Hawaiian Electric Co. has signed an agreement to buy electricity produced by a five-megawatt solar farm planned for Campbell Industrial Park.

The power purchase agreement between IC Sunshine LLC and HECO, subject to approval by the Public Utilities Commission, is the first for a utility-scale solar project in on Oahu, the companies said in a news release.

The price for the electricity, which HECO said is competitive with other renewable resources being negotiated by the utility, is fixed for 20 years annual adjustments for inflation. The exact price per kilowatt hour was not disclosed because HECO is conducting similar negotiations with other renewable energy providers.

 IC Sunshine, a  wholly-owned subsidiary of California-based Axio Power Holdings, said it expects to begin producing power by 2012.

 The solar farm is the first of several renewable energy projects planned for West Oahu. Hoku Solar Inc. is moving ahead with a 1.4-megawatt photovoltaic project in Campbell Industrial Park, while Sopogy is pursuing a 4-megawatt concentrated solar project.