CUC moves forward on geothermal power search and energy planning

The Commonwealth Utilities Corp. is moving forward in its energy plans through two projects that will help map out the CNMI’s future on energy.

The two essential projects are the Geothermal Resource Assessment and Integrated Resource Plan and Energy Supply Analysis.

According to CUC executive director Alan Fletcher, both projects are now underway following formal procurement and selection processes.

The geothermal feasibility study will perform “exploratory deep drilling” on Saipan that will go three times deeper than the current groundwater and injection wells.

This will help confirm any heat source that may be present and gather geological information such as the rock type, alteration, structural deformation, and permeability.

“A temperature of 300 degrees Fahrenheit or higher will indicate whether a viable geothermal resource exists in this area of Saipan, as has been suggested by previous findings of warm water in this same area during shallower, water well drilling,” Fletcher stated.

According to him, the prime contractor for the project is 4I’s CNMI LLC, along with subcontractors Maevelle Energy and Alexander Drilling.

Fletcher said that in October 2013, CUC had begun work with geothermal experts from the National Renewable Energy Laboratory and Southern Methodist University to draft a new request for proposal for Saipan.

“Following industry-wide advertisements, a source selection committee comprised of geologists and engineering professionals made the contractor selection. The contract negotiations with 4i’s CNMI LLC was completed in the end of June and beginning of the meeting was July 7,” Fletcher said.

For energy solutions, Fletcher is working with Leidos Engineering, LLC.

The integrated resource plan project’s purpose is to determine the best combination of both base-load and renewable energy sources capable of providing reliable power at the lowest price to consumers.

“This will determine the community’s long-term energy plan and assuring that the best possible mix of technologies, management, and financing options is selected,” Fletcher said.

He said the first activity CUC conducted on the integrated resource plan was obtaining stakeholder input and developing a request for proposal for the base-load energy supply.

“CUC hopes to attract a wide range of responsive and responsible energy supply proposals by offering an open and competitive procurement,” Fletcher said.

He also said that Leidos will also conduct an independent third-party technical evaluation and monitoring of the proposals for a most “cost-effective, long-term” energy solution for consumers.

“Today, fuel costs account for 70 percent of the electric bills in the CNMI and converting to another source of base-load generation has the greatest potential for economic savings for consumers,” Fletcher said.