Elevated interconnection costs along with global supply chain and production issues, as well as tariffs and trade disputes affecting solar PV industry are the reasons Engie North America has cited to NHOA for abandoning a 60 MW solar PV and 240 MWh battery energy storage facility in Hawaii.
Battery storage system supplier for the project, NHOA (previously Engie EPS) said it has been informed by Engie North America of having notified the Hawaiian Electric Company (HECO) of the decision. The project was won by Engie in 2020 (see Winners List For 16 Hawaiian Electric PV Projects).
NHOA released a statement clarifying that even though it is disappointed with Engie's decision, it is not related to NHOA's technology or scope of supply. The company said it will consider legal implications of Engie's decision to itself and its majority shareholder Taiwan Cement Corporation (TCC).
Engie's decision seems to be manifesting fears of project delays due to elevated costs and logistical issues as recently Rystad Energy said these factors may delay or cancel around 50 GW of 90 GW utility scale solar projects planned for 2022 globally (see High Prices May Thwart 50 GW Solar PV In 2022).
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