The Commonwealth Utilities Corporation is moving ahead with a sweeping solar generation project across Saipan, Tinian and Rota, with CUC Executive Director Kevin Watson saying Friday that the transition remains a top priority despite ongoing post‑typhoon recovery and rising global fuel costs.
“It is still a priority. I didn’t say it’s on the back burner,” Watson said. “The contract is going ahead.”
The project will add 53 megawatts of solar power on Saipan, 11 MW on Tinian, and 3 MW on Rota, along with battery storage capable of up to four hours of backup. Construction on all three islands will begin simultaneously once the contract is finalized and approved by the Commonwealth Public Utilities Commission.
Watson said a notice of intent to award has already been issued to the selected vendor, and the contract is expected to be completed within the next two weeks before being submitted to CPUC for approval.
CUC previously issued a request for proposals seeking independent power producers to design, finance, construct, own, operate, and maintain utility‑scale solar photovoltaic systems with battery energy storage across the three islands. The initiative aims to replace aging diesel generators, reduce fuel dependence, stabilize long‑term electricity costs, and increase renewable energy penetration while maintaining grid reliability.
Earlier, a CUC official said a 20‑megawatt solar farm with battery storage on Saipan could cost between $60 million and $90 million and supply nearly half of the island’s current power demand.
Watson did not say how much the three‑island project will cost, noting that financial details will be released only after the contract is finalized and approved.
Watson said the solar arrays are expected to carry most of the daytime electrical load, reducing CUC’s reliance on diesel generation. But he cautioned that customers should not expect an immediate or dramatic drop in the fuel adjustment charge.
“It’s going to take a while to see the effects,” he said, adding that world oil prices remain unpredictable.
Battery storage will help maintain stability during cloud cover, but engines will still be needed for spinning reserve and extended storms. “If a major rainstorm comes and it’s extended, then we’ll have to bring the engines back online,” Watson said.
The solar project comes as CUC continues to grapple with rising fuel costs. Watson said CUC is paying 60 cents per kilowatt‑hour for fuel while charging customers based on a lower rate. “We’re still losing money,” he said.
Despite the financial strain, Watson said the solar transition is essential for long‑term stability. “It will be considerable,” he said of the expected reduction in fuel use.
