Deal sets stage for a dramatic jump in solar power production in Alaska

A renewable power firm has signed an settlement with a Homer utility that opens the door for the development of what’s going to grow to be Alaska’s largest photo voltaic farm by a big quantity, folks concerned within the undertaking say.

The photo voltaic farm, as soon as it is up and operating, will even be a small step towards lowering the necessity in Southcentral Alaska for the Cook dinner Inlet pure gasoline that might start operating quick as early as subsequent 12 months, they are saying.

Jenn Miller, with Renewable IPP, says the brand new photo voltaic farm might be constructed close to Pet Canine Lake in Nikiski on the Kenai Peninsula.

With 45 megawatts of capability, it’s going to practically triple the photo voltaic power output in Alaska, counting each rooftop photo voltaic and current photo voltaic farms, she mentioned.

It can present energy for about 9,000 properties on the Peninsula, and might be greater than 5 occasions bigger than Renewable IPP’s undertaking in Houston. That photo voltaic farm launched final 12 months, at 8.5 megawatts, making it the state’s largest for now.

“There might be over 60,000 solar panels and will probably be throughout 300 acres,” she mentioned.

The board of the Homer Electrical Affiliation unanimously agreed this week to purchase the photo voltaic farm’s energy, the utility introduced in an announcement. That units the stage for the undertaking to quickly search approval from the Regulatory Fee of Alaska, Miller mentioned.

The photo voltaic farm may start working in late 2027, Miller mentioned.

It can double the renewable energy produced by the utility, to 24% of its total era, mentioned Keriann Baker, the utility’s chief technique officer.

Together with new plans by the utility to exchange a gas-generation unit with a extra environment friendly turbine, the solar farm will scale back the pure gasoline utilized by Homer Electrical by greater than 15%, Baker mentioned. The brand new gasoline turbine may be up and operating as early as late 2027.

The utility’s lowered dependence on pure gasoline will assist preserve Cook dinner Inlet pure gasoline wanted throughout Southcentral Alaska, she mentioned.

Enstar, the gasoline utility for the area, has warned that native provides of gasoline from the growing older Cook dinner Inlet basin may start falling quick someday subsequent 12 months. The looming shortfall has despatched utilities scrambling to help new renewable initiatives. They’re additionally taking a look at importing pure gasoline to Alaska, a transfer that is anticipated to sharply enhance electrical and heating costs.

“Any gas that we can leave in the existing supply … is more gas for others to use,” Baker mentioned.

Baker mentioned the deal will enable Homer Electrical to buy solar power from the undertaking for lower than the price of natural gas as we speak. The worth might be mounted for many years, benefiting ratepayers by lowering dependence on gasoline that may fluctuate in worth, she mentioned.

“For us, it’s a no-brainer,” she mentioned of the utility.

Renewable IPP and Homer Electrical have been engaged on the undertaking for about three years, Miller mentioned.

She mentioned the undertaking will sit on land owned by the Alaska Psychological Well being Belief Authority, below a long-term lease.

Miller declined to offer the estimated undertaking value, however will probably be within the tens of hundreds of thousands of {dollars}, she mentioned.

“Our mission is to diversify the Alaska generation mix, and we want to do it in a way that suppresses prices,” Miller mentioned. “These larger and larger projects are the vehicle to allow us to do that.”

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