The U.S. Bureau of Ocean Energy Management is in the process of reviewing a lease request submitted by AW Hawaii Wind, LLC for two proposed 408 MW offshore wind power facilities, each consisting of 51 floating 8 MW turbines. AW Hawaii Wind is a subsidiary of Denmark-based Alpha Wind Energy.
Last month BOEM determined that AW Hawaii Wind is legally, technically and financially qualified to hold a lease on the outer continental shelf. BOEM’s next step is to determine whether there are competitive interests in the proposed lease area.
The Oahu South Project is proposed to be located approximately 17 miles off the coast of Oahu in water depths of 300-700 meters. The Oahu Northwest Project is proposed to be located approximately 12 miles offshore in water depths of 700-1,000 meters. The floating turbines proposed for the project are based on Principle Power’s WindFloat design.
One potential advantage these projects have over other offshore proposals is that Hawaiian electricity rates are already about twice as much as those of the next highest state (New York). That means the incremental cost increase associated with offshore wind power would be relatively lower for Hawaii than for other markets, a fact that could make these projects more attractive to ratepayers and investors.