NextEra to merge with Hawaiin Electric Industries

NextEra Energy is a leading renewable energy provider, focusing on wind and solar energy in North America. It reported consolidated revenues of ~$17 billion with 44,900MW of generating capacity in 2014. The company has now decided to merge with Hawaiin Electric Industries and has also received approval from the Federal Energy Regulatory Commission. The Hawaiin Electric Industries powers almost 95% of Hawaii’s population through its electric utilities. The synergy is expected to reduce the electric bills of the people in Hawaii, by supporting rooftop solar in Hawaii.

Hawaii has ample supply of sunlight and the solar energy there has already reached grid parity with retail electricity prices. It is thus a leading solar market. Hence, the news was not welcomed by the solar companies already present there. A group of US solar companies including SunPower, SunEdison, SolarCity and others resented the deal, saying that the merger could dampen their business in Hawaii. NextEra could be a leading threat to these established solar companies, hence the companies are making some noise against this merger. SunPower has been present in Hawaii for more than 16 years now and has already spent millions of dollars in its business development there. The company says it could deny “other renewable energy companies a fair opportunity to compete in the Hawaii market.”

“We are pleased with this substantial progress on our proposed merger,” said Connie Lau, HEI’s president and chief executive officer and chairman of the boards of American Savings and Hawaiian Electric.  “Hawaiian Electric is gaining a partner that is the world’s largest generator of renewable energy from the wind and sun, with a commitment to supporting rooftop solar in Hawaii and a proven track record of lowering electric bills. This approval provides further momentum toward ultimately delivering that substantial value to our customers and communities.”

Source: NextEra Energy