Blog: Capital Focus
The promise of hydro
Published Monday, February 23, 2009
Many Alaskans turn to the old dream of a hydroelectric dam at Susitna as an answer to high energy costs, supply uncertainty and damaging emissions.
The state, too, is taking a second look at the project, which was more or less shelved in the mid-80s as oil prices plummeted — despite millions in planning represented in dozens of binders of data.
A major hydroproject providing electricity to railbelt utilities could play into a joint electric corporation that Gov. Sarah Palin is proposing.
Part of her plan involves consideration of new generation options that could power the needs of utilities pumping out 800 to 1,000 megawatts now.
The Legislature in 2008 allocated money to revisit the engineering studies and refresh a cost estimate.
James Hemsath, deputy director of project development for the Alaska Industrial Development and Export Authority, briefed the Senate Resources Committee this afternoon.
A massive hydro project at Susitna — actually, two dams — was estimated to cost $5.4 billion in 1985 dollars. The project could take 15 to 20 years to construct at a price tag of up to $12 million. The dams could generate 7.2 billion kilowatt hours of energy per year.
Power produced during 50 years of financing could be about 16 cents per kilowatt hour, not much more than the 13.5 cent-average in Anchorage and the 2008 high average of 28 cents in Fairbanks. Cost of power after the project is paid off could be three to four-tenths of a cent per kilowatt hour.
They also heard from TDX Power officials, proponents of the Chakachamna hydroproject.
According to TDX, Chakachamna would not involve a dam, but control of flow in a "power tunnel." The 330 megawatt project could generate 1.6 billion kilowatt hours of energy annually, meeting about a third of current demand along the railbelt.
The project cost is estimated at $1.7 billion. TDX said the project could come under construction within 54 months of starting permitting work, and may generate power in 2017.
Utility support would be critical in developing the project, TDX officials said.
This shows why it is so impotent to pay cash!
"..snip]...and the 2008 high average of 28 cents in Fairbanks. Cost of power after the project is paid off could be three to four-tenths [.004] of a cent per kilowatt hour. "
If we pay cash for the construction or by getting some of the bail out money the cost per kwh is well under 16 cents!
It is debt service is a very expensive!
Also, we might be able to export power to the North American Power grid.
It is debt service is a very expensive!
correction:
Debt service is very expensive!
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