GVEA arranges USD 206m for sustainable rural projects, including BESS

Alaska-based cooperative Golden Valley Electric Association (GVEA) has secured a loan of more than USD 206 million (EUR 185.6m) under a programme backing energy transition in rural areas which it will utilise for three projects, including a 46-MW/92-MWh battery energy storage system (BESS).

The zero-interest loan is provided under the US Department of Agriculture's Empowering Rural America (New ERA) programme. Some USD 67 million of the total amount can be awarded in grants following project completion, a press statement says.

The BESS project will be implemented in Fairbanks. The company said it will also seek direct pay tax credits from the Internal Revenue Service for the project to achieve more economic benefits.

The second project involves transmission loop and substation construction and upgrades. It calls for the deployment of 64 miles (102.9 km) of transmission lines, the addition of two new substations and upgrades to GVEA’s existing North Pole Industrial Substation to reliably interconnect large-scale variable generation onto Alaska’s unique grid.

The third project is related to the future retirement of Unit 2 of the coal-fired Healy Power Plant.

The three projects are part of GVEA’s New ERA community benefit plan (CBP) aimed at stabilising rates, increasing renewables adoption and reducing carbon emissions from its existing generation profile.

The addition of the three projects will allow the cooperative to enter into a wind power purchase agreement (PPA) of up to 150 MW. The size of the initiative depends on results from various interconnection and system studies and final project costs, GVEA noted in the statement.

(USD 1 = EUR 0.901)

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