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The Public Utilities Commission has approved a the third wind farm on Oahu’s North Shore.
The planned 24-megawatt wind project, the second wind facility in Kahuku, would be located approximately 2,000 feet from Kahuku’s Mauka Village neighborhood.
The wind farm will be operated by Na Pua Makani Power Partners, a subsidiary of a Southern California wind energy development company, Champlin/GEI Wind Holdings LLC.
Na Pua Makani said Monday it will sell electricity to Hawaiian Electric Co. at 15 cents per kilowatt-hour over the next 20 years, according to the contract.
There are two wind farms on the North Shore, both owned by Boston-based First Wind. The 69-megawatt Kawailoa Wind project northeast of Haleiwa was completed in November 2012, and the 30-megawatt Kahuku Wind farm was completed in March 2011.
The latest project will help balance HECO’s energy portfolio and will help lower energy costs for Oahu residents, said the PUC in the decision, issued on the last day of 2014.
"The commission further finds that the project will provide economic benefits to HECO’s ratepayers," the PUC said.
The project still needs approval from county and federal officials.
Lowering customer bills by more than 20 percent and getting 65 percent electricity supplied from renewable resources by 2030 were two of the top goals listed in the energy transition plan HECO submitted to the PUC in August.
The Na Pua Makani wind farm will supply the lowest-priced wind energy on Oahu and help the utility achieve the goals outlined in August, said Peter Rosegg, HECO spokesman.
"Integrating energy like what will be produced by Na Pua Makani with utility-scale and rooftop solar, waste-to-energy, geothermal, biomass and biofuels will provide lower bills for electric customers and benefit Hawaii’s economy," Rosegg said.
A federal Renewable Electricity Production Tax Credit is available for commercial and industrial projects, and generally applies for the first 10 years of operation. To qualify for the credit, a project must have commenced prior to Jan. 1, 2015, and be in service before Jan. 1, 2016.
With the intention of qualifying for the credits, Na Pua Makani expects to start construction of the 10 turbines in the fourth quarter of this year and be in operation by 2016, said Mike Cutbirth, president and CEO at Champlin.
"Our goal is to be able to qualify for the federal tax credits," Cutbirth said.
Na Pua Makani is working on a joint state and federal environmental impact statement, and with county and state agencies on permitting for the project.
The project’s draft environmental impact statement and habitat conservation plan will be finalized and released for public comment this quarter, said Cutbirth.
"We have been working on the environmental studies and started those several years ago," Cutbirth said. "Other than the fact that you can see the turbines, there are no adverse impacts."
State Sen. Gil Riviere (D, Heeia-Waialua) said he is concerned that the Kahuku community has not been actively consulted about the wind projects.
"The Kahuku community has done a lot for our renewable energy portfolio," Riviere said. "I think it is unfair for the community to be saddled with another wind farm against their objections."
Kahuku resident Elizabeth Rago, founder of Kahuku Mothers Against Wind Turbines, said she supports renewable energy but is opposed to wind turbines.
"Wind turbines are the most dangerous form of renewable energy. There is not one single benefit to building more turbines in Kahuku. Not one," Rago said. "There are adverse health and environmental issues that have been surfacing worldwide."
Champlin has reached out to the community and has received positive feedback, Cutbirth said.
"We’ve been involved in a pretty extensive community outreach here for more than a year or so," Cutbirth said. "The vast majority of ratepayers really like this project."
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