Homer Electric gets feasibility study permits
Four sites are being evaluated. They are located in the Moose Pass/Seward area, Ptarmigan Lake, Falls Creek and Grant Lake.
"We're very excited to be moving forward with the project," said Joe Gallagher, HEA's public relations coordinator.
HEA has three years to evaluate the potential engineering, economic and environmental impact of the project on each site. Moving forward will depend on what each study reveals.
Each site is estimated to have a potential of producing five megawatts of power. According to Gallagher, HEA's total peak load for the peninsula is about 90 megawatts.
The project would produce electricity by using a stream's natural drop in elevation and diverting the water through a duct or pipe to generate electricity, said HEA's Melissa Carlin.
"The whole idea is to keep the impact (on the environment) as small as possible," said Steve Gilbert, manager of Alaska projects for enXco, a renewable energy company that co-owns Wind Energy Alaska.
The Friends of Cooper Landing, a nonprofit organization, is opposed to HEA's Crescent Lake project out of concerns for the area's Dolly Varden and grayling fisheries, as well as impacts on surrounding black bear and moose habitat.
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Power producers sit on thousands of megawatts of underutilized plant, while consumers face frequent power cuts, both planned and unplanned.
Financially troubled generators struggle to escape insolvency proceedings. The state-owned banks that have mostly financed power utilities fear that debts of troubled utilities totaling 1.74 trillion rupees will soon go bad.
Aggressive bidding for supply contracts and slower-than-expected demand growth is the root cause. The problems are compounded by difficulties in securing coal and other fuels, high transmission losses, electricity theft and cash-starved distribution companies.
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