HomeMy WebLinkAbout2024.08.01.04 BESS Pitch Sheet (Final)BATTERY ENERGY
STORAGE SYSTEMS
Enhancing Railbelt Capacity and Resilience
Status: Railbelt Region:
Southern (Kenai Peninsula)
- Completed in 2022
Central (Anchorage)*
- Completed in October 2024
Northern (Fairbanks)*
- Completion estimated in 2027
*Potential option for GRIP funding
PROJECT SUMMARY
Benefits Opportunities
Improved oscillation damping
Enhanced disturbance response
rate
Increased transfer capability
between regions
Less constrained economic
dispatch
The Railbelt is transmission constrained so we can only move 10 percent or less of
our peak load between regions. Further, Railbelt utility engineers have observed
several increasingly concerning trends on the Railbelt over the past decade. These
challenges include degradation of frequency regulation, decreasing system frequency
response to generation trip disturbances, increasing the magnitude and duration of
natural frequency power oscillations, and occasional large power swings impacting
the entire Railbelt.
Based on studies performed by Railbelt utilities, three regional battery energy storage
systems (BESS) units were proposed in each of the Southern, Northern, and Central
regions. These units in the three regions would provide significant reliability and
economic benefit to the Railbelt transmission system. Additionally, studies found that
BESS would help stabilize non-dispatchable renewables’ output by smoothing energy
fluctuations and controlling their release to the grid. (Continued on back)
PROJECT OVERVIEW
Reduced fuel burn
Lower carbon emissions
Greater ability to integrate variable
generation such as wind and solar
power into the grid
DRAFT
August 1, 2024
813 W Northern Lights Blvd.
Anchorage, AK 99503
www.akenergyauthority.org
info@akenergyauthority.org
T: (907) 771-3000
F: (907) 771-3000
A BESS can successfully fulfil the required energy response to a loss of
generation in as quickly as less than one second, improving system frequency.
Furthermore, the study showed that a BESS could participate in balancing
generation and load, thereby improving frequency regulation.
After careful analysis, it has been determined that a BESS and a high-voltage
direct current line can significantly enhance system performance and reduce
operational limitations in power systems. The proposed integrated BESS will
bring benefits to the Railbelt grid. Homer Electric Association in the Southern
region has installed a BESS. Chugach Electric Association and Matanuska
Electric Association in the Central region are in the process of installing a BESS.
Golden Valley Electric Association in Fairbanks is planning a BESS installation.
The combined BESS system will be a valuable addition to the Railbelt grid’s
power infrastructure.
PROJECT OVERVIEW (CONT)
BESS CAPACITY
47 MWhs
Southern (Kenai Peninsula)
40 MWhs
Central (Anchorage)
92 MWhs
Northern (Fairbanks)
FUNDING PLAN ($MILLIONS)
LOCATION AEA BONDS
(EXISTING)
FUNDING
SOURCE TBD
Southern (Kenai Peninsula) BESS Unknown 33.00
Central (Anchorage) BESS** Unknown 45.00
Northern (Fairbanks) BESS**Unknown 33.00
Subtotals 28.00 111.00
Total 28.00
Total Project Cost: Estimate $168 million
Secured Sources of Funding Match: $28 million AEA bonds (existing)
*Based on Bradley Lake Hydroelectric Project percentage
**Potential Sources of Funding: GRIP 3 Round 1 funding if available after
HVDC line, Railbelt utilities, tax credits for BESS depending on timing
Please note project costs are estimates and are subject to change.
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