A NextEra Energy Inc. subsidiary plans to continue to build, own and operate approximately 17 megawatts of solar facilities on three separate military installations on Oahu.
The announcement Tuesday by NextEra Energy Resources LLC follows recent support by the Department of Defense and the Navy of the parent company’s proposed $4.3 billion purchase of Hawaiian Electric Industries. The Department of Defense was one of the original 29 approved groups to take part in the state Public Utilities Commission’s review of the sale.
NextEra Energy spokesman Rob Gould said the Department of Defense’s pending withdrawal from the proceeding is unrelated to the solar facility announcement.
A subsidiary of NextEra Energy Resources will build one ground-mounted, fixed-tilt solar system, three carport solar systems and 10 rooftop solar systems totaling 17 megawatts. NextEra Energy Resources said site preparation is underway, and construction is expected to begin in February and be completed by the end of next year. The Navy is purchasing the power under a 25-year agreement.
In 2011 the Naval Facilities Engineering Command Pacific selected Pacific Energy Solutions LLC, an energy development company, as the developer to utilize specified sites on military installations in Hawaii to build solar power generating systems and directly sell power to the military. In July 2014 NAVFAC and Pacific Energy Solutions entered into a contract for approximately 17 megawatts of solar photovoltaic power. In October 2015 a subsidiary of NextEra Energy Resources purchased the membership interest in Pacific Energy Solutions. The Pacific Energy Solutions project was originally developed by TriLateral Energy LLC and ECC Energy Solutions LLC. ECC will continue with the project team and actively manage the project’s construction through completion and startup.
In December 2014 NextEra announced its interest in purchasing HEI, parent company of Hawaii’s largest utility.
“The Department of Defense and the U.S. Navy have set aggressive goals for the use of renewable energy sources at their installations across the nation,” said Armando Pimentel, president and CEO of NextEra Energy Resources. “We’re pleased to be able to help them achieve their goals. This renewable energy project further illustrates our commitment to renewable energy, the Department of Defense and the state of Hawaii.”
The Department of the Navy, on behalf of the Department of Defense, requested to withdraw from state regulators’ review of NextEra’s purchase of HEI on Friday after NextEra agreed to 10 additional commitments on top of the 85 offered in its original proposal. The PUC has not yet ruled on the request and said it will delay considering the additional commitments until Sunday, when all other groups have had a chance to comment.
“Importantly, our agreement with the DoD also expands our list of merger commitments to nearly 100 in total,” Gould said. “In response to DoD’s concerns, we have added to and strengthened our commitments to deliver customer savings, accelerate renewable energy, ensure local governance and provide customer financial protections. We look forward to continuing the PUC review process, and further engaging with the remaining parties as well as other important stakeholders, to further build upon the growing consensus for support of our merger and Hawaii’s more affordable renewable energy future.”
NextEra committed that each of HEI’s utilities will make good-faith efforts to achieve a renewable energy portfolio standard of 35 percent of net electricity sales coming from renewables by December 2020 and 50 percent of net electricity sales by December 2030. Other commitments include: HEI’s utilities would maintain their own books, records, bank accounts and financial statements; NextEra would make “good-faith efforts” to develop employees from within HEI’s utilities to fill executive vacancies at the utilities; and NextEra would install a voting board of directors at the new company, with a majority of the members of the board being Hawaii residents.
“We very much appreciate the support of the Department of Defense for our pending merger with HEI,” Gould said. “In addition to being HECO’s largest customer, DoD makes a huge contribution to Hawaii’s island economies and communities, accounting for nearly 100,000 jobs and
20 percent of economic activity throughout the state.”