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HomeMy WebLinkAboutAEAInfrastructureNeedsOutline Shovel-Ready Energy Infrastructure Projects in Alaska Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 2 of 20 OVERVIEW Created in 1976 by the Alaska Legislature, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska governed by a board of directors with the mission to “reduce the cost of energy in Alaska.” AEA is the state's energy office and lead agency for statewide energy policy and program development. AEA accomplishes this mission through its core services: Owned Assets, Power Cost Equalization, Rural Energy Assistance, Energy Technology Programs, Grants and Loans, and Energy Planning. This document is a catalog of Shovel-Ready Energy Infrastructure Projects in Alaska within AEA’s capability to manage. Each project provides significant benefit to the communities in which they are targeted. Infrastructure projects of larger scope provide a corresponding greater benefit to more than a single community and have a long-term positive impacts on the state economy. This catalog of energy projects ready for funding and capable of near term deployment has been within the AEA portfolio for varying periods of time as funding priorities have shifted from time to time. All projects have been carefully engineered and that engineering kept up to date in the event funding were to become available. Each project can be developed once clearances are given and funding is available We wish to make clear that the organization of this catalog is purposeful. Projects are aggregated into “by category of energy” spheres and are prioritized within each sphere. Our listing of these projects within each sphere will be able to advance to construction as expediently as practical. Project completion is harder to calculate but sooner construction completions are rated more positively for priority. PROGRAM SUMMARY CATEGORY NUMBER OF PROJECTS COST ($ MILLION) Railbelt (Transmission) 3 $955 Hydroelectric 9 $6 Billion Rural Power System Upgrades 20 $35 Bulk Fuel Upgrades 50 $100 Biomass/Heat 7 $10 Wind 9 $114 Totals 98 $7.21 Billion The following pages include in depth descriptions of the six categories listed in the above table. Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 3 of 20 RAILBELT 3 PROJECT GROUPS, TOTAL $955.2 MILLION Over the past decade the Railbelt Utilities have spent nearly $1 billion on generation assets in the region. Many facilities were largely justified through the respective utilities local area planning criteria, as such little attention was given to the transmission of this generation portfolio throughout the interconnected system which could take maximum advantage of the construction of these newer, higher efficiency units which replaced or caused the retirement of less efficiency generators. In 2014, largely in recognition of this fact, AEA contracted for completion of a region-wide transmission plan. This plan, completed in 2017 identified a host of prioritized projects which, if constructed, would relieve transmission congestion that currently exists on the transmission system, most importantly unconstraining the Bradley Lake Hydroelectric Facility, while at the same time, satisfying the requirements set out in the reliability standards in place for the railbelt region of the State. Below is a summary of the transmission plan results. It describes in a prioritized fashion the unmet needs of the interconnected bulk- power system. LEVEL 1 PROJECTS (KENAI PENINSULA)* PRIORITY PROJECT DESCRIPTION COST ($ MILLION) 1** Soldotna-Quartz Creek Upgrade Soldotna-Quartz Line to 230kV $52 1 Bernice Lake-Beluga HVDC 100 MW HVDC Intertie $185.3 2 25 MW/14MWh BESS Anchorage Area Battery $30.2 3 Bradley-Soldotna 115kV Line New Line and Bradley/Soldotna Substations $65.5 4 University-Dave's Creek 230kV Reconstruct existing line $57.5 5 University-Dave's Creek Substations Convert stations for 230 kV operation $34.6 6 Dave's Creek-Quartz Creek Upgrade line to Rail Conductor, Quartz Sub $15.0 Sub-Total $440.1 *Level 1 Projects constitute the host of projects most directly required to fully unconstraine the Bradley Lake Hydroelectric Facility. **In 2019 the Swan Lake Fire prompted discussions on potential realignment and upgrades to the Soldotna to Quartz Creek Transmission Line on the Kenai Peninsula. That project is listed here as priority 1 in Level 1 Projects. SUMMARY Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 4 of 20 LEVEL 2 PROJECTS (SOUTHCENTRAL) PRIORITY PROJECT DESCRIPTION COST ($ MILLION) 1 Fossil Creek Substation New 115 kV substation $10.7 2 Eklutna Hydro Substation New 115 kV substation $9.7 Sub-Total $20.4 LEVEL 3 PROJECTS (NORTH) PRIORITY PROJECT DESCRIPTION COST ($ MILLION) 1 Lorraine-Douglas Lorraine-Douglas 230 kV line and Stations $129.3 2 Douglas-Healy New 230 kV line operated at 138 kV $243.6 3 Healy-Fairbanks Convert 138 kV to 230 kV $106.8 4 Communications Upgrade Upgrade communication infrastructure $15.0 Sub-Total $494.7 Total Transmission Upgrade Estimate $955.2 The host of projects within each of the above three tables were identified by applying the current Transmission Planning Standards contained within the reliability standards which are in place for the Railbelt. At the time of the transmission plan completion, the benefits ascribed to the above host of projects resulted in a cost to benefit ratio in total of 3.4:1. It is important to note that these analysis would need to be updated however it is highly unlikely that any significant movement, one direction or the other with respect to the costs/benefits would be seen. Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 5 of 20 HYDROELECTRIC 9 PROJECTS, TOTAL $6 BILLION As Alaska’s largest source of renewable energy, hydropower supplies more than 20 percent of the state’s electrical energy in an average water year. There are nearly 50 operating utility-scale hydroelectric projects in Alaska. The majority of Alaska’s existing hydro projects are located in the southeast and southcentral regions of Alaska. LEVEL 1 PROJECTS ELFIN COVE CROOKED CREEK HYDROELECTRIC – $3 MILLION Sponsor Community of Elfin Cove Description 160 kW run of river project serving Community of Elfin Cove. The project would replace powerplant diesel usage. Estimated fuel savings $240,000 annually. Status Design and licensing phase. THAYER CREEK HYDROELECTRIC (ANGOON) – $18 MILLION Sponsor Kootznoowoo Incorporated Description 850 kW run of river hydroelectric project on Thayer Creek serving the community of Angoon. The project would replace powerplant diesel usage and substantial amount of community heating oil. Estimated fuel savings ~$1,200,000 per year. Status Design and licensing phase. SUMMARY   Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 6 of 20 LEVEL 2 PROJECTS GRANT LAKE HYDROELECTRIC (RAILBELT REGION) – $53 MILLION Sponsor Homer Electric Association Description Grant Lake would be a 5 MW storage project serving Ketchikan region. Estimated equivalent fuel savings $4,000,000 annually. License from FERC and in final design. Status Design and licensing phase. MAHONEY LAKE HYDROELECTRIC (KETCHIKAN REGION) – $75 MILLION Sponsor City of Saxman Description Mahoney Lake would be a 9.6 MW storage project serving Ketchikan region. Estimated fuel savings $7,500,000 annually. This project has license from FERC. Status Design and licensing phase. SUSITNA-WATANA HYDROELECTRIC PROJECT (RAILBELT REGION) – $5.6 BILLION (2014$) Sponsor Alaska Energy Authority Description Susitna-Watana would be a 609 MW (maximum) storage project serving the railbelt region of Alaska. The project can replace ~60 percent of the natural gas usage of the railbelt region and create 23,000 direct and indirect jobs during construction. Status Design and licensing phase. The State of Alaska has spent $193 million advancing this project and is through two-thirds of the licensing process.    Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 7 of 20 SWEETHEART LAKE HYDROELECTRIC PROJECT (JUNEAU REGION) – $188 MILLION (2014$) Sponsor Juneau Hydropower Inc. Description Sweetheart Lake would be a 19.8 MW storage project serving Juneau region. Estimated fuel savings $20,750,000 annually. This project has license from FERC and is in final design. Status Design and licensing phase. LEVEL 3 PROJECTS INDIAN RIVER HYDROELECTRIC PROJECT (TENAKEE SPRINGS) – $4.8 MILLION Sponsor City of Tenakee Springs Description Indian River is a 180 kW run-of-river hydroelectric project serving the community of Tenakee Springs. Project would replace community diesel generation with hydroelectric. Estimated fuel savings $104,000 annually. This project could be completed within one year once construction. Status Ready for construction. KNUTSON CREEK HYDROELECTRIC PROJECT (PEDRO BAY) – $5 MILLION Sponsor Pedro Bay Village Council Description This project is a 200 kW run of river hydroelectric project serving Pedro Bay. The project will replace community diesel generation by hydroelectric. Estimated fuel savings $120,000 annually. This project is in final design. Status Design and licensing phase.    Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 8 of 20 OLD HARBOR HYDROELECTRIC PROJECT (OLD HARBOR) – $10 MILLION Sponsor Alaska Village Electric Cooperative Description This project is a 525 kW diversion hydro serving the Alaska native community of Old Harbor. Estimated fuel savings $220,000 annually. Project would replace a portion of community diesel generation with hydroelectric. Status Design and licensing phase.  Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 9 of 20 RURAL POWER SYSTEM UPGRADE 20 PROJECTS @ $1.75 MILLION = $35 MILLION Electricity powers lighting, communications, heat, and is necessary to operate infrastructure that supports safe and healthy living conditions. In Alaska’s rural communities electricity is often generated by a small local “system” (generation and distribution) using diesel fuel, and that power is three to five times more than power in urban parts of the state. Upgrades may include efficiency improvements, powerhouse upgrades or replacements, line assessments, lines to new customers, demand-side improvements, heat recovery and repairs to generation and distribution systems. It is not uncommon to see a significant increase in fuel savings. Rural Power System Upgrade (RPSU) projects range from maintenance and improvement to full system replacements. Using an average upgrade project cost of $1.75 million and a 20 year expected life span the yearly funding level required to meet the need for rural power systems is approximately $16 million dollars. This assumes all power systems being at the expected point in their life span, which is not the case. To bring the required 20 projects up to the necessary life cycle expectancy would require about $35 million. AEA is has currently contracted to inventory and assess all eligible rural power systems. This effort will compile over 200 data points on each community power system including generation, distribution, and heat recovery. For the first time complete 3D imaging of each powerhouse will be captured enabling an enhanced ability for remote assistance and training. TYPICAL POWERHOUSE BEFORE SUMMARY Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 10 of 20 RPSU-Eligible Communities PRIORITY PROJECT COST ($ MILLION) 1 Aniak $1.75 2 Atka $1.75 3 Beaver $1.75 4 Buckland $1.75 5 Chefornak $1.75 6 Chenega Bay $1.75 7 Chuathbaluk $1.75 8 Crooked Creek $1.75 9 Elfin Cove $1.75 10 Golovin $1.75 11 Karluk $1.75 12 Kokhanok $1.75 13 Koliganek $1.75 14 Levelock $1.75 15 Manokotak $1.75 16 McGrath $1.75 17 Napakiak $1.75 18 Ouzinkie $1.75 19 Pedro bay $1.75 20 Pelican $1.75 Sub-Total $35  2  1  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20 Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 11 of 20 BULK FUEL UPGRADE 50 PROJECTS @ $2 MILLION = $100 MILLION Rural Alaska is energized primarily by diesel for power generation and heating. Gasoline is used for transportation. Many villages are located either along rivers or on the coast, so fuel is primarily delivered by barge. Where barge delivery is unavailable or uneconomic, air tankers and in a few cases tanker trucks deliver fuel. Delivery is seasonal and limited by sea or river ice, water levels, or ice road availability. Villages of a few hundred people must store hundreds of thousands of gallons of fuel to meet their annual energy needs. Many of rural Alaska’s bulk fuel facilities were built in the 1950s and 1960s. They were not built to national standards and aren’t compliant with today’s health and safety regulations. Some of them are at the end of their useful lives. This infrastructure, however, continues in service until upgraded or replaced, in some cases posing serious risks. In recent years, AEA’s Bulk Fuel Upgrade (BFU) program has shifted emphasis from new construction to repairs. In many cases, existing bulk fuel tanks can be re-used if they are appropriately refurbished. Repair projects focus on minimizing risk, using local workers, and replacing piping, pumps, valves, and tanks when necessary. Using an average upgrade project cost of $2 million and a 40 year expected lifespan (20 year design life span), the yearly funding level required to meet the need for rural bulk fuel facilities is approximately $40 million dollars. This assumes all bulk fuel facilities being at the expected point in their life span, which is not the case. To bring the required 50 projects up to the necessary life cycle expectancy would require about $100 million dollars. TYPICAL BULK FUEL FACILITY BEFORE SUMMARY Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 12 of 20 BFU-Eligible Communities LEVEL 1 PROJECTS PRIORITY PROJECT DESCRIPTION COST ($ MILLION) 1 Holy Cross (3) Native Corp / City / Utility Bulk Fuel Facilities $6 2 Nondalton City Bulk Fuel Facility $2 3 Shaktoolik (2) Utility / Native Corp Bulk Fuel Facilities $4 4 Togiak Native Corp Bulk Fuel Facility $2 5 Nunapitchuk (2) Native Corp / City Bulk Fuel Facilities $4 6 Noatak Tribal Bulk Fuel Facility $2 7 Shungnak Tribal Bulk Fuel Facility $2 8 Scammon Bay Native Corp Fuel Facility $2 9 Newtok (2) Native Corp / Utility Bulk Fuel Facilities $4 10 Ekwok City Bulk Fuel Facility $2 11 Shageluk (2) Native Corp / City Fuel Facilities $4 12 Marshall (2) Utility / City Bulk Fuel Facility $4 13 Minto (2) Utility / Native Corp Fuel Facilities $4 14 Goodnews Bay City Bulk Fuel Facility $2 15 Birch Creek Tribal Bulk Fuel Facility $2 16 Nulato City Bulk Fuel Facility $2 17 Chalkyitsik Native Corp Fuel Facility $2 18 Venetie Tribal Bulk Fuel Facility $2 19 Allakaket City Bulk Fuel Facility $2 20 Rampart Tribal Bulk Fuel Facility $2 21 Russian Mission (2) Native Corp / City Bulk Fuel Facilities $4 Sub-Total $60  11  2  3  14  5  6  7  8  9  10  1  12  13  4  15  16  17  18  19  20  21 Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 13 of 20 BFU-Eligible Communities LEVEL 2 PROJECTS PRIORITY PROJECT DESCRIPTION COST ($ MILLION) 1 Fort Yukon (2) Native Corp / Tribal Fuel Facility $4 2 Klawock Utility Bulk Fuel Facility $2 3 Hydaburg Utility Bulk Fuel Facility $2 4 Ambler Tribal Bulk Fuel Facility $2 5 Kivalina (2) Utility / City Bulk Fuel Facility $4 6 Beaver Tribal Bulk Fuel Facility $2 7 Mountain Village Native Corp Fuel Facility $2 8 Craig Utility Bulk Fuel Facility $2 9 St. Paul Native Corp Fuel Facility $2 10 Togiak City Bulk Fuel Facility $2 11 Coffman Cove Utility Bulk Fuel Facility $2 12 Noatak Tribal Bulk Fuel Facility $2 13 Eek Native Corp Fuel Facility $2 14 Oscarville Native Corp Fuel Facility $2 15 Thorne Bay Utility Bulk Fuel Facility $2 16 Platinum Tribal Bulk Fuel Facility $2 17 Hughes City Bulk Fuel Facility $2 18 Kobuk City Bulk Fuel Facility $2 Sub-Total $40  1  2  4  5  6  7  8  3  9  10  11  12  13  14  15  16  17  18 Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 14 of 20 BIOMASS/HEAT 7 PROJECTS, TOTAL $9.7 MILLION Alaska's primary biomass fuels are wood, sawmill waste, fish by products and municipal waste. Wood remains an important renewable energy sources for Alaskans. More than 100,000 cords of wood are burned in the form of chips, cordwood, and pellets annually. Wood-heating systems in Alaska are creating local jobs and reducing the cost of building heat in rural communities throughout the state. LEVEL 1 PROJECTS HAINES SCHOOL AND POOL (CHIP) – $1.8 MILLION Sponsor Haines Borough Description The proposed biomass district energy system is designed to provide heat to the Haines School and Pool, Administration Building, Library, Vocational Education building (Voc-Ed), Garage, and future Greenhouse, with the school and pool is the baseline scenario. Status Ready for construction. KAKE (CHIP) – $3.5 MILLION Sponsor Organized Village of Kake Description The proposed biomass district energy system is designed to provide heat to the Haines School and Pool, Administration Building, Library, Vocational Education building (Voc-Ed), Garage, and future Greenhouse, with the school and pool is the baseline scenario. Status Design and licensing phase. SUMMARY   Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 15 of 20 MENTASTA CLINIC (CHIP) – $200,000 Sponsor Mentasta Tribal Council Description This project would be a small containerized Chip System that would heat the Health Clinic and possibly some adjacent buildings. The community currently has an operating chip system so there is great confidence this project would also be successful. Status Ready for construction. LEVEL 2 PROJECTS CRAIG HIGH SCHOOL (CHIP) – $770,000 Sponsor Craig City School District Description This project is to construct a wood chip heating plant at Craig High School. The wood heating system is expected to include a wood fuel delivery system, biomass boilers, and heat exchangers to be integrated into the existing heating system of Craig High School. Status Ready for construction. KLAWOCK MALL (CORDWOOD) – $845,000 Sponsor Klawock Heenya Corporation Description Construct a cordwood heating system, including a large wood shed to heat two thirds of the Klawock Bell Tower Mall. The other one third is the AC Grocery Store and they are using the heat from the refrigeration units. The Biomass system could be backup heat for the grocery store. Status Conceptual design.    Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 16 of 20 NORTHWAY SCHOOL BIOMASS – $1.32 MILLION Sponsor Alaska Gateway School District (Tok) Description This project will construct a woodchip heating system for the Northway School, the garage, and the teacher housing duplex. The project is estimated to offset approximately 90 percent of the fuel use. Status Ready for construction. LEVEL 3 PROJECT KETCHIKAN HIGH SCHOOL (PELLET) – $1.25 MILLION Sponsor Ketchikan Gateway Borough Description This project will construct a pellet heating system for the new clinic, tribal office, community building, and water treatment plant. Project design was completed through a grant from the United States Forest Service. Status Ready for construction.   Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 17 of 20 WIND 9 PROJECTS, TOTAL $114.2 MILLION In Alaska, there are abundant wind resources available for energy development. High costs associated with fossil fuel-based generation and improvements in wind power technology makes this clean, renewable energy source attractive to many communities. Today wind energy accounts for 2.4 percent of the state’s total energy production and that percentage is growing. Since 2012, Alaska’s wind energy capacity has increased 400 percent. LEVEL 1 PROJECT FIRE ISLAND WIND FARM EXPANSION – $75 MILLION Sponsor Cook Inlet Regional Inc. Description Expansion of the Fire Island Wind farm from 17.6 MW to 52.8 MW with the installation of 22 more GE 1.6 MW wind turbines. Cook Inlet Regional could sell the power to any of the south-central Alaska utilities. This project would help to stabilize electrical costs in Southcentral Alaska. Status Ready for construction. LEVEL 2 PROJECTS CHEFORNAK, KIPNUK, AND PILOT POINT BATTERY ENERGY STORAGE – $2.4 MILLION Sponsor Village of Chefornak, Native Village of Kipnuk, and Native Village of Pilot Point Description Currently Chefornak, Kipnuk, and Pilot Point have fully operational wind turbines installed in their communities. Battery energy storage will increase wind energy utilization and reduce the need to curtail wind energy production. Status Ready for construction. SUMMARY   Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 18 of 20 IGIUGIG WIND – $1.0 MILLION Sponsor Igiugig Village Council Description Installation of two 25 kW turbines. The turbines will be used in conjunction with the community in-river hydrokinetic turbine. Fuel offset will be 7,044 gallons of diesel per year. Status Design and licensing phase. KONGIGANAK, KWIGILLINGOK, AND TUNTUTULIAK TURBINE UPGRADES – $4.8 MILLION Sponsor Native Village of Kongiganak, Native Village of Kwigillingok, and Native Village of Tuntutuliak Description Incorporate more efficient rotor and nacelle upgrades for 15 wind turbines to increase efficiency and power output of existing turbines. This project would also add a 500 kW solar array to each system. Status Design and licensing phase. KWETHLUK WIND AND SOLAR WITH ELECTRIC THERMAL STORAGE UNITS – $4.2 MILLION Sponsor Village of Kwethluk Description Install three 100kW wind turbines, a 500 kW solar array and 50-70 electric thermal storage units. The projected diesel displacement for this project is 70,000 gallons of diesel fuel at the power plant and 20,000 gallons of heating fuel. Status Design and licensing phase.    Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 19 of 20 LEVEL 3 PROJECTS DUTCH HARBOR AND UNALASKA WIND-DIESEL PROJECT – $11.6 MILLION Sponsor Dutch Harbor and City of Unalaska Description Install 2MW capacity wind turbines and battery energy storage near the water treatment plant. Dutch Harbor is the largest fishing port in North America with a very high industrial load. This project would offset 270,000 gallons of diesel per year. Status Ready for construction. KOTZEBUE ELECTRIC ASSOCIATION WIND FARM EXPANSION – $7.0 MILLION Sponsor Kotzebue Electric Association Description The utility will install two more EWT 900 kW wind turbines and expand battery energy storage. This project is expected to displace 300,000 to 400,000 gallons of diesel fuel annually, thus lowering the cost of energy in the community. Status Design and licensing phase. NOME WIND TO HEAT – $400,000 Sponsor Nome Joint Utility System Description Nome will be purchasing an electric boiler to utilize excess wind produced from their Banner Peak Wind Farm. The boiler will be used to heat the school and potentially the hospital and rec center in the future. The expected cost savings from diesel displacement for the school district would be $71,000 per year. Status Ready for construction.    Shovel-Ready Energy Infrastructure Projects in Alaska April 2020 Alaska Energy Authority Page 20 of 20 STEBBINS AND ST. MICHAEL WIND FARM EXPANSION – $7.8 MILLION ($2021) Sponsor Alaska Village Electric Cooperative Description Installation of a single 900 kW turbine. Fuel offset will be 160,000 gallons of diesel per year. The project will also include the installation of an electric boiler in the St. Michael pump house, and will account for another 5,000 gallons of diesel displacement. The wind farm expansion project will serve both Stebbins and St. Michael. Status Design and licensing phase. 