Two contracts for CUC green energy underway

Commonwealth Utilities Corp. is finally going green.

Executive director Abe Utu Malae said yesterday that the utilities company will soon award contracts that will tap renewable energy sources in the CNMI.

Malae said that two solar energy proposals are now being reviewed and both will be awarded contracts soon. The two projects are expected to produce an additional 15 to 20 megawatts for Saipan’s power grid.

“Realistically, we are expecting more than 15 megawatts available to CUC on Saipan within three years. But even that 15 MW will be available for no more than 12 hours per day. The price of energy to CUC will be below $0.20/kWh, which is about 10 cents cheaper than the LEAC [levelized energy adjustment clause] or the price of diesel fuel,” he said.

Another alternative energy project, Malae said, is a request for proposal to investigate the potential for geothermal energy in the Commonwealth. Proposals from the three top proposers will be reviewed next week and Malae said that two geologists from off-island are assisting CUC in this process. If proven possible, geothermal power would result in a more stable power supply, Malae said.

Another project that is now ready to be contracted is gasification or converting waste to energy, according to Malae. This small modular project is seen to produce under one megawatt. “We are working with Department of Public works on using solid waste hauled to the transfer station and landfill as feedstock.”

He said CUC is considering two proposals to capture waste heat using an Organic Rankine Cycle, which uses an organic fluid with a boiling point lower than water. The fluid enables recovery of heat from lower temperature sources such as industrial waste and geothermal heat. The low temperature heat is used to drive a turbine and create electricity.

“We have a huge technical challenge because we are pushing the envelope in connecting renewable energy generation to the small Saipan grid that is a big percentage of total demand. For example the peak load on Saipan is about 35 MW and the prospective renewables capacity can reach 20 MW within two years,” he said.

CUC is required by law to derive at least 40 percent of its energy from renewable sources by 2012. Malae believes this is impossible to meet.

The Commonwealth Public Utilities Commission, however, has allowed CUC to develop its green energy portfolio as quickly as practicable.