The $15 million, first phase of the project calls for 64 new transformers, 130 steam trap heating system repairs, electrical control system upgrades in 21 buildings, and 1,130 new light fixtures at the country’s largest Coast Guard base. The work is expected to begin in February and be completed over two years.
The Coast Guard expects that $15 million investment will save it more than $30 million on its energy bills over 22 years. The partnership with the local electric cooperative is in effect for up to 25 years according to the contract from the Defense Logistics Agency Energy.
Gordon Hood, the commanding officer on Base Kodiak, said in an email this is, “great news for the entire Kodiak community and a timely investment in the long-term resilience of the Base.”
Kodiak Electric Association CEO and President Dan Menth said beyond the work itself and getting an annual management fee, there’s another benefit to the partnership.
“It’s been advantageous for us to have a seat at the table, so that we can have some control over what additional load may be coming to the community," Menth said. "And making sure that we’re in a spot to be able to handle it, hopefully avoiding diesel generation and additional costs.”
Future phases under the partnership have not been finalized yet but the Coast Guard said it is expecting more work to be funded.
Chris Sibrel, director of public works on base, said future work could include installing an electric boiler. Currently, a steam boiler that burns diesel is the main source of heat on base.
“We were hoping to replace it with an electric boiler to give us a little more resilience against fuel if we missed a delivery, but also just a greener way to go," Sibrel said. "But when this idea came up five years ago, KEA had lots of capacity. ”
Nowadays, the utility can’t consistently meet Kodiak’s electricity demand with renewable sources alone. Right now, more than half of Kodiak’s power is being supplied by diesel generators.
Menth said an electric boiler of this kind could add up to 2 megawatts of demand – roughly equivalent to what one wind turbine on Pillar Mountain generates. He said they can’t handle that future load without burning expensive diesel.
Sibrel said other market changes have also impacted the prospects of a boiler replacement.
“Quite a few government contracts have exploded because of tariffs and inflation on parts, and just getting parts, like transformers. We ordered transformers but a lot of those are two years out," he said. "A lot of those supply chain problems have made things cost more and so our original idea of what we could afford, you know, we had to shop for what we could afford.”
Locally, the cost of diesel was up to $7.11 a gallon as of Nov. 6.
Kodiak Electric Association, along with Ameresco Inc., helped the Coast Guard secure a loan from a third-party for the first phase of this project. Sibrel said the loan will be repaid by the Coast Guard in monthly payments once construction is complete.
