Pacific Energy Solutions Breaks Ground on $334.1 Million Solar Energy Contract for the Department of Defense and the U.S. Navy in Hawaii
News Release from Pacific Energy Solutions HONOLULU, Aug. 4, 2014 (With bonus math problems.)
Today, Pacific Energy Solutions (PES), an energy project development company specializing in renewable technologies, announced that on 11 July, 2014, they entered into a binding contract with the U.S. Navy to supply approximately 30,400 MWh of electricity annually to the Navy for use by Navy, Marine Corps and Air Force activities in the State of Hawaii. PES will supply this electricity to the Navy over a 25-year Power Purchase Agreement term.
30,400 mwh x 25 years = 760,000 mwh
$334,100,000 / 760,000 mwh = $439.61 per mwh = $0.43961 per kwh (approx 0.44 per kwh)
0.44 / 0.26 (2013 HECO DS rate) = 169%
$260 x 760,000 mwh = $197,600,000
$334.1M - 197.6M = $136,500,000 wasted
A groundbreaking ceremony was conducted on 24 July 2014 at Joint Base Pearl Harbor-Hickam. The ceremony was presided over by the Secretary of the Navy, the Honorable Ray Mabus, who was joined by the Governor of the State of Hawaii, Neil Abercrombie.
In support of its deliveries under this contract, PES will install 68,645 photovoltaic modules at 14 project sites at military installations on the Island of Oahu. Additionally, PES will construct a 2 mile underground transmission system, including a bored crossing, beneath the Pearl Harbor Channel. These solar installations, once completed, are estimated to offset 20,000 tons of carbon dioxide emissions per year and eliminate the necessity to burn the equivalent of 54,000 barrels of oil annually. The solar installations will include a utility scale facility on the Waipio Peninsula, which is expected to be, when completed, the largest solar generation facility in the State of Hawaii.
$334,100,000 / 500,000 tons CO2 = $668.20 per ton
$334,100,000 / 1,350,000 barrels = $247.48 per barrel
Of the successful completion of this stage of the project's development, PES' CEO Don O'Shei said, "The Department of Defense and the U.S. Navy have set aggressive and important goals for the use of clean and renewable sources of energy in support of their defense of the Nation. These solar installations that we are implementing today will contribute greatly to meeting those goals and we are proud to play a small part."
About Pacific Energy Solutions: PES is a renewable energy development company based in Boca Raton, FL. Founded in 2010, PES is owned by TriLateral Energy, LLC and ECC Energy Solutions. LLC. The principals and employees of PES, TriLateral Energy and ECC Energy Solutions have decades of experience in the development, project finance, construction and the operation and maintenance of renewable energy projects.
Reality: 49% Waste: Inspector General Slams Hawaii Navy Solar Projects