The Hawaii Public Utilities Commission has approved a contract for Hawaiian Electric Company to purchase power from a photovoltaic (PV) power system that Hoku Solar, Inc., will install on the roof of Archer Substation at Hawaiian Electric’s Ward facility. The 218-kilowat PV system is expected to be in service by the end of 2008.

Hoku Solar, a subsidiary of Hoku Scientific, Inc., is a Hawaii-based company that designs, engineers, and installs turnkey PV power systems. To take advantage of available tax credits and financing, Hoku or its affiliate will own and operate the PV system and charge Hawaiian Electric for power at a fixed rate over 20 years.
Hawaiian Electric initiated the Archer Substation project to increase its use of renewable energy and gain experience with photovoltaic development, economics, performance, and operations and maintenance. Additionally, long-term, fixed energy pricing for renewable energy is part of Hawaiian Electric’s effort to secure renewable energy at costs not tied to oil prices. The utility will have an option to purchase the system from Hoku after five years.

Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific, said, “We are excited to move this project beyond the planning stages to proceed with the installation of our PV system for Hawaiian Electric. We expect that the success of this project will encourage other Hawaii businesses to install PV systems as a way to lower their energy costs, while reducing Hawaii’s dependence on imported oil and increasing our use of clean and renewable power.”

“We are pleased to move ahead on this project with Hoku Solar, one of Hawaii’s leading clean energy technology companies,” said Dave Waller, Hawaiian Electric vice president for customer solutions. “There is a tremendous upsurge in photovoltaic energy worldwide, including in Hawaii. Hawaiian Electric has had demonstration projects and continues to promote Sun Power for Schools, and this will be our first utility-sited, largerscale commercial PV project.

“With increased concern about energy prices and security, PV and other renewables can reduce Hawaii’s dependence on imported oil and help protect our environment,” Waller said.