Golden Valley is exploring several renewable energy avenues, including hydropower in the Interior and increasing efficiency at our power plants.
This project involves pumping 90º waste glycol heat from the North Pole Expansion Power Plant to heat the older North Pole Power Plant. This would replace 1/2 MW of parasitic load and save up to $200,000 per year based on current rates. With a cost of $1.1 million, we received state funding for 80 percent of the project. We expect to break ground on the project in June 2009.
Last year, GVEA received state funding to pursue potential hydro projects in the Interior. The final reports are in on the potential Tanana-Gerstle and Nenana hydro electric projects. Unfortunately the feasibility studies found that there is not sufficient change in elevation. While there is a 50 to 60 foot change, which is acceptable, it occurs over too long a distance. In addition, water flow would be too low in the winter when the rivers freeze.
Golden Valley is focusing efforts to construct a 24 megawatt wind farm in Eva Creek near Healy. The project would include 16 turbines at 1.5 MW each. This would represent about 20 percent of our peak load. In the electrical industry it’s standard to limit wind penetration to 20 percent of system load. Otherwise, it can create instability and cause problems operating the system.
In the most recent round of energy grants, we requested $80 million, but received $2 million. We’re using that money to conduct an avian and access studies this summer. The turbines are large components that will likely be barged to Anchorage. With no roads or bridges from Healy to the Eva Creek site, it will be a challenge to get the equipment installed. But the main obstacle is funding. So we’ll continue pursuing state grants and other options including the stimulus package.
Golden Valley also launched a program - the Renewable Resource Purchase Program - for small renewable energy projects owned by GVEA members that are larger than SNAP installations (limited to 25 kw) and smaller than two megawatts. Units of this size can connect to the distribution system, instead of a transmission system. Connecting to a transmission system requires more controls and equipment, which increases costs.
The first participant in the Renewable Resource Purchase Program came online in October 2008 with a 100-kilowatt wind generator in the Delta Junction area.