GVEA Receives a 55-Megawatt Hybrid Power Generation Project Proposal

Golden Valley Electric Association has received a proposal from Eco Green Generation LLC (EGG) of Monument, CO, an independent power producer, to add 55 megawatts of energy to GVEA’s system.

EGG proposes to add 11 cogeneration units, 9 in Fairbanks and 2 in North Pole. Each unit will produce 5 megawatts of electricity using LNG or propane. The cogenerating units would be positioned near large commercial buildings, enabling the waste heat to be used by those buildings.

EGG’s proposal includes a 25-megawatt wind farm near Delta Junction, and a 4.4-megawatt battery energy storage system. The 11 cogeneration units would employ reciprocating engines that can be throttled up and down quickly, taking up the slack if the wind suddenly dies down.

The proposed project involves Alaska Environmental Power (AEP) of Delta Junction. AEP currently provides GVEA with 2 megawatts of wind power. Under this proposal, AEP would receive one third of the net revenue from the project.

EGG has laid out an ambitious timeline for the project, anticipating it to be online by November 30, 2019.   “If this project is able to deliver on its promises, it could be something positive for the Interior,” said Cory Borgeson, GVEA President and CEO. “GVEA is always looking for ways to lower our members’ costs and reduce our emissions.”

Under the Public Utility Regulatory Policies Act (PURPA), utilities are obligated to purchase power from independent power producers as long as there are no adverse impacts on reliability or rates. GVEA has hired an independent engineering firm, to assist GVEA staff, in evaluating EGG’s proposal to determine any impacts to GVEA’s system and to calculate associated costs. GVEA has until February 27 to respond.

Cogeneration is not a new idea in the Interior. The Aurora Power Plant on the Chena River has been generating both electricity and steam heat for downtown Fairbanks since the 1950s. The new UAF power plant is also a cogeneration unit that provides both heat and electricity to the campus. “It makes sense to use waste heat, particularly in a cold climate like ours,” said Brian Youngberg, Vice President of Member Services at GVEA.

To view the documents that were issued to GVEA (proposal letter and attachments), simply click on the appropriate link below: