JERA Americas advances development of proposed O'ahu power generation project

As part of the next phase of the proposed project, JERA Americas has submitted a notice of intent to file an application for a Certificate of Public Convenience and Necessity (CPCN), with the Hawai'i Public Utilities Commission (PUC). The application would seek approval to establish a new Hawai'i-based regulated wholesale generation company (GenCo) that would own and operate the proposed power plant and supply power to O'ahu’s electric grid. O'ahu, which includes nearly 1 million residents, uses more than 70% of the electricity generated in the state, and electricity demand is growing as transportation and industrial processes become increasingly electrified.

As previously announced, JERA Americas’ proposal contemplates an approximately US$1.5 billion, 500 MW modern natural gas-fuelled generation facility at Barber’s Point on O'ahu supported by offshore LNG import infrastructure estimated to cost around US$500 million. The proposed power plant is intended to replace ageing oil-fired generation with newer, more efficient and fuel-flexible infrastructure that complements the continued growth of renewable resources by providing reliable power when it is needed to maintain grid stability.

If approved, GenCo would become a regulated public utility subject to ongoing oversight by the Hawai'i PUC. JERA Americas is not proposing to replace Hawaiian Electric’s role as O'ahu’s retail electric utility. Hawaiian Electric would continue serving customers, operating the electric grid and their power plants, while GenCo would supply power under a regulatory framework established and approved by the PUC. The proposal is intended to provide the state, regulators and customers with an additional option to evaluate as Hawai‘i considers how best to address its long-term reliability, affordability, and infrastructure needs.

“Energy has to become more affordable in Hawai‘i. The status quo isn’t good enough anymore, and I believe Hawai'i will benefit from competition and new ideas,” said Governor, Josh Green.

“Since entering into the strategic partnering agreement with the State, JERA has worked with local stakeholders to evaluate solutions that address Hawai‘i’s energy challenges,” added John O’Brien, CEO of JERA Americas. “We believe Hawai‘i will benefit from having another regulated option to consider as it plans for the future, and we look forward to presenting the proposal for the PUC’s independent review and engaging with the community as the proposal is evaluated through a transparent public process.”

The CPCN proceeding provides a comprehensive, independent public review of the proposal, including reliability, affordability, customer impacts, environmental considerations, infrastructure needs, and consistency with Hawai'i’s energy policies. The PUC would independently determine whether the proposal is in the public interest and whether GenCo is fit, willing and able to provide the proposed utility service, and would provide continuing oversight over rates, operations, financing, and performance. This process would result in the highest level of public transparency, regulatory scrutiny, and continuing oversight over what would be Hawaii’s largest electricity generation facility.

JERA Americas has advanced preliminary development activities associated with the proposed project, including engagement with landowners, turbine manufacturers and local partners. Other participating partners in the broader initiative include Hawai‘i Gas and Pasha Hawaii, which are supporting fuel distribution and maritime infrastructure planning associated with the development.

The proposed project remains subject to additional due diligence, environmental review, permitting, regulatory approvals and stakeholder outreach.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20072026/jera-americas-advances-development-of-proposed-oahu-power-generation-project/