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HomeMy WebLinkAboutAdak Hydroelectric Feasibility Study Tech Report 09-18-2013CITY OF ADAK •, t=d Hydroelectric Feasibility Study ARnI 2gt1 Technical Report Prepared For: City of Adak Prepared By: McMillen, LLC Funded in part by the Economic Development Administration Grant#: EDA 07-79-06843 MCMILLEN, LLC September 18, 2013 City of Adak Hydroelectric Feasibility Study Executive Summary The purpose of this report is to evaluate alternatives, prepare a preliminary engineering analysis, and examine the feasibility of producing hydroelectric power from streams and reservoirs near Adak, Alaska for the City of Adak. Special emphasis is given to projects that y involve Lake Bonnie Rose or Lake De Marie because of their close proximity to and integration with other city interests. The Project includes alternatives development as well as site analyses, geographical investigations, geotechnical analyses, hydrologic analyses, and design criteria development. As part of design criteria development, integration with the city's water supply and electrical grid as well as construction feasibility, and environmental and permitting issues are given strong consideration. This report and its appendices include preliminary engineering design for three alternatives, including preliminary cost estimates and the recommended alternative for development. Adak Island was originally developed by the U.S. Navy during World War II. In order to provide the base and its personnel with power, a sizeable diesel generation system and electric distribution network was developed on the island. The Navy continued operations on the island until 1997, when the base was closed and the land and associated infrastructure were turned over to the Aleut Corporation and the City of Adak. This changed the electrical demand from a military base with some 6,000 or more personnel to a small Alaskan city of approximately 300-400 residents. Electrical costs on the island are high due to the oversized generation system and a complete reliance on diesel fuel which has been increasing in cost in recent years. In addition, much of the work on the electrical grid dates back to the Cold War and World War II with components that are, in many cases, decades old, inefficient, and nearing the end of their useful life. Due to the high electrical costs and unreliability of the system, the Aleut Corporation, the City of Adak, and Adak Community Development Corporation are not able to pursue the strategies outlined in the Economic Adjustment Reuse Plan. The City's over-riding need for this Project is to examine hydroelectric development from Lake Bonnie Rose and Lake De Mane, as well as surrounding areas to evaluate whether the associated cost savings provide a feasible project. From the feasible alternatives, a preliminary design for three preferred alternatives are developed that can readily be integrated into design -build activities. One of the most important considerations is how each alternative integrates with the City's existing electrical system. A field reconnaissance of the electrical system was conducted in April 2013 with results discussed in this report and in Appendix D. The key finding is that the system is at or near the end of its useful design life. There are numerous examples of switching stations and transformers showing signs of wear with indications that they are about to fail. One transformer provides the sole route for power from the generators to the electrical grid. Failure of this transformer will render the city without power until a replacement transformer can be installed or standby generators will need to be used. Because of the remoteness of the island, this may result in days or weeks without power. Based on recent communication with the City, the power system recently has been exhibiting serious issues that confirm the April findings. In a recent discussion with a City official, 30 outages have occurred in the first half of the month of September (2013). The last remaining generator is not sized properly for a city of the size of Adak and is inefficient, especially during low load periods. The combination of the above issues makes energy costs higher than most surrounding cities and villages. Given Adak's strong economic development potential with excellent port and infrastructure, lower cost energy will create an economic growth center with major benefits to the region and the State. Because of the poor condition of the existing generators and electrical grid system, a reconnaissance level cost estimate to replace the electrical grid and generators was completed and is presented in the report. The McMillen, LLC Page 2 Draft Technical Report September 18, 2013 City of Adak Hydroelectric Feasibility Study cost for full replacement is estimated at just under 17.5 million dollars. This includes replacement of the diesel generating system as well as all main feeder power lines, switches and transformers. Even without hydropower installed, the replacement of this system saves at least 20% in diesel generating costs due to greater efficiencies as a result of properly sizing the generating system and less line losses in the distribution system. Having the electrical grid and generators replaced would also allow for maximum benefit from the hydroelectric and wind power resources. The current diesel system consisting of one generator and largely manual controls would make fully utilizing variable hydro inputs and working with partial demand loads difficult and inefficient. After field reconnaissance and geological and hydrological evaluation, three alternatives have been selected as possible power generating systems for the city. Detail on how these three alternatives were selected is given in Appendix D. The three alternatives are summarized briefly in the Table below: NEFELOWr Alt. IAlt. Alt. 2 3 Alternative/Issue Wind- Pump Storage Lake Bonnie Rose Dam to Moffett Creek PRV1 Potential Powerhouse 2 MW (Hydro)" 246 kW 513 kW Size 4.5 MW Wind Potential Total Project $54.9 Mil $21.3 Mil $18.5 Mil Cost • Installation of wind Raise/fix Bonnie Rose turbines near Lake Dam to create 21000 • Build two DeMarie. acre-feet of useable diversion dams on • Raise/fix Lake storage. the North and DeMarie and Lake Replace city water South Forks of Bonnie Rose Dams to main from Dam to Moffett Creek. provide 2,000 acre- Pressure Reducing • Combine water on feet of useable storage Valve house one North Fork and Basic Description for each dam. (PRV-1) and use deliver down • Install 2 Francis turbine to convert penstock to turbines to pump water excess pressure to powerhouse at head of valley. to upper reservoir electrical power. * Generate power during windy periods • Use excess water to with new Turbine. to buffer system and create more power at generate power when 2nd turbine near Mitt Requires 5 miles of wind is down. Lake. transmission line. * This is the capacity of water turbines. Wind turbines will have a capacity of 4.5 MW and the average capacity of this system depending on wind patterns will be close to 2.5 W. Alternative 1: Wind- Pump Storage Alternative 1 takes advantage of two natural features that are available in the mountains southwest of Adak. First, there are ridgelines with strong, reliable winds passing through the area. Second, there are two lakes, Lake Bonnie Rose and Lake De Marie, in close proximity to one another with an elevation difference between the lakes of approximately 500 feet. In order to utilize wind as an energy source, a buffer is required in order to provide consistent power during low wind periods and utilize the excess energy generated during peak wind periods. To provide this buffer, a pump storage system will be installed under this alternative between Lake Bonnie Rose and Lake De Marie. Each dam will be raised so that each reservoir will have a useable storage up to 2,000 acre-feet. Bonnie Rose needs to be raised 6 feet at the spillway while the De Marie dam requires a 14.1 foot raise in height. Both dam raises are designed to encapsulate the existing dams and needed repairs to both dams will occur as part of the Dam raise. The design includes a new 42-inch diameter steel penstock that will be located McMillen, LLC Page 3 Draft Technical Report September 18, 2013 City of Adak Hydroelectric Feasibility Study from the Lake Bonnie Rose dam and extend approximately 4,860 feet down the valley to the upstream end of Lake De Marie and the new powerhouse. The 42-inch penstock will accommodate up to 60 cubic feet per second ("cfs") of water. Under normal operating conditions, the system flow is designed to be between 20 cfs and 60 cfs. Depending on configuration, power output from the turbines is estimated to be up to 2 megawatts ("MW"). Power output from the three wind turbines installed as part of this alternative can be up to 4.5 MW. If all power sources are cumulated (i.e. the new diesel generators, the wind and the water turbines when the reservoir is full) there is a potential peak power output of 8.5 MW but this generation output can only be sustained for short time periods. At Lake De Marie, a new powerhouse will be constructed to house the two Francis style turbine/pump units as well as all of the necessary electrical and controls systems. The Francis style turbine generator units are capable of being operated as a pump or turbine, allowing for the dual -use pump/storage as designed, without the need for additional piping and equipment. This allows the units to pump water from Lake De Marie to Lake Bonnie Rose when excess wind power is available and generate power by flowing water from Lake Bonnie Rose to Lake De Marie when wind power is not adequate to meet the City's electrical demands. The ridge selected for the wind turbine farm is located east of Lake De Marie, directly north of Lake Bonnie Rose. This ridge was selected due to its proximity to the proposed Lake De Marie powerhouse as well as the generally exposed wind conditions. Three, 1.5 MW wind turbines were preliminarily selected for the feasibility analysis of Alterative 1. This ensures that during optimal wind events, with turbines operating at peak capacity, there is still power available for pumping flow from Lake De Marie to Lake Bonnie Rose as well as meeting city power demands. For wind turbine integration into the pump storage system, an approximately 0.35 mile long transmission line will be required between the wind turbine farm and the Lake De Marie powerhouse. To transport the power back to the city, a new transmission line will be required from the powerhouse to the south side of town, adjacent to the small boat harbor. This transmission line is designed to be approximately 1.6 miles long. A preliminary analysis was performed in order to determine the approximate amount of power that may be generated by Alternative 1 on an annual basis. Based on wind analysis summarized in report, there is a strong likelihood that the wind turbines will operate over 85% of the time. During times when there is adequate wind, a pump or pumps will buffer spikes in available wind energy and push water from Lake De Marie to Lake Bonnie Rose. Wind power will provide power both for the pump(s) and to the power needs of the city. During times of inadequate wind, water will flow from Lake Bonnie Rose to Lake De Marie and the turbine units will provide electrical power in place of wind. Because the time period of adequate wind is 85% of the time, the capacity of the pumping system may be smaller than the turbine system. The exact configuration of turbine power vs. pump capacity is beyond the scope of the reconnaissance -level evaluation. However, a well -configured combination of wind and water turbine power can be designed to minimize the diesel fuel generation as a back-up to the system. Based on the preliminary analysis and assumptions of the available wind for generation, it is estimated that the system will be capable of generating a base rate of 2 MW of power. This will result in a potential annual generation of approximately 17,500 mega -watt hour (MWh). Because wind is producing near peak capacity for 40% of the time, the average output of this system is approximately 2.5 MW. However, in order to use this level of power, there needs to be demand during times when the wind power is available. In order to verify the wind resource available, a year -long, site -specific wind study will be required prior to final design. The reason for a site -specific wind study is to understand the local turbulence and the predominant direction of the wind in order to create the best wind turbine design. McMillen, LLC Page 4 Draft Technical Report September 18, 2013 City of Adak Hydroelectric Feasibility Study Alternative 2: Bonnie Rose Dam to PRV-1 and Mitt Lake Lake Bonnie Rose combines high elevation (738.6 feet) with storage and a watershed of nearly 2 square miles to provide water to the reservoir and lake. This creates a high head water source to be used for generating power. Alternative 2 utilizes this water source to develop powerhouses at PRV-1 and Mitt Lake. Starting at Lake Bonnie Rose, a dam repair and raise will be completed to provide more reservoir storage. The current dam has deficiencies in the main embankment as well as in spillway capacity. The raise of the dam is similar to Alternative 1 except instead of a 42 inch penstock there will be a new 15-inch steel penstock, approximately 7,600 feet long, that will be installed from Lake Bonnie Rose to the new powerhouse located at the existing PRV-1 station. Currently, there is a steel pipeline that follows this exact routing as the city's water supply pipeline. This water supply pipeline is estimated to have been installed during World War II, with minimal upgrades since, and is reaching the end of its useful life. One of the key benefits of Alternative 2 is the replacement of this pipeline with a new, reliable penstock serving both the city water supply and power production. The new, larger penstock will allow the full flow of up to 6 cfs to be transported to the new powerhouse, at the existing PRV-1 site, with minimal head loss. The new powerhouse will be located adjacent to the existing PRV-1 station. The remainder of the flow not required by the City, approximately 5 cfs, will be diverted into a new 15-inch steel penstock to convey the excess water from PRV-I to the Mitt Lake powerhouse. This exposed penstock will be approximately 2,200 feet long running alongside the existing road. Both generators will be Pelton style with the one at PRV-1 producing 167 kW and the one at Mitt Lake producing 79 kW. In order to integrate the two powerhouses and the City electrical network, a new transmission line will need to be installed from the PRV-1 powerhouse, along the road, to the south side of town near the small boat harbor. If it is assumed the powerhouses will have an operation time of 80%, the system will be capable of generating approximately 1,725 MWh annually. Alternative 3: Moffett Creek Moffett Creek's watershed drains from a nearly 4,000-foot peak. This is the highest point on Adak Island and nearly double the elevation of the mountains that drain to form Bonnie Rose or other creeks near Adak. For this reason, Moffett Creek receives considerably more snow and stream flow peaks later in the summer than the creeks supplying water to Bonnie Rose. Moffett Creek also has a greater unit discharge per basin area than streams near Bonnie Rose. Because of the combination of high elevation and a good water supply, Moffett Creek has potential for hydropower. This alternative includes two diversion structures (small dams), a pipeline between diversions (15 inch; 1,050 feet long), and a penstock to a powerhouse located at the head of the valley. It also requires a transmission line that is 4.1 miles long. The diversion structures will be small, approximately 10-15 feet in height and 200-230 feet long. The diversions will be constructed with twin sheet pile walls with an earthen fill between them. The intake portion of the diversion will be located at the approximate creek bottom location and be controlled with a pair of slide gates. In high flow events, these gates will be capable of allowing water to bypass the diversion structure and travel down the existing stream channel. The gate arrangement will also allow the intake structure to function with the presence of surface ice as the intake will draw off of the bottom of the water column instead of the surface. The main, 28 inch, penstock delivering flow to the Moffett Creek powerhouse will extend from the main division approximately 4,550 feet down the valley to the powerhouse. The Moffett Creek powerhouse will be located just upstream of a natural stream gradient break point at an approximate elevation of 240 feet. Because the stream upstream of the powerhouse consists of poor habitat that may not contain fish, the full McMillen, LLC Page 5 Draft Technical Report September 18, 2013 City of Adak Hydroelectric Feasibility Study stream flow of the creek can probably be used for hydropower. Within the powerhouse, a Pelton style turbine generator assembly will be located along with all the necessary electrical and controls equipment. Based on the preliminary analysis of Alternative 3, it is estimated that the system can produce an average of 300 kW. This estimate includes the variation in stream flows as well as down time for maintenance related items. Maintenance related downtime is expected to be performed during low power demand periods to minimize effects on generation. Based on these assumptions it is estimated that the Moffett Creek powerhouse will generate approximately 2,628 MWh annually. However, since this configuration is run of the river, considerable adjustments will be needed with this system as there is considerable stream flow variability and very little storage. Comparison of Alternatives All three alternatives are feasible from a constructability standpoint. All three have key obstacle(s) that need to be overcome before construction occurs. The major difference among the alternatives are each systems overall capacity, pattern of power production, and cost both in terms of absolute cost and cost per kilowatt hour. The table below summarizes some of these comparisons and contrasts. .Alternative/ Issue Alt. I Wind- Pump Storage Alt. 2 Lake Bonnie Rose Moffett Creek Dam to PRV-1 Potential Powerhouse 2 MW (Hydro) 246 kW 513 kW Size 4.5 MW (Wind) Potential Total Project $54.9 Mil $21.3 Mil $18.5 Mil Construction Cost Potential Annual O&M $568,000 $1,863,940 $1,554,540 Cost* Cost per kilowatt hour (expected use;688 $0.61 $0.72 $0.52 KW)** Cost per kilowatt hour (base pump storage $0.21 $0.48 $0.45 capacity; 2 MW)** • Land ownership has not • In stream flow In stream flow been determined. reservation will need reservation will Ordinance cleanup has to be adjusted. need to be not been completed. Biggest Obstacle(s) • Requires wind study. adjusted. • Stream flows extremely • High cost on absolute • High cost on kWh variable making basis basis generation to full potential difficult. • Provides power for Provides relatively both city and future constant power to development. grid which will • Uses natural features reduce generation costs if tied into • Provides 1/2 MW of Biggest selling point (wind and large lake system correctly. Hydro power at areas) to highest • Will improve city relatively low cost advantage.) water supply • Fixes Bonnie Rose reliability and fix dam Bonnie Rose Dam. McMillen, LLC Page 6 Draft Technical Report September 18, 2013 City of Adak Hydroelectric Feasibility Study *This potential O&M cost includes the estimated cost of diesel generation under each of the alternatives at the expected use level (688 kW average use) which is double that of the current AEA estimate given (AEA, 2013a). ** The cost per (kilo -watt-hour (kWh) for expected (688 kW average use) and full use (2 MW average use) includes cost for upgrading the electrical grid ($17.5 million) and all financing charges assuming 3% interest and 40 year buyback period along with estimated diesel costs and other operation and maintenance costs.. In order to better evaluate the alternatives, the alternatives need to be compared with leaving the system "as is" versus replacing the power grid and generators as the first step towards hydropower. The Table below starts with the existing system, adds replacement of the distribution grid diesel generation system and then adds the incremental benefit, as well as costs, of adding each of the hydropower alternatives. Total Cost per kWh including Description of Improvements Cost of Improvements construction and O&M Costs including diesel generation costs Existing System -No Action $1.24/kWh for Current Load (344 kW)** No improvements $0 $0.88/kWh for Expected Load (688 kW)** NA* for Higher Loads (2, 2.5 MW) New Diesel generation and power Grid (no hydro Alternatives Replace existing generators with 3 new $0.66/kWh for Current Load (344 kW) Diesel generators. Replace electrical $17.5 million design and $0.50/kWh for Expected Load (688 kW) grid with new wiring, switches, construction cost $0.40/kwh for P/S Base Load (2 MW) transformers etc. NA* for P/S Average Load (2.5 MW) Alternative 1: Pump Storage between Bonnie Rose and DeMarie with Wind Replace diesel generators and $17.5 million for new power grid and diesel generation $1.23/kWh for Current Load (344 kW) distribution grid. Raise Dams, install $54.9 million for Design and $0.61/kWh for Expected Load (688 kW) turbines Penstock, water and wind as Construction of AlternativeTotal $0.21/kwh for P/S Base Load (2 MW) well as power house and lines. Cost: $72.4 million $0.17/kwh for P/S Average Load (2.5 MW) Alternative 2: Lake Bonnie Rose to PRV-1 to Mitt Lake Replacement of electrical grid and $17.5 million for new power $0.83/kWh for Current Load (344 kW) diesel generation system. Raise Bonnie grid and diesel generation $0.72lk Expected8 Wh for Expected Load (688 kW) Rose Dam. Construct 2 penstocks, 2 $21.3 million for Design and $0.48/Whkwh for Base Load (2 power houses and transmission lines. Construction of Alternative NA* for P/S Average Load (2.5 MW) Total Cost: $38.8 million Alternative : Moffett Creek Replacement of electrical grid and diesel generation system. Design and $17.5 million for new power $0.70/kWh for Current Load (344 kW) construction of two diversion dams, a grid and diesel generation $0.52/kWh for Expected Load (688 kW) diversion pipeline, penstock and $18.5 million for Design and $0.40/kwh for P/S Base Load (2 MW) powerhouse, as well as transmission Construction of Alternative NA* for P/S Average Load (2.5 MW) line for Moffett Creek to main Total Cost: $36.0 million distribution grid. *NA- Not applicable because system cannot meet these load demands. ** The $1.24 per kWh is based on recent pricing from TDX for Adak The $0.881kWh is based on adding non fuel costs to a $0.41/kWh fuel cost from AEA report and then adding a $0.11/kWh cost to reflect a recent cost increase. McMillen, LLC Page 7 Draft Technical Report September 18, 2013 City of Adak Hydroelectric Feasibility Study Each of the actions has a cost for construction of the improvements as well as the total cost that factors in Operation and Maintenance and the cost of providing diesel fuel. For comparison, according to AEA statistics, the cost per kWh in 2012 was $1.13/kWh for residential users. Based on a recent personal communication, this rate is to be raised to $1.24 per kWh. Also according to city sources, rates vary from $1.09 per kWh to $1.78 per kWh based on type and amount of use. According to the AEA report, the fuel related generation cost is $0.41 per kWh. Operation and maintenance and other non -fuel related costs for the current usage of 344 kW are $2,170,496 based on data from the 2013 AEA report. This non -fuel cost is used as abase figure for the expected load (688 kW) as well. When the grid and diesel generators are replaced, the maintenance and operation costs, besides diesel costs, are reduced to 200,000 dollars due to the fact that new equipment is installed that is properly sized to the system. This greatly reduces maintenance costs. In evaluating the costs per kWh, there is value to replacing the electrical grid and diesel generators no matter what the expected load may be. Compared with no action, there are consistent savings at all loads. For hydropower, the results show that Alternative 1 is a cost saving alternative if there are loads approaching 2 MW. Alternative 1 has a high fixed capital cost but its operating expenses are largely the same up to 2 MW because power can be generated from wind or hydropower without using diesel. Even at the average load of 2.5 MW, diesel will not need to be used because power will come from optimum use of wind and water turbine power. If Adak is expecting to attract economic growth, having the pump storage system (Alternative 1) will nearly halve the cost to generate power on a per kWh basis as compared to a replaced diesel system. Beyond potential new businesses, current base businesses such as the fish processing plant, which is currently closed, are likely to come on line and use power under these costs. The fish processing plant in the past, under a prior owner, used over a MW of power during peak periods seasonally but generated off line. Both Alternative 2 and Alternative 3 show no cost savings as compared with just replacing the diesel generator and grid alone, however it will move the City away from fossil fuels to more renewable sources. Conclusions and Recommendations Based on the cost estimates, full replacement of the diesel generation and electrical grid system is warranted. Over a 40 year buy back period, the cost to generate per kWh is lower ($1.24 vs. $0.66 per kWh at the estimated current load and $0.88 vs. $0.50 per kWh at the expected load. Furthermore, the current system is limited to less than 800 kW generation capacity unless new generators and other electrical equipment are added. The current energy grid and generation system is outdated and there is considerable deferred maintenance. Since the savings are immediate, as well as the advantages of having a more reliable power grid, this power and generation system is recommended to be replaced as soon as possible. Even with loan payback, the reduced costs in diesel generation and maintenance show a favorable economic gain over a 40 year payback period. After reviewing the cost per kWh for each alternative, only Alternative 1 (wind pump storage), is recommended for lower energy costs that may lead to economic development potential. This alternative gives low cost power especially at full 2 MW demand, allowing for economic growth and stability in power costs. Even at expected load (688 kW) the cost of pump storage per kWh is comparable with grid and diesel generator replacement only. As the electrical demand grows toward full capacity, the pump storage becomes more economical. McMillen, LLC Page 8 Draft Technical Report September 18, 2013 City of Adak Hydroelectric Feasibility Study With any major wind energy project, a site specific study is strongly recommended. The study normally will collect at least one year of data (REAP, 2011). It is recommended that funds be acquired to start this study as soon as possible. The study will determine which type of turbine system and configuration will best capture wind energy and work under the unique wind conditions that will be found on the ridges near Lake DeMarie. Alternative 1 can be broken down into sub steps with some parts being completed while the wind study is ongoing. The dam raises, penstock, and powerhouse installations will be designed and constructed immediately with the wind turbines being constructed the following year. The following plan of action is recommended: Description of Action Cost Schedule (with assumed November 1st, start date Step 1: Replace Power Grid and Diesel Generators Replace existing generators with 3 new Design: November 1, 2013 — April 31, Diesel generators. Replace electrical $17.5 million design and 2014 grid with new wiring, switches, construction cost Construction: June 1, 2014 — November transformers etc. 15, 2014 Step 2: Complete Alternative 1— Wind / Pump Storage 2.a Wind Study 20$ 0,000 November 1, 2013 — December 15, 2014 2.b Raise Bonnie Rose Dam, DeMarie Design/Permitting: November 1, 2013 — Dam, build power house and Penstock $26.7 million design and April 31, 2014 along with road building and trail construction cost Construction: May 15, 2014 —November improvements. 15, 2014 Design: December 15, 2014 — April 31, 2.c Design/Install Wind Turbines $28.2 million design and 2015 construction cost. Construction: June 1, 2015 — November 15, 2015 Please note this is an aggressive schedule that assumes funds can be procured quickly. The schedule may need to be adjusted based on funding sources' timeframes or unforeseen permitting issues. McMillen, LLC Page 9 Draft Technical Report September 18, 2013