Paris, 1 November 2021 – NHOA (NHOA:PA, formerly Engie EPS) has been informed today by ENGIE North America that, on 25 October 2021, ENGIE North America notified Hawaiian Electric Company, Inc. (HECO) of its decision to abandon the Puako solar and storage project due to elevated interconnection costs coupled with global supply chain and production issues, as well as tariffs and trade disputes specifically affecting the photovoltaic solar industry.
This project is a 60 MWAC solar plus 240 MWh battery storage facility, which was awarded to ENGIE in May 2020 and in which NHOA was to supply the battery storage system and act as a full storage solution provider and system integrator, as subcontractor to ENGIE.
NHOA is obviously disappointed with ENGIE’s decision, and takes this opportunity to clarify that the production issues mentioned by ENGIE are in no way related to NHOA’s technology nor scope of supply.
As consistently reported to the market, the project was included in the “Contracts Secured”1 category among NHOA’s key performance metrics, and therefore ENGIE’s decision has no impact on NHOA’s current Backlog2.
Accordingly, the Pipeline as at September 30, 2021, the Backlog as at 27 October 2021 and the 12-month Oder Intake3 as at 27 October remain unchanged at, respectively, €833 million, €205 million and €208 million, as published in the October 27, 2021 Q3 Trading and Operational Update. Contracts Secured now stand at €56 million (compared to €104 million).
The 2021 guidance is not impacted and 2022 guidance is also confirmed.
NHOA will consider, in coordination with its majority shareholder TCC (TWSE: 1101), the legal implications to NHOA and TCC of ENGIE’s decision, in light of the assurances given in the past by ENGIE to NHOA’s board of directors and TCC at the time of the acquisition by TCC of ENGIE’s majority stake in NHOA, as already disclosed in the report of A2EF, the independent expert appointed in connection with the mandatory tender offer on NHOA that followed TCC’s acquisition.
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- Contracts Secured means projects awarded, for which the signature of the full sets of the agreements has not been yet completed. Typically, when NHOA is awarded with a tender, typically being project financing, there are several steps to be completed (i.e., the EPC Agreement, the Notice to Proceed, permission to be signed). “Contracts Secured” are no longer part of the “Pipeline” but are not yet part of the “Backlog”. They will do so only once terms of documentation and planning permission are defined.↩
- Backlog means the estimated revenues and other income attributable to (i) purchase orders received, contracts signed and projects awarded, and (ii) Project Development contracts associated with a Power Purchase Agreement, where the agreed value is a price per kWh of electricity and an amount of MW to be installed. When any contract or project has started its execution, the amount recognized as Backlog is computed as (A) the transaction price of the relevant purchase order, contract or project under (i) and (ii) above less (B) the amount of revenues recognised, as of the relevant reporting date, in accordance with IFRS 15 (representing the amount of transaction price allocated to the performance obligations carried out at the reporting date).↩
- 12-month order intake represents the cumulated value of new purchase orders received, contracts signed and projects awarded in the 12 months preceding the relevant reporting date.↩