Author: Noah Lang

ENERGY AFFORDABILITY SIGNALLED AS STATE PRIORITY – Public Utilities Commission Heeds Calls for Rate Accountability in Waiau Repowering

March 27, 2026

HONOLULU — The First Decision and Order issued by the Public Utilities Commission (PUC), under the direction of Chair Jon Itomura, signals energy affordability as a state priority, supporting broad state initiatives on affordable housing, healthcare and a firm commitment to reduce the cost of living for Hawaiʻi residents.  

In its decision, the PUC did not approve Hawaiian Electric’s request to recover up to $1.155 billion from ratepayers to upgrade the 75-year-old Waiau power plant, but instead set a cost-recovery cap at the utility’s original competitive bid of $847 million, plus a limited inflation adjustment of 10%, in a win for ratepayers. 

“This administration will continue to fight for greater affordability for Hawaiʻi’s people,” said Governor Josh Green. “Hawaiʻi residents have dealt with reliability concerns and the highest electricity costs in the nation, due to polluting fuels imported from places like Libya and inefficient power generation for decades. We have a generational opportunity to make meaningful change and my administration has been united in saying we will not condemn another generation to costly utility bills that it can’t afford.” 

Agencies including the PUC, the Consumer Advocate and the Hawaiʻi State Energy Office supported the imposition of strict cost controls to limit the financial impacts of the Decision on customers.  

In its Order, the PUC also requires HECO to meet specific renewable-fuel milestones to ensure the Waiau project supports the state’s transition to a 100% renewable energy future, requiring the utility to operate the units with at least 51% renewable fuel by 2032, or when the first four units begin service, whichever occurs first, 75% renewable fuel by 2040 and 100% renewable fuel by 2045. 

Previously, in a Statement of Position filed in the Waiau Docket, Chief Energy Officer Mark Glick requested that the PUC delay final approval of the Waiau Repower Project to more fully address the Project’s revised cost profile that exceeded limits imposed by the Competitive Bidding Framework; and to be made aware of a more comprehensive firm capacity proposal under a Strategic Partnering Agreement with JERA announced on October 7, 2025, that is estimated to reduce costs for the average Hawaiʻi household by $500 a year. 

While the delay was not granted, Glick lauded the imposition of cost controls in the Decision and Order consistent with the Competitive Bidding Framework limits cited by the State Energy Office, saying: “The PUC’s action on this Docket reflects a continued commitment to balancing safety, reliability and affordability that underlies Hawaiʻi’s long‑term clean energy goals.” 

The Green administration will continue to aggressively advocate for local residents and businesses alike by pushing for cost accountability at the PUC, protecting renewable development support and by spearheading new energy opportunities that lower consumer bills. 

In a proposal submitted to the state on March 17, 2026, JERA, Japan’s largest power producer, identified LNG as a cost-effective component of lowering the state’s carbon emissions, accelerating renewable energy integration onto the grid and going well beyond estimated savings in the HSEO Alternative Fuels, Repowering and Energy Transition Study. JERA proposes conclusive cost savings of 20% over oil (an average of $500/year per household) and 50% savings over imported biofuels, with LNG infrastructure paid back in less than two years. 

The company has indicated that a full proposal to the PUC is pending, which will provide regulators and ratepayers with additional energy pathways, all of which will have to undergo PUC and regulatory evaluation. 

Continuing on a status quo path will result in rising energy prices and Hawaiʻi continuing to generate electricity by burning oil, when the price of crude oil hovers close to $100/barrel and the cost of gasoline has spiked above $5/gallon. 

“We have a credible proposal on the table to make energy more affordable,” Governor Green concluded. “People want change—this administration will continue to deliver change that prioritizes the needs of the people of Hawaiʻi.” 

STATE OF HAWAIʻI RECEIVES PROPOSAL FROM JERA TO MODERNIZE OʻAHU’S ENERGY INFRASTRUCTURE

March 17, 2026

HONOLULU — JERA Co., Inc. (“JERA”), Japan’s largest power provider, has shared its proposal with the state of Hawai‘i to modernize Oʻahu’s energy system, building on the Strategic Partnering Agreement signed in October 2025.

Developed with input from Hawaiʻi energy stakeholders and supported by agreements with local partners, the proposal seeks to accelerate the replacement of aging, inefficient oil-fired generation on Oʻahu with modern, high-efficiency infrastructure designed to deliver affordability for Hawaiʻi families and businesses, enhance energy grid resilience and lower emissions.

“Hawaiʻi stands at a defining moment in our energy future. Our administration is focused on lowering costs for families, reducing carbon emissions, strengthening grid reliability and accelerating our transition to 100% clean, renewable energy,” said Governor Josh Green. “This proposal represents a transformative overhaul of our electrical grid and a tangible step to move Hawaiʻi off its historic dependence on oil. Through this partnership with JERA and its partners, we are bringing billions of dollars in new energy investments to Hawaiʻi — securing more affordable, reliable energy for the people of our state.”

JERA Americas CEO John O’Brien said, “Since 2023, JERA has been working in Hawai‘i to explore how our experience addressing similar energy challenges in Japan can help support the state’s energy transition. The Strategic Partnering Agreement deepened that effort, allowing us to work more closely with local partners to evaluate pathways to modernize Oʻahu’s energy system. This proposal reflects that collaboration and presents a path to reduce costs for residents and businesses, strengthen reliability and support Hawaiʻi’s clean energy goals. We are grateful for the opportunity to work alongside the state and local stakeholders to help bring the investment and expertise needed to advance this effort.”

Modern Infrastructure to Strengthen Oʻahu’s Grid

The Hawaiʻi State Energy Office’s Alternative Fuel, Repowering and Energy Transition Study estimates that approximately $2 billion will be required to upgrade Oʻahu’s aging thermal infrastructure with more efficient equipment and lower-carbon fuel sources. Consistent with that analysis, JERA’s proposal outlines how new energy assets could be developed on Oʻahu, including a ~500-megawatt hybrid combined-cycle and simple-cycle power facility, supported by offshore liquefied natural gas (LNG) import infrastructure.

The proposed facility would be designed with modern turbine technology that improves system stability and operational performance. It is expected to significantly reduce the generation cost of electricity compared to today’s oil-based power, while improving grid reliability and reducing overall greenhouse gas emissions. The proposed facility’s fast-start and fast-ramp capability is highly responsive to changing grid conditions, which will enable greater integration of renewables on Oʻahu.

JERA brings deep global expertise in high-efficiency combined-cycle gas turbine (CCGT) development, demonstrated through the modernization and construction of multi-gigawatt LNG-fired power plants in Japan and internationally. In the United States, JERA owns or has partial ownership in 10 power facilities.

Approximately 75% of the investment is related to the new power plant — infrastructure that would be required to replace aging generation and maintain grid reliability regardless of fuel source. The remaining 25% is related to LNG-related infrastructure, including a Floating Storage and Regasification Unit (FSRU) and associated supply components. Overall, more than 90% of the investment would be directed toward assets with long-term use or redeployment potential — including turbine equipment, grid-supporting infrastructure, pipelines and the FSRU — helping minimize stranded asset risk while maintaining flexibility for the future.

JERA is exploring opportunities to participate in the equity investment and to help mobilize additional capital to support development of the proposed infrastructure. If approved, the new infrastructure would be developed over the next several years, with a target commercial operation date in 2030.

A Coordinated Infrastructure Initiative 

JERA has partnered with local companies, including Hawaiʻi Gas, Pasha Hawaii and others to advance a coordinated modernization of energy and maritime infrastructure across Oʻahu. Each partner brings specialized expertise to strengthen Hawaiʻi’s energy security, system performance and supply chain resilience.

“Diversifying Hawaiʻi’s energy supply is a critical step toward strengthening our state’s energy security and reducing reliance on oil,” said Alicia Moy, Hawaiʻi Gas president and CEO. “Hawaiʻi Gas supports efforts to fortify and develop a pipeline infrastructure network that will be able to deliver the decarbonized fuels of the future, including renewable natural gas and hydrogen, which we currently blend into our fuel mix on Oʻahu today. The expansion of LNG availability for the state will not only lower costs and lower emissions, it will accelerate the transition to these future fuels. We are in support of modernizing our energy systems to provide for more stability, affordability and fuel efficiency for the people and businesses of Hawaiʻi.”

“Reliable maritime infrastructure is essential to keeping Hawaiʻi’s economy moving. Investments that expand LNG fueling capabilities and strengthen port energy systems can improve operational resilience, support cleaner shipping and help reinforce a more secure supply chain for the islands we serve,” said George Pasha, president and CEO, The Pasha Group.

Supporting Local Jobs and the Community 

The project is expected to support more than 1,100 skilled jobs and generate an estimated $150 million for Hawai‘i’s economy during development and construction, boosting workforce opportunities in the construction and energy sectors.

Once operational, the facility is expected to sustain approximately 170 permanent jobs and contribute an estimated $50 million annually to the state’s economy.

JERA is also looking to engage with the community by focusing on efforts that support workforce development, education and affordability in Hawai‘i. In addition, JERA plans to work with the state to establish an Energy Center of Excellence for the Pacific aimed at addressing the unique energy challenges of island economies.

Regulatory Review and Next Steps

The project would require approval by the Hawaiʻi Public Utilities Commission and other state and federal agencies. JERA anticipates initiating required state and federal permitting processes in the coming months, including potential filings with the Federal Energy Regulatory Commission (FERC) and the City and County of Honolulu, subject to final regulatory determinations.

A summary of JERA’s proposal to the state can be found here.

Information on the Hawai‘i Clean Energy Initiative can be found here.

About JERA

JERA is a global energy leader and Japan’s largest power generation company focused on providing cutting-edge solutions to the world’s energy issues. Established in 2015, the company produces one-third of Japan’s electricity and is one of the largest LNG buyers in the world. JERA has global reach and strength throughout the energy supply chain, including participation in upstream gas exploration and production, LNG projects, fuel procurement and transportation, and power generation globally. Through its U.S. subsidiary JERA Americas, the company owns thermal power plants, develops lower-carbon fuels such as hydrogen and ammonia, and advances energy infrastructure that delivers reliable and cleaner power to American businesses and communities. In support of a responsible energy transition, JERA aims to achieve net-zero CO₂ emissions from its domestic and overseas businesses by 2050.

Official Statement on the Rescission of the 2009 U.S. Endangerment Finding

February 13, 2026

Statement from Chief Energy Officer Mark Glick:

“We are deeply concerned that the federal administration has repealed the 2009 endangerment finding on greenhouse gases, erasing a foundational piece of the country’s efforts to address climate change. This action, despite overwhelming scientific evidence, represents one of the largest environmental rollbacks in U.S history. It stands in stark opposition to actions taken by the Green administration to combat climate change, increase resilience, and accelerate our transition to 100% clean, renewable energy. 

“Hawaiʻi’s energy policy is guided by clear priorities: lowering costs for families, reducing carbon emissions, strengthening grid reliability, and accelerating our transition to 100% clean, renewable energy. This recent federal action does not alter Hawaiʻi’s statutory and regulatory obligations to reduce greenhouse gas emissions. The State’s requirements remain in full effect under HRS §§ 225P-5 and 342B-71, as well as HAR § 11-60.1-204(k), and continue to guide our efforts to meet Hawaiʻi’s climate commitments.”

Statement from Attorney General Anne Lopez:

“EPA’s rescission of the 2009 Endangerment Finding ignores decades of scientific evidence and decades of law confirming the agency’s authority to protect public health from greenhouse gas pollution. This decision jeopardizes the air we breathe, the health of our communities, and the safety of future generations. Hawai‘i and our partners across the country will continue to hold federal agencies accountable to the law and to the science that supports it.

“This decision does not change the state’s ongoing litigation holding fossil fuel companies accountable for their role in climate-related harms, and we remain committed to using every legal tool available to protect our communities and environment.”

HAWAIʻI STATE ENERGY OFFICE SECURES $1.8 MILLION TO ADVANCE ENERGY, LAND USE AND DISASTER PLANNING TOOLS

January 29, 2026

HONOLULU — As part of nearly $34 million in new federal funding secured by U.S. Senator Brian Schatz, the Hawai‘i State Energy Office (HSEO) will receive $1.8 million to expand advanced energy, land use and disaster planning visualization tools in partnership with the University of Hawai‘i Laboratory for Advanced Visualization & Applications (UH LAVA).

The funding supports the continued development of the Hawai‘i Advanced Visualization Energy Nexus (HAVEN) system — an interactive 3D platform that helps policymakers, planners and communities better understand complex energy infrastructure, land-use tradeoffs and resilience planning decisions. HAVEN makes technical planning data accessible to users with varying levels of expertise, supporting transparent and informed decision making across the state.

As Hawai‘i moves to increase energy security and modernize its aging grid, communities face difficult choices around infrastructure siting, regional impacts and costs. HAVEN enables users to visualize scenarios, explore planning model inputs and outputs, and assess cascading impacts related to energy, land use and disaster preparedness.
“HAVEN visualization technologies have proven to be extremely effective in making energy plans and analysis more approachable,” says Chris Yunker, managing director of resilience, clean transportation and analytics for HSEO. “The resulting energy plans incorporate informed input from policy makers and local communities.”

“HAVEN represents a new generation of planning tools that combine immersive visualization, geospatial intelligence and emerging AI capabilities,” adds Jason Leigh, director of UH LAVA. “With this support, we can scale these technologies statewide while training the next generation of visualization, data science and AI professionals here in Hawaiʻi.”

Funding for the HAVEN initiative will leverage HSEO’s nationally recognized Geospatial Decision Support System (GDSS), an award-winning platform used to support emergency response, resilience planning and prioritization of critical infrastructure investments. The GDSS maps the interdependencies within Hawaiʻi’s energy supply chain as well as the dependencies of critical community lifeline services that depend on it, including hospitals, shelters, first responders and food and water.

HAVEN also supports Hawaiʻi State Energy Office (HSEO) as the regional partner for the U.S. Department of Energy’s Energy Technology Innovation Partnership Program (ETIPP). ETIPP provides technical assistance to communities facing energy resilience challenges. HAVEN’s interactive visualization capabilities can be leveraged throughout the ETIPP strategic planning and technical deep-dive processes to help communities visualize energy system options, evaluate resilience and affordability impacts, and support informed local decision making.

Over a multiyear period, HSEO and UH LAVA will expand HAVEN’s capabilities, integrate complementary visualization tools and explore the use of AI to support semi-autonomous engagement to expand the scale of visualization deployment. The HAVEN project also supports workforce development by providing University of Hawai‘i graduate students with hands-on experience in advanced data visualization.