HomeMy WebLinkAbout2024.08.01.03 Submarine HDVC Line and BESS Pitch Sheet (Final)SUBMARINE HVDC
LINE & BESS*
Improving Railbelt Resiliency and Transfer Capacity
Status: In grant negotiations with
DOE; anticipated award Q3 2024
Scope: Subsea HVDC Line
between the Kenai Peninsula and
Beluga with AC/DC converters
2 BESS Units: Central (Anchorage
& Mat-Su) and Northern (Fairbanks)
Cost: $413 Million
*BESS, if feasible, after HVDC
PROJECT SUMMARY
The Alaska Energy Authority (AEA), in collaboration with the Railbelt utilities, has been
selected for a $206.5 million grant from the Department of Energy (DOE) through
the Grid Resilience and Innovation Partnerships (GRIP) Program. The grant requires
a dollar-for-dollar match and will fund the construction of a high-voltage direct
current (HVDC) subsea line across Cook Inlet from the Kenai Peninsula to the Beluga
substation to connect the converter station with Soldotna. Two converter stations will
be constructed at the terminal ends of the HVDC line, to convert alternating current
to direct current, and vice versa at the other end. In addition, if feasible, build a
battery energy storage system (BESS) in Fairbanks and expand the Anchorage BESS.
Benefits Opportunities
Adds redundancy along the Railbelt
by creating an alternate path for
generation to flow north and south
along Railbelt
Decreased line loss will contribute
to lower energy prices
Increases resilience of the grid
(BESS able to support load for a
couple hours)
Reduction of natural gas
generators spinning
Potential for development of
renewable resources in an area
of the state that were previously
uneconomical due to lack of
proximity to transmission
BESS will enhance resiliency and
eliminate small signal instability
events and increase frequency
control
Increases effectiveness of
additional renewable resources
PROJECT OVERVIEW
DRAFT
August 1, 2024
2025
$64 Million
2026
$63 Million
DRAFT BUDGET
2027
$18 Million
2028
$54 Million
2029
$120 Million
2030
$62 Million
2031
$32 Million
Total $413 Million
813 W Northern Lights Blvd.
Anchorage, AK 99503
This project is expected to take eight years to complete (including design,
permitting, and construction) and will provide an alternative path between
the Central and Southern regions of the Railbelt, increasing transfer
capability and improving resilience along the Railbelt. The addition of an
alternative path of electricity will also relieve the burden of the existing
capacity-constrained transmission lines which enables the construction of
additional renewable resources on the Kenai Peninsula and reduces the
occurrence of transmission disruptions during maintenance or construction
activities on the existing line. As Alaska’s grid brings on more renewable
resources, the incorporation of BESSs are vital for utilities to regulate and
manage the energy load. Many renewable resources, such as solar and
wind, are non-firm (unpredictable) sources of energy that may not provide
power to the grid when required. BESS’s increase resiliency and allow utilities
to store renewable energy and deploy at a later time to follow the natural
demands of the grid.
PROJECT STATUS
www.akenergyauthority.org
info@akenergyauthority.org
T: (907) 771-3000
F: (907) 771-3000
FUNDING PLAN ($MILLIONS)
FISCAL
YEAR
FEDERAL
SHARE
STATE FUNDS
OR SOURCE TBD
EXISTING AEA
REVENUE BONDS
2025 32.70 12.70 20.00
2026 31.50 6.50 25.00
2027 8.80 8.80 -
2028 26.80 21.80 5.00
2029 60.00 60.00 -
2030 30.95 30.95 -
2031 15.75 15.75 -
Subtotals 206.50 156.50 50.00
Total 413.00
Total Project Cost: $413 million ($206.5 million federal share and $206.5
million match)
Secured Sources for Match: $20 million AEA bonds (existing) and $12.7 million
FY2025 appropriation
*Other Sources for Match: Potentially $30 million from AEA bonds (existing)
for BESS depending on timing, Railbelt utilities, additional state appropriations,
tax credits, and bond convenants
*
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