It's actually a pilot project with relatively modest cost (much less than many of the projects I work on). It's a feasibility study in effect. And the 7M is available (cap) for procurement. Depending who bids, and if it's fixed price vs cost plus etc. it could be less or even zero if the locals/tribes don't want to do it. It's merely available.
Conclusion
This analysis compares the cost of installing and operating a moderately sized solar PV system to recent diesel
fuel expenditures for electricity generation for several remote villages across Alaska. The high-level results
indicate there are plausible scenarios in which PV can be economically competitive with diesel fuel prices at
low PV penetration levels. In this analysis, the cases where PV appears economically competitive generally
required a combination of (1) high diesel fuel prices (at least 40 cents/kWh), (2) relatively low, for Alaska, PV
prices (approximately $6 to $9 per W installed), (3) relatively high, for Alaska, solar production levels
(capacity factor of nearly 10% or higher), and (4) the ability to make use of economically valuable tax
benefits provided by the federal government. Solar development is likely to be favorable for other Alaskan
villages not considered in this analysis but that have a similar combination of characteristics. However, to
advance this high-level analysis to more precise estimates and eventually a large increase in deployed solar
projects in Alaska, a select number of potential barriers noted previously will require further research or
business ingenuity to address. Some of these barriers include, but are not limited to, the following.
• The integration of solar PV with a diesel generator is an ongoing area of study and demonstration.
The simplifying integration assumptions, including seasonal variability, made in this analysis should
be revised when better information is available.
• Regulatory and business structures such as how to work with the current PCE formula and how to
utilize the valuable federal tax incentives will need to be addressed by the stakeholders involved.
• Further refinements in real-world installation and maintenance costs of large-scale PV systems in
rural Alaska will provide more accurate inputs to the economic modeling.
Despite each of the simplifying assumptions made here, this analysis suggests that solar PV—along with fuel
and other electricity savings measures—can be economically competitive in many remote Alaskan villages
and could have a number of benefits including reducing a village’s dependency on diesel fuel, improving
electricity price predictability, providing local environmental benefits, and more.
Edited by user
10 years ago |
Reason: Not specified