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ID#417 - Proactive Solutions to Curtailment Risk: Identifying new contract structures for utility-scale renewables

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The Hawaiian Electric Companies face a unique risk with regards to curtailment of utility-scale wind and solar projects due to the high penetration of distributed solar on their system. Historically, curtailment has been done in "reverse chronological order", meaning the oldest (and, often, most expensive) projects are the least likely to be curtailed. This structure is not sustainable over the long term, as higher and higher curtailment risk will necessarily be priced into projects and drive up customer cost. SEPA and ScottMadden developed a set of alternative curtailment approaches for Hawaii to consider and deploy that better manage curtailment risk and should result in more equitable power purchase agreements over the long term.

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