Engie walks away from Hawaii solar-plus-storage project
Artist's impression of the Puako project. Image: Engie.
French utility Engie (EPA:ENGI) has decided not to go ahead with a planned 60-MW solar-and-storage project in Hawaii, cancelling a related battery storage contract with subcontractor NHOA (EPA:NHOA), which was formerly its majority-controlled subsidiary Engie EPS.
According to a filing by NHOA on Monday, Engie's North American arm last week informed the Hawaiian Electric Company Inc (OTCMKTS:HAWEL) that it is abandoning the Puako project which it was awarded in May 2020. The reasons given by the French utility for its decision were high interconnection costs coupled with global supply chain and production issues as well as tariffs and trade disputes particular to the solar photovoltaic (PV) sector.
NHOA expressed disappointment in the French company's decision to drop a contract under which the subcontractor was to provide a 240-MWh battery energy storage system (BESS) facility and act as a full storage solution provider and system integrator.
The renewable technology supplier added that Engie's decision does not affect its project backlog, which stood at EUR 205 million (USD 237.4m) as of October 27. NHOA also confirmed its current full-year outlook as well as its 2022 guidance.
The company said it will now consider the legal implications of Engie's decision about the project in light of certain assurances given earlier to NHOA and its current majority owner Taiwan Cement Corp (TPE:1101), or TCC.
NHOA rebranded after Engie in July sold its 60.48% stake in the division to TCC for EUR 132 million.
Hawaiian Electric selected Engie for the project as part of the largest renewable energy procurement in Hawaii. Prior to the pandemic disruption, the Puako project had been slated to go online in 2023.