ENGIE Withdraws From Contract For A Large Solar+storage Project in Guam

ENGIE, a multinational energy group based in France, had won a contract in 2019 to supply 50MWp of solar PV and 300MWh of battery storage in a renewable energy tender launched by the Guam Power Authority.

However, according to NHOA, the integrator supplying its battery storage system, the Guam Power Authority has decided to cancel the tender because ENGIE said that it would not be feasible to build the project under current market conditions if the contract offer was agreed three years ago.

ENGIE notified NHOA of the Guam Power Authority's decision on July 21, NHOA said in its financial results report for the first half of 2022.

Previously, ENGIE submitted the lowest bid in the third round of competitive renewable energy bidding for a 20-year power offtake agreement.

ENGIE also appointed its energy storage subsidiary, ENGIE EPS, to provide a turnkey battery storage solution that will be equipped with batteries from Samsung SDI.

NHOA said its energy storage business broke even on EBITDA in the first half of the year, reporting positive EBITDA of €1.8 million, which company CEO Carlalberto Guglielminotti said in a webcast was ahead of the company's target of breaking even by the end of the year.

NHOA's revenues for the first half of the year totalled €82.2 million, while the energy storage business accounted for €72.7 million, and projects in Guam accounted for the vast majority of contracts in NHOA's energy storage business.