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.

According to the company, 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 28MWh 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 has recently submitted a proposal to the US Department of Energy to co-fund costs associated with an expansion of the battery energy storage facility to 72MWh.

The company believes that the project would help Maui attain its goal of achieving 95% of its electricity from renewable sources by 2020.

Michael Allman, president and CEO of Sempra Generation, said: "Consistent with our growing renewable presence in the southwestern US, 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."

A service of YellowBrix, Inc.