AEA, Railbelt utilities pursue Kenai Peninsula’s largest hydropower project in 30 years
Christian Fernsby ▼ | May 6, 2022
The Alaska Energy Authority (AEA), in partnership with the Railbelt utilities, has filed a license amendment with the Federal Energy Regulatory Commission as an initial step in pursuing the Dixon Diversion.Article continues below
The addition of Dixon Diversion would be the largest hydropower development project on the Kenai Peninsula since the Bradley Lake Hydroelectric Project was first developed.
The proposed project would be located five miles southwest of Bradley Lake, approximately 27 miles northeast of Homer on the Kenai Peninsula.
AEA owns the Bradley Lake Hydroelectric Project, the largest hydroelectric plant in Alaska. This 120-megawatt facility generates 10 percent of the total annual electrical energy used by Railbelt electric utilities and provides some of the lowest-cost power in the state to about 550,000 Alaskans.
Following the successful completion of the Battle Creek Diversion project in 2020, which increased Bradley Lake’s output by about 10 percent, 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, as planned, could increase the power output at Bradley Lake by almost 50 percent.
Bradley Lake currently electrifies the equivalent of 54,000 homes. The Dixon Diversion Project has the potential to power an additional equivalent of up to 30,000 homes. The development timeline includes five years of studies and permitting, followed by five years of construction.
The project is projected to create significant job benefits in construction and operations over its lifespan. The project’s estimated construction cost is between $400 and 600 million. The construction funding source is yet to be determined. ■ What to read next
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