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HomeMy WebLinkAbout2024.08.01.05 Beluga to Healy Overhead HVDC Pitch Sheet (Final)BELUGA TO HEALY OVERHEAD HVDC Enhancing Railbelt Reliability and Resilience Status: AEA and Railbelt Utilities were encouraged to apply for DOE’s second round GRIP program. (Notice of selection in August 2024) Capacity: 230kV Length: 250 miles Right of Way: Adjacent to the existing AKLNG Right of Way Construction: 6-8 years Cost: $730 Million PROJECT SUMMARY The Railbelt Innovative Resiliency (RIR) Project, Phase 2 is a crucial initiative to build a clean, smart, and affordable grid in Alaska. This project consists of constructing a 250-mile high-voltage direct current (HVDC) overhead transmission line from Beluga (west of Cook Inlet) to Healy. Coupled with the RIR Phase 1 project (Subsea cable from the Kenai Peninsula to Beluga) this will provide a redundant connection between the Bradley Lake Dam and Fairbanks. The Beluga to Healy overhead line will allow northern region customers on the Railbelt to experience the benefits of expanded renewable energy in southcentral Alaska and the southern region to receive power from renewable resources from the northern region. This HVDC line will add critical resilience and redundancy to the Railbelt. Currently, there is only one transmission line, the Alaska Intertie, which transmits power north and south along the Railbelt. The Alaska Intertie is capacity-limited. This HVDC line will provide an alternate route if the Alaska Intertie energy is interrupted by maintenance or failure. (Continued on back) Benefits Opportunities ƒIncreased resilience and redundancy of the Alaska Intertie ƒAdditional conduit for power to transmit between regions ƒReduced line losses ƒAllow additional energy to be delivered to consumers ƒIncreased capacity to bring on utility-scale renewable projects ƒDevelopment of renewable resources in an area of the state that were previously uneconomical due to lack of proximity to transmission PROJECT OVERVIEW DRAFT August 1, 2024 FUNDING PLAN ($MILLIONS) FISCAL YEAR POTENTIAL FEDERAL SHARE SOURCE TBD 2025 9.50 9.50 2026 34.50 34.50 2027 36.50 36.50 2028 74.50 74.50 2029 82.00 82.00 2030 102.00 102.00 2031 26.00 26.00 Subtotals 365.00 365.00 Total 730.00 Total Project Cost: $730 million Secured Funding Sources: None Potential Sources of Funding: DOE grant for up to 50 percent of the project cost; potential match: Railbelt utilities, revenue bonds, unknown sources AEA plans on submitting grant application to DOE GRIP 3 Round 2 for $365 million federal share that would require a $365 million match Please note expenditure estimates are preliminary and subject to change. 813 W Northern Lights Blvd. Anchorage, AK 99503 www.akenergyauthority.org info@akenergyauthority.org T: (907) 771-3000 F: (907) 771-3000 PROJECT OVERVIEW (CONT) 2025-2026 Initial Design, Permitting 2026-2027 Engineering, NEPA Process 2027-2031 Construction SCHEDULE PROJECT STATUS In January 2024, AEA and the Railbelt Utilities submitted a concept paper to the Department of Energy (DOE) for the project. In late February, we were encouraged to submit a full application. Anticipated notification in third quarter of 2024. The Beluga to Healy Overhead HVDC line is proposed to run along the Alaska Gasline Right of Way, west of the current Alaska Intertie. One of the primary objectives of the RIR is to address various challenges facing the Railbelt grid, which serves 75 percent of Alaska’s population. These challenges include decreasing system frequency regulation, slowing frequency response to disturbances, and increasing natural frequency oscillations. To overcome these challenges, the project emphasizes the need for BESS and new transmission lines between the northern, central and southern regions of the Railbelt.