A business case analysis was performed for the Village of Chefornak. The business case analysis evaluated the optimal case from the technical analysis performed by the National Renewable Energy using HOMER. The optimal case adds an 800 kW wind plant with 650 kW of electric thermal stoves and a 300 kW battery. The project cost $5.8 million. The direct cost of electricity would likely decline from $0.41/kWh to $0.30/kWh. The direct costs don’t include administrative and distribution costs. The addition of the renewable resources and thermal electric stoves reduced total fuel consumption by more almost 80% or approximately 103,000 gallons. The reduction in cost provides an opportunity for Chefornak’s utility, the Naterkaq Light Plant, to obtain financing through grants and loans to install renewable energy and reduce overall fuel consumption to the community.
Revised: September 4, 2018 |
Published: November 27, 2017