How much will the interisland cable cost?
The process of estimating cost for the cable system and associated infrastructure, including a converter station at each end, is in the preliminary stages. Based on the cost of similar projects around the world, an early estimate is $800,000 to $1 billion. The State is looking into how the cable system may be financed. It will ultimately be paid for by some combination of utility customer and taxpayer funds. The State will be seeking additional federal funding and/or long-term loan guarantees to keep the total cost under control. The costs of the wind farms on Lanai and Molokai and the upgrades to the Oahu grid are being analyzed separately and will also be significant. However, it is important to consider these costs in the context of what we are currently spending to meet Hawaii’s energy needs with imported fossil fuel. Hawaii sends about 10 percent of its gross state product out of state each year to buy that fuel. In 2007, before oil hit $147, that amounted to about $6 billion.
