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September 2001

Vol. 6, No. 9 Week of September 23, 2001

State, BP, launch hybrid power project in Lime Village

Petroleum News Alaska

A small electric generation project kicked off in July in a remove village in southwestern Alaska could play a major role in determining whether solar power could have a bright future in other areas of rural Alaska.

The Alaska Energy Authority and BP Exploration (Alaska) Inc. said Sept. 4 that they have — in conjunction with McGrath Light & Power Co. and the U.S. Departments of Housing & Urban Development and Energy — launched a demonstration project to power Lime Village with a hybrid solar and diesel fuel generation system. Hybrid systems use more than one power source to meet energy needs.

Performance data and results will be evaluated to assess whether solar power, in combination with diesel generation and battery storage, can be used effectively to reduce power costs and enhance electrical efficiency in other rural areas of the state.

Village energy costs high

Lime Village was chosen because of its high energy costs, low per-capita power consumption, latitude, weather and an existing, poorly performing hybrid power system.

It wasn’t electrified until 1998 and power costs have averaged about 85 cents per kilowatt-hour.

"While this system is still experimental, it's an important step in the right direction," said Phil Graham, Lime Village planner and a resident of the village for 25 years.

An experimental hybrid system installed in 1997 failed due to design problems.

BP said that when it offered additional solar panels for a village power project, the Alaska Energy Authority incorporated them into a redesigned hybrid system that is expected to reduce diesel use by 30 percent, part of the authority's rural alternative energy research program.

The new system began operating in late July. A team including representatives from the Alaska Energy Authority, BP and McGrath Power & Light, as well as state Sen. Georgianna Lincoln and Rep. Carl Morgan, visited Lime Village for a demonstration of the system.

106 solar panels

The system includes installation of 106 solar panels manufactured at BP Solar's plant in Fairfield, Calif., a state-of-the-art direct current-alternating current inverter and a small diesel generator. A battery bank from the original demonstration project stores surplus power for future use.

Each solar panel is expected to displace about 10 gallons of diesel annually and should operate for at least 20 years, with little maintenance.

Lime Village relies entirely on air transportation, and the recent delivered cost of diesel fuel has been more than $4 a gallon. Graham said the system reduced the village's diesel costs more than $2,000 during its first month of operation.

Sandia Labs, the research branch of the U.S. Department of Energy, will use performance data from Lime Village to study the best mix of power sources in a hybrid generation system to reduce diesel reliance. As a result, the solar component could be increased.

McGrath Light & Power has a management agreement with Lime Village. The village has participated through grants and loans from the Department of Housing & Urban Development and the state.






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