery energy storage system. It’s expected to come online in late 2024.

“The opportunity to work with Hawaiian Electric and the residents of Lanai to decarbonize the grid through this project is important to our future and the next generation,” said Chief Executive Officer of Onyx Mary Beth Mandanas, in the release. “We appreciate the social and environmental impact our company can make and are excited to begin working on this inaugural community-based renewable project on Lanai.”

Contract negotiations between Hawaiian Electric and Onyx will begin. Once the 20-year contract is finalized, it will be submitted to the Public Utilities Commission for approval.

“We are excited to secure a partnership with Onyx to power Lanai with such large-scale solar energy and provide all of our Lanai customers with more opportunities to benefit from renewable energy,” said Rebecca Dayhuff Matsushima, vice president of resource procurement for Hawaiian Electric. “This is a major step in transitioning Lanai away from the price volatility of imported fossil fuels and taking action on climate change.”

Hawaiian Electric held community meetings on Lanai to explain the CBRE RFP process and provided opportunities for residents to submit oral and written comments and concerns for developers to be aware of when preparing their final proposals. Feedback has been incorporated into the plans that included limiting the type of renewable technologies and recognizing each island’s unique culture and concerns.

Visit the Mikiola Solar project website for more information.

Sarah Yamanaka covers events, tourism and community news for Spectrum News Hawaii.