Shovel-Ready Energy Infrastructure Projects in Alaska - February 2021
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Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
OVERVIEW
Created in 1976 by the Alaska Legislature, the This catalog of energy projects ready for
Alaska Energy Authority (AEA) is a public funding and capable of near-term deployment
corporation of the State of Alaska governed by has been within the AEA portfolio for varying
a board of directors with the mission to periods as funding priorities have shifted from
“reduce the cost of energy in Alaska.” AEA is time to time. All projects have been carefully
the state's energy office and lead agency for engineered and that engineering kept up to
statewide energy policy and program date in the event funding were to become
development. AEA accomplishes this mission available. Each project can be developed once
through its core services: Owned Assets, Power clearances are given and funding is available
Cost Equalization, Rural Energy Assistance,
Energy Technology Programs, Grants and We wish to make clear that the organization of
Loans, and Energy Planning. this catalog is purposeful. Projects are
aggregated into “by category of energy”
This document is a catalog of Shovel-Ready spheres and are prioritized within each sphere.
Energy Infrastructure Projects in Alaska within Our listing of these projects within each
AEA’s capability to manage. Each project sphere will be able to advance to construction
provides significant benefits to the as expediently as practical. Project completion
communities in which they are targeted. is harder to calculate but sooner construction
Infrastructure projects of larger scope provide completions are rated more positively for
a corresponding greater benefit to more than priority.
a single community and have long-term
positive impacts on the state economy.
PROGRAM SUMMARY
CATEGORY NUMBER OF PROJECTS COST ($ MILLION)
Railbelt (Transmission) 3 $1.1 Billion
Hydroelectric 8 $5.9 Billion
Rural Power System Upgrades 20 $35
Bulk Fuel Upgrades 36 $82
Biomass/Heat 6 $9.5
Wind 9 $114
Totals 83 $7.10 Billion
The following pages include in-depth descriptions of the six categories listed in the above table.
Alaska Energy Authority Page 2 of 19
Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
RAILBELT
SUMMARY 3 PROJECT GROUPS, TOTAL $1.1 BILLION
Over the past decade, Railbelt Utilities have transmission plan. This plan, completed in
spent nearly $1 billion on generation assets in 2017 identified a host of prioritized projects
the region. Many facilities were largely justified which, if constructed, would relieve
through the respective utilities local area transmission congestion that currently exists
planning criteria, as such little attention was on the transmission system, most importantly
given to the transmission of this generation unconstraining the Bradley Lake Hydroelectric
portfolio throughout the interconnected Facility, while at the same time, satisfying the
system which could take maximum advantage requirements set out in the reliability
of the construction of these newer, higher standards in place for the railbelt region of the
efficiency units which replaced or caused the State. Below is a summary of the transmission
retirement of fewer efficiency generators. In plan results. It describes in a prioritized fashion
2014, largely in recognition of this fact, AEA the unmet needs of the interconnected bulk-
contracted for completion of a region-wide power system.
LEVEL 1 PROJECTS (KENAI PENINSULA)*
PRIORITY PROJECT DESCRIPTION COST ($ MILLION)
1** Soldotna-Quartz Creek (and Upgrade Soldotna-Quartz Line to 230kV $70
Substation)
1 Bernice Lake-Beluga HVDC 100 MW HVDC Southern Intertie $185
1 Grid Stabilization Batteries Railbelt Integrated Battery System $115
1 University-Dave’s Creek 230kV Reconstruct existing line $58
1 Bradley Lake Spillway Raise 7’ raise to accommodate Battle Creek inflows $4
2 Bradley-Soldotna 115kV Line New Line and Bradley/Soldotna Substations $66
3 University-Dave's Creek Substations Convert stations for 230 kV operation $35
4 Dave's Creek-Quartz Creek Upgrade line to Rail Conductor, Quartz Sub $15
Sub-Total $548
*Level 1 Projects constitute the host of projects most directly required to fully un-constrain the
Bradley Lake Hydroelectric Facility.
**In 2019 the Swan Lake Fire prompted discussions on potential realignment and upgrades to
the Soldotna to Quartz Creek Transmission Line on the Kenai Peninsula. That project is listed
here as priority 1 in Level 1 Projects.
Note: All “Priority 1” projects represent alignment with the Railbelt utilities prioritizations.
Alaska Energy Authority Page 3 of 19
Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
LEVEL 2 PROJECTS (SOUTHCENTRAL)
PRIORITY PROJECT DESCRIPTION COST ($ MILLION)
1 Fossil Creek Substation New 115 kV substation $10.7
2 Eklutna Hydro Substation New 115 kV substation $9.7
Sub-Total $20.4
LEVEL 3 PROJECTS (NORTH)
PRIORITY PROJECT DESCRIPTION COST ($ MILLION)
1 Lorraine-Douglas Lorraine-Douglas 230 kV line and Stations $129.3
2 Douglas-Healy New 230 kV line operated at 138 kV $243.6
3 Healy-Fairbanks Convert 138 kV to 230 kV $106.8
4 Communications Upgrade Upgrade communication infrastructure $15.0
Sub-Total $494.7
Total Transmission Upgrade Estimate $1.1 Billion
The host of projects within each of the above three tables were identified by applying the current
Transmission Planning Standards contained within the reliability standards which are in place for
the Railbelt.
At the time of the transmission plan completion, the benefits ascribed to the above host of
projects resulted in a cost to benefit ratio in total of 3.4:1. It is important to note that this analysis
would need to be updated however it is highly unlikely that any significant movement, one
direction or the other concerning the costs/benefits would be seen.
Alaska Energy Authority Page 4 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
HYDROELECTRIC
SUMMARY 8 PROJECTS, TOTAL $5.9 BILLION
As Alaska’s largest source of renewable energy, hydropower supplies more than 20 percent of
the state’s electrical energy in an average water year. There are nearly 50 operating utility-scale
hydroelectric projects in Alaska. The majority of Alaska’s existing hydro projects are located in
the southeast and southcentral regions of Alaska.
LEVEL 1 PROJECTS
BRADLEY LAKE SPILLWAY RAISE – $4.0 MILLION
Sponsor Bradley Lake Project Management Committee
Description Seven foot raise of the Bradley Lake Spillway to
accommodate Battle Creek inflows and
efficiency of existing generators.
Status Ready for construction.
ELFIN COVE CROOKED CREEK HYDROELECTRIC – $5.5 MILLION
Sponsor Community of Elfin Cove
Description 105 kW run of river project serving Community
of Elfin Cove. The project would replace
powerplant diesel usage. Estimated fuel savings
$160,000 annually.
Status Design and licensing phase.
Alaska Energy Authority Page 5 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
THAYER CREEK HYDROELECTRIC (ANGOON) – $24 MILLION
Sponsor Kootznoowoo Incorporated
Description 850 kW run of river hydroelectric project on
Thayer Creek serving the community of Angoon.
The project would replace powerplant diesel
usage and a substantial amount of community
heating oil. Estimated fuel savings ~$1,200,000
per year.
Status Design and licensing phase.
LEVEL 2 PROJECTS
GRANT LAKE HYDROELECTRIC (RAILBELT REGION) – $53 MILLION
Sponsor Homer Electric Association
Description Grant Lake would be a 5 MW storage project
serving the Railbelt region. Estimated equivalent
fuel savings $4,000,000 annually. License from
FERC and in the final design.
Status Design and licensing phase.
SUSITNA-WATANA HYDROELECTRIC PROJECT (RAILBELT REGION) – $5.6 BILLION (2014$)
Sponsor Alaska Energy Authority
Description Susitna-Watana would be a 609 MW (maximum)
storage project serving the railbelt region of
Alaska. The project can replace ~60 percent of
the natural gas usage of the railbelt region and
create 23,000 direct and indirect jobs during
construction.
Status Design and licensing phase. The State of Alaska
has spent $193 million advancing this project
and is through two-thirds of the licensing
process.
Alaska Energy Authority Page 6 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
SWEETHEART LAKE HYDROELECTRIC PROJECT (JUNEAU REGION) – $188 MILLION (2014$)
Sponsor Juneau Hydropower Inc.
Description Sweetheart Lake would be a 19.8 MW storage
project serving the Juneau region. Estimated fuel
savings $20,750,000 annually. This project has a
license from FERC and is in the final design.
Status Design and licensing phase.
LEVEL 3 PROJECTS
INDIAN RIVER HYDROELECTRIC PROJECT (TENAKEE SPRINGS) – $8.3 MILLION
Sponsor City of Tenakee Springs
Description Indian River is a 180 kW run-of-river
hydroelectric project serving the community of
Tenakee Springs. The project would replace
community diesel generation with hydroelectric.
Estimated fuel savings $104,000 annually.
Status Ready for construction.
KNUTSON CREEK HYDROELECTRIC PROJECT (PEDRO BAY) – $5 MILLION
Sponsor Pedro Bay Village Council
Description This project is a 150 kW run of river hydroelectric
project serving Pedro Bay. The project will
replace community diesel generation by
hydroelectric. Estimated fuel savings $120,000
annually. This project is in the final design.
Status Design and licensing phase.
Alaska Energy Authority Page 7 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
RURAL POWER SYSTEM UPGRADE
SUMMARY 20 PROJECTS @ $1.75 MILLION = $35 MILLION
Electricity powers lighting, communications, Using an average upgrade project cost of
heat, and is necessary to operate infrastructure $1.75 million and a 20 year expected life span
that supports safe and healthy living the yearly funding level required to meet the
conditions. In Alaska’s rural communities need for rural power systems is approximately
electricity is often generated by a small local $16 million. This assumes all power systems
“system” (generation and distribution) using being at the expected point in their life span,
diesel fuel, and that power is three to five which is not the case. To bring the required 20
times more than power in urban parts of the projects up to the necessary life cycle
state. expectancy would require about $35 million.
Upgrades may include efficiency AEA has contracted to inventory and assess all
improvements, powerhouse upgrades or eligible rural power systems. This effort will
replacements, line assessments, lines to new compile over 200 data points on each
customers, demand-side improvements, heat community power system including
recovery, and repairs to generation and generation, distribution, and heat recovery. For
distribution systems. It is not uncommon to the first time, complete 3D imaging of each
see a significant increase in fuel savings. powerhouse will be captured enabling an
enhanced ability for remote assistance and
Rural Power System Upgrade (RPSU) projects training. Scheduled completion is expected in
range from maintenance and improvement to the second quarter of 2021.
full system replacements.
TYPICAL POWERHOUSE
BEFORE
Alaska Energy Authority Page 8 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
RPSU-Eligible Communities
3
4
10
1
16
8
2
17 7
5
15
13
12
19
6
14
11
18
9
20
PRIORITY PROJECT COST ($ MILLION)
1 Rampart $1.75
2 Nikolai $1.75
3 Beaver $1.75
4 Buckland $1.75
5 Chefornak $1.75
6 Chenega Bay $1.75
7 Chuathbaluk $1.75
8 Crooked Creek $1.75
9 Elfin Cove $1.75
10 Golovin $1.75
11 Karluk $1.75
12 Kokhanok $1.75
13 Koliganek $1.75
14 Levelock $1.75
15 Manokotak $1.75
16 McGrath $1.75
17 Napakiak $1.75
18 Ouzinkie $1.75
19 Pedro bay $1.75
20 Pelican $1.75
Sub-Total $35
Alaska Energy Authority Page 9 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
BULK FUEL UPGRADE
SUMMARY 36 PROJECTS @ $2 MILLION = $82 MILLION
Rural Alaska is energized primarily by diesel replaced, in some cases posing serious risks. In
for power generation and heating. Gasoline is recent years, AEA’s Bulk Fuel Upgrade (BFU)
used for transportation. Many villages are program has shifted emphasis from new
located either along rivers or on the coast, so construction to repairs. In many cases, existing
fuel is primarily delivered by barge. Where bulk fuel tanks can be re-used if they are
barge delivery is unavailable or uneconomic, appropriately refurbished. Repair projects
air tankers and in a few cases tanker trucks focus on minimizing risk, using local workers,
deliver fuel. Delivery is seasonal and limited by and replacing piping, pumps, valves, and tanks
sea or river ice, water levels, or ice road when necessary.
availability. Villages of a few hundred people
must store hundreds of thousands of gallons Using an average upgrade project cost of $2
of fuel to meet their annual energy needs. million and a 40-year expected lifespan (20-
year design life span), the yearly funding level
Many of rural Alaska’s bulk fuel facilities were required to meet the need for rural bulk fuel
built in the 1950s and 1960s. They were not facilities is approximately $40 million dollars.
built to national standards and aren’t This assumes all bulk fuel facilities being at the
compliant with today’s health and safety expected point in their life span, which is not
regulations. Some of them are at the end of the case. To bring the required 50 projects up
their useful lives. This infrastructure, however, to the necessary life cycle expectancy would
continues in service until upgraded or require about $100 million dollars.
TYPICAL BULK FUEL FACILITY
BEFORE
Alaska Energy Authority Page 10 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
BFU-Eligible Communities
4
5
16
15
14
13 17 10 12
6
8
9 18
1
11
3 7 2
LEVEL 1 PROJECTS
PRIORITY PROJECT DESCRIPTION COST ($ MILLION)
1 Tuluksak (1) Native Corporation $2
2 Nondalton City Bulk Fuel Facility $2
3 Togiak Native Corp Bulk Fuel Facility $2
4 Noatak Tribal Bulk Fuel Facility $2
5 Shungnak Tribal Bulk Fuel Facility $2
6 Scammon Bay Native Corp Fuel Facility $2
7 Ekwok City Bulk Fuel Facility $2
8 Shageluk (2) Native Corp / City Fuel Facilities $4
9 Marshall (2) Utility / City Bulk Fuel Facility $4
10 Minto (2) Utility / Native Corp Fuel Facilities $4
11 Goodnews Bay City Bulk Fuel Facility $2
12 Birch Creek Tribal Bulk Fuel Facility $2
13 Nulato City Bulk Fuel Facility $2
14 Chalkyitsik Native Corp Fuel Facility $2
15 Venetie Tribal Bulk Fuel Facility $2
16 Allakaket City Bulk Fuel Facility $2
17 Rampart Tribal Bulk Fuel Facility $2
18 Russian Mission (2) Native Corp / City Bulk Fuel Facilities $4
Sub-Total $42
Alaska Energy Authority Page 11 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
BFU-Eligible Communities
5
12
4
18
6 1
17
7
14
13
16 10
9
11 15
2
8
LEVEL 2 PROJECTS
3
PRIORITY PROJECT DESCRIPTION COST ($ MILLION)
1 Fort Yukon (2) Native Corp / Tribal Fuel Facility $4
2 Klawock Utility Bulk Fuel Facility $2
3 Hydaburg Utility Bulk Fuel Facility $2
4 Ambler Tribal Bulk Fuel Facility $2
5 Kivalina (2) Utility / City Bulk Fuel Facility $4
6 Beaver Tribal Bulk Fuel Facility $2
7 Mountain Village Native Corp Fuel Facility $2
8 Craig Utility Bulk Fuel Facility $2
9 St. Paul Native Corp Fuel Facility $2
10 Togiak City Bulk Fuel Facility $2
11 Coffman Cove Utility Bulk Fuel Facility $2
12 Noatak Tribal Bulk Fuel Facility $2
13 Eek Native Corp Fuel Facility $2
14 Oscarville Native Corp Fuel Facility $2
15 Thorne Bay Utility Bulk Fuel Facility $2
16 Platinum Tribal Bulk Fuel Facility $2
17 Hughes City Bulk Fuel Facility $2
18 Kobuk City Bulk Fuel Facility $2
Sub-Total $40
Alaska Energy Authority Page 12 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
BIOMASS/HEAT
SUMMARY 6 PROJECTS, TOTAL $9.5 MILLION
Alaska's primary biomass fuels are wood, sawmill waste, fish by-products and municipal waste.
Wood remains an important renewable energy source for Alaskans. More than 100,000 cords of
wood are burned in the form of chips, cordwood, and pellets annually. Wood-heating systems in
Alaska are creating local jobs and reducing the cost of building heat in rural communities
throughout the state.
LEVEL 1 PROJECTS
HAINES SCHOOL AND POOL (CHIP) – $1.8 MILLION
Sponsor Haines Borough
Description The proposed biomass district energy system is
designed to provide heat to the Haines School
and Pool, Administration Building, Library,
Vocational Education building (Voc-Ed), Garage,
and future Greenhouse, with the school and
pool, is the baseline scenario.
Status Ready for construction.
KAKE (CHIP) – $3.5 MILLION
Sponsor Organized Village of Kake
Description The proposed biomass system is designed to
provide heating to the Public Safety Building,
Boys & Girls Club, Health Clinic, Senior Center,
Kake School, a future greenhouse, a future
building at the Bingo Hall location, and the
Community Center.
Status Ready for construction.
Alaska Energy Authority Page 13 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
LEVEL 2 PROJECTS
CRAIG HIGH SCHOOL (CHIP) – $770,000
Sponsor Craig City School District
Description This project is to construct a wood chip heating
plant at Craig High School. The wood heating
system is expected to include a wood fuel
delivery system, biomass boilers, and heat
exchangers to be integrated into the existing
heating system of Craig High School.
Status Ready for construction.
KLAWOCK MALL (CORDWOOD) – $845,000
Sponsor Klawock Heenya Corporation
Description Construct a cordwood heating system, including
a large woodshed to heat two-thirds of the
Klawock Bell Tower Mall. The other one-third is
the AC Grocery Store and they are using the heat
from the refrigeration units. The Biomass system
could be backup heat for the grocery store.
Status Conceptual design.
NORTHWAY SCHOOL BIOMASS – $1.32 MILLION
Sponsor Alaska Gateway School District (Tok)
Description This project will construct a woodchip heating
system for the Northway School, the garage, and
the teacher housing duplex. The project is
estimated to offset approximately 90 percent of
the fuel use.
Status Ready for construction.
Alaska Energy Authority Page 14 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
LEVEL 3 PROJECT
KETCHIKAN HIGH SCHOOL (PELLET) – $1.25 MILLION
Sponsor Ketchikan Gateway Borough
Description This project will construct a pellet heating system
for the new clinic, tribal office, community
building, and water treatment plant. The project
design was completed through a grant from the
United States Forest Service.
Status Ready for construction.
Alaska Energy Authority Page 15 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
WIND
SUMMARY 9 PROJECTS, TOTAL $114.2 MILLION
In Alaska, there are abundant wind resources available for energy development. High costs
associated with fossil fuel-based generation and improvements in wind power technology make
this clean, renewable energy source attractive to many communities. Today wind energy accounts
for 2.4 percent of the state’s total energy production and that percentage is growing. Since 2012,
Alaska’s wind energy capacity has increased 400 percent.
LEVEL 1 PROJECT
FIRE ISLAND WIND FARM EXPANSION – $75 MILLION
Sponsor Cook Inlet Regional Inc.
Description Expansion of the Fire Island Wind farm from 17.6
MW to 52.8 MW with the installation of 22 more
GE 1.6 MW wind turbines. Cook Inlet Regional
could sell the power to any of the south-central
Alaska utilities. This project would help to
stabilize electrical costs in Southcentral Alaska.
Status Ready for construction.
LEVEL 2 PROJECTS
CHEFORNAK, KIPNUK, AND PILOT POINT BATTERY ENERGY STORAGE – $2.4 MILLION
Sponsor Village of Chefornak, Native Village of Kipnuk,
and Native Village of Pilot Point
Description Currently, Chefornak, Kipnuk, and Pilot Point
have fully operational wind turbines installed in
their communities. Battery energy storage will
increase wind energy utilization and reduce the
need to curtail wind energy production.
Status Ready for construction.
Alaska Energy Authority Page 16 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
IGIUGIG WIND – $1.0 MILLION
Sponsor Igiugig Village Council
Description Installation of two 25 kW turbines. The turbines
will be used in conjunction with the community
in-river hydrokinetic turbine. Fuel offset will be
7,044 gallons of diesel per year.
Status Design and licensing phase.
KONGIGANAK, KWIGILLINGOK, AND TUNTUTULIAK TURBINE UPGRADES – $4.8 MILLION
Sponsor Native Village of Kongiganak, Native Village of
Kwigillingok, and Native Village of Tuntutuliak
Description Incorporate more efficient rotor and nacelle
upgrades for 15 wind turbines to increase the
efficiency and power output of existing turbines.
This project would also add a 500 kW solar array
to each system.
Status Design and licensing phase.
KWETHLUK WIND AND SOLAR WITH ELECTRIC THERMAL STORAGE UNITS – $4.2 MILLION
Sponsor Village of Kwethluk
Description Install three 100kW wind turbines, a 500 kW solar
array, and 50-70 electric thermal storage units.
The projected diesel displacement for this project
is 70,000 gallons of diesel fuel at the power plant
and 20,000 gallons of heating fuel.
Status Design and licensing phase.
Alaska Energy Authority Page 17 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
LEVEL 3 PROJECTS
DUTCH HARBOR AND UNALASKA WIND-DIESEL PROJECT – $11.6 MILLION
Sponsor Dutch Harbor and City of Unalaska
Description Install 2MW capacity wind turbines and battery
energy storage near the water treatment plant.
Dutch Harbor is the largest fishing port in North
America with a very high industrial load. This
project would offset 270,000 gallons of diesel per
year.
Status Ready for construction.
KOTZEBUE ELECTRIC ASSOCIATION WIND FARM EXPANSION – $7.0 MILLION
Sponsor Kotzebue Electric Association
Description The utility will install two more EWT 900 kW wind
turbines and expand battery energy storage. This
project is expected to displace 300,000 to
400,000 gallons of diesel fuel annually, thus
lowering the cost of energy in the community.
Status Design and licensing phase.
NOME WIND TO HEAT – $400,000
Sponsor Nome Joint Utility System
Description Nome will be purchasing an electric boiler to
utilize excess wind produced from their Banner
Peak Wind Farm. The boiler will be used to heat
the school and potentially the hospital and rec
center in the future. The expected cost savings
from diesel displacement for the school district
would be $71,000 per year.
Status Ready for construction.
Alaska Energy Authority Page 18 of 19Shovel-Ready Energy Infrastructure Projects in Alaska February 2021
STEBBINS AND ST. MICHAEL WIND FARM EXPANSION – $7.8 MILLION ($2021)
Sponsor Alaska Village Electric Cooperative
Description Installation of a single 900 kW turbine. Fuel offset
will be 160,000 gallons of diesel per year. The
project will also include the installation of an
electric boiler in the St. Michael pump house and
will account for another 5,000 gallons of diesel
displacement. The wind farm expansion project
will serve both Stebbins and St. Michael.
Status Design and licensing phase.
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