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Like many isolated communities across the world, Nome has extremely high energy prices due to its remote nature. Currently, the unsubsidized energy rate in Nome is 38 cents/kWh while the national average is 13 cents/kWh. To assist remote Alaskan communities who would otherwise pay a steep price for their energy needs, the power cost equalization program (PCE) provides a subsidy of 13 cents/kWh to lower the price of residential electricity. Most commercial and industrial customers have to pay the unsubsidized rate. Therefore, finding a cheaper energy source to reduce the energy rate for consumers and the economic burden on state government programs is highly desirable. 

To this end, our project aims to perform techno-economic analysis (TEA) to analyze a nuclear-renewable hybrid energy system (NRHES) to potentially replace the existing diesel-wind hybrid energy system that Nome currently uses. Finding cheaper energy options for Nome, decarbonizing the energy grid, making an economic case for advanced reactor deployment in remote locations, and starting a pipeline of students who understand nuclear energy economics within the School of Nuclear Science and Engineering are our goals for this project. 

To achieve our objectives, REopt, a techno-economic analysis software from the National Renewable Energy Laboratory, will be used to analyze a potential NRHES for Nome’s future energy needs. Solar, wind, battery storage, and advanced nuclear energy sources are considered in this analysis. Key economic figures of merit such as the internal rate of return (IRR), net present value (NPV), and levelized cost of electricity (LCOE) will be determined and compared to Nome’s current diesel-wind energy system. 

This project will demonstrate whether a NRHES is economically viable or if changes to economic variables are needed for viability to occur. Our project will also examine the relationship between key economic variables and energy system variables such as the dispatch size. TEA work is crucial to provide an economic argument for advanced nuclear reactors and for helping remote communities afford reliable energy. We also have identified several remote communities who have high energy rates and rely heavily on fossil fuels for future TEA work.