Jan 20 2011
Hawaiian Electric (HECO) has declared that they have reached a pricing agreement with Castle & Cooke Resorts for a wind farm proposal on the Island of Lanai.
Approval must be given by the Public Utilities Commission and these agreements would mean the transmission of 400 MW of electricity from the wind farm in Lanai and Molokai to Oahu through an undersea cable. According to HECO, almost 15% of oil use would be eliminated if the 400 MW of electricity is supplied to Oahu.
As per the agreement the Lanai wind power would be priced at $0.13/kWh for a 200 MW wind farm and $0.11/kWh for 400 MW wind farm, excluding transmission costs. These terms are for a 20 year period and also include small escalations.
Responding to the issues raised by the people of Lanai, both HECO and Castle & Cooke recognize the fact the construction and operation of a small wind farm on Lanai would have a huge impact on the people, flora & fauna, recreational and cultural resources of the small community on the island. Hence they have agreed upon a community benefits package for the Lanai people. The benefits cover a range of issues such as water rights, hunting access and employment; and some of these benefits were given by HECO, while a few others come from Castle & Cooke.
Source: http://www.heco.com