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HomeMy WebLinkAboutRailbelt Utility Issues Mt Spurr JimStrandberg 08-27-2007Alaska Energy Authority (AEA)Presentation for2007 Mt. Spurr Geothermal WorkshopAugust 27th, 2007byJim Strandberg, P. E., Project ManagerRailbelt Utility Issues – related to Mt. Spurr DevelopmentAlaska-British Columbia Intertie Project1 „Goals of Presentation…Explain the structure of the Alaska Railbelt Electrical Grid…Explain the ways renewable energy project can market power to the Grid under present structuresMt. Spurr Geothermal Workshop2 The Railbelt at a glance3Mt. Spurr Geothermal Workshop Mt. Spurr Geothermal Workshop4„Renewable Energy projects for the Alaska Railbelt…Project Economics…Nearness to Load Centers…Ability to compete with existing power sources…Ways to access the Railbelt Wholesale Power market4 5Mt. Spurr Geothermal Workshop„Physical Extent of Railbelt…Stretches from Seldovia to Delta Junction…Discrete monopoly service areas…Ownership divided between certificated utilities and the Alaska Energy Authority 6Mt. Spurr Geothermal Workshop6„Project Economics…Feasibility criteria „Cost of Power and Energy…Ability to provide energy commodities …Respond to market needs„Ability to secure long term financing „Ability to access markets and write long term power sales contracts„Manage long term economic risk 7Mt. Spurr Geothermal Workshop7„Railbelt Grid Business Structures…Regulated public utilities with defined service areas, and economically regulated rates. …Wholesale power contracts are common with Railbelt Utilities…There are 6 Railbelt utilities with defined service areas…All six are municipally owned or non-profit member owned electrical cooperatives. 8Mt. Spurr Geothermal Workshop8„Railbelt Grid Regulatory Structure…Regulated Public Utilities have certificates to serve.…Economic operations of Utilities subject to Regulatory Commission of Alaska jurisdiction…Regulated components…Wholesale Power Contracts…Retail Rates 9Mt. Spurr Geothermal Workshop9„Access to Market…Energy Commodity attractive to regulated utility…Project is acceptable to the Regulating agency, the RCA…Ability to enter the market as a Qualifying Facility…Requires compliance with definitions as being a renewable energy project or cogeneration. 10Mt. Spurr Geothermal Workshop10„Power Sales Agreements„Different types„All Requirements – firm energy„Energy supply contracts„Ancillary Services„Interconnection with Network„Reliability of Network 11Mt. Spurr Geothermal Workshop11„Practical Business development concerns„Configure business structure to address and minimize economic risk.„Design project to produce attractive commodities„Address needs for interconnection and contributions to network reliability up front„Begin consultation with regulated utilities early on. 12Mt. Spurr Geothermal Workshop12„Parting thoughts for the project developer„Become knowledgeable on the dynamics of the Railbelt Grid„Power needs are growing„Future Fuel Supplies are an issue Thank you, from the Alaska Energy Authority. (www.akenergyauthority.org)Alaska-British Columbia Intertie Project13