Renewable Energy Projects Gaining Momentum

 

Apr 18 - Alaska Journal of Commerce

Alaska's wind, thermal features and other renewable sources of energy have the potential to be cost-effective sources of power in the state and, perhaps one day, the foundation of a new export industry, said speakers at a forum on renewable energy in Alaska.

Due to declining fossil fuel reserves and rising energy demand, businesses are betting on renewable sources of energy as an affordable way to meet some of the world's future energy needs, said Chris Rose, executive director of Renewable Energy Alaska Project. As an example, he cited Goldman Sachs' recent acquisition of Zilkha Renewable Energy, one of the nation's largest developers of wind projects.

"Businesses are positioning themselves to be leaders in renewable energy," Rose told attendees of the April 5 Commonwealth North forum in Anchorage.

Rose was joined by Joe Griffith, chief executive officer of Chugach Electric Association, and Nick Goodman, chief executive officer of TDX Power.

Rose said the technology used to generate energy from wind-powered turbines has significantly improved since the early 1980s, lowering its production costs to be comparable to conventional power that is for the most part generated from fossil fuels such as coal, natural gas and oil.

"The technology is improving. As fossil fuel prices go up and as wind power goes down, they are meeting," he said. "Wind is probably the most mature technology and it is very cost-competitive."

Technology using other renewable energy sources -- such as the sun and the ocean's waves and tides -- are experiencing maturation processes similar to wind technology, making it likely they will also be affordable sources of energy in the future, Rose said.

The high price of importing diesel fuel to the Bush has already prompted some rural utilities to develop alternatives to diesel-generated power.

"As we know oil prices are high, and it is really hitting rural Alaska hard," Rose said.

Kotzebue Electric Association's wind farm generated about 6 percent of the energy it supplied customers last year, reducing the utility's diesel use by about 100,000 gallons, Rose said. "They really measure their success by the amount of diesel they do not have to import."

Wind-generated energy is also a viable option for the Railbelt, Chugach Electric's Griffith said.

Through extensive studies, Chugach Electric has determined that installing 400-foot wind turbines on Fire Island, about three miles offshore from Anchorage in Cook Inlet, is feasible. The 33 wind turbines would be able to generate up to an estimated 99 megawatt-hours, more than 12 percent of the about 800 MW used by the Railbelt during peak consumption.

However, the initial costs to develop the electric infrastructure to transmit power from the wind turbines to Chugach Electric's grid are high, Griffith said.

The total cost of the project's transmission infrastructure -- including power lines, substations and a submarine cable, among other components -- is estimated to be about $30 million.

"It is a substantial undertaking and if there is a limiting factor for the project it is transmission," he said. "We are working on it and have asked for state and federal help."

The Alaska Legislature is currently considering an appropriations bill to grant Chugach Electric $20 million for the construction of the project's wind farm and transmission infrastructure.

Four Railbelt utilities -- Chugach Electric, Municipal Light and Power, Golden Valley Electric and Homer Electric Association -- have signed a memorandum of understanding to pursue funding for the project's development and to use the power generated from the wind farm.

The power generated from the Fire Island wind project is currently not competitive with Chugach Electric's least expensive power generated by the natural-gas-fired Beluga plant. But the prices of power generated from wind and natural gas could be comparable in the future if public funding for developing the wind project's infrastructure is secured and the price of natural-gas-generated power rises as Cook Inlet's gas supply declines, Griffith said.

The U.S. Department of Energy's study of gas in Southcentral Alaska found there could be a gas shortage in the area as early as 2009 and developing a new gas supply to meet the demand would be more expensive than what customers are paying now.

Griffith said that if funding is secured for the wind project's initial costs, wind-generated power could be online in three years.

In addition to generating power to meet the Railbelt's needs, the wind project would increase the likelihood other renewable energy projects would be developed around the state by changing people's perceptions of renewable energy, Rose said in an interview.

"If Fire Island is built, it is going to raise the awareness of renewables in the state," he told attendees of the forum.

Underground hot water and steam is another under-utilized renewable source of energy, TDX Power's Nick Goodman said.

TDX Power is interested in applying the Icelandic model to Alaska to develop geothermal power plants -- with turbines spun by the Earth's hot water or steam to generate power -- and heating systems that use hot water or steam to heat buildings, roads and pools. Geothermal power plants and heating systems produce all of Iceland's electricity and heat, which on average costs residential customers 6 cents a kilowatt-hour for electricity and 1.5 cents a kwh for heat, he said.

"Economic reasons: The reasons for geothermal (in Alaska) are just that," he said. "We have a tremendous resource and just need to match it up with a market."

TDX Power has had some preliminary conversations with Chugach Electric to develop geothermal resources in the Railbelt, and is interested in exploring areas such as Mount Spur, which had been explored in the 1970s and 1980s, Goodman said in an interview.

"Geothermal is not for the faint of heart," he told attendees of the forum.

"We are accessing hot water and steam near or on top of volcanoes."

To emphasis his point, Goodman showed forum attendees a picture from Iceland of a geothermal power plant near the edge of an erupting volcano.

In addition to providing power for Alaskans, the state's renewable sources of energy may be able to be used to produce hydrogen fuel for export.

"If we were to put together a grass-roots hydrogen project, we would have an exportable product right there," Griffith told forum attendees.

Businesses exporting hydrogen fuel from Alaska may be a ways off, Goodman cautioned in an interview. "The technology is promising but we are still in a very early stages of a hydrogen economy."

Web resources: Chugach Electric Association -- www.chugachelectric.com ; and TDX Power -- www.tdxpower.com .

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