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Chignik Lagoon Alternative Energy Action Plan | 2010
Contents
Summary of vision, goals, and motivations...
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Chignik Lagoon Alternative Energy Action Plan | 2010
Summary of vision, goals, and motivations
Vision:
“To provide affordable energy that will contribute to the growth of our local economy, and reduce
our dependence on outside energy resources, while preserving our way of life and the natural
and cultural resources of the land.”
Goals:
Immediate (0-3 years): A 20% reduction of fuel consumption for both electrical generation and
heating using energy efficiency and conservation measures. 15% of electrical needs will be
generated using a wind/diesel system.
Mid-term (3-10 years): 75% of electrical needs will be generated using hydroelectric and 15% will
be generated using a wind/diesel system. A 35% reduction of fuel consumption for both
electricity and heating using energy efficiency and conservation measures.
Long-term (10-30 years): 85% of electrical needs will be generated using hydroelectric and 15%
will be generated using a wind/diesel system. A reduction of 45% of fuel consumption for both
electricity and heating using energy efficiency and conservation measures.
Motivations:
Chignik Lagoon Village Council would like to see research completed on various alternative
energy resources in and around the village, as well as action taken on goals outlined within this
plan. While the cost of fuel is steady for the moment, the Council would like to take preemptive
steps to be ready for any spikes in fuel costs; which would additionally result in stimulation of the
local economy as reduction of fuel costs may allow for residents to invest into business
opportunities.
Background information
Why an energy plan is important
An energy plan is very important to the community of Chignik Lagoon because of the
expense of fossil fuels. With this plan we are able to seek out feasible alternatives to
diesel-powered energy within our community and begin the planning process and cost
analysis for possible alternatives.
Chignik Lagoon Alternative Energy Action Plan | 2010
Current energy sources, costs, and demands
Prior to 1997, the Village of Chignik Lagoon did not have a centralized power system.
Each individual household provided their own electricity by individual diesel generator
sets. These generators were very expensive and noisy to run. There also was the
danger of engine exhaust gas emissions. Today the community has a centralized power
system consisting of three alternating diesel-powered generators with an average
monthly generation of 45,522 kWhs. This system consumes 3,800 gallons of fuel each
month. Additionally, approximately $3,400 gal/mo is used for diesel-powered heaters for
individual homes.
The fuel efficiency to run the generator averages 12kwh/gal. Target for village’s engine
size is 12-13 kWh/gal, according to Alaska Energy Authority (AEA). However, the
amount sold was on average is about 3,924 kwh less than what is generated. Currently
the fuel prices are $4.22/gal for #1 diesel, $4.51 for #2 diesel, and $3.84 for gasoline’. In
addition, the community currently has two households generating wind power.
Commercial buildings consume much of the fuel in the form of diesel generated
electricity. The school generates the most kWh, averaging around 6,500-7,000kwh/mo.
ACS runs approximately 2,000-2,500 kWh/mo. Other community buildings, such as the
post office run between 1,000-1,400 kWh/mo. The clinic and street lights are also high
on the list. Residential buildings average 700-800 kWh/mo with outliers of 500kWh/mo
and 1,400 kWh/mo.
Energy conservation and efficiency
“Energy efficiency is defined as using less energy to produce the same level of energy service.
This typically involves using improved technology to save energy, such as using high-efficiency
lights to produce the same light output using less energy. An example would be buying newer
light bulbs that consume less energy. Energy conservation is defined as decreasing the quantity
of energy used. Technically, energy conservation encompasses any method of decreasing the
quantity of energy used, including using more efficient equipment. But in general daily use, it
typically refers to human decisions and behaviors to save energy. An example would be turning
off the lights when you are not using them.”- Alaska Energy Authority
Why energy conservation/efficiency is important
Energy conservation and efficiency efforts are the cheapest and quickest way to battle
rising fuel prices. Many of the actions that can be taken cost little to nothing and can be
put into place immediately.
Residential energy conservation/efficiency opportunities and projects
Much can be done in the way of energy conservation and efficiency in our homes and
community buildings. According to Steve Haagenson, Executive Director of the Alaska
Energy Authority, rural Alaskan residents spend up to 60% of their income on energy
’ Based on prices as of August 2010
Chignik Lagoon Alternative Energy Action Plan | 2010
costs. 81% of these costs are attributed to home heating and electricity usage. Alaska
Energy Authority (AEA) and Southwest Alaska Municipal Conference (SWAMC) have
published a booklet entitled “Energy Savers Tips for Rural Alaska”. In this booklet, you
will find various ways to get the most out of the unit of energy purchased. Most of these
tips have little to no cost associated with them. Included in the booklet are things that
you can do with lighting, water, laundry, kitchen, appliances, living room, heating, wood
heating, and insulate. It also mentions various programs that the state of Alaska has to
offer.
There are many programs, rebates, and loans that are offered by the state of Alaska and
federal agencies to promote energy conservation and efficiency in homes. Some of these
programs are listed below.
« Home Energy Rebate Program — Alaska Housing Authority
e Weatherization Program — Alaska Housing Finance Corporation
e Housing Improvement Program — Bureau of Indian Affairs
« NAHASDA Services/Home Repair — Bristol Bay Housing Authority
« Small Building Material Loan — Alaska Housing Finance Corporation
e Energy Star Rebate Locator — Energy Star
e Appliance Rebate for Alaskans with Disabilities
e Residential Energy Efficiency Rebate Program for Builders — Alaska Housing Finance
Corporation
e Energy Efficiency Interest Rate Reduction Program — Alaska Housing Finance
Corporation
e Second Mortgage Program for Energy Conservation — Alaska Housing Finance
Corporation
You can find links to all of these programs on www.chigniklagoon.net or
www.enerayefficiency.org.
Commercial energy conservation/efficiency opportunities and projects
Village End Use Efficiency Measures (VEUEM) is a program that upgrades rural Alaskan
community buildings to help achieve energy savings by replacing or installing energy-
efficient lighting, switch boxes, motion sensors, set back thermostats, weather stripping
and low mass boilers. The Denali Commission had previously funded this program but
pulled funding this year to focus it elsewhere. However, AEA planned to carry out the
program in Chignik Bay and Chignik Lagoon before funding was pulled, and they are still
planning to continue. $75,000 will go toward each of these communities. AEA plans to
go beyond lighting retro-fits, and do things such as blow insulation.
Commercial fishing is another business that consumes huge amounts of fossil fuels.
Unfortunately, there are very few programs/information addressing this energy consumer
at this time.
e Alaska Sea Grant Marine Advisory Program
http://seagrant.uaf.edu/map/recreation/fuel-efficiency/index.htm!
e Commercial Fishing Loan Fund (provides funding for engine rebuilds, engine
replacements, and gear purchases.)
http://www.commerce.state.ak.us/investments/vgu.cfml
Chignik Lagoon Alternative Energy Action Plan | 2010
e “Energy Efficient Ways to Improve the Economic Bottom Line of your Fishing
Business” - Ministry for the Environment-Sustainable Management Fund
(http://www.energyfed.org.nz/fishing. pdf)
The Lake and Peninsula Borough provided the school district funds to apply energy
efficiency measures to the schools in the district. Chignik Lagoon School is currently
being outfitted with new lights and windows. Also, an initiative is in place for the schools
to conserve more energy than the previous year. The saving is directly placed into the
student government account. A few programs and/or lesson plans that may be of interest
are listed below:
e SEE - Schools for Energy Efficiency program
e Green Schools Program — Alliance to Save Energy
e Free Lesson plans — Alliance to Save Energy
Action Plan
Short- Term: In an effort to share this valuable information with the community a website
has been designed with a special section on energy, www.chigniklagoon.net.
In addition, the Chignik Lagoon Village Council has agreed to a yearlong incentive
program to encourage the community members to look at ways to reduce their energy
consumption. Also, for the weatherization programs that are available but waiting for
funding, the Village Council has written a letter of support to their local state legislator.
The energy plan coordinator has encouraged the school district to provide a program to
engage the students in conservation efforts within the school as well as at home. At this
time, the school district is not able to provide such a program, but is in support of the
energy plan coordinator providing such a service. The teachers will be encouraged to
imbed subjects relating to energy conservation and awareness into their lesson plans.
Long-Term: Recommended is the continued research of methods and programs available
for energy efficiency and conservation efforts for commercial fishing boats. The
continuation to promote efficient facility operations within the school using behavior
modification and other awareness techniques is also recommended.
Clean energy generation
Why clean, community-based energy is important
Chignik Lagoon’s economy is almost solely based on the fishing industry; by using clean energy there
would be a reduction in the opportunity to pollute fishing grounds. By utilizing local resources the
community will save on transportation costs and provide local jobs. Taking actions to produce clean
and community-based energy will provide a sense of self-sufficiency and accomplishment for the entire
community.
Chignik Lagoon Alternative Energy Action Plan | 2010
Hydroelectric Power
The Chignik Lagoon Hydroelectric Project is a run-of-river hydroelectric project located on Packer's Creek
in Chignik Lagoon. Polar Consult Alaska, Inc and Chignik Lagoon Power Utility have been working
together on this project. The 190 kW project can provide for most of the communities current power
needs, which peak at about 116kW. The project involves construction of an intake, a 4,650 foot long, 18-
inch diameter pipeline, a powerhouse, a 2,000 foot long transmission line, and access roads. (Renewable
Energy Fund Grant Application prepared by Polar Consult Alaska, Inc. 11/6/09)
In July 2009, Chignik Lagoon Power Utility was awarded a grant from Alaska Energy Authority for
$150,000. This funding is being used for installation of a stream gauge, permitting, and design of a
hydroelectric facility. Once Phase II of the project is complete, additional funding will be necessary to go
to Phase III of the project which will be construction. Another grant application has been submitted to
Alaska Energy Authority on September of 2010 for phase Ill funding. The project is supported fully by the
community.
This run-of-river hydroelectric project will be located on Packer’s Creek in Chignik Lagoon. Phase III of
this project will include constructing an access route, a powerhouse, an intake, pipeline, and a
transmission line as well as the integration into the current diesel system.
The proposed hydroelectric system on Packer's creek would eliminate about 85% of 60,000 gallons of
diesel consumed by the generators per year. This would amount to a savings of $150,000 annually.
Preliminary data was collected in the feasibility study.
Data to be collected in the fall of 2010
Stream flow data (at least 2 low flow measurements, etc)
e Geotechnical data collection
o Layout of project
o Soil boring data
e Analysis of intake site
e Data on electrical system
Project requirements include:
Design and permitting — to be completed by Polar Consult
e Funding for Construction phase
e Construction equipment and manpower
Viilestones for project include
Apply for funding for hydro project and admin.
Acquire permits
Complete design
Secure construction, bids, and select contractor
Identify jobs village residents can do and post
Research vendors available for needed materials and order (early spring)
Rent & mobilize equipment to site
Construct access trail
Construct intake & pipeline
Construct transmission line & powerhouse
Chignik Lagoon Alternative Energy Action Plan | 2010
The estimated project development costs are as follows
Lea setae ccs tioseseceeccnctecs soak ueoscee $ 70,000
Pipe eek one $140,000
bectats ese tateas tantshatecues sas tomer te $150,000
...$50,000
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Powerhouse...............:::::cceceeceeee $100,000
Transmission. ...............2:0:0+0++++++---$60,000
LABOR cece staeatenslsseecaevnsensttoes sneered $270,000
EN on eevee eraemenans $200,000
Contingency (20%)..................0.5 $300,000
Total Construction..............:00+ $1,800,000
Construction Management.............$250,000
Administrative (5%)................066 $90,000
Profit/Overhead (20%).................- $360,000
Wh Otaliscecesecouesecccaccaccasesssucreecezee $2,500,000
* Project budget is subject to change
The payback period will be approximately 30 years (data taken from 1995 feasibility report).
Wind-Generated Power
Wind power is a very viable resource for Alaska. There are already several working wind-powered farms
in operation in the state, including Perryville, a community about 20 miles away from Chignik Lagoon.
Perryville’s wind farm was established in November of 2008. With the use of 10 windmills, the community
is saving approximately $55/day on fuel and about 10,000 gallons of fuel/year. However, other factors
must be considered to determine if the purchase and operation of wind turbines is a feasible option for
our community.
Between October 2004 and February 2005, wind data was collected in Chignik Lagoon by Alaska Energy
Authority (AEA) (see Appendix A). The average monthly wind speed was between 10 and 13 mph.
However, this was collected for only 6 months. Additional data collection has been suggested. According
to AEA at least an entire year of data should be collected to make a proper assessment. The data should
be collected in the area in which the windmills would be erected. At the end of January 2010, Jay Yeger
from Southwest Wind Power came to Chignik Lagoon to do an initial site assessment. The first area of
Chignik Lagoon Alternative Energy Action Plan | 2010
interest is located at the end of the beach near the HUD building and the second is located in front of the
water pump house on the bluff. According to Jay Yeger, 4 to 5 wind towers could be erected in each of
the above mentioned areas.
The goal for wind-generated power in Chignik Lagoon would be to compliment the proposed hydroelectric
power. During times of low creek flow (mostly during the coldest months), wind may be significantly
higher and able to compensate for the decrease in power generated by the stream.
Install a met tower in each location proposed to collect data and determine the best course of
action.
Option 2: Install one windmill near the water pump station and collect data while producing energy. (If
does not work well with Hydro/diesel system it may be directly connected to pump station.)
Option 3: Hire a professional engineer to create an integration plan then proceed with best course of
action.
Option 4: Combination of above.
Potential Complications
Since there is a high potential for the integration of a hydroelectric system into the diesel generators,
there are potential complications having both wind and hydroelectricity running in conjunction with the
diesel generator. Generating too much energy or having excess voltage can be as challenging as not
generating enough energy. The hydroelectric system will be run of river and will not allow for build up or
storage of water to use when needed. Wind is also variable and would need expensive batteries for
power to be stored.
Suggestions made from professionals in field:
Having a good regulation system and integration plan was advised as well as looking into storing energy
in order to optimize the alternative energy sources.
Suggestions made by James Jensen (AEA) and Jennifer Richcreek (Kodiak Electric) were to look into
storage and to collect data from Hydroelectric system. Data collected would tell us when other energy
may be needed.
Conclusions:
In order to properly make an assessment on the feasibility of wind-generated power, more data is
needed. At least an entire year of data should be collected to make a proper assessment. The data
should be collected in the area in which the windmills would be erected. Also a professional engineer
specializing in these combined systems would be beneficial to come out and assess our current
powerhouse and diesel generator set-up to determine the best possible integration plan combining
hydroelectric, wind and diesel into one system for our community.
Estimated costs:
Engineering companies and quotes
Integration plans and system upgrades (wind/hydro/diesel) ~ $20,000
Chignik Lagoon Alternative Energy Action Plan | 2010
EPS inc. - for conceptual design and/or report ~ $15-20,000
Comprehensive site survey & evaluation (AWI)? ~ $6,500
Lake and Peninsula Borough ~ $10,000
10 windmills and parts- $121,420
Shipping - $11,000
Man/machine power ~ $71,650
Cement/reed bar and wiring ~ $34,000
Total ~ $238,070
Total 1 windmill ~ $23,807
Batteries
24-hour back-up at current loads (EE)*~ $400,00 -$500,000
Solar Power
Solar power has been introduced into Alaska’s alternative energies. However, this form of alternative
energy is relatively new to the area. The Bristol Bay Campus has recently installed a 4kW photo-voltaic
system. Data is being collected, however at this point the payback period will be over 20 years. There is
a Federal tax credit for solar panel installation of 30%.
Solar on boats
Some investigation was done on the idea of using solar power to charge batteries or run certain
equipment on fishing boats. Little research has been compiled on the efficiency of this energy source on
boats; however fishermen in the area have experimented with the concept with great success. Vessels in
the Prince William Sound region have used solar panels for several years, and could serve as a model for
testing in the Chigniks.
Syaaestior Suggestic
Conduct research on the feasibility of solar panels on fishing boats in this region.
Coal Bed Methane
Coal Bed Methane is a viable alternative energy for the future growth of the entire Chignik area. In 1885,
coal was discovered along the Chignik River. By 1910 there were several coal mines in the area. The
most recent data that was collected in the Chignik area was in 2005, Draft Summary Report on Rural
? Alaska Wind Industries, www.akwindindustries.com
3 Engineered Equipment- Contact Terry @ 345-3474
10
Chignik Lagoon Alternative Energy Action Plan | 2010
Alaska Shallow Gas Studies: Fort Yukon, Red Dog Mine, Chignik, and Wainwright, completed by Alaska
Department of Natural Resources, Division of Geological & Geophysical Surveys in October 2005. This
report summarizes the collaborative efforts of a multi-agency team that evaluated the potential for shallow
gas in rural Alaska. Chapter 3 of this report discusses the exploratory water well drilling done at Chignik
Lake. The test drill was done to explore shallow gas in coal seams. The results of this test drill proved
unsuccessful. Unfortunately during the drilling program torrential rains created considerable difficulties for
the project. According to the above mentioned report, the potential for structural complexity in the Chignik
area will require detailed mapping of the local structures and geology to select future drilling sites for
potential coal bed methane resource.
A detailed map of local structures
Assessment of such a map to determine drill sites
Project coordinator
A drill — (possible drill in Naknek?)
Professional manpower to work drill
Food and housing for manpower
Assessment of findings NOAPWNS> $500,000- $1,000,000 would be a very rough estimate of cost.
According to an article in BLM Alaska Frontiers- spring 2003, economic studies show that even a small
field could help if it was beneath or right next to a community or an industry that uses a lot of power.
Biomass
The production and use of biomass as an energy source was examined for Chignik Lagoon. Due to the
lack of trees, and/or fishing processing facilities it is not a practical solution to the village’s energy needs
at this time. However as fuel prices rise there may be a need to re-evaluate the possibility of barging in
wood pellets or to provide a log gathering service for the locals. Listed below are a few figures to
consider when looking into this source of energy (costs based on pricing from June 2010).
Wood Pellets:
Northwestern Fuels- Washington:
Wood Pellets — $270/ton + delivery to barge ($50-$100)
Freight — $423.28/ton
Total - $730/ton
Cost of fuel would have to be above $6.00/gal in order to benefit from wood pellets at this price.
Superior Wood Pellets-Fairbanks
Wood Pellets - $250/ton
ad
Chignik Lagoon Alternative Energy Action Plan | 2010
Trucked to Anchorage -$25
Mailed to Chignik Lagoon- $770.40/ton
Total - $1045.40
Cost of fuel would have to be above $8.50/gal in order to benefit from wood pellets at this price
Other energy-related projects
Innovative ideas for generating energy locally include; cultivating the eel grass, underwater
turbines in the channel, cultivating underwater methane using a funnel system and harvesting
beach wood or alders.
Grant opportunities for Alternative Energy
e Department of Energy- Tribal Energy Program
http://apps1.eere.energy.gov/tribalenergy/government_grants.cfm#Tribal
e Alaska Energy Authority Block Grant
http://akenergyauthority.org/eecbg.html
e Lake& Peninsula Borough
http://www. lakeandpen.com
Conclusion
The Chignik Lagoon Alternative Energy Action Plan has two main goals. The first is to take
immediate action to help reduce the energy costs, both through education and programs for
energy efficiency and conservation efforts and research and/or implementation of an alternative
energy source(s). The second main goal is for the village to reach a high level self-sufficiency for
all energy needs within the community within the next decade. This plan is designed to be
interactive and to give a baseline for alternative energy actions as well as highlight available
programs and granting opportunities.
Acknowledgement of partners
A special thank you to...
Southwest Alaska Municipal Conference for volunteering time, knowledge, and resources
to this plan.
Lake and Peninsula Borough for their special interest and resources in the research of
wind power in Chignik Lagoon.
Alaska Energy Authority for their helpful personnel and expertise in various subjects of
alternative energy.
Pebble Fund for the funding of the Chignik Lagoon Alternative Energy Action Plan
Project.
12
Chignik Lagoon Alternative Energy Action Plan | 2010
To the many agencies devoted to providing resources, knowledge and awareness for the
need to examine alternative energy sources.
Resources and opportunities for external collaboration
e Polar Consult, Alaska Inc., http://polarconsult.net/, (907) 258-2420- Conact Mike
Dahl
e Alaska Energy Authority (AEA), http://akenergyauthority.org/, 1-888-300-8534
e AEA reference website - http://akenerayefficiency.org/
e Southwest Alaska Municipal Conference, http://www.swame.org/, (907) 562-
7380- Contact Andrew Varner
e Lake & Peninsula Borough, http://www.lakeandpen.com/, 1-800-764-3421-
Contact Lamar Cotton
e Bristol Bay Housing Authority, http://bbha.org/index.htm, (907) 842-5956
e Bristol Bay Native Association, http://www.bbna.com/, (907) 842-5257
Appendices and bibliography
Appendix A:
Chignik Lagoon Wind Data compiled by Alaska Energy Authority (AEA).
‘Wind Frequency Rose (47ft) eae 0% cam fs
r
id g
\
y
13
Chignik Lagoon Alternative Energy Action Plan | 2010
‘ Monthly Average Wind Speed
1
10)
ic
3e
=
2
‘Oct Now Dec Jan Feb Right click to copy 2004 2005
Average Daily Profile
. NY NV ‘al al ed 12 124 12 124
1 10: 10 10:
8 84 84
6 6 6 6
4“ * 4 4
2 24 2 2
ot 1 1 ot Derercpererrereirreen) | Glerrrteereterreeterened ea Se ee a a ae ce 0 ae Ce 4a 4am i :~] WTaa
4 1 124 124
E,, 10: 1 104
1. 8 8}
3 6 6 6 6:
4 4 44 4
2 24 2 2
Ob ee Ure a Gare IS AR ee 8 Aone aw WO 8 ae 0 4a? 48,0 MTS5 “toa 4Thov “Ypes 14
a : | a i ¢ A NL 104 104 a JN aa 10:
8} e 8 8
& 6 6} 8 6:
4 4 4 4 4
2 2 2 2 2
Oder ot ———— ot ot —— anne Me O55 4B PS eS a eR Mee 0 2. 8 ae oR oe Hour of Day
14
Chignik Lagoon Alternative Energy Action Plan | 2010
Bibliography
“Energy Savers Tips for Rural Alaska’, original: Project Energy Savers, LLC 2008) modified: Alaska
Energy Authority & Southwest Alaska Municipal Conference, 2009
Renewable Energy Fund Grant Application. Polarconsult Alaska, Inc. November 6, 2009
http://www.chigniklagoon.net/images/Grant_application Rdll.pdf
Draft Summary Report on Rural Alaska Shallow Gas Studies: Fort Yukon, Red Dog Mine, Chignik, and
Wainwright. Alaska Department of Natural Resources, Division of Geological & Geophysical Surveys,
October 2005
Chignik Lagoon Hydroelectric Feasibility Study Final Report. Polarconsult Alaska, Inc., June 26, 1995
BLM-Alaska Frontiers, Spring 2003, Issue 88, page 4-5 “We've got Gas, New Technologies may Lower
Fuel Costs in Rural Alaska...But not for Awhile”
http:/Awww.bim.gov/padata/etc/medialib/bIm/ak/aktest/frontiers. Par.79484 File.dat/bImfi88.pdf
As