The project is set to be the largest solar-plus-utility-scale-battery system in the state, and one of the largest solar electricity storage systems in the world, according to a statement. The beneficiaries of the new facility will be the customers of the Kauai Island Utility Cooperative.

AES Distributed Energy Inc. and SunPower Corp. are developing a new solar-plus-storage facility on the Garden Isle, set to be the largest in the state.

Boulder, Colorado-based AES DE, a subsidiary of AES Corp., said Wednesday it selected SunPower's Oasis Power Plant platform for its proposed 28-megawatt facility on Kauai. The project also includes a 20MW five-hour duration energy storage system. 

"As the result of a competitive bid process, SunPower Oasis Power Plant technology was selected to optimize the cost-competitive solar power generated for KIUC customers at this facility," AES DE President Woody Rubin said in a statement. "The combined solution of energy storage and SunPower solar technology will provide KIUC with the flexibility and reliability to meet their peak demand."

"We commend AES DE and KIUC for this forward-thinking, milestone project, and for using high performance SunPower technology to ensure long-term value," Tom Werner, SunPower president and CEO, said. "Innovation and proven performance are hallmarks of SunPower technology, which powers more than three gigawatts of solar power plants around the world today."

SunPower's E-Series solar panels, which will be installed at the facility, are set to produce 30 percent more energy than conventional solar panels in the first year of operation.

AES DE will function as the owner and operator of the power plant, which is expected to be operational by the end of 2018.

SunPower (NASDAQ:SPWR), which has been operating in Hawaii since 1999, installed more than 100MW of solar technology in the state.