Keahole Solar Power has signed a power-purchase agreement with Hawaiian Electric Co (HECO), to acquire power from Keahole’s planned 5MW solar farm in Kalaeloa in Oahu, US.

The details of the transaction have not been disclosed.

The deal is subject to approval from the state Public Utilities Commission.

Keahole Solar Power will develop the project on 43 acres by using 9,520 concentrating solar thermal panels from Sopogy.

HECO spokesman Darren Pai was quoted by the as saying that it is the another step toward reducing its dependence on imported oil, and it just adds to the company diverse portfolio of clean energy resources.

The company said that the construction work will this month and it is expected to complete by the end of 2012.