The Alaska Energy Authority (AEA), in partnership with the Railbelt utilities, filed a license amendment with the Federal Energy Regulatory Commission as an initial step in pursuing the Dixon Diversion hydroelectric project.
According to a press release, the addition of Dixon Diversion would be the largest hydropower development project on the Kenai Peninsula since the 120 MW Bradley Lake Hydroelectric Project was developed. The proposed project would be located 5 miles southwest of Bradley Lake on the Kenai Peninsula.
AEA owns the Bradley Lake project, which generates 10% of the total annual electrical energy used by Railbelt electric utilities and provides power to about 550,000 Alaskans. The Railbelt utilities include Chugach Electric Association, Golden Valley Electric Association, Homer Electric Association, Matanuska Electric Association and the City of Seward.
Completion of the Battle Creek Diversion project in 2020 increased Bradley Lake’s output by about 10%. Now, AEA is studying the Dixon Diversion to optimize Bradley Lakes’ energy potential further.
Similar to Battle Creek, the Dixon Diversion would divert water from the East Fork of the Martin River into the Bradley Lake reservoir. The Dixon Diversion project could increase the power output at Bradley Lake by almost 50%.
The development timeline includes five years of studies and permitting, followed by five years of construction. The project’s estimated construction cost is $400-$600 million. The construction funding source is yet to be determined.
AEA is a public corporation of the state and was created to reduce the cost of energy in Alaska.
