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Chugach El. building solar farm
Utility board approves development of Beluga Solar Project on west side of Cook Inlet adjacent aging gas-fired plant
Alan Bailey for Petroleum News
"We are very excited about the potential of having the largest solar project in Alaska," Julie Hasquet, Chugach Electric senior manager, corporate communications, told Petroleum News. "As we continue to work to incorporate renewables into our generation mix, this is a great project."
During its October 22 meeting the board of Anchorage based Chugach Electric Association approved the construction of the Beluga Solar Project, a 10-megawatt solar power plant adjacent to the gas fired Beluga Power Plant, on the west side of the Cook Inlet. The estimated cost of the project is $26 million, with the possibility of that cost being reduced to $16 million if the project obtains a federal tax credit following the start of commercial operation.
Chugach Electric anticipates construction of the facility to be completed by Oct. 31, 2027.
Viable power pricing The levelized cost of energy from the facility would be $89 per megawatt hour, assuming that the federal tax credit would be obtained. Absence of the tax credit would raise the energy cost to $124 per megawatt hour. During the board meeting there was discussion that, assuming imported liquefied natural gas would be needed in the future to support gas fueled power generation in Southcentral Alaska, the cost of power from the wind farm, even without the tax credit, would be competitive.
Chugach Electric has also applied to the Alaska Energy Authority for a $2-million grant under AEA's Renewable Energy Fund -- if obtained, that grant would also lower the cost of the Beluga Solar Power energy.
Given the significant benefit of obtaining the federal tax credit and some uncertainties regarding the importing of equipment, should that be necessary, the board discussed the importance of starting the project promptly.
Chugach Electric and CIRI land The facility is planned to be built on a combination of land owned by Chugach Electric and land owned by Cook Inlet Region Inc. -- construction is contingent on successful negotiations with CIRI on the land use.
Without the use of the CIRI land, the solar farm would be reduced in size to 5 megawatts and the cost of the energy would increase somewhat. The proximity to the aging Beluga Power Plant, which is now used as backup to more modern generation facilities elsewhere on the Railbelt power grid, means that the solar power facility will be able to use the transmission line from the Beluga Power Plant to feed power into the Southcentral Alaska grid.
"We are very excited about the potential of having the largest solar project in Alaska," Julie Hasquet, Chugach Electric senior manager, corporate communications, told Petroleum News. "As we continue to work to incorporate renewables into our generation mix, this is a great project."
Little Mount Susitna wind farm In terms of further renewable energy development in the Beluga region, independent power producer Alaska Renewables has been proposing the development of a Little Mount Susitna wind farm. That potential project is currently on hold -- thus far Alaska Renewables has declined to discuss project pricing during an open meeting of the Chugach Electric board, Hasquet said.
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