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Wind turbines in Maine
First Wind won approval this week for an agreement to sell power from the company’s 30-megawatt wind energy project in Oahu, Hawaii.
A subsidiary of the Boston-based developer, Kahuku Wind Power, had reached an agreement to sell power from the project to the Hawaiian Electric Company. The Hawaii Public Utilities Commission on Wednesday approved the power purchase agreement.
The project is planned to consist of 12 wind turbines, each having 2.5-megawatt capacity. Kahuku Wind Power also plans to include a battery energy storage system to help with meeting performance standards and smoothing fluctuations in wind energy output. Construction is scheduled to begin later this year, First Wind said.
When completed, it will be the only wind energy project on Oahu and one of the largest wind energy projects in Hawaii, First Wind said.
Under the terms of the contract, Kahuku Wind Power will sell as-available energy to Hawaiian Electric at pre-determined prices over 20 years. First Wind said this would provide a valuable hedge against fluctuating oil prices.
The company previously developed a wind project in Maui and also has projects in Maine and New York.
First Wind has filed intentions for an initial public offering, and in March announced Credit Suisse, Deutsche Bank Securities, Goldman Sachs & Co. and Morgan Stanley as its lead underwriters.
But in an SEC filing Friday, First Wind reiterated it could default on an $80 million loan due next month. The company currently is negotiating with a consortium of banks to receive $240 million in financing that would pay off a turbine loan that matures June 30.
First Wind said it has signed a commitment letter for $240 million in financing, but the deal has not been finalized.
“However, there can be no assurance that this financing will close,” First Wind said the filing. “If the company is unable to repay or further extend the maturity of the $79.9 million non-recourse turbine supply loan, it would be in default of this loan, and the lender could accelerate the remaining balance of $53.1 million due in 2011.”
The company was not immediately available for further comment.
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