US-based utility Chugach Electric Association has successfully commissioned a new 40MW/80MWh 2-hour duration battery energy storage system (BESS) in Anchorage, Alaska.
The US$65 million BESS consists of 24 Tesla Megapack units and is located near Chugach’s Southcentral Power Project, a 204MW power station. It will connect to the state’s Railbelt electricity grid, which stretches from Fairbanks through Anchorage to the Kenai Peninsula.
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The BESS’s footprint means it could be expanded in the future to a 70MW system. The utility also said that the project may qualify for investment tax credits.
As confirmed by Chugach, the BESS has split ownership. The utility has a 75% stake, while the electricity cooperative Matanuska Electric Association maintains a 25% stake.
Arthur Miller, CEO of Chugach, highlighted that the BESS project will “enhance system flexibility, boost reliability, save fuel, and bring cutting-edge technology to the Railbelt”.
“It’s a crucial step as we work to diversify power generation and create a more dynamic system.”
The BESS will act as a backup resource for both Chugach and MEA during disturbances, such as transmission line interruptions, generation issues, or other load-shedding events. It will be capable of stabilising the grid by both providing and absorbing power.
Tony Izzo, CEO of Matanuska Electric Association, said the project will support additional energy storage technologies in the region, such as the 120MW Bradley Lake Hydro project, to grant greater resiliency on the Railbelt.
“We understand that reliability of power is the number one priority for our co-op members, and this initiative will improve power quality from the Bradley Lake Hydro project while reducing costs and increasing generation options for the entire region,” Izzo said.
Alaska’s second-largest BESS receives government funding
Coverage by Energy-Storage.news last month (13 September) revealed that utility Golden Valley Electric Association would receive US$206 million from the US Department of Agriculture’s Empowering Rural America (New ERA) programme to help develop three projects, including the state’s second-largest BESS: a 46MW/92MWh system in Fairbanks.
The system is a pinch smaller than one from Home Electric, which was commissioned in 2022 using a Tesla BESS.
In June 2024, GVEA secured a US$100 million loan from the US Department of Rural Affairs to support the development of the 46MW Fairbanks BESS and other, smaller transmission upgrades, including a solar PV project.
