Clearway Energy's negotiations with Hawaiian Electric to develop three solar farms came to a halt this month over concerns about the utility's financial stability.
Clearway had proposed two solar fields with storage on Hawaiʻi Island that would have produced a total of 115 megawatts of power — more than half of the island’s average daily demand for electricity. Another solar project slotted for Oʻahu would have generated enough electricity to power close to 20,000 homes.
Clearway said in a statement to HPR that the primary reason it withdrew its proposals was, "HECO's financial distress and HECO's change in credit since the August 2023 fires."
After the wildfire destroyed Lahaina on Aug. 8, multiple rating agencies downgraded HECO's credit to "junk" status, which has limited the utility's access to capital.
HECO spokesperson Darren Pai stated that the utility was "disappointed" that they could not come to an agreement with Clearway, adding that they have been "open about their financial challenges."
The state's Chief Energy Officer Mark Glick called the cancellation of the projects a "real blow" and said that "the utility situation puts Hawaiʻi’s transition at risk as a whole."
"While the global settlement that the governor had helped champion provides a viable pathway, it's essential that HECO urgently moves to reassure Hawaiʻi residents and the financial markets of its ability to move past the wildfire fallout," Glick said. He added that the state was currently exploring "all options" to lower rates, ensure grid reliability, and lower carbon emissions.
The Hawaiʻi State Energy Office plans to release a report on the progress of the state’s energy transition by the end of the year. The office is also investigating whether the state should import more liquefied natural gas in an effort to meet its climate goals and reduce electricity costs.
Pai said the utility expects to meet its goal of having 40% of its electricity generated by renewable resources "well before 2030," which is the deadline set by state law. HECO is still in negotiations to bring 12 other renewable projects online between 2026 and 2033.
Longroad Energy, which has two solar farms in the works, told HPR on Thursday that its projects were on track.
Ameresco executive Nicole Bulgarino said that their company is working closely with HECO to mitigate any concerns about the utility's finances and they are "confident" about their plans to construct both a solar plus storage project and a renewable fuel plant on Navy land at Pearl Harbor.
"Renewable energy projects face many challenges, including rising construction and materials costs, supply chain issues and community opposition," Pai said. "Historically, not every project goes into full operation, which is why we maintain a diverse portfolio of renewable energy resources and continuous pipeline of projects moving toward completion."
Clearway currently operates four energy projects on Oʻahu, including the island's first solar plus storage plant. The developer said it hopes to work with HECO on future projects once "the utility's financial situation has been resolved."
