This report investigates strategies to mitigate anticipated wind energy curtailment on Maui, with a focus on grid-level energy storage technology. The study team developed an hourly production cost model of the Maui Electric Company (MECO) system, with an expected 72 MW of wind generation and 15 MW of distributed photovoltaic (PV) generation in 2015, and used this model to investigate strategies that mitigate wind energy curtailment. It was found that storage projects can reduce both wind curtailment and the annual cost of producing power, and can do so in a cost-effective manner. Most of the savings achieved in these scenarios are not from replacing constant-cost diesel-fired generation with wind generation. Instead, the savings are achieved by the more efficient operation of the conventional units of the system. Using additional storage for spinning reserve enables the system to decrease the amount of spinning reserve provided by single-cycle units. This decreases the amount of generation from these units, which are often operated at their least efficient point (at minimum load). At the same time, the amount of spinning reserve from the efficient combined-cycle units also decreases, allowing these units to operate at higher, more efficient levels. 4 ACKNOWLEDGMENTS

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