Hawaiian Electric Seeks to Expand Renewables, Energy Storage on Oʻahu, Hawaiʻi Island, and Maui

Hawaiian Electric’s Mega-Procurement for Clean Energy

Hawaiian Electric has submitted its largest-ever integrated grid planning request for proposals, seeking competitively priced renewable energy and storage projects for Oʻahu, Hawaiʻi Island and Maui. The solicitation targets nearly 1,650 gigawatt-hours of variable renewable energy, 465 megawatts of grid-forming resources such as solar-plus-storage, and 111 megawatts of firm generating capacity available 24/7. If approved, the projects would come online between 2031 and 2034, accelerating the retirement of aging oil-fired plants and advancing Hawaii’s mandate to reach 100% renewable electricity by 2045.

The utility is also asking the Public Utilities Commission for expedited regulatory approval to expand procurement of fuel-flexible firm generation on Oʻahu by up to an additional 500 MW. In parallel, Hawaiian Electric plans to issue a new request for proposals covering all fuels—liquid, gaseous, and otherwise—by the end of 2026 to evaluate options on cost, sourcing, and environmental impact.

While the company emphasizes its open, competitive approach, it has acknowledged that liquefied natural gas could be “a beneficial option” if it delivers value. This openness comes as an affiliate of a Japan-based energy conglomerate has notified the PUC that it intends to build the biggest power plant on Oʻahu, fueled by LNG, outside the traditional competitive bidding framework. Hawaiian Electric wants that project to be considered only through the same competitive lens as other bids, warning against a “sole-source, multibillion-dollar contract.”

Behind the RFP: Competition, LNG, and the Future of Island Power

A Competitive RFP vs. a Single-Source Gas Deal

The tension between Hawaiian Electric’s planned competitive process and the unsolicited LNG plant is the most consequential strategic question in the filing. The utility’s CEO argues that an open procurement will drive the “best outcome,” but a rival developer’s move to bypass the bidding structure—seeking PUC approval for a standalone regulated utility—could reshape the island’s generation mix for decades. If the commission agrees to expand the scope of the upcoming competitive procurement, the LNG project would be evaluated alongside other resources. Otherwise, Hawaii could face a choice between a renewables-heavy portfolio and a large baseload gas plant chosen without side-by-side comparison.

The Numbers: Renewables, Storage, and Firm Capacity

The scale is notable for an island grid serving roughly 1.4 million people. The 1,650 GWh of variable renewables represent a substantial chunk of Hawaii’s total generation; Oʻahu alone consumes more than 70% of the state’s electricity. Pairing that with 465 MW of grid-forming resources—likely solar-plus-battery systems that can stabilize frequency and voltage—addresses a critical weakness of intermittent renewables. The separate request for 111 MW of firm, 24/7 capacity signals that even with significant storage, the utility sees a need for dispatchable generation that does not rely on sun or wind.

What LNG Adds to the Equation

Hawaiian Electric’s explicit mention of LNG as a possible “value” option is a departure from a renewables-only narrative. While gas is cleaner than oil, it still carries carbon emissions and price exposure to global markets. For Hawaii, importing LNG would require new terminal infrastructure, adding complexity and cost. The utility’s framing—any gas pathway must be evaluated transparently and independently through the PUC’s process—keeps the door open while avoiding a pre-commitment. How the commission weighs long-term climate goals against immediate reliability and cost pressures will be closely watched.

PUC Oversight and the Timelines

The entire plan hinges on regulatory approvals under docket 2024-0258. The utility wants an expedited process for the 500 MW firm-generation expansion, and the separate all-fuels RFP by end‑2026 adds another layer. Even if projects are selected quickly, in-service dates of 2031–2034 mean several years of continued oil dependence. For developers, the timeline offers a clear window to prepare proposals, but it also leaves room for the unsolicited LNG project to gain political or regulatory traction before the competitive bids are fully evaluated.

What the Procurement Means for Developers, Regulators, and Ratepayers

• Energy developers: Prepare bids for the upcoming all-fuels RFP by end‑2026. The utility has signaled it will evaluate options competitively on price, sourcing, and environmental impact, so detailed cost and supply-chain analysis will be essential.
• HEI investors: Monitor PUC decisions on the expedited procurement expansion and on whether the unsolicited LNG project is folded into the competitive process. These rulings will directly shape the company’s generation mix and future capital spending.
• Policymakers and regulators: The tension between a competitive portfolio and a single-source gas plant poses a defining choice for Hawaii’s energy transition. A transparent, side-by-side evaluation of all resources—including full lifecycle emissions and fuel price scenarios—will be critical to avoid lock-in.
• Electricity consumers: The eventual rate impact depends on which projects are selected. Early retirement of oil-fired plants could reduce exposure to volatile oil prices, but a large LNG facility would introduce its own cost uncertainties. Ratepayer advocates should follow the PUC process closely.