The commission unanimously voted 9-0 on Tuesday to approve AES Kuihelani Solar’s request for a special use permit to construct and operate the Kuihelani Solar Plus Storage Project — a 60-megawatt ground-mounted solar photovoltaic system coupled with a 240 megawatt-hour battery energy storage system and related equipment, such as an electrical substation, switchyard and other support facilities.

“I think this is not the end-all, save-all or our final answer, but it’s definitely a step in that direction,” said commissioner Kellie Pali. “This, and many more projects in the future, will get us to where we would want to be in regards to sustainability and affordable living.”

The project site would cover nearly 450 acres of old sugar cane fields between Kuihelani Highway and Maui Veterans Highway, which is within a 4,353-acre parcel about 2 miles south of Kahului.

The area would also be made available for compatible agricultural activities by interested third-party entities.

The land is being leased from Mahi Pono, which purchased the old Hawaiian Commercial & Sugar Co. fields from Alexander & Baldwin.

“The purpose of the project is to generate clean, locally produced energy and store that energy to offset nighttime fossil fuel use as well as to provide grid stabilization,” said Kirstin Punu, community engagement director for AES.

Punu said during her presentation to the commission that this project is a temporary use of the land through a 25-year agreement with Hawaiian Electric Co. to serve customers on Maui.

The equipment has a lifespan of about 35 to 40 years, but AES Kuihelani Solar officials said that the components will be decommissioned and recycled after the project’s agreement; any components that cannot be recycled or repurposed will be removed off island. The land will then be restored to its original condition.

An extension of the agreement with the existing equipment or signing a new agreement entirely with new equipment are possibilities depending on HECO’s need, said project developer Nick Molinari, but “at this point in time, the agreement is 25 years.”

Construction of this project will support about 294 local full-time equivalent jobs and 11 permanent long-term jobs, as well as produce “$68 million of local economic activity and $2.2 million of economic output,” Punu said.

A traffic study showed no measurable change throughout construction, which will take between 12 to 15 months, Molinari noted. The project also meets fire safety code requirements and has plans in place to mitigate any possible brush fires.

Once the project is completed by October 2023, the energy produced will power the equivalent of 27,000 Maui homes.

Nonprofit Pacific Resource Partnership, which represents around 7,000 union carpenters and 240 large and small contractors, spoke in strong support of AES’ Kuihelani Solar Plus Storage Project, saying that it provides a “valuable opportunity to stimulate our economy, both by creating new jobs and by creating infrastructure which can help lower energy costs to consumers and businesses.”

Hawaii State Energy Office said that 50.8 percent of Maui County’s electricity was generated by renewable energy resources, mainly wind, residential solar photovoltaic and utility-scale PV projects in 2020.

“This is progress, but considerable work remains for Maui County’s electric utilities to reach 100 percent renewable energy by 2045 as required by law,” the energy office said. “The project is important to Maui Electric Company’s (MECO) plan to retire by 2024 the nearly 70-year-old 37.6-MW Kahului Power Plant, which generated 14 percent of Maui’s electricity in 2020.”

Kuihelani Solar would be the largest solar project in the state, according to the energy office. When built, the project would stabilize Maui’s electricity costs by reducing reliance on costly fossil fuels, increase MECO’s ability to integrate more renewable energy and support MECO’s electric grid reliability.

“For these reasons, HSEO strongly supports the project’s approval and believes the project will be beneficial for Maui and the State of Hawaii,” the organization said in written testimony.

Over its 25-year lifetime, the project is also anticipated to save MECO ratepayers about $7.03 to $13.01 per month, power about 27,300 Maui homes per year, increase Maui’s renewable energy portfolio by 14.6 percent and decrease greenhouse gas emissions by 844,951 metric tons carbon dioxide equivalent, the energy office said.

“This renewable, dispatchable, solar plus energy storage project is vitally important to the island of Maui because it provides considerable bill savings to all Hawaiian Electric customers on Maui, as well as a significant reduction in fossil fuel consumption, which will result in a reduction of tens of thousands of tons of greenhouse gas emissions each year,” said Rebecca Dayhuff Matsushima, renewable acquisition director for MECO, in a letter.

Maui residents and farmers also supported the project for the lower energy costs and agricultural potential.

Kihei resident Tom Cook said that Maui Electric paying 8 cents per kilowatt-hour, which is one of the lowest prices in the state for solar plus storage, will “hopefully lower us local residents’ electric bills over time as the energy of the fuel oil surcharge goes down.”

“I think this is a great project and it’s going to have an impact,” Cook said during testimony on Tuesday.

Hoapili Ane of Ho’oulu ‘Aina Farms, who currently manages 40 acres across Kuihelani Highway, supports the project because of the opportunities it brings “to combine agriculture, agriculture entrepreneurism and social impact programs rooted in Hawaiian cultural values, coupled with renewable energy.”

Ho’oulu ‘Aina Farms has been in communications with AES, Ane said, and is excited to expand agricultural activities and partnership with programs located at the Waikapu Food Hub.

The CEO of Regenerate 808, Jim Hammet, also submitted a letter of support that stated that the project is a strong example of “dual utilization of pastureland” while also providing a much-needed electricity source and maintaining the agricultural use of the land.

Planning Commission Chairperson Christian Tackett, Vice Chairperson P. Denise La Costa and commissioners Jerry Edlao, Kawika Freitas, Mel Hipolito Jr., Ashley Lindsey, Kim Thayer and Dale Thompson all voted in favor of the project.

Although there were some shared concerns regarding water, fire safety and air traffic, project developers sufficiently addressed them, Freitas said.

“I was excited to see this project,” he added. “It helps us get to the goal of 100 percent renewable energy on the island.”

* Dakota Grossman can be reached at dgrossman@mauinews.com.