Guam is finally beginning its first foray into the renewable energy sector, as NRG Solar and Boeing announced that construction had begun on Dandan, a 25MW solar power plant.
Once completed, Dandan will serve as the first solar power project ever constructed on the small Pacific island. The facility is expected to provide enough clean energy to power 10,000 homes and offset the consumption of over 2 million barrels of fuel and diesel.
Isolated in the middle of the Pacific with little access to major ports, Guam has historically had to rely on imported fuel in order to power its energy output. However, once Dandan has been completed, the amount of clean energy created by the plant will be enough to help the island retain around US$300 million in total fuel cost savings.
Dandan will also cut annual carbon dioxide emissions by more than 40,000 metric tonnes, equivalent to removing around 7,300 cars from the roads.
Energy produced from the plant will be sold to the Guam Power Authority, the island’s only electric utility company, under two 25-year power-purchase agreements.
Joaquin C. Flores, general manager of the Guam Power Authority, said: “Guam is taking a strong step forward in realising its sustainability goals, both from an environmental and economic point of view…We look forward to seeing the facility completed and observing how it will serve as a catalyst for more interest in renewable energy on the island.”
NRG Solar purchased the project from Quantum Utility Generation back in July 2013.