HEI Subsidiary Sells Hawaiʻi Island Power Plant to New Operator
Hawaiian Electric Industries, Inc. (HEI) has completed the sale of its subsidiary Pacific Current, LLC’s 60-megawatt Hamakua Energy Plant on Hawaiʻi Island to a subsidiary of Harbert Management Corporation (Harbert). This transaction represents a key milestone in HEI’s ongoing strategic review of Pacific Current’s assets. While financial details of the sale were not disclosed, HEI has indicated that the transaction is not expected to have a material impact on its financial statements.
HEI had previously announced its intention to assess various strategic options for Pacific Current, a move that aligns with its broader objective of focusing on core utility operations. The sale of the Hamakua Energy Plant is a major step in that direction, allowing HEI to streamline its operations and regulatory position. The company continues to evaluate the future of its remaining Pacific Current assets as part of its strategic review process.
Harbert Management Corporation, the acquiring entity, is an experienced investor and operator of power generation facilities across the United States, including in Hawaiʻi. Harbert has held an ownership stake in the 208-megawatt Kalaeloa Partners LP cogeneration plant on the island of Oʻahu since 1997, demonstrating its longstanding commitment to the state’s energy sector. By acquiring the Hamakua Energy Plant, Harbert aims to enhance its footprint in Hawaiʻi and contribute to the state’s ongoing transition toward renewable energy sources.
HEI’s leadership has expressed confidence in Harbert’s ability to manage the Hamakua Energy Plant effectively while supporting the broader goals of the Hawaiian Electric utility. Scott Seu, President and CEO of HEI, emphasized that the sale is a strategic move to focus on HEI’s core operations. “We believe Harbert’s depth of experience in owning and operating power plants and being a good partner with utilities, including in our state, will serve the Hamakua Energy Plant and Hawaiian Electric well in their missions to supply power for the people of Hawaiʻi Island and support the island’s transition to an increasingly renewable energy future,” said Seu.
The Hamakua Energy Plant has played a crucial role in supplying electricity to Hawaiʻi Island, and its new ownership under Harbert is expected to ensure continued stability and reliability in energy production. Harbert’s extensive experience in the energy sector positions it well to manage the plant efficiently while working closely with Hawaiian Electric to align with the state’s evolving energy policies.
Harbert’s Senior Managing Director and Head of Harbert Infrastructure, Claude Estes, echoed the sentiment of collaboration and commitment to the state’s energy goals. “Harbert has enjoyed a long relationship with Hawaiian Electric and looks to build on that through this acquisition,” Estes stated. “We are excited to be a part of the state’s energy future and to serve the residents of the Island of Hawaiʻi.”
The sale of the Hamakua Energy Plant aligns with broader energy trends in Hawaiʻi, where policymakers and energy companies are working toward achieving 100% renewable energy by 2045. The transition away from fossil fuels is a complex process requiring strategic partnerships between utilities, investors, and technology providers. While the Hamakua Energy Plant currently contributes to the island’s energy mix, Harbert’s ownership could open up new possibilities for integrating renewable energy solutions and improving the plant’s efficiency.
Hawaiian Electric, the state’s largest utility provider, has been actively working to modernize its grid and incorporate more renewable energy sources, including solar, wind, and battery storage. The company’s initiatives align with the state’s ambitious renewable energy goals, and strategic asset sales such as this one help streamline its focus on regulated utility operations.
Industry analysts have noted that the sale of the Hamakua Energy Plant could signal a broader trend of utilities divesting non-core assets to enhance financial stability and regulatory positioning. By selling Pacific Current’s energy generation assets, HEI can allocate more resources to its primary utility business, which serves over 95% of Hawaiʻi’s residents. This move may also allow HEI to strengthen its financial position and explore future investments in grid modernization and clean energy technologies.
For Harbert, the acquisition represents an opportunity to expand its energy portfolio while reinforcing its role as a key player in Hawaiʻi’s energy landscape. The company’s experience in managing power generation assets, combined with its established presence in the state, provides a solid foundation for operating the Hamakua Energy Plant effectively. Given Hawaiʻi’s unique energy challenges, such as its reliance on imported fuel and the need for localized generation, experienced operators like Harbert play a critical role in ensuring a stable and sustainable energy future.
The transition of ownership from HEI to Harbert is also expected to be relatively seamless, with no immediate changes anticipated in the plant’s operations. Employees working at the Hamakua Energy Plant are likely to continue their roles under the new ownership, ensuring continuity in operations and service reliability. Harbert’s expertise in managing similar facilities will be instrumental in maintaining the plant’s efficiency and supporting the island’s energy needs.
Local stakeholders, including government officials and business leaders, will be watching closely to see how the new ownership affects Hawaiʻi Island’s energy landscape. The plant’s role in the local energy mix remains significant, and its continued operation will be essential for meeting the island’s electricity demand. As Hawaiʻi moves toward a cleaner energy future, partnerships between established energy companies, private investors, and government agencies will be key to ensuring a smooth transition.
Looking ahead, Harbert’s acquisition of the Hamakua Energy Plant could pave the way for further investments in renewable energy infrastructure. The company’s experience in power generation suggests that it may explore opportunities to enhance the plant’s efficiency, integrate renewable energy solutions, or participate in broader initiatives supporting Hawaiʻi’s energy transformation.
For HEI, the sale marks a pivotal moment in its strategic realignment, allowing it to concentrate on its regulated utility business while simplifying its asset portfolio. As the company continues its strategic review of Pacific Current’s remaining assets, additional divestitures or restructuring efforts may follow in the coming months.
