AES Distributed Energy Inc. has started construction of its hybrid 28-MW solar photovoltaic facility and 100-MWh, five-hour duration energy storage system in Hawaii.

The Lawai solar and energy storage project is expected to provide 11% of Kauai's electric generation and help increase the renewable sourced generation of offtaker Kauai Island Utility Cooperative to close to 60%.

"At 11 cents per kWh, the pricing is well below the cost of diesel and will not only provide downward pressure on rates, but also helps us avoid the use of 3.7 million gallons of diesel each year," Kauai Island Utility President and CEO David Bissell said in a Feb. 22 news release.

The project is also expected to support the state's goal of reaching 100% renewable energy by 2045.

AES Distributed Energy is a subsidiary of AES Corp.