HECO’s ‘Big Wind’ project moves ahead on Lanai

On Jan. 7, HECO and Castle & Cooke Resorts announced agreement on pricing terms for power from a proposed Lanai wind farm that would reduce the state's dependence on oil. The prices would be lower than most other renewable energy available. 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 megawatts 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 replace about 15 percent of Oahu's oil use.

Many obstacles remain for the wind project, however. The state still has to do a comprehensive environmental impact statement and there remains resistance among communities on the islands of Lanai and Molokai that won’t benefit from the wind energy. The land on Molokai has yet to be secured and the project is not yet financed.

Opposition arose on Lanai from residents concerned about the disruption of hunting and fishing practices, damage to cultural and archaeological sites and the significant impact on their landscape. What’s more, Lanai residents can’t take advantage of the wind-generated power because their electric grid is unable to accept the high energy produced.

After three years of meetings and negotiations between residents and officials with HECO, landowner Castle & Cooke and the state’s energy division, a package of benefits has been announced in exchange for residents’ hosting the wind farm, for which one-fifth of island land has been designated. The following benefits still must be approved by the Public Utilities Commission:

• Electricity rates for Lanai residents would be reduced by 40 percent, on par with Oahu rates.
• A commitment to residents that Lanai will be powered by 100 percent renewable energy by 2030 through solar, wind, biomass and biofuel resources.
• Upgrades to the island’s electric grid to allow for more “distributed generation,” which includes rooftop photovoltaic arrays and wind turbines that directly power a home or business.
• More solar water heating for residents, with the utility paying upfront costs and being re-compensated through shared savings on utility bills.

Without needing PUC approval, Hawaiian Electric commits to the following:

• A $50,000 a year contribution to the Lanai Community Fund, contributed from shareholder funds.
• A $30,000 contribution for at least two years from Hawaiian Electric and Maui Electric companies for a grassroots campaign for energy efficiency and conservation.

Without needing PUC approval, Castle & Cooke commits to the following:

• The establishment of Lanai Community Benefits Fund derived from 1 percent of proceeds from the wind farm’s gross revenues. Funds will be used for economic diversification and job creation; health and social services; education, training and recreation; and, the preservation of cultural and natural resources. At least $100,000 a year will be contributed to the Lanai Cultural and Heritage Foundation.
• The number of Lanai residents employed by Castle & Cooke will be no lower than the current figure.
• Full access to coastal fishing in the Kaa area and continued access to hunting areas. If hunting is limited by wind turbines, comparative acreage will be provided for hunting before any limits go into effect.
• Residents who lease land from Castle & Cooke will be able to purchase residential, agricultural and commercial properties at fair market prices.
• Priority given to Lanai residents as contractors and for construction jobs related to the wind project’s development.
• Wind generation facilities will be removed when no longer in service.
• Contractors will be required to protect archaeological and cultural sites, and Lanai residents will be able to monitor this when possible.
• 5,000 acres will be reserved for creating a viable biofuel crop.
• Castle & Cooke will donate $250,000 a year for the preservation of the Lanai Hale watershed.
• At least $500,000 a year will be donated for capital improvements to the Lanai water system, and 250,000 gallons of water a day will also be allocated for use in diversifying agriculture.