The 1.2-MW La Ola photovoltaic (PV) power plant in Lanai, Hawaii, has been in operation since December 2009. The host system is a small island micro grid with peak load of 5 MW. Simulations conducted as part of the interconnection study concluded that unmitigated PV output ramps had the potential to negatively affect system frequency. Based on that study, the PV system was initially allowed to operate with output power limited to 50% of nameplate to reduce the potential for frequency instability due to PV variability. Based on the analysis of historical voltage, frequency, and power output data a 50% output level, the PV system has not significantly affected grid performance. However, it should be noted that the impact of PV variability on active and reactive power output of the nearby diesel generators was not evaluated. In summer 2011, an energy storage system was installed to counteract high ramp rates and allow the PV system to operate at rated output. The energy storage system was not fully operational at the time this report was written; therefore, analysis results do not address system performance with the battery system in place.