Hawaii utility cancels contracts with renewable developers

Hawaii Electric Light Company (HELCO) has terminated the 20 year power purchase agreement (PPA) for the 30 MW Hu Honua bioenergy plant. The PPA was approved by the Public Utilities Commission in December 2013.

The project was supposed to produce 30 MW of electrical power, enough for about 10 percent of the island’s home (14,000 households), and the replacement of approximately 250,000 barrels of oil per year by green energy.

The project, which was schedule to start operations in January 2016, has faced significant challenges and HELCO said that Hu Honua Bioenergy LLC, the company in charge of the project development, has failed to meet a critical construction requirements previously signed in the contract.

On 12 February 2016, SunEdison also received letters from Hawaiian Electric Company (HECO), the parent company of HELCO, stating that HECO had terminated with the approved power purchase agreements (PPAs) for the Kawailoa, Mililani II, and Waipio photovoltaic projects, which together account for approximately 110 MW of net renewable capacity.

SunEdison was in total disagree with the analysis presented in HECO's letters, as well as HECO's conclusion of terminating the PPAs.