WAILUKU >> Wind energy development is experiencing competitive turbulence on the Valley Isle as two business ventures battle for the right to build on state land on the West Maui Mountains. Wind-energy ventures
competing for permit
to build Maui turbinesBy Gary T. Kubota
gkubota@starbulletin.com
General Electric Wind Energy Corp. and Hawaii Wind Energy LLC are competing to obtain a conservation district use permit to develop the wind turbines on a narrow band of land along the West Maui Mountains, rising from the 2,000- to 3,300-foot level.
More than two years ago, the state Land Board issued Zond Pacific Ltd. a conservation district use permit to build 27 wind turbines on the site, after the firm agreed to meet a number of conditions, including the start of construction within a year.
Zond estimated the development of a 20-megawatt wind facility could reduce oil consumption by 102,000 barrels a year on Maui. Maui Electric Co. annually uses 1.9 million barrels of oil. Zond has been bought by two successive owners, Enron Wind Corp. in 1999 and then General Electric Wind Energy Corp. last May.
General Electric said the venture is expected to soon be bought by a third entity, Hawi Renewable Development Inc., of Chico, Calif.
The permit expired last year after no construction began at the site and no one sought an extension for the permit. Keith Avery, a consultant with General Electric, said the venture was unaware the permit would lapse and had always intended to proceed with the project.
Meanwhile, Hawaii Wind Energy, a new competitor, has applied for the same permit and admitted in its Land Board application that its request is "substantively similar and based" on the Zond proposal.
Officials with General Electric and Hawi said investors have spent more than $1.2 million throughout the years to prepare the plans, including wind and environmental studies.
Richard Horn, Hawi's president, said allowing another business to proceed at this point sends the wrong message.
"It raises the ethical question of whether or not another company should be able to take over another company's work without their right or consent," Horn said.
Horn said his investors have also worked out a tentative power purchase agreement with Maui Electric Co. and have construction funding in place for the project, estimated to cost about $21 million.
He said his company has a chief engineer who has built 1,400 wind turbines. Horn said his firm has built small hydroelectric power projects on Kauai and Maui and is planning to seek state Public Utilities Commission approval for a 3-megawatt wind turbine project at Hawi on the Big Island.
Brian Hayashida, Hawaii Wind Energy's president, said his investors are ready to proceed if awarded the permit and will not take years to complete the project.
"We felt that this was a good project that was abandoned," Hayashida said.
He said those involved in his venture include engineers with experience in developing the 37 wind turbines at South Point on the Big Island and have the financial backing from Global Renewable Energy Partners Inc., of La Jolla, Calif.
The state Land Board has yet to schedule a hearing on the competing proposals.
