Hawaiian Electric Company Announces Ameresco Award to Develop the 'Ūkiu Energy 40MW Renewable Energy Site
Ameresco, Inc. secures a contract from Hawaiian Electric Company to develop a 40MW renewable energy site in Maui, enhancing grid reliability and supporting Hawaii's clean energy goals. The facility will feature biofuel-powered generators, offering firm renewable energy and flexibility. Ameresco's commitment includes community support and environmental initiatives, contributing to decarbonization efforts and reducing Maui's reliance on imported fuel sources.
The announcement by Ameresco, Inc. regarding the 'Ūkiu Energy 40-megawatt renewable energy site in Maui represents a significant step in Hawaii's energy sector. The project aligns with Hawaii's ambitious clean energy goals, which include a state commitment to 100% renewable electricity and carbon neutrality by 2045. From an energy sector perspective, the integration of a biofuel-powered generator with six dual-fuel engines is noteworthy. This configuration offers not only firm renewable energy but also provides flexible capacity that enhances grid reliability.
For stakeholders, the short-term implications involve the construction and operational phases, which may offer local employment opportunities and stimulate economic activity. In the long term, the project could help reduce Hawaii's reliance on imported oil, leading to more stable energy prices and potential cost savings for consumers. Moreover, the ability of the facility to operate in black start mode is crucial for emergency scenarios, adding resilience to the energy infrastructure.
However, it's important to note that the project's success hinges on the approval of the Public Utilities Commission (PUC). The regulatory environment and community engagement will play critical roles in the project's development. Stakeholders should monitor the PUC's review process, as any delays or changes in regulatory policies could impact the project's timeline and financial viability.
The 'Ūkiu Energy project by Ameresco is an intriguing case for environmental economics, as it touches upon several aspects of sustainability and the transition to a low-carbon economy . By reducing dependence on foreign fuel sources, Maui can mitigate the economic risks associated with volatile oil prices and supply chain disruptions. Furthermore, the project’s support for community organizations and focus on environmental and natural hazard mitigation represents an investment in social capital , which is often undervalued in traditional economic analyses.
It is also essential to consider the potential environmental impact of biofuel production and use. While biofuels are generally considered more sustainable than fossil fuels, their environmental footprint depends on various factors, including the source of the biomass and the production process. The project's contribution to decarbonization efforts and the reduction of idling fossil fuel generators could lead to significant decreases in greenhouse gas emissions, aligning with global efforts to combat climate change.
Investors and stakeholders should weigh the environmental benefits against the costs, considering the broader implications for ecosystem services and biodiversity. The project's alignment with environmental regulations and its potential to serve as a model for sustainable energy development will be crucial for its long-term success and acceptance by the local community and environmental advocates.
The renewable energy sector is rapidly evolving and Ameresco's 'Ūkiu Energy project is a reflection of this dynamic market. As a cleantech integrator, Ameresco is capitalizing on the growing demand for renewable energy solutions, especially in markets with high renewable energy mandates like Hawaii. The project's innovative approach, which includes a biofuel-powered generator with dual-fuel engines, positions Ameresco as a leader in providing flexible and resilient energy solutions .
From a market perspective, the project could serve as a benchmark for other regions with similar renewable energy goals. The ability to provide firm renewable energy that can support the grid in times of outages is a competitive advantage that may influence future procurements and investments in the sector. Additionally, the project's emphasis on community engagement and support for STEM education could enhance Ameresco's corporate reputation and brand value, potentially impacting its market position positively.
Investors should monitor the project's progress and the outcomes of the PUC review, as these will provide insights into Ameresco's operational capabilities and its ability to navigate complex regulatory landscapes. The success of 'Ūkiu Energy and Ameresco's other projects with Hawaiian Electric could signal the company's potential for growth and its ability to secure similar contracts in the future, influencing investor sentiment and stock performance.
02/21/2024 - 08:05 AM
- Adding critical grid reliability to Maui and moving Hawaii closer to its clean energy goals -
- 40MW to be added to Ameresco’s Energy Assets in Development -
FRAMINGHAM, Mass. & KAHULUI, Hawaii --(BUSINESS WIRE)--
Ameresco, Inc. , (NYSE: AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, today announced its award from Hawaiian Electric Company for the proposed 'Ūkiu Energy 40-megawatt (MW) renewable energy site in Maui . This innovative facility will add critical grid reliability to the island and move Hawaii closer to its clean energy goals, including the state's commitment to achieving 100% renewable electricity and carbon neutrality by 2045.
The proposed facility will include a biofuel-powered generator with six dual-fuel engines. It will offer firm renewable energy and provide a highly flexible capacity resource. This facility will also maintain power quality, enhance grid reliability, and allow for the additional integration of intermittent renewable resources. Importantly, in the event of a power outage, it will have the ability to be brought online, in black start mode, to help repower the grid. Additionally, the fast, flexible engines will enable the current fossil fuel generators to turn down their idling engines, supporting decarbonization efforts. Key outcomes include not only renewable energy provided 24/7 to the island, but also a reduction in Maui’s dependence on foreign sources of fuel.
In support of the 'Ūkiu Energy facility, Ameresco is steadfast in its commitment to identifying meaningful ways to benefit the local community. This includes supporting community organizations, social service providers, and non-profit organizations focused on environmental and natural hazard mitigation, quality-of-life enhancements, homelessness, Science Technology Engineering and Math (STEM) education, and youth recreation. Ameresco looks forward to engaging with the community to identify and support programs that benefit the local region throughout the life of the facility.
“We are honored to play a pivotal role in Hawaii’s journey toward a sustainable and resilient energy future,” said Nicole Bulgarino, Executive Vice President of Ameresco. “The 'Ūkiu Energy site will continue to reduce Maui’s dependence on fossil fuels and pave a pathway that not only benefits our environment as a whole, but also enriches the island’s local communities.”
The facility is part of Hawaiian Electric Company’s latest phase of clean energy procurements aimed at reducing Hawaii’s dependence on imported oil for power generation. After the 'Ūkiu Energy contract is finalized, it will be submitted to the Public Utilities Commission (PUC) for review and approval. Once approved, it will be built, owned, and operated by Ameresco, and is designed to interconnect to the Maui electrical grid at the new Hawaiian Electric Waena substation.
'Ūkiu Energy is Ameresco’s fourth award with Hawaiian Electric, building on the success of Kūpono Solar, a 42MW solar and 42MW/168MWh battery storage facility, on Oahu expected to come online in Q2 2024, Pu`uloa Energy, a 99MW firm renewable generation facility, on Oahu expected online in 2027, and Pu`uloa Solar, a 6MW solar and 6MW/30MWh battery storage facility, on Oahu expected online in 2026. 'Ūkiu Energy, Pu`uloa Energy and Pu`uloa Solar remain subject to PUC approval.
Additional information about 'Ūkiu Energy can be found at ukiuenergy.com.
To learn more about Ameresco and the company’s clean energy solutions, visit www.ameresco.com .
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes solutions that help customers decarbonize to net zero and build energy resiliency while leveraging smart, connected technologies. From implementing energy efficiency and infrastructure upgrades to developing, constructing, and operating distributed energy resources – we are a trusted sustainability partner. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, utilities, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA , Ameresco has more than 1,300 employees providing local expertise in North America and Europe . For more information, visit www.ameresco.com .
The announcement of a renewable energy asset award is not necessarily indicative of the timing or amount of revenue from such asset, of the company’s overall revenue for any particular period or of trends in the company’s overall total assets in development or operation. This project was not included in our previously reported assets in development as of September 30, 2023.
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Source: Ameresco, Inc.
The ticker symbol for Ameresco, Inc. is AMRC.
The proposed 'Ūkiu Energy site will have a capacity of 40 megawatts (MW).
Key outcomes include providing renewable energy 24/7, reducing Maui's dependence on foreign fuel sources, enhancing grid reliability, and supporting decarbonization efforts.
Ameresco is committed to supporting community organizations, social service providers, non-profit organizations focusing on environmental and natural hazard mitigation, STEM education, homelessness, and youth recreation.
The biofuel-powered generator at the 'Ūkiu Energy site will offer firm renewable energy, flexibility, and enhance grid reliability.
