Sempra Generation Acquires Hawaii Wind Power Project

Sempra Generation, a subsidiary of Sempra Energy (NYSE: SRE), announced it has acquired Auwahi Wind Energy LLC, a company developing a 22-megawatt (MW) wind energy and battery storage project in Maui, Hawaii, from Shell WindEnergy Inc., a subsidiary of Royal Dutch Shell.

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. Terms of the agreement were not disclosed.

"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," said Michael W. Allman, president and chief executive officer of Sempra Generation.

An important component of the Maui wind-power project is the development of a battery energy storage unit. The battery could store as much as 28 megawatt-hours (MWh) 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 U.S. Department of Energy to co-fund costs associated with an expansion of the battery energy storage facility to 72 MWh.

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 throughout the world.

"Shell WindEnergy Inc. has re-assessed its wind development efforts in Hawaii and will concentrate on projects on the U.S. Mainland and Canada that are more aligned with our strategic direction," said Dick Williams, president of Shell WindEnergy Inc. "Our portfolio consists of eight wind farms on the U.S. Mainland with a total capacity of almost 900 megawatts.
Going forward, we will continue to support Shell’s overall strategy of diversifying its energy mix by developing energy sources that have low carbon emissions."

The project would help Maui attain its goal of achieving 95 percent of its electricity from renewable sources by 2020.

In 2008, the state of Hawaii and the U.S. Department of Energy set goals associated with the state’s Clean Energy Initiative. The goal of the initiative is to increase power conservation and help lower the almost exclusive use of oil for island power generation by accelerating the development of renewable, indigenous energy resources in Hawaii, such as Auwahi Wind. This goal involves employing efficiency and renewable energy resources that meet 70 percent of Hawaii’s energy demand by 2030.

Sempra Generation has several wind and solar energy projects underway. The company recently announced its 50-50 investment with BP Wind in the second phase of the Fowler Ridge Wind Farm, the Midwest’s largest wind power project. The 200-MW Benton County, Ind., facility is slated for completion in 2010.

Another Sempra Generation wind project slated for completion in 2012 is Energía Sierra Juárez. In its first phase, the wind farm will generate between approximately 100 MW to 125 MW of power from turbines to be installed about 70 miles southeast of San Diego in Baja California, Mexico. Potential future phases of Energía Sierra Juárez could grow to generate as much as 1,000 MW of clean wind energy.

In 2008, Sempra Generation completed the construction of North America’s largest thin-film solar power plant, El Dorado Solar. The plant is located near Las Vegas and is capable of generating 10 MW of solar energy. El Dorado Solar’s output is fully contracted for 20 years. A new 48-MW solar project, located adjacent to El Dorado Solar, is planned and fully contracted pending a decision by the California Public Utilities Commission.

Sempra Generation operates and maintains a fleet of clean, efficient natural gas-fueled power plants serving the U.S. market and is in the process of developing a solar and wind power projects in the Pacific Southwest.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2008 revenues of nearly $11 billion. The Sempra Energy companies’ 13,600 employees serve more than 29 million consumers worldwide.

Sempra Generation invests in second phase of largest Midwest wind farm

Sempra Generation, a subsidiary of Sempra Energy (NYSE: SRE), announced it has become an equal partner with BP Wind Energy, a wholly owned subsidiary of BP (NYSE:BP), in the development of the 200-megawatt (MW) Fowler Ridge II Wind Farm in Benton County, Ind.

The Fowler Ridge II Wind Farm joint venture currently is under construction on a 17,000-acre site about 90 miles northwest of Indianapolis and is expected to be operational in the first quarter 2010. The 200-MW facility will produce enough electricity for approximately 60,000 homes.

The project’s entire power output already has been sold under four, long-term 50-MW contracts. Three contracts were signed with units of American Electric Power and, one, with Vectren Energy Delivery of Indiana for terms of 20 years each. The project will use 133 wind turbines, each with the ability to generate 1.5 MW.

The Fowler Ridge II development is an expansion of Fowler Ridge I, a 400-MW wind farm that commenced operations in March 2009. Combined, the two projects will comprise the Midwest’s largest wind farm, generating 600 MW, or enough clean energy to power about 180,000 homes.

“Fowler Ridge II will be our first operating wind-farm investment and expands our portfolio of renewable-energy assets,” said Michael Allman, president and chief executive officer of Sempra Generation. “This project will supply clean power to utilities in the region and strengthen Sempra Generation’s position as a national leader in sustainable energy development.”

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