Hawaiian Electric Co. is willing to talk to an investment firm about ways to resuscitate three solar farms on Oahu that the utility nixed in February.

HECO canceled the power purchase agreements for SunEdison’s projects because of the renewable energy giant’s financial struggles and uncertainty over whether it could see them to completion.

The three solar farms — in Mililani, Waipio and Kalaeloa — collectively would have produced 112 megawatts of power capacity.

Chief Executive Officer and President Hawaiian Electric Company Alan Oshima. photograph Cory Lum/Civil Beat
Hawaiian Electric Co. Chief Executive Officer Alan Oshima says the company is open to talking to an investment firm about ways to revive three SunEdison solar farms that the utility canceled. Cory Lum/Civil Beat

Bryan Martin, managing director at the D.E. Shaw group, sent HECO Chief Executive Officer Alan Oshima a letter last week saying the global investment and technology development firm would seek to buy the projects from SunEdison within seven business days of HECO reinstating the power purchase agreements and providing the appropriate waiver or consent.

Martin said construction financing would be in place within 12 weeks of the closing of the acquisitions or the projects would agree to forfeit $5 million of the interconnection deposit.

Oshima responded in a letter Tuesday, saying “Hawaiian Electric is open to hearing the details of a proposal from D.E. Shaw that fully addresses the bankruptcy risks and concerns we have raised.”

Murray Clay, managing partner of Ulupono Initiative, a sustainability-focused investment firm, told Civil Beat last week that concerns about SunEdison’s potential bankruptcy can be overcome by D.E. Shaw paying SunEdison a fair-market price for the projects.

Oshima asked for a formal proposal that addresses the bankruptcy concerns and contains “enhanced terms and conditions” by April 1, in advance of scheduling a meeting the week of April 4.

Read the full letter from Oshima below, and past Civil Beat coverage of the issue here.

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