JERA Americas, a subsidiary of JERA Co., Inc., is moving ahead with a proposed power generation project on Oahu under its Strategic Partnering Agreement with the State of Hawaii. The company says the project aims to strengthen grid reliability, lower costs and meet Hawaii's changing energy needs. JERA Americas has now filed a Notice of Intent with the Hawaii Public Utilities Commission (PUC) to seek approval for a $2 billion natural gas project, the next step toward a formal application for a Certificate of Public Convenience and Necessity (CPCN).
The CPCN application would ask regulators to approve a new Hawaii-based regulated wholesale generation company, called GenCo, that would own and operate the proposed plant and supply power into Oahu's electric grid.
Project details
The plan centers on a $1.5 billion, 500-megawatt natural gas-fueled power plant at Barber's Point on Oahu, backed by an offshore liquefied natural gas (LNG) import facility estimated at around $500 million. JERA Americas says the plant would replace older oil-fired units with newer, fuel-flexible generation, adding power that can back up growing renewable supply and help keep the grid stable when it is needed most.
Wholesale, not retail
If regulators approve it, GenCo would become a regulated public utility under ongoing PUC oversight. JERA Americas is not proposing to take over Hawaiian Electric's role as Oahu's retail electric utility. Hawaiian Electric would keep serving customers and running the electric grid and its own power plants, while GenCo would sell power at the wholesale level under a framework the PUC sets and approves.
Oahu is home to nearly 1 million residents and draws more than 70% of the electricity generated statewide. Demand there is rising as transportation and industrial processes become increasingly electrified.
What officials said
Hawaii Governor Josh Green said "energy has to become more affordable in Hawaii" and that the state stands to gain from competition and new ideas. JERA Americas chief executive John O'Brien said the company has worked with local stakeholders since signing the Strategic Partnering Agreement with the state, and that it looks forward to "the PUC's independent review" of the proposal as it goes through public evaluation.
Review process ahead
The CPCN process would give regulators an independent public review covering grid reliability, cost impacts on customers, environmental effects, infrastructure needs and whether the plan fits Hawaii's energy policies. Regulators would decide whether the project serves the public interest and whether GenCo is "fit, willing and able" to provide the service, then keep ongoing oversight over the company's rates, operations, financing and performance.
JERA Americas has already engaged landowners, turbine manufacturers and local partners as part of early development work. Hawaii Gas and Pasha Hawaii are also involved, supporting fuel distribution and maritime infrastructure planning for the project. The proposal still needs additional due diligence, environmental review, permitting and stakeholder outreach before it can move forward.
