Hawaiʻi Electric Launches Major Clean Energy Bid To Cut Oil Use And Meet Rising Demand

Hawaiian Electric has filed its Integrated Grid Plan Request for Proposals with the Public Utilities Commission, launching one of the largest renewable energy procurements in state history for Oʻahu, Hawaiʻi Island and Maui.

The utility said the goal of the IGP RFP is to secure competitively priced renewable power and storage to meet growing electricity demand, modernize the generation fleet, and reduce reliance on oil for power generation.

CEO Scott Seu said Hawaiʻi needs to move faster and that the expedited procurement plan will drive competition, evaluate all options, and build a portfolio that delivers efficiency, reliability and lower carbon emissions at the lowest cost for customers. He noted this is one of the actions the company is taking to benefit customers and the state sooner rather than on a distant timeline.

As part of the plan, Hawaiian Electric is proposing to retire aging power plants sooner by accelerating the addition of modern firm generation that can produce electricity 24/7 when variable resources like wind and solar are not available. The company is also launching one of the largest generation resource procurements in state history through a competitive bidding process.

It is seeking nearly 1,650 gigawatt-hours of variable renewable energy such as solar and wind, 465 megawatts of grid-forming resources including solar plus battery storage, and 111 megawatts of firm generating capacity that can be available around the clock. Projects selected would be in service between 2031 and 2034.

In addition, Hawaiian Electric is seeking separate expedited regulatory approval to expand procurement for fuel-flexible firm generation resources on Oʻahu by up to an additional 500 megawatts.

In a letter to the PUC, the company said it wants a transparent, Commission-supervised forum to evaluate the firm generation component within the broader portfolio of new resources without predetermining its size or fuel requirement. The utility also plans to launch a request for proposals for all fuels by the end of 2026, including liquid and gaseous fuels, to competitively evaluate factors such as price, sourcing and environmental impact.

Oʻahu is home to nearly one million residents and uses more than 70% of the electricity generated in Hawaiʻi. Electricity demand on the island is growing at its fastest pace in two decades as transportation and industrial processes become increasingly electrified.

Hawaiian Electric emphasized that it remains open to a range of solutions to meet the state’s energy needs, including liquefied natural gas for power generation. Seu said natural gas could be a beneficial option for Hawaiʻi if it can deliver value to customers, but any such pathway must be evaluated transparently, rigorously and independently through the PUC’s process.

An affiliate of a Japan-based energy conglomerate has announced plans to create a separate regulated utility to build and operate what would be the biggest power plant on Oʻahu fueled by LNG, with additional generating project investments to follow.

The conglomerate notified the PUC that it will seek approval for this project outside the longstanding competitive bidding structure. If the PUC agrees to expand the scope of procurement in the upcoming competitive bidding process, the conglomerate’s project could be considered as part of the overall portfolio of resources being sought.

Seu said having more options is good and that the company welcomes proposals from all developers to help find the optimal resource mix for Hawaiʻi.

He added that Hawaiian Electric believes in an open competitive process rather than a sole-source, multibillion-dollar contract without seeing what else is available, to ensure the best outcome for Hawaiʻi today and for decades to come.

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