January 21, 2016
Guam

Guam wind facility unlikely to be completed

By John O’Connor | The Guam Daily Post | Marianas Variety | 21 Jan 2016 | www.mvariety.com

Renewable energy company Pacific Green Resources LLC is running out of time to provide the Guam Power Authority with about 10 megawatts of wind energy.

The company entered into a contract with GPA in March 2013 to develop a wind facility that would supply renewable energy to the utility for 20 years. However, with little progress made on the project, Consolidated Commission on Utilities Chairman Joey Duenas said it now seems unlikely the company can fulfill its contractual obligations.

“We still don’t have anything from them,” Duenas said. “Their due date to produce power and sell power to (GPA) is March, and they haven’t done anything.”

According to Post files, the initial power purchase agreement between GPA and Pacific Green included about 5 MW of solar power and about 10 MW of wind power. Documents from the Public Utilities Commission stated that Pacific Green opted for two contracts, one for solar and one for wind, because of “the possibility of future assignments of the PGR contract.”

By mid-2013, Quantum Guam Power Holdings LLC acquired the solar contract from Pacific Green. However, Pacific Green maintained its wind contract and was obligated to construct a wind facility within 36 months.

Duenas said he believes the company does not have a building permit or engineering design at this point. GPA spokesman Art Perez said there are several administrative actions the utility could take once March comes and no wind power is being produced by Pacific Green. While he could not comment on what these actions might be, Perez said Pacific Green also provided a $1.2 million bid bond as part of the contract award.

Duenas said that if Pacific Green were to ask for an extension to its contract, the request would likely be denied.

The wind facility was part of the first phase of GPA’s integrated resource plan, which is meant to diversify Guam’s energy resources and reduce reliance on imported oil. Post files state that Pacific Green’s contract allocated $95 million for wind power over its 20-year term. When the contract was signed in March 2013, wind was estimated to save GPA about $64 million over 20 years.

The Guam Daily Post asked Pacific Green for comment on the company’s plans for its wind facility, but no response was received as of press time.