Last month Business Week reported that several energy companies were moving quickly to install new wind capacity in the Hawaiian Islands. The topic was the subject of a term paper in a class I gave way back in 2003, by Keith Stockton (now Dr. Keith Stockton). Keith’s work has been influential in the policy debate in the islands. You can see a version of his work on the Hawaii state government website here (PDF), where it is the first article cited discussing the feasibility of the wind project.

Keith also published a peer reviewed version of the analysis in the journal Renewable Energy, which you can find here. Here is the abstract:

The opportunity now exists for the development of a utility-scale wind farm in Hawai’i. A combination of factors leads to the conclusion that wind-generated electricity has a sizeable cost advantage over Hawai’i’s traditional petroleum fueled generation.

In 1995, Global Energy Concepts (GEC) conducted feasibility studies of potential wind energy projects throughout Hawai’i. The study included a site on the island of Moloka’i near Ilio Point. However, GEC classified the location as unfeasible due to relatively low Moloka’i electricity demand and the lack of interisland transmission capability.

Four factors have changed since the GEC study. The cost of petroleum has risen dramatically, the cost of capital has decreased, wind power technology has improved greatly and Hawai’i has adopted a renewable portfolio standard. These economic and technical changes now make it feasible to construct a utility-scale wind farm on Moloka’i and export the energy to the neighboring island of O’ahu via a new undersea transmission system.

Detailed financial analysis results in an estimated project cost of $291 million for a 180 MW wind farm and related transmission infrastructure. The net cost of energy delivered to the O’ahu grid is 3.22 cents/kWh, a 34% savings compared to the cost of present petroleum fueled generation.

This study reveals that it is prudent to pursue high-level industry and government debate regarding the feasibility of constructing the Ilio Point wind farm. High electricity rates act as a competitive disadvantage to businesses in Hawai’i compared to mainland-based firms. The energy industry in Hawai’i is a valuable partner in making the state more competitive in the high tech economy of the 21st century. The Ilio Point project is a key initiative in this partnership.

For prospective graduate students, the lesson should be clear. Come to CU, change the world. You can find Keith at: Keith.Stockton@Colorado.edu.