Sempra Energy’s generation unit has acquired Auwahi Wind Energy, a company developing a 22-megawatt wind energy and battery storage project in Maui, Hawaii, from Shell WindEnergy, a subsidiary of Royal Dutch Shell.
Terms of the agreement were not disclosed.
The proposed Auwahi Wind Energy project could begin construction in 2011 and commence commercial operations in 2012 on the Ulapalakua Ranch in the remote southeastern region of Maui.
The battery could store as much as 28 megawatt-hours of wind energy generated by the project's windmills during the typically windy morning and night hours.
The battery power could be stored until late afternoon, when electricity consumption typically reaches its peak, or could be utilized to regulate and smooth intermittent wind power, providing a valuable source of grid stability for Maui Electric.
Sempra Generation recently submitted a proposal to the US Energy Department to co-fund costs associated with an expansion of the battery energy storage facility to 72 MW hours.
Sempra officials say the integrated wind and battery energy storage project could serve as a prototype to help maximize the energy output of other wind power projects in Hawaii and worldwide.
The project would help Maui attain its goal of achieving 95% of its electricity from renewable sources by 2020.
"Consistent with our growing renewable presence in the southwestern United States, this project further expands Sempra Generation's footprint in one of the fastest growing renewable energy markets while further advancing the sustainability goals of Maui and the state of Hawaii," says Michael W. Allman, chief executive of Sempra Generation.
Dick Williams, president of Shell WindEnergy, notes the sale does not signify a retrenchment by the company with clean energy projects.
"Shell WindEnergy has re-assessed its wind development efforts in Hawaii and will concentrate on projects on the US mainland and Canada that are more aligned with our strategic direction," he says.
Williams says that Shell’s portfolio consists of eight wind farms in the US with total generation capacity of almost 900MW. The company’s strategy remains to diversify its energy mix by developing energy sources that have low carbon emissions.
In 2008, Hawaii and DOE set goals associated with the state's Clean Energy Initiative, which aims to accelerate indigenous renewable energy development on the island chain. Hawaii now depends 99% on imported fuel oil for power generation.
For its part, Sempra, based in San Diego, California, is working to broaden its participation in green energy development.
It has a 50-50 investment with BP Wind in the second phase of the Fowler Ridge Wind Farm, the Midwest's largest wind power project in Benton County, Indiana.
Another Sempra Generation wind project slated for completion in 2012 is Energia Sierra Juarez in Baja California, Mexico.
In 2008, Sempra Generation completed the construction of North America's largest thin-film solar power plant, the 10MW El Dorado Solar near Las Vegas, Nevada.
Source:
www.rechargenews.com
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