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HomeMy WebLinkAboutCEA Grant Transmission Line Project Description2.4 PROJECT DESCRIPTION Chugach is proposing to being the process of route selection and permitting for a new transmission line linking potential renewable energy projects on the west side of Cook Inlet to the existing Chugach system. Ormat Nevada, Inc. (Ormat), a wholly owned subsidiary of Ormat Technologies, Inc. (NYSE “ORA”), secured 15 geothermal leases on Mt. Spurr from the State of Alaska in 2008 and has since embarked on multi-phased exploration and development plan, with a goal to explore and build a utility scale 50-100 MW geothermal power plant to be connected to the Railbelt power grid around 2016. Ormat has built over 1,000 MW of geothermal plants during the last 3 decades all over the western United States and several locations internationally. Phase 1 of Ormat’s exploration, focusing on both aerial and ground based geological and geophysical surveys was completed in August 2010. Phase 2a, focusing on drilling four 500’ to 1000’ core holes, to measure temperature gradients and other geological features, started early September 2010 an is expected to be completed by the end of the month. Phase 2a will move on to drilling additional, deeper, slim holes in 2011. Both phases (1 and 2a) will be partially cost shared by Oramat and AEA as part of Round IIII of the Renewable Energy Grant Program. Future Ormat exploration and development phases, planned for 2012-2013, will focus on additional drilling in an attempt to confirm and delineate the geothermal resource. Subsequent geothermal field development and power plant construction and commissioning are expected to take place in 2014-2016. Hydroelectric resource assessment at Lake Chakachamna is not as far along, but a project in the future is possible. Chugach’s proposed project would include one or more high voltage transmission lines which would connect to the existing substation and transmission lines at Beluga. The line would be built for a maximum operation voltage o 230 kV but could init ially be operated at a lower voltage to match first stage development of 50 MW of the geothermal project. The line would cover a distance of at least 40 miles, depending on the routing. The initial phase would investigate feasible routes and select a preferred route, including permitting and right of way acquisition. While Chugach would own and operate the line, all purchases (presumably all Railbelt utilities) would be able to access the renewable energy. The line would be designed to accommodate future development of a hydro resource at Lake Chakachamna.