Hawaiian Electric, Castle & Cooke Reach Pricing Agreement For Wind Project

0

Hawaiian Electric Co. (HECO) and Castle & Cooke Resorts have announced an agreement on pricing terms for power for a proposed wind farm on the island of Lanai. The companies also agreed on proposed community benefits for the people of Lanai in response to concerns about the impact of a wind farm on the small island.

The agreements, which ultimately require Public Utilities Commission approval, are another step forward for the Interisland Wind project to transmit up to 400 MW of electricity to Oahu via undersea cable from wind farms proposed for Lanai and Molokai. It is estimated that electricity from 400 MW of wind power would displace about 15% of Oahu's oil use, according to HECO.

The agreement sets electricity price targets for Lanai wind power at about $0.13/kWh for a 200 MW wind farm and $0.11/kWh for a 400 MW wind farm, plus transmission costs. The terms would be fixed for 20 years with minor escalations.

Castle & Cooke and HECO recognize that, while the electricity will be transmitted to Oahu, the impact of construction and operation of the wind farm will be felt on Lanai, including on cultural and recreational resources, plants and wildlife, and the people of the small island community. Therefore, a community benefits package for Lanai has been agreed upon.

The benefits – some from HECO and some from Castle & Cooke – cover a range of issues, including employment, hunting access and water rights.

SOURCE: Hawaiian Electric Co.

Leave a Comment
Your email address will not be published. Required fields are marked *

avatar
  Subscribe  
Notify of