FAIRBANKS, Alaska (KTVF) – Reducing energy costs was the topic of the Greater Fairbanks Chamber of Commerce weekly luncheon on Tuesday. How it’s going to happen was explained by Curtis Thayer, the executive director of the Alaska Energy Authority (AEA).
Numerous projects and programs are being funded for a more affordable future in Alaska. “Five years ago… our budget was $21 million,” said Thayer. “Our capitol budget now is $713 million.” That is nearly a 4000% increase, however, Thayer claimed a 2600% increase.
Those funds are now being directed towards a more affordable future. An array of projects and programs were discussed at the luncheon, some aimed at rural energy costs and others aimed at the Railbelt.
One of those projects is called the Dixon Diversion Project. This project will increase water at Bradley Lake and increase the power output from the hydroelectric facility, located near Homer. Currently, this facility produces 10% of the power going to the Railbelt, saving an estimated $20 million per year. The project will cost $342 million. “It is a lot of money but the one thing it does is it is cheaper than importing natural gas from the cook inlet,” Thayer said. However, that would increase power output to 20%, which could save an estimated $40 million per year. That means the savings would make up for the cost in less than a decade.
AEA hopes to make decision on implementing the project next fall.
There are also upgrades being planned for the Railbelt. Among those projects are a transmission line connecting Quatrz, Soldotna and Sterling. Another project includes upgrading the transmission lines heading toward Fairbanks.
While the current lines have been in use for decades, “it’s just getting to the point where it needs to be upgraded,” Thayer said. The AEA wants to replace the old lines with High-Voltage Direct Current lines that would increase resiliency and redundancy. Those lines would go between Kenai and Beluga and then to Fairbanks. They also want to install a secondary line going to Healy from south central Alaska. This would create a back up that would help avoid a loss of power in emergencies and reduce reliance on imported natural gas from Cook Inlet.
Related to that project are possible upgrades to the Alaska Intertie.
Other programs and projects mentioned during the luncheon included efforts to improve and reduce energy costs in rural communities, as well as renewable energy projects and an expansion to electric vehicle infrastructure.
One program, however, seeks to reduce energy costs and keep defense infrastructure functional. The Black Rapids training Site (BRTS) Defense Community Infrastructure Pilot Program has been created to extend transmission lines to the BRTS, preventing the need to preplace diesel generators that are end of life. Those end of life generators also threatened operations at the site according to Thayer. “We had a potential of losing this military training ground and now we’ve given it new life for the next 30, 40, 50 years,” Thayer said.
While the work on these projects will take time, Thayer anticipates that it will boost both the economy and reduce energy costs for decades to come.
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