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Use of renewable power grows in Alaska State may exceed 30% generation from hydro, wind, biomass in 2016; large hydro dominates; small hydro, wind, grow in rural areas TIM BRADNER For Petroleum News
Alaska may exceed the 30th percent threshold on generation of power statewide from renewable resources for 2016, Alaska Energy Authority officials say. The estimate is based on preliminary information through September.
In another milestone, power generation from small hydro, wind and biomass is rapidly increasing in small rural communities and is expected to have displaced 30 million gallons of diesel fuel for 2016, according to Sean Skaling, AEA’s deputy director.
That is almost double the 15.7 million gallons of diesel displaced, or not used, in 2014 because of power generated from renewable energy, according to data from the authority.
AEA is a state entity that manages energy programs. It owns several assets including the Bradley Lake hydro project near Homer and an Anchorage-Fairbanks electrical intertie that carries power between Southcentral and Interior Alaska.
Statewide, the percentage of renewable energy supplying electricity has been increasing and moving close to 30 percent since 2013, Skaling said.
The statewide figure was 27.4 percent in 2013, 29.45 percent in both 2014 and 2015 and appears set to exceed 30 percent for 2016 based on data through September, he said.
Hydro dominates The bulk of Alaska’s renewable energy comes from hydroelectric power generated from projects built years ago, such as at Bradley Lake near Homer and Snettisham near Juneau. Hydro is considered “renewable” under state law but not under federal law.
The steady increases in recent years, however, are due to a number of small hydro and other renewable sources such as wind and biomass that are coming on line mostly in small rural communities.
Most of these were built with grants from AEA’s state-funded Renewable Energy Fund with some federal funds through the Denali Commission and with local contributions.
Skaling said there are now 69 REF-funded projects operating statewide, the bulk of them in rural communities. Several others are under construction or in engineering, so the number operating will increase as construction is completed.
Over several years the Legislature has appropriated $20 million to $25 million a year for the REF grants and AEA annually solicited proposals for new projects. However, there will be no solicitation for new projects in 2017, for the first time in years, due to the scarcity of state funds.
The program will not shut down, Skaling said. Instead, AEA will propose funding some projects that were presented to the Legislature but not funded in recent years.
More projects than money AEA has always had more project proposals than it has had money for, and a set of these are vetted for technical and financial feasibility by the authority and then submitted in an annual list to the Legislature. This list is ranked for priority as to feasibility.
The available money is appropriated to a number of projects starting at the top, ranked for feasibility, so there are always some that are fully vetted but cannot be funded.
These will be considered this year with money that is left over, or not used, by projects in previous appropriation cycles or other funds the AEA may be able to gather.
While the Legislature has authority to pick and choose among projects submitted on the list it has never done so, instead accepting the recommendations from the AEA.
Wind projects quickest In the first years of the Renewable Energy Project funding wind projects predominated because they could be built and put into operation quickly. Small hydro projects, where they are feasible, are the most beneficial because once built they operate for decades, Scaling said.
However, hydro construction costs can be substantial, requiring that the project sponsors cobble together funds from several sources. Most must also be licensed by the Federal Energy Regulation Commission, a process that takes time.
“Hydro is difficult to develop but once built they will last for 50 years or more,” Skaling said.
One new hydro project about to come on line is at King Cove, on the Alaska Peninsula, where the City of King Cove was able to combine REF grants, other money from AEA’s power project development fund plus its own money through bonds.
Some communities are lucky enough to combine wind with hydro, and the hydro can solve the variability power with wind. Unexpectedly, the winds can stop blowing, but if hydro is also on line it can quickly be ramped up to supply power.
In Kodiak the regional utility has both hydro and wind and also a large battery, which can instantaneously supply power until the hydro can be opened up, Skaling said. For even more backup Kodiak has a large flywheel.
For most communities with only wind the backup must be done with diesel, but an equal problem is what to do with excess wind power that is otherwise wasted. To solve this, AEA is now working with communities on developing “secondary” loads, typically using excess wind power to heat water that is then used to heat community buildings.
Biomass, where there is available wood, is another option. A few of the REF projects involve wood-fired boilers, typically in schools or other large community buildings. There are now several of these around the state including schools where wood also heats greenhouses where vegetables are grown for the community.
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