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HomeMy WebLinkAboutDiomede Reconnaissance Study Of Energy Requirements & Alternatives-Appendix D Diomede 1982VIL-A 002 Diomede soreness eee senna RRR RECONNAISSANCE STUDY OF ENERGY REQUIREMENTS AND ALTERNATIVES APPENDIX DB: DIOMEDE MAY 1982 PROPERTY oF, Alaska Power Authority 334 W. Anch Sth Ave, A Orage, Alaska 99501 Prepared by: Ail | ALASKA POWER AUTHORITY ll FAIRBANKS BETHEL Qo oo KODIAK ?P VILLAGE SPECIFIC REPORT D, DIOMEDE TABLE OF CONTENTS Section Page A - SUMMARY OF FINDINGS AND RECOMMENDATIONS ............eeeeeeeee D-1 ASL ar General) |ccrierore mire tessverevsso/o1o1o/2) shots le ts eroiel el el.o) sisi ie leteietersi sieve; ie teita.6 D-1 Ag2) = Alternative) Pilani DESCriptiions) |. sserse« scieielelasisrs)sie 10's ois D-1 B) = DEMOGRAPHIG AND EGONOMIC CONDITIONS ..css0005ssceccecscsccws 0-5 Bei VOCATION circ roiterere cledsvet of} hale? stoloKe lo lesele| ssereiel ol olisisislolsiolele:cleieloleliete 0-5 Boast) POPU AG TON [cre tieierolelsisie/s1 sale! alatiele le lerelererslele) pele wicteleeletsieicysieieie s 0-5 Ble « EGG ccccuwaccnssacecs kp ee eens er eeeeneeen ye EeEBEhED 0-5 Bid ie GOVERNMENT, |arctereiierarete)sicte!sys/eis/oNe).e)e'e (olele%e) sfole]sveneiseleietets el alelsieielec D-6 Ce = TRAE AETON cod ececereseusneseveeReeGennseakeennen 0-6 C;) = |COMMUNITY: MEETING IREPORT |.\e..' «1/121 01s ove 00 10 storeiti 01 #1 2/0161 eye's fel o121 51s) sVe1 <1 «i 0-8 D - EXISTING POWER AND HEATING FACILITIES ............ecececccees 0-9 Ej, —) ENERGY BALANCE | 2770 5 occtcreieietaietosarets/staielevelae'olsieisisisieie; «| 8) e1elejeleiei eis) e]9) sie) 0-10 F = ENERGY REQUIREMENTS! FORECAST) sissies. cee ccc ecceeewisnces 0-12 Pal Capital) Projects FOReCASt) |e!) 2). '<)- <r ieiew)s e119) sleilelo wlstole si ole) 3151 0-12 Fie) res) POPU ALTON [ROMECAST sololeje lel eleses ele) cieleisielototelel sie) 4) sielel olelorsiexersrsie1 0-12 Fed = Electrical iEnercy Forecast, sosneccsrmssacseeeceiscrcssicsie D-13 F.4 = TROPME] Enercy FOTSCRSE co cunccnsneenss cennense sss 4bb ee D-13 Gi = VILBAGE TECHNOLOGY) (ASSESSMENT) ‘Sistsraree/ sores lovetorciscsici 6) o/s: 610 ose lolote)s16]¢1 D-18 H - ENERGY PLAN DESCRIPTIONS AND ASSUMPTIONS ..........ceeeeeeeee 0-20 isd [== |BASCH CASE) | syeisrstorel lola tholete ie atotere) ele) siorreverore re ete) sls] sretela c(cleteizasisi sto D-20 Hed = Alternative Pian) MAM let eiete seri estate sreistetesiclelel a} cileloteisiereve 5101 D-21 Hs3)— /Aliternative |Pyan SBR crete ctetelieisiala -)siisistelois cis) 418101 s/elcisielcusersior D-22 T=) ENERGY |PEAN EVALUATIONS: ‘etsjereletctotete st averslevers sievsrelcis sis: 81clellocisielsieserons D-24 Toth j=. IBaS@) (CASE) |rerersrerct ele otel erste’ o's ie |s101s/'s/9121s\ sie foie esos siete) sie] e)elole(ololels sl ers 0-28 LE = Alterueive Plat 8At scan csccervicsceeces ercncensens wee 0-33 Te3' = Alternative Plan) MBM) iyi). /cie -/sisrersr oie wrote iexetoraas ein ois eterorersios 0-38 TABLE OF CONTENTS (Continued) Section J - COMMENTS AND DISCUSSION 1... .. cee ccc cece cece cee ee eee eee J. J. ci Sa FP WwW HF Comments Received From Mr. Phil Kaluza .............45. Comments Received From The Alaska Power Administration ..... ccc cece ce cee eee cece teen eens Comments Received From The State of Alaska, Department of Fish and Game ........... cece eee eee eee ee Comments Received From U.S. Fish and Wildlife Service In ANCHOKAGE ccicccccnncwsneccsasnaanasnenewess Comments Received From U.S. Bureau of Land Management ....... ccc cece cece ee eee eee teen eee eeees No. On DO F& W PY 10 11 12 LIST OF TABLES Title Comparative Estimated Electrical Eneray Prices For Base Case and Alternatives .............ceee eee Energy Use Profile For Diomede - 1981 ................. Village Electric Energy Use Forecast ..............e00- Neti Thermal Reauirements: oo. ict os1eresciieieicisisicis sine iors Village Technology Assessment ........ cece sewer eee eens Estimated Costs of Diomede Base Case ..............000e Estimated Non-Electrical Benefits of Base Case ........ Estimated Costs of Diomede Alternative Pibieatyy SAF Veercrotaiateteioasiolsie'crsieis)ciele/.s/olle oleic revel el elcieleieteteletoisie) 9) asieier6 Estimated Non-Electrical Renefits of Alternative Pie OR cccveediasenereucceuseeens eUaEKesenaeeseekanss Estimated Non-Electrical Disbenefits of Alternative Plan "A? ssesenceccnaussscccressends ee rsens Estimated Costs of Diomede Alternative Pincay = Bi Viper jor otaiie rocie\s lo [ois 1ssoscteroleie! sjclie ese horolove’ she!) s/eieite (elle lole! +] hele! Estimated Non-Electrical Benefits of ATESPRAEAS FEA WD ae nnne cenwensseans ceeeneeseses anne 0-35-36 0-37 Title LIST OF FIGURES Energy (Cost: Summary) store tstoreieictsieie em alo foisisucicicinal s/o e\eieye's -1eie) Energy Balance Electric Eneray Use Forecast ........ cc cece cece eee e eens Page D-4 D-11 p-15 DIOMEDE OD-1 A_- SUMMARY OF FINDINGS AND RECOMMENDATIONS A.1 - General After an analysis of the information gathered on the village of Diomede, the recommendations which seem most appropriate to the existing village conditions and the wishes of the residents are as follows: i As soon as practical, a sophisticated anemometry site should be established atop the island of Little Diomede. Equipment at such a site would automatically sample wind speeds and directions several times each hour and record that data for later evaluation. An analysis of wind data gathered in this manner will allow an accurate estimate of expected wind turbine performance. Initial estimates show that the island of Little Diomede has wind resources to provide an economical source of electricity. There may be the possibility that village structures could be heated electrically from wind generated power . The existing diesel generation system very likely provides electrical energy to the village more economically than any other means except wind. A.2 - Alternative Plan Descriptions A.2.1 Base Case The base case plan for Diomede investigates the continuation of electric service by the BIA school generators, with no changes in operation except as required to serve additional village load. It is anticipated that one of the two existing 60 kW generator sets will be retired in 1993 when it is replaced by an 85 kW unit to meet the increasing kilowatt demand. The waste heat system will continue to serve the school as it is not expected that the generator system will produce waste heat in quantities large enough to serve other structures. This plan has a net present worth of $2,127,000 for the period 1982 through 2015. A.2.2 Alternative Plan "A" In this alternative, the BIA generators would be regarded as the principal source of electricity for the village. In addition to these units, a 100 kW wind turbine will be installed atop the island. DIOMEDE D-2 a machine is larger than the future village requirements would indicate, but it is felt that, because of the consistently high winds at Diomede, it may be practical to install electric heating equipment in some homes and .public buildings. This plan has a net present worth of $2,067,000 for the period 1982 through 2015. A.2.3 - Alternative Plan "B" Because of the interest expressed in using wind power to provide sufficient energy to heat homes and other structures, this alternative addresses the practicality of such a venture. The diesel sets will be used only as backup units, while the wind turbines will be regarded as the primary source of energy in the village, displacing home and school fuel oil use. This plan has a net present worth of $958,000 for the period 1982 through 2015. There was substantial preference voiced by village residents for wind energy. This seemed to reflect the common high winds and a belief that wind energy is free. At the public meeting held in Diomede, the suggestion was made that it may be practical to use wind-generated electricity to replace the oil heating systems now in place. This was examined as alternative "B". Table 1 and Figure 1 summarize the projected relative consumer costs (excluding items as noted in Section C of the main report) of the generating alternatives considered for Diomede. Alternative "B", which examined the use of a large wind turbine, compares very favorably with the existing methods represented by the base case. At the public meeting held in Diomede, the suggestion was made that it may be practical to use wind-generated electricity to replace the oi] heating systems now in place. This was examined as alternative "B." TABLE 1 COMPARATIVE ESTIMATED ELECTRICAL ENERGY PRICES FOR BASE CASE PLAN AND ALTERNATIVES Energy Base Case Plan Alternative "A" Alternative "B" Production Energy Price Energy Price Energy Price Year MWh $/kWh $/kWh $/kWh 1982 175 0.36 0.36 0.36 1983 194 0.36 0.36 0.36 1984 211 0.32 0.32 0.332 1985 231 0.32 0.32 0.32 1986 290 0.29 0.33) 0.38 1987 294 0.30 0.33 0.35 1988 298 0.29 0.32 0,33 1989 302 0.30 0232 0.30 1990 302 0.30 0.32 0.28 1991 306 0.30 0.33 0.26 1992 310 0.31 0.33) 0.20 1993 314 0:32 0.33 0.19 1994 318 0-33) 0.33 O17 1995 322 0233) 0.32 0.15 1996 327 0.34 0533 0.11 1997 327 0.34 0.33 0.09 1998 335 0.34 0233) 0.05 1999 335 0.35 0.33 0.03 2000 339 0.35 0.33 0.01 2001 339 0.36 0233 0.01 Notes: 1. Energy prices are stated in 1981 dollars and do not include costs of village distribution and administration. They also do not include any subsidies such as power cost assistance programs. 2. Energy prices shown for "Base Case Plan" include the savings realized by the operation of the waste heat equipment. 3. Energy prices shown for “Alternative 'A'" include the extra expenses due to reduced heat output from the waste heat system. 4. Energy prices shown for "Alternative 'B'" include savings realized by the reduction of fuel oil use. apauo 1g €-d mie 1S0) ANNI oO Oo 4 %, a q . oO 4} 5 OIL AS USED oO ACME UN Ber le oN AL PL IY CELE eI Me II Pe NU Pee ee NINN HINT ITNT T STI NTs (ni g01/$) 1509 A9Y3N3 AT 120.65 4 0.10 OIL AS DELIVERED 0,05 DIOMEDE D- DIOMEDE - FIGURE | DIOMEDE 0-5 B_- DEMOGRAPHIC AND ECONOMIC CONDITIONS B.1 - Location Diomede is located on the west coast of Little Diomede Island in the Berina Strait, 135 miles northwest of Nome. The international boundary between the United States and Russia lies between Bia and Little Diomede Islands. B.2 - Population Date: 1970 1980 19821 Population: 89 139 153 The 1970 census reported 89 people and 18 houses in the village. The 1980 U.S. census shows a population of 139 at Little Diomede. According to Community and Regional Affairs, there are presently 36 houses in the village and 153 residents: an average household size of 4.2 residents. Thirty-five students are currently enrolled in school (grades 1 - 8). B.3 - Economy The Diomede villagers depend almost entirely upon a subsistence economy for their livelihood. Fishing and sea and land mammal hunting are primary occupations. The BIA school employs three teachers, four aides, a cook and a maintenance person. The city employs a clerk, a maintenance person, an alternate health aide, a part-time airport maintenance person, and people to clear the walkways as needed. The Inalik Native Corporation employs a secretary/ treasurer and a manager; the native store presently emoloys two persons with plans to hire another person. The State funds a city police officer; Kawerak supports a village police safety officer and two pre-school teachers. The Norton Sound Regional Health Corporation employs one primary health aide on Diomede. 1 Local census by Community and Regional Affairs. DIOMEDE 0-6 The Diomede people are excellent ivory carvers, known throughout the State for their quality products. Many villagers market their crafts in Nome, Teller, Kotzebue and Anchorage. The city council serves as a wholesale agent for both raw and carved ivory. Native residents of Diomede are shareholders in the Inalik Native Corporation, incorporated in accordance with the terms of the Alaska Native Claims Settlement Act (ANCSA). B.4 - Government Diomede was incorporated as a second class city in 1970. The city government functions under the authority of a mayor elected from the seven-member city council. Annual elections are held the first Tuesday in October. In addition to the mayor, the city employs a clerk, maintenance person, alternate health aide and airport manager. Diomede is a participant in the State Revenue Sharing Program and received $6,419 in shared revenue for fiscal year 1980. Diomede also receives revenue from a 3 percent sales tax, bingo and pool tables, telephone, power use, and grants. For nonmunicipal programs and services, Diomede's native population is also represented by a five-member IRA council. The council administers a variety of federal programs, including employment assistance, economic development, adult basic education, management assistance, social services and tribal operation; it appoints one project manager to handle administra- tive paperwork and property management. In the Bering Straits region, many of these services are provided by Kawerak, Inc. B.5 - Transportation Due to Diomede's remote location and the accompanyina environmental limitations, transportation accessibility to the village is restricted to airplane in the winter and spring, and to boat in the summer and fall. Oue to the steep slopes and rocky terrain, there are no roads. There are no automobiles or trucks on the island, and walking is the only means of land travel in the village. A few residents own snowmachines for winter hunting and fishing on the ice around the island. The high plateau above the city is the only relatively flat place on Little Diomede; however, its rough and rocky surface has prevented the construction of an airstrip. DIOMEDE D-7 Since there is no airport on Little Diomede Island, planes generally fly in only during the winter and spring when there is smooth ice on which to land between Big and Little Diomede. The strait is generally frozen between mid-December and mid-June, but winter winds may prohibit plane access. Foster Aviation, out of Nome, flies a mail route to Diomede in the winter, conditions permitting. They will carry a maximum of five passengers. At the time of this writing, there were no other scheduled commercial flights to Diomede. Float planes rarely fly into Diomede during the summer due to limited visibility fron fog and dangerous landing conditions -from the high surf on the Bering Sea. Villagers must pilot their boats to Wales when in need of supplies. Helicopters can be chartered from Nome, if necessary, for summer transportation to the island. Barge service is also very limited. The BIA supply ship North Star III attempts to make two annual stops in Diomede. Restrictive ice conditions, fog or choppy waters and the absence of a dock or protected landing area sometimes inhibit supplying the village. DIOMEDE 0-8 C_- COMMUNITY MEETING REPORT Field reconnaissance personnel arrived in Diomede in the afternoon of January 17, 1982. They were met by the Mayor who offered to set up a public meeting for the evening of the 18th. The meeting was held in the community center with a turnout of about 14 Diomede residents. The meeting lasted about an hour and a half, with some interesting discussions being held on the energy needs of Diomede. Field personnel described the reconnaissance study and asked the meeting attendees to describe their ideas on the energy needs and resources of Diomede. Meeting participants advised field staff that, as far as they were concerned, it was more important to address the problems of home heating than those asociated with inexpensive electrical energy. (One reason for this attitude may be that the BIA school sells electricity to the village for $0.09/kWh and the village sells the electricity to its customers for $0.18/kWh, which is about half what most Alaska bush residents pay for their electricity.) It was noted that one constraint on how much the village could grow was that, due to the steep trails through the village, no vehicles could be used to haul oil. This means that all home heating fuels must be carried in buckets. The village is presently about the size where the homes farthest from the village store are beyond a reasonable distance to carry oi] (which usually requires a number of trips each week in cold weather). Some time ago, RuralCAP personnel visited Diomede and examined or performed energy audits on some of the homes in the village. Residents complained that only the older homes were audited and that after the RuralCAP people left, nothing further was done to follow up their work. The Bering Strait area is regularly subjected to high winds and the prospect of a wind energy development on the island seemed attractive to a number of those at the meeting. There was an expression of interest in using wind-generated electricity for home heating so that the village would not be so dependent upon fuel 011 and would not have to make such frequent trips to the store to carry oil. DIOMEDE D-9 D - EXISTING POWER AND HEATING FACILITIES The village of Diomede is provided with electricity by the BIA school. The school is equipped with diesel generators with the following ratings: ° One 85 kW diesel set 0 Two 60 kW diesel sets The 60 kW machines are new units, and were being installed at the time of the field team's visit to Diomede. All of the units are equipped with a waste heat recovery system which supplements the school's oil-fired boiler system. The school generating plant had originally been equipped with three 85 kW units, but two had broken down and were being replaced with the 60 kW diesel sets. At one time the village load was not sufficient to run the diesels hard enough to provide good service, causing maintenance problems with the units. It was decided to put a dummy load on the generator to help minimize this problem. A bank of resistors was installed which can be switched to provide from about 4 to about 45 kW of load on the units. These resistors are used to heat the school boiler water as a supplement to the waste heat system. When field team members were in Diomede, these resistors were set to provide a load of about 12 kW (40,000 Btu/hour). Virtually all Diomede homes are heated with pot-burner oil stoves. No wood is available on Diomede. Commercial buildings are generally heated with the same type of oil burner. E_- ENERGY BALANCE DIOMEDE D-10 In Diomede most of the energy consumed is put to use heating homes and the school. Data gathered by field staff shows the following energy uses: TABLE 2 ENERGY USE PROFILE FOR DIOMEDE - 1981 Type of Fuel Cost Fuel Oil $2.25/gal (Residential and Municipal) Fuel Oi] $2.25/gal (BIA) (est.) Motor Gasoline $2.75/gal (est.) Blazo $6.10/gal Kerosene $2.25/gal Propane $1.09/1b Total Heat Content End Uses Quantit 10° Btu Space Heating 15,000 gal al Space and Water 36,000 gal 5.0 Heating Electric Power Generation Transportation 3,300 gal 0.4 Home Cooking 2,600 gal 0.3 Water Heating Lighting 1,100 gal 0.2 Cooking 2,000 1b neg. Figure 2 illustrates the source and use of the various energy forms in Diomede. BRUNING 44 132 42222 ENERGY RESOURCE rr END USE RESIDENTIAL SPACE SYSTEM LOSSES HEATING (1.36) FUEL OIL (2.0 (2.1) (my) USEABLE HEAT (0.74) (5.0) POWER SYSTEM LOSSES GENERATION (3.96) (5.0) ELECTRICITY (1.04) oe TRANSPORTATION a (0.4) Sesicaaitaicanena nat ea aden delenaiepeeememenienemnemenieseeneeeeeeneemmmmneminmmemensemeemmemanndll BLAZO RESIDENTIAL COOKING (0.3) (0.30) {0.34} A PANE (0. PRO! (0.04) aoa RESIDENTIAL LIGHTING " (0.2) KEROSENE (0.2) (0.20) NOTE: ALL UNITS IN 10° BTU/YR. FIGURE 2 DIOMEDE ENERGY BALANCE (198!) LL-@ 3d3WOIG DIOMEDE D-12 F - ENERGY REQUIREMENTS FORECAST F.1 - Capital Projects Forecast F.1.1 - Scheduled Capital Projects (a) 1982 - Replace village electrical distribution system F.1.2 - Potential Developments (a) 1985(?) - REAA High School (b) Community Center/Fire Hall F.1.3 - Economic Forecast The Diomede economy is based almost entirely on subsistence food harvest with some ivory carving and wage earners, and the subsistence lifestyle can be expected to continue indefinitely. No resource development, tourism or other industry is anticipated in Diomede. F.2 - Population Forecast The annual growth rate from 1970 to 1980 was 4.5 percent. The high school may be constructed by 1985 and its development will likely encourage villagers to remain in Diomede. However, no economic development is anticipated and the physical restraints of the island environment limit room for expansion, probably to a maximum of 250 residents. Therefore, the growth rate can be expected to level off within 6 years from 4.5 to 2.0 percent. The table below is calculated on a 4.5 percent annual growth rate from 1980 to 1986, a 2.0 percent annual growth rate from 1986 to 1996, and a 1.0 percent annual growth rate from 1996 to 2001. 1960 1970 1980 1986 1991 1996 2001 Population NA 89 140 180 200 220 230 #Res idences NA NA 36 46 50 55 57 #Commercial NA NA 1 1 il 1 2 #Gov't/Other NA NA 7 9 9 9 9 DIOMEDE 0-13 F.3 - Electrical Energy Forecast The village of Diomede has been supplied with electrical eneray by the BIA school since 1978. BIA has sold electricity to the village for a cost of $0.09/kWh. The village, to provide the equipment for distribution, adds another $0.09/kWh to the price charged the consumers, for a total cost of $0.18/kWh. This price is lower than virtually all other villages and compares favorably to prices available in much more developed areas of the state. This relatively low price has resulted in the "typical" Diomede household consuming about 3,000 kWh annually, a high level of consumption for a bush village. It is felt that the household use sector will reach saturation by the mid-1980's at a consumption level of about 4,000 kWh. If village consumers are ever subjected to power rates which uniformly distribute generating costs in Diomede, they would likely lower their electrical use considerably. This possibility was not addressed in this study. Other users in the village include the store, the school, and the community center. The uses of these buildings are shown below: Load kWh Per Year kW Demand BIA School 50,000 40 REAA School 43,000 20 (beginning in 1986) Store 4,000 3 Community Center 4,000 1 In those cases where electricity can be produced at a cost significantly less than that of heat delivered by fuel oil, it can be expected that there will be some conversion to electric space heat, driving up electric demand. This situation is explored in alternative "B." The electrical eneray growth forecast is given in Table 3, and is also shown in Figure 3. F.4 - Thermal Energy Forecast It was found that Diomede residents use much less fuel oi] to heat their homes than do residents in nearly all other villages visited. It was estimated that a "typical" Diomede home will consume about 400 gallons of fuel oil each year for heating. TABLE 3 VILLAGE ELECTRIC ENERGY USE FORECAST Residential Schools Other Total. TR Mek Muh nS "/ ere Teme TE ee CCL CLUE Le 1982 32 117 40 50 4 8 76 175 1983 38 136 40 50 4 8 82 194 1984 44 153 40 50 4 8 88 211 1985 47 173 40 50 4 8 91 231 1986 51 189 60 93 4 8 115 290 1987 52 193 60 93 4 8 116 294 1988 §3 197 60 93 4 8 117 298 1989 54 201 60 93 4 8 118 302 1990 54 201 60 93 4 8 118 302 1991 55 205 60 93 4 8 119 306 1992 56 209 60 93 4 8 120 310 1993 58 217 60 93 4 8 121 314 1994 59 221 60 93 4 8 122 318 1995 60 226 60 93 4 8 123 322 1996 60 226 60 93 4 8 124 327 1997 62 230 60 93 4 8 124 327 1998 62 230 60 93 7 12 129 335 1999 62 230 60 93 7 12 129 335 2000 63 234 60 93 7 iz 130 339 2001 63 234 60 93 i ed 130 339 Notes: 1. A Bering Straits REAA High School is predicted for completion in 1986 with an electric load of 20 kW and an energy use of 43 MWh. vl-d 303W0IG DIOMEDE D-15 REAA HIGH SCHOOL IN 1986 - 20 KW/43 MWh aa VILLAGE POWER DEMAND (KW) ee | ff Se DEMAND(KW) OT —— | dT a i = an = Za Po a VILLAGE ENERGY CONSUMPTION (MWh) 1985 1995 ENERGY CONSUMPTION (MWh) DIOMEDE - FIGURE 3 DIOMEDE D-16 It is estimated that the school uses the equivalent of about 26,000 gallons of fuel for heating. Due to the fact that the school generators are equipped with a waste heat recovery system, the fuel used to generate power also helps to heat the school. Other users include the store, the community center, and the armory; but these users are very small. A tabulation of the thermal energy uses and their forecasts is given in Table 4. The figures given in this table are expressed in terms of net thermal energy. Net thermal energy is the energy actually delivered to an end use, such as building heating, after all conversion losses have occurred. DIOMEDE D-17 TABLE 4 NET THERMAL REQUIREMENTS Electricity Residential Schools Other Total Year (10%stu) _(10%etu)__—(10%tu) __(10%etu) _(10° Btu) 1982 0.6 0.6 2.4 0.07 3,7 1983 0.6 0.7 2.4 0.07 3.8 1984 0.7 0.7 2.4 0.07 3.9 1985 0.8 0.7 2.4 0.07 4.0 1986 130 0.8 4.6 0.07 6.5 1987 1.0 0.8 4.6 0.07 6.5 1988 1.0 0.8 4.6 0.07 6.5 1989 1.0 0.9 4.6 0.07 6.6 1990 1.0 0.9 4.6 0.07 6.6 1991 1.0 0.9 4.6 0.07 6.6 1992 1.0 0.9 4.6 0.07 6.6 1993 1.1 0.9 4.6 0.07 6.6 1994 1.1 0.9 4.6 0.07 6.6 1995 ial 0.9 4.6 0.07 6.6 1996 1.1 1.0 4.6 0.07 6.7 1997 Tel 1.0 4.6 0.07 6.7 1998 Isl 1.0 4.6 0.07 6.7 1999 Teil 1.0 4.6 0.07 6.7 2000 Wad 1.0 4.6 0.07 6.8 2001 e2 1.0 4.6 0.07 6.8 y Ine Notes: 1. New BSREAA school completed in 1986 adds 2.2 x 10° Btu of net thermal requirements. DIOMEDE D-18 ~ @ - VILLAGE TECHNOLOGY ASSESSMENT ar oe cle Coal. There presently exist no practical means to provide coal to Diomede. There is no space in the village to store significant quantities of coal. Additionally, the village lacks sufficient skilled personnel to staff a coal plant. No consideration of this alternative is warranted. Wood. There are no natural supplies of wood available on Diomede. No further consideration of the wood resource alternative is needed. Geothermal. There are no known geothermal resources on Diomede. No further consideration of the geothermal alternative is warranted. Hydroelectric. There are no river drainages on Diomede to provide a hydro site. No further consideration of the hydroelectric resource is warranted. Photovoltaic. This technoloay is presently too expensive to consider for Alaska utility use. Wind. There is a substantial wind resource available at Diomede. Wind records are available for Tin City. It is appropriate to consider the wind resource further, and to establish a means of determining in some detail the specific nature of the windspeed distribution. In lieu of site-specific data available for Diomede, wind data taken at Tin city was analyzed. It was estimated that a site atop Little Diomede Island could provide enough wind to permit wind-turbine operation with a 55 percent plant factor. Fuel Oil. This resource is available by barge and is the primary fuel used in Diomede. Fuel oi] is presently used for space heating and diesel generation. Table 5 presents the results of the preliminary evaluation of resources and technologies as applied to the community. Methods and criteria used in developing this table are covered in Section C of the main report. The results of this preliminary assessment were used as guidance in development of plans evaluated in the final staces of the study. DIOMEDE 0-19 TABLE 5 VILLAGE TECHNOLOGY ASSESSMENT FOR DIOMEDE ESOURCE ACTORS TECHNOLOGY Electric Coal Fired Steam Wood Fired Steam Geothermal Diesel (base) Gas Turbine Hydroelectric Wind Photovoltaic wwoorr Pr F DO oe oo OO yor FP YN er OO OO or OO WOO Oo oro rF FY OO CO wwwooeodd0ndc oOo Pe Won noTooena PrP OF NM OO Oo Te 2. 3s 4. 5. 6. 7. 8. Heating 9. Diesel Waste Heat Recovery 10. Electric Resistance 11. Passive Solar 12. Wood 13. Coal 14. Oil (base) Other 15. Coal Gasification 16. Wood Gasification - Diesel 17. Biogas 18. Waste Fired Boiler 19. Peat 20. Binary Cycle Generator 21. Conservation ** with present capacity NOTE: Higher numbers are more favorable. DIOMEDE D-20 H_- ENERGY PLAN DESCRIPTIONS AND ASSUMPTIONS H.1 - Base Case The base case plan uses the BIA school generators to produce both electricity and the waste heat. The waste heat is used by the school to supplement its oil use for space and water heating. The electricity is used by the school and the village. The existing machine capacities are adequate to meet the village load through the year 1992. At that time, one of the 60 kW machines which were placed in service in 1982 will be replaced with one 85 kW machine. It is assumed that there will be synchronization equipment installed at the power plant to enable any combination of two machines to be run together to meet the higher demands encountered late in the study term. The machine capacities will be assumed to be as follows: 1982 through 1992 1993 through 2002 Two 60 kW generators One 60 kW generator One 85 kW generator Two 85 kW generators Assumptions made wnen calculating base case costs are as follows: - The diesel sets are valued at a purchase price of $300/kW, plus $500/kW for installation, for a total value of $800/kW. - The waste heat system is valued at a cost of $400/kW of installed capacity, including its installation costs. - It is assumed that the diesel sets will require a thorough overhaul every five years. The overhaul will cost one-half of the diesel set's original purchase price ($150/kW every five years). - General operations and maintenance work will be performed by school maintenance staff. This service will be valued at $8,000. - Original costs of the diesel sets will be amortized over 20 years. The real discount rate (net from inflation) is assumed to be 3 percent annually. DIOMEDE D-21 - Original costs of the waste heat recovery system will be amortized over 10 years. The real discount rate (net from inflation) is assumed to be 3 percent annually. At the end of the 10-year life it will be assumed that the waste heat system will be replaced in its entirety. - The overhaul will be paid for out of funds set aside annually in a sinking fund which pays 3 percent annually. - Variable costs associated with the operation of the diesel system are calculated as follows: (1) Fuel will be assumed to be valued at $2.25 ner aallon in 1982. Its real (1981) cost will be assumed to increase at the rate of 2.6 Percent annually. (2) The diesel sets will be assumed to operate at a fuel consumption rate of 8 kWh/gal. The costs associated with the operation of this system are shown in Section I. It should be noted that the eneray cost figure in $/kWh is not necessarily the cost which would be billed to the ultimate customer. This figure, expressed in terms of 1981 dollars, does not take into account costs associated with distribution of energy within the village, which can add about $0.10/kWh to the customer's cost. The costs shown also do not indicate the effects of the various government subsidy and grant programs which may be available. H.2 - Alternative Plan "A" Alternative "A" uses the BIA school diesel generator sets as described in the base case. In addition to these three units, a 50 kW wind turbine will be assumed to be installed atop Little Diomede Island. Assumptions made when performing the calculations associated with this alternative were as follows: - The wind plant will operate with a plant factor of 0.55 and an availability factor of 0.90. Thus the wind turbine will produce: 50 kW x 8760 hr/yr x 0.55 x 0.9 = 217,000 kWh/year DIOMEDE D-22 This is more than the village will require until the year 1985 and would represent major savings in fuel. There will undoubtedly be problems with timing the wind turbine's output: there will be times when there is no wind but certainly a load and there will be times when there may be little load but large quantities of wind energy available. For this reason, it is assumed that the wind turbine never displaces more than 90 percent of the diesels' fuel use. Assumptions used to develop the cost information associated with the operation of the wind turbine are as follows: - The capital cost of the wind turbine is estimated at $2,700/kW. The cost of installation is estimated at $5,000/kW, for a total of $7,700/kW installed or $385,000. - There will be a transmission line required to bring power from the wind turbine atop the island to the village below. It is estimated that this would require approximately one mile of cable at a cost of $115,000. - The capital cost of the wind turbine will be amortized over 15 years. The transmission line will be amortized over 20 years. The real discount rate (net from inflation) is assumed to be 3 percent annually. - Maintenance will require the attention of skilled personnel brought out from Anchorage. It is estimated that this would require four visits each year, each visit costing about $3,000. This results in an annual maintenance cost of $12,000. - The wind turbine will be brought on-line in 1986. At the end of its 15- year life, it will be replaced in its entirety. - Costs associated with the operation of the BIA diesel sets are described in the base case discussion. Costs associated with this alternative are given in Section I. H.3 - Alternative Plan "B" In this alternative, wind power is used to displace all heating fuels used in the village and to provide the majority of electrical energy needed. The BIA school generators will be considered as backup devices only. DIOMEDE 0-23 From Section F-4 of this report, it is noted that. the net thermal energy demand of the village of Diomede will approach 7 x 109 Btu per year by the middle part of the study term. This is equivalent to about 2,000,000 kWh of electrical energy. Assuming the same 55 percent plant factor as was used in the study of alternative "A," required installed machine capacity is: 2 x 106 kWh/yr ee ee EOE KY (0.55) (0.9) (8,760 hr/yr) Further analysis will assume the installation of two 250 kW wind turbines atop the island. - It is assumed that each of the wind turbines will cost $2,500/kW to purchase and another $2,500 to install, for a total cost of $2,500,000. This cost is amortized over 15 years for an annual cost of about $210,000. The real discount rate (net from inflation) is assumed to be 3 percent annually. - Two transmission lines will be required to get the power produced from the wind turbine sites to the village. It is estimated that each of these transmission lines will cost $150,000 each for a total of $300,000. This cost is amortized over 20 years for an annual cost of about $18,000. The real discount rate (net from inflation) is assumed to be 3 percent annually. - Operations and maintenance work will require the attention of skilled personnel brought out from Anchorage. It is estimated that this service will require six visits each year at a cost of $5,000 per visit, for a total annual cost of about $30,000. - To fit all structures which exist in 1986 with resistance heaters is estimated to cost $1,000 per structure. The population forecast in Section F-2 of this report shows that 46 homes, one commercial building, and 9 governmental or other structures will exist in Diomede in 1986. This represents an initial investment of $56,000, which is amortized over 20 years, for an annual cost of about $4,000. The real discount rate (net from inflation) is assumed to be 3 percent annually. It is assumed that buildings constructed after this time will incur no incremental expense due to the electric heating system. - The total annual costs associated with the operation of the wind turbines are, therefore, $262,000. - The wind turbines are brought on-line in 1986. - The costs associated with the BIA diesel sets are minimal. It will be assumed that fuel use drops to 10 percent of its base case level. All other costs associated with the diesels shall be the same as noted in the base case study. Costs for alternative "B" are presented in Section I. DIOMEDE 0-24 I - ENERGY PLAN EVALUATIONS TABLE 6 ESTIMATED COSTS OF DIOMEDE BASE CASE FUEL COSTS SYSTEM ADDITIONS FIXED COSTS Energy Diesel Fuel Fuel Capital Annual Overhau Total Fixed Production | Fuel Used x Price = Costs Costs Costs + Fund + O&M = Costs Year (MWh) (1,000 gal) __($/gal) ($1,000) Component ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) 1982 175 22 2.25 50 o Existing BIA generators 246 21 6 8 35 (two 60 kW, one 85 kW) 1983 194 24 2.31 55 21 6 8 35 1984 2i1 26 2.37 62 21 6 8 35 1985 231 29 2.43 70 2 6 8 35 1986 240 36 2.49 90 21 6 8 35 1987 294 37 2.56 95 21 6 8 35 1988 298 37 2.62 97 21 6 8 35 1989 302 38 2.68 102 21 6 8 35 1990 302 38 2.76 105 21 6 8 35 1991 306 38 2.83 108 21 6 8 35 1992 310 39 2.91 114 21 6 8 35 1993 314 39 2.98 116 o One 60 kW generator 68 23 7 8 38 replaced with new 1994 318 40 3.06 122 85 kW unit 23 7 8 38 1995 322 40 3.14 126 23 7 8 38 1996 327 4 3.22 132 23 7 8 38 1997 327 41 3.31 136 23 7 8 38 1998 335 42 3.39 142 23 7 8 38 1999 335 42 3.48 146 23 7 8 38 2000 339 42 3.57 150 23 7 8 38 2001 339 42 3.66 154 23 7 8 38 2002-2015 339 42 3.66 154 23 7 8 38 S2-d 3d3wOId TABLE 6 (Cont'd) Total Discounted Fuel Fixed Annual Annual Energy Costs + Costs = Costs Costs Costs Year ($1,000) ($1,000) ($1,000) ($1,000) ($/kWh) 1982 50 35 85 82.5 0.36 1983 55 35 90 84.8 0. 36 1984 62 a5) 97 88.8 0.32 1985 70 35 105 93.3 0.32 1986 90 35 125 107.8 0.29 1987 95 35 130 108.9 0. 30 1988 97 35 132 107.3 0.29 1989 102 35 137 108. 1 0.30 1990 105 35 140 107.3 0.30 1991 108 35 143 106.4 0.30 1992 114 35 149 107.6 0.31 1993 116 38 154 108.0 0, 32 1994 122 38 160 109.0 0.33 1995 126 38 164 108.4 0.33 1996 132 38 170 109.1 0. 34 1997 136 38 174 108.4 0. 34 1998 142 38 180 108.9 0.34 1999 146 38 184 108.1 0.35 2000 150 38 188 107.2 0.35 2001 154 38 192 106.3 0. 36 2002-2015 154 38 192 1,201 0.36 TOTAL $3,277 Total present worth of non-electrical benefits $(1,150) Net present worth $2,127 All costs shown in thousands of dollars Note 1: Diesel fuel use Is calculated at a consumption rate of 8 kWh produced per gallon of fuel used. Note 2: Diesel fuel price is expressed in terms of 1981 dollars, with prices escalated at 2.6 percent above general inflation. Note 3: Total annual fixed costs Include funds for equipment amortization (calculated at 3%), a sinking fund for equipment overhaul and replacement, and general O&M work. 92-0 3d3WOId DIOMEDE D-27 TABLE 7 ESTIMATED NON-ELECTRICAL BENEFITS OF BASE CASE Total Annual Benefits Discounted Year (Space Heating Fuel Saving) Benefits 1982 22 21.4 1983 26 24.5 1984 29 26.5 1985 32 28.4 1986 41 35.4 1987 43 36.0 1988 45 36.6 1989 46 36.3 1990 48 36.8 1991 50 37.2 1992 52 37.6 1993 54 37.9 1994 56 38.1 1995 58 38.3 1996 60 38.5 1997 62 38.6 1998 65 39.3 1999 67 39.4 2000 69 39.4 2001 71 39.3 2002 71 444.1 through 2015 TOTAL: $ 1150 All cost figures shown are in thousands of dollars. DIOMEDE D-28 I.1 - Base Case 1.1.1 - Social and Environmental Evaluation of Base Case Since the BIA school generating facilities are already built, there is no possibility for construction employment. There is an opportunity for employment of one or two Diomede residents as maintenance workers for general day-to-day maintenance. Diesel generators are relatively benign environmentally. They emit small quantities of nitrous oxides, carbon monoxide, sulfur dioxide, carbon dioxide, water vapor, and unburned hydrocarbons. In a village as windy as Diomede, it is not likely that any accumulation of these pollutants will take place. 1.1.2 - Technical Evaluation of Base Case The existing generating facilities have served the village of Diomede quite satisfactorily since they were put into operation in 1978. The newly installed 60 kW diesel sets would seem better matched to the load than the existing 85 kW machines and therefore should provide more trouble-free operation. BIA has a staff of well trained diesel mechanics who are available for repair work as needed. TABLE 8 ESTIMATED COSTS OF DIOMEDE ALTERNATIVE PLAN "A" FUEL COSTS SYSTEM ADDITIONS FIXED COSTS Energy Diesel Fuel Fuel Capital Annual Overhaul Total Fixed Production | Fuel Used x Price = Costs Costs Costs + Fund + O&M = Costs Year (MWh ) (1,000 gal) _($/gal) ($1,000) Component ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) 1982 175 22 2.25 50 o Existing BIA Generators 246 21 6 8 35 (two 60 kW, one 85 kW) 1983 194 24 2.31 55 with waste heat system 21 6 8 35 1984 2i1 26 2.37 62 21 6 8 35 1985 21 29 2.43 70 21 6 8 35 1986 240 10 2.49 25 61 6 20 87 1987 294 10 2.56 26 o Installation of 50 kW 500 61 6 20 87 wind turbine 1988 298 10 2.62 26 61 6 20 87 1989 302 iW 2.68 30 61 6 20 87 1990 302 WW 2.76 31 61 6 20 87 1991 306 W 2.83 32 61 6 20 87 1992 310 12 2.91 36 61 6 20 87 1993 314 12 2.98 36 o One 60 kW BIA generator 68 63 7 20 90 replaced with one 1994 318 13 3.06 39 85 kW unit 63 7 20 90 1995 322 13) 3.14 41 63 7 20 90 1996 327 14 3.22 45 63 7 20 90 1997 327 14 3.31 47 63 7 20 90 1998 335 15 3.39 50 63 7 20 90 1999 335 15 3.48 52 63 7 20 90 2000 339 15 3.57 54 63 7 20 90 2001 339 15 3.66 55 63 7 20 90 2002-2015 339 15 3.66 55 63 v 20 90 62-0 3d3wWO1d TABLE 8 (Cont'd) Total Discounted Fuel Fixed Annual Annual Energy Costs + Costs = Costs Costs Costs Year ($1,000) ($1,000) ($1,000) ($1,000) ($/kWh) 1982 50 35 85 82.5 0. 36 1983 55 35 90 84.8 0. 36 1984 62 35 97 88.8 0. 32 1985 70 35 105 93.3 0.32 1986 25 87 12 96.6 0.33 1987 26 87 3 94.6 0. 33 1988 26 87 3 91.9 0. 32 1989 30 87 17 92.4 0.32 1990 31 87 118 90.4 0. 32 1991 By, 87 119 84.7 0.33 1992 36 87 123 88.9 0.33 1993 36 90 126 88.4 0.33 1994 39 90 129 87.8 0. 33 1995 41 90 131 86.6 0.32 1996 45 90 135 86.7 0. 33 1997 47 90 137 85.4 0.33 1998 50 90 140 84.7 0. 33 1999 52 90 142 83.4 0. 33 2000 54 90 144 82.1 0.33 2001 55 90 145 80.3 0.33 2002-2015 55 90 145 906.9 0. 33 TOTAL $2,661 Total present worth of non-electrical benefits $(1, 150) Total present worth of non-electrical disbenefits 556 Net present worth $2,067 All costs shown in thousands of dollars Note 1: Diesel fuel use is calculated at a consumption rate of 8 kWh produced per gallon of fuel used. Note 2: Diesel fuel price is expressed in terms of 1981 dollars, with prices escalated at 2.6 percent above general inflation. Note 3: Total annual fixed costs Include funds for equipment amortization (calculated at 3%), a sinking fund for equipment overhaul and replacement, and general O&M work. O€-d 3qd3wOId DIOMEDE D-31 TABLE 9 ESTIMATED NON-ELECTRICAL BENEFITS OF ALTERNATIVE PLAN "A" Total Annual Benefits Discounted Year (Space Heating Fuel Saving) Benefits 1982 22 21.4 1983 26 24.5 1984 29 26.5 1985 32 28.4 1986 41 35.4 1987 43 36.0 1988 45 36.6 1989 46 36.3 1990 48 36.8 1991 50 37.2 1992 52 37.6 1993 54 37.9 1994 56 38.1 1995 58 38.3 1996 60 38.5 1997 62 38.6 1998 65 39.3 1999 67 39.4 2000 69 39.4 2001 71 39.3 through 2015 TOTAL: $ 1150 All cost figures shown are in thousands of dollars. DIOMEDE TABLE 10 ESTIMATED NON-ELECTRICAL DISBENEFITS OF ALTERNATIVE PLAN "A" Total Annual Disbenefits Additional Discounted Year Fuel Purchase Disbenefits 1982 = = 1983 - = 1984 = 7 1985 5 = 1986 25 21.6 1987 26 21.8 1988 26 21.1 1989 27 21.3 1990 28 21.5 1991 28 20.8 1992 29 21.0 1993 30 21.0 1994 31 21a 1995 31 20.5 1996 32 20.5 1997 33 20.6 1998 34 20.6 1999 35 20.6 2000 36 20.5 2001 37 20.5 2002 37 231.4 through 2015 All cost figures shown are in thousands of dollars. D-32 DIOMEDE D-33 1.2 - Alternative Plan "A" 1.2.1 - Social and Environmental Evaluation If this alternative were to be implemented, there would be the possibility that some local work crews could assist in the construction of the wind turbine tower, foundation, and auxiliary equipment. There would be a need for skilled workers such as riggers, welders, and electricians, as well as for general laborers. Wind turbine equipment is considered environmentally safe. However, a number of items should be considered in regard to this equipment. The first is the danger that unauthorized personnel may climb the turbine's tower if it is not secured against such activity. This may lead to a serious fall and potential death. Secondly, if a wind turbine blade were to fail in operation, it could be thrown several hundred feet. Because this alternative considers the turbine to be located on the uninhabitated top of the island, this risk is not considered serious. 1.2.2 - Technical Evaluation It may be premature, with the wind turbine equipment presently available, to propose a headlong rush to install a wind turbine atop Little Diomede Island. However, the economic analysis shows that system electric costs will be within 10 percent of that of the simple diesel/waste heat system throughout the term of the study. During the latter part of the study term, this alternative produces less expensive energy than the base case plan. The wind data upon which this analysis was based was taken by Government agencies at Tin City and data gathered on a daily basis by the BIA school principal over the period 1978 to 1981. An anemometer was located at the BIA school. While this data is not, of itself, adequate to base firm decisions regarding the viability of wind power at Diomede, it does present an indication that wind conditions are favorable for such a development. The anemometer was located (the Diomede winds eventually destroyed the anemometer) adjacent to the school's fuel oil tanks. Any anemometer located so far from the top of the island cannot give a good indication of wind conditions on top. The village is relatively sheltered from winds from the east and the presence of the large buildings will likely shield the anemometer from many other winds. It is felt, therefore, that the estimate used for a plant factor of 55 percent is conservative. DIOMEDE 0-34 The problems associated with the logistics of constructing a wind turbine atop Little Diomede would present a challenge for even the most experienced engineering and construction firms. Simply getting parts and equipment to the site will require careful planning. Wind turbine erection will require extensive helicopter support for plaacing many of the heavy parts. Subsequent studies should address the difficulties and potential involved in performing precise helicopter maneuvering in strong and sometimes surly winds. TABLE 11 ESTIMATED COSTS OF DIOMEDE ALTERNATIVE PLAN "BY FUEL COSTS SYSTEM ADDITIONS FIXED COSTS Energy Diesel Fuel Fuel Capital Annual Overhaul Total Fixed Production | Fuel Used x Price = Costs Costs Costs + Fund + O&M = Costs Year (MWh) (1,000 gal) ($/gal) ($1,000) Component ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) 1982 175 22 2.25 50 o Existing BIA Generators 246 21 6 8 35 (two 60 kW, one 85 kW) 1983 194 24 2.31 55 with waste heat system 21 6 8 3D 1984 211 26 2.37 62 21 6 8 35 1985 231 29 2.43 710 21 6 8 35 1986 240 4 2.49 9 253 6 38 297 1987 294 3 2.56 9 o Installation of two 2,800 253 6 38 297 250 kW wind turbines 1988 298 4 2.62 10 253 6 38 297 1989 302 4 2.68 10 253 6 38 297 1990 302 4 2.76 10 253 6 38 297 1991 306 4 2.83 iW 253 6 38 297 1992 310 4 2.91 W o Bia waste heat system 243 6 38 287 abandoned 1993 314 4 2.98 12 o One 60 kW BIA Generator 68 244 7 38 289 replaced with one 1994 318 4 3.06 12 85 kW unit 244 7 38 289 1995 322 4 3.14 13 244 7 38 289 1996 327 4 3.22 13 244 7 38 289 1997 327 4 3.31 14 244 7 38 289 1998 335 4 3.39 14 244 7 38 289 1999 335 4 3.48 15 244 7 38 289 2000 339 4 3.57 15 244 7 38 289 2001 339 4 3.66 15 244 7 38 289 2002-2015 339 4 3.66 15 244 7 38 289 S€-d 3GawOIG TABLE 11 (Cont'd) Total Total Discounted Fuel Fixed Annual Annual Energy Costs + Costs = Costs Costs Costs Year ($1,000) ($1,000) ($1,000) ($1,000) ($/kWh) 1982 50 35 85 83 0.36 1983 55 35 90 85 0. 33 1984 62 35 97 89 0. 32 1985 70 35 105 93 0.32 1986 9 297 306 264 0.38 1987 9 297 306 256 0.35 1988 10 297 307 250 0.33 1989 10 297 307 242 0. 30 1990 10 297 307 235 0. 28 1991 iB 297 308 229 0.26 1992 i 297 298 215 0.20 1993 12 287 301 2i1 0.19 1994 12 289 301 205 0.17 1995 13 289 302 200 0.15 1996 13 289 302 194 0.11 1997 14 289 303 189 0.09 1998 14 289 303 183, 0.07 1999 15 289 304 179 0.05 2000 15 289 304 173 0.03 2001 15 289 304 168 0.01 2002-2015 15 289 304 1,902 0.01 TOTAL $ 5,645 Total present worth of non-electrical benefits $( 4,687) Net present worth $ 958 All costs shown in thousands of dollars Note 1: Diesel fuel use is calculated at a consumption rate of 8 kWh produced per gallon of fuel used. Note 2: Diesel fuel price is expressed in terms of 1981 dollars, with prices escalated at 2.6 percent above general inflation. Note 3: Total annual fixed costs include funds for equipment amortization (calculated at 3%), a sinking fund for equipment overhaul and replacement, and general O&M work. 9€-d 3d3WOIG DIOMEDE 0-37 TABLE 12 “ESTIMATED NON-ELECTRICAL BENEFITS OF ALTERNATIVE PLAN "B" Total Afnual Benefits Discounted Year (Space Heating Fuel Saving) Benefits 1982 22 21.4 1983 26 24.5 1984 29 26.5 1985 32 28.4 1986 197 169.9 1987 203 170.0 1988 208 169.1 1989 216 170.5 1990 223 170.9 1991 228 169.7 1992 235 169.8 1993 240 168.3 1994 247 168.2 1995 254 167.9 1996 265 170.1 1997 272 169.5 1998 278 168.2 1999 286 168.0 2000 293 167.1 2001 301 166.7 2002 301 1883.0 through 2015 TOTAL: $ 4687 All cost figures shown are in thousands of dollars. mee SS DIOMEDE D-38 1.3 - Alternative Plan "B" 1.3.1 - Social and Environmental Evaluation In the event that this alternative was implemented, there would be the opportunity for local participation in construction activities for all phases of the project. There would be a need for skilled workers such as welders, electricians, carpenters, riagers, and general laborers. Once the electric system was in place, there would be a number of impacts on the community. The most obvious would be that much less oil would have to be hauled from the village store to the homes. There would be some decrease in air pollutants, although this is not a problem at Diomede at present. If the electric heating systems were installed correctly, there might be some reduction in the fire hazard if the use of oil stoves were reduced. In a village with no running water for firefighting and with the houses as close together as they are in Diomede, this may be a serious consideration. 1.3.2 - Technical Evaluation It is apparent that this alternative is one of the more “way-out" ideas studied in this report, but it does seem to have its merits. A reduction in dependence on petroleum products and the rather uncertain delivery system available to Diomede is a laudable goal. The physical practicality of this alternative will merit further study. There are considerable challenges to be faced in construction logistics which will require careful evaluation. The state-of-the-art in wind turbine design will be tested by the severe weather conditions found on Diomede. Much of the heavy lifting required for turbine erection will be done by helicopter, under conditions less than ideal. The practicality of such operations is something which must be examined further. The first step to be taken to firmly establish the feasibility of this idea is the installation of a sophisticated anemometry site atop the island. This would provide sufficient data to develop a frequency distribution of wind speeds, from which a more accurate estimate of potential plant factor could be derived. DIOMEDE D- 39 J_- COMMENTS AND DISCUSSION DIOMEDE D- 40 J.1 - Comments Received From Mr. Phil Kaluza DIOMEDE D-41 Eric P. Yould Alaska Power Authority : : 334 West 5th Ave. BEGEIYED Anchorage, AK 99501 APR -~ 9 3989 ALASKA POWER AUTHORITY Dear Mr. Yould, I would like to make several comments concerning the Reconnaissance Studies recently drafted for the villages in the Bering Straits Region. In nearly all of the villages studied a 100KW wind turbine was used as an alternative for deisel generation. I question the practicality of such a large wind system for several reasons. Several of the villages studied ( Brevig Mission, Golovin) do not even have village wide elec- tricity and are so small that if and when they do undergo an electrification project the demand would be much less than the output of the wind system. I futher question the practicality of such a large wind system in that it would provide an all or nothing approach to the reliability of wind generated electricity. In comparsion, several smaller wind systems could be installed using primarily local manpower which could be trained to maintain and repair the smaller systems. This would help eliminate the need for those costly maintenance trips from Anchorage or out of state personnel. The smaller systems would provide a far better reliability factor and possibily a better system for load management. The use of such a large wind system as an alternative will certainly set any potential of wind energy on a back burner. Also concerning the wind generator alternative the research group decided not to incorporate into the alternative a waste heat recovery system for the diesel generator. Apparently they can not see the potential of a combonation of many small scale alternatives. Another area covered in the report was the energy efficiency of the housing stock.In several reports the researchers estimated 20-30% energy savings through weatherization. As a certified state energy auditor and having traveled to many of the villages in the study I would agree there is much room for improvement, even in the recently built houses, but 20 or 30 percent is nothing. An aggressive retrofit program could cut the energy loss by 80 or 90 percent. This could be done through a loan pronram that village homeowners would be eligible for. Sincerely, Phil Kaluza Box 843 Nome, AK 99762 1s Comment: Response: DIOMEDE D-42 ACRES' RESPONSE "In nearly all the villages studied, a 100 kW wind turbine was used as an alternative for diesel generation. I question the practicality of such a large wind system..." The relatively large wind turbine was chosen for use in this study for a number of reasons: 1. Economy. As turbine size increases, advantage can be taken of their economy of scale: costs in terms of $/kWh at the turbine equipment tend to decrease. For a given aggregate wind turbine capacity at any particular site, the site specific items such as foundations, control equipment, and electrical hookups are simplified and made less expensive. The problems associated with maintaining one 100 kW machine as opposed to, say ten-10 kW units, are minimized. It is worth noting that the larger units have room inside the generator nacelle to work on equipment out of the weather. On-site repair work on smaller units can be expected to be performed by workers exposed to high winds and low temperatures 2. Appropriateness of Size. At a site with a mean wind speed o mph, a 100 kW wind turbine with an 8 mph cut-in and a 25 mph rated speed will produce a mean power output less than 20 kW, not even enough to power a typical Bering Straits REAA high school. A number of smaller wind turbines with a similar aggregate capacity and wind speed/power characteristic, would not do much better. 3. Reliability. To date, only very small-scale wind turbines have been tried in Alaska with very rare successes. Two weeks after being put into operation the State's $100,000 10-kW demonstration project at Skagway was shut down due to a blade failure. Many other small-scale projects have been subject to similar defects. The 100 kW units have such large costs (on an absolute basis) that substantial engineering efforts can be carried out without drastically increasing the $/kW costs. The development programs undertaken by the Department of Energy and NASA using large machines have been largely successful. It is expected that a well designed large turbine would be more reliable than a number of small units. 4, Comment: Response: Comment: Response: Comment: DIOMEDE D-43 4. Manufacturer's Support. It has been the unfortunate history of wind turbines that many manufacturers start up a business, inflate advertising claims, sell a few machines which cannot, for whatever reason, perform satisfactorily, and promptly go out of business, leaving their customer with no source of information or repair parts. Only large, well-established companies can raise the capital needed to tool up for production of large units. Presently, large units are manufactured by well-known firms such as Westinghouse and Boeing. It is presumed that these firms will exist into the foreseeable future to support their wind turbines. With a few exceptions, the same cannot be said for makers of the small] units. Larger manufacturers typically have more depth in their engineering departments to address problems as they develop. No change in report text is needed. "Several of the villages studied (Brevig Mission, Golovin) do not even have village-wide electricity..." All villages studied, including Brevig Mission and Golovin had, or were in the very final stages of getting, village- wide electric system installations. No change in report text is needed. “...demand would be much less than the output of the wind system." This is not true. A 100-kW wind turbine will rarely put out that much power. In winds of less than 18 mph, the wind turbine described under Comment No. 1 above will not produce more power than could be used by the typical village school (20 kW). As refrigerators and TV's become more and more popular, it is highly probable that even the 100 kW unit will be able to provide but a fraction of a village's needs. Only rarely will there be a surplus. No change in the report text is needed. "J... such a large wind turbine ... would provide an all or nothing approach to the reliability of wind generated electricity." 5. 6. Tie Response: Comment: Response: Comment: Response: Comment: DIOMEDE 0-44 While it is true that if one large wind turbine were used and it were out of commission, no wind-generated power would be available, it is not thought that this disadvantage is sufficient to make the small units' higher costs attractive. No change in the report text is needed. - several smaller wind systems could be installed using primarily local manpower which could be trained to maintain and repair the smaller systems." The availability of people with the required maintenance skills is something which varies widely from village to village. Except for a few notable cases, most diesel plants visited in rural Alaska are not good examples of the labors of highly skilled maintenance personnel. If these diesel plants show what can be accomplished by "local manpower," it is not likely that even the simplest wind turbines could be maintained to provide reliable service. Equipment such as gearboxes, generators, and inverters would still require attention by personnel from outside the village. The large units are not so dissimilar and local workers could be trained to perform routine maintenance tests such as lubrication, inspection, expendable parts replacement, etc. As noted before, the large units have room to work inside their generator nacelles out of the weather. This is far less likely to lead to maintenance errors and should be far safer for the serviceman than clinging to a small system's tower (in safety belt) in a cold breeze. No change in report text is needed. "The use of such a large wind system as an alternative will certainly set any potential of wind energy on a back burner." This opinion is diametrically opposite that of Acres' staff, who believe that one well-designed and properly functioning wind turbine system which is capable of supplying significant amounts of electrical energy to a power system will do more to promote the use of wind power than will a collection of marginally engineered and poorly supported machine installations such as already exist in the State. No change in the report text is needed. ".., the research group decided not to incorporate [a wind turbine] into the alternative [using] a waste heat recovery system for the diesel generator. Apparently, they cannot see the potential of a combination of many small-scale alternatives." 8. Response: Comment: Response: DIOMEDE D-45 In fact, Acres does recognize the combination of any number of power producing technologies, but only where appropriate. A diesel set is a much more efficient generator of heat than it is of electricity. In power systems mere both diesel/waste heat and wind turbine systems are in use, as wind turbine output increases, the waste heat output diminishes accordingly. The relationship is generally such that revenues lost from reduced waste heat sales are not recovered in fuel savings, resulting in a net increased system cost with greater wind turbine output. Very appropriate combinations of small-scale and renewable technologies are those of wind and hydro, or solar photovoltaic and hydro, and similar combinations in which the increased output of one element does not degrade the performance of the others. Unfortunately, few such combinations were found which were appropriate to the economic needs of the village. No change in the report text is needed. "An aggressive retrofit program could cut the energy loss by 80 or 90 percent." Without having access to the assumptions used to arrive at the 80 to 90 percent figure, it is not possible to comment on the validity of these figures. New housing designs, wile improvements over past efforts, are not expected to be much more than 25 - 30 percent more efficient than existing housing. Presently, there is no indication that the State is prepared to embark on an “aggressive retrofit program." No change in the report text is needed. DIOMEDE 0-46 J.2 - Comments Received From The Alaska Power Administration (Original Letter Retyped Here For Clarity] DIOMEDE D-47 April 12, 1982 Mr. Eric P. Yould Executive Director Alaska Power Authority 334 West 5th Avenue, Second Floor Anchorage, Alaska 99802 Dear Mr. Yould: We have reviewed the two draft sets of reconnaissance reports of energy requirements and alternatives for numerous small Alaskan villages, transmitted to us by your March 3 letter. One was prepared by Acres American, Inc. and one by Northern Technical Services (NORTEC). We agree with the recommendations in the Acres summary report (pp. 0-6 and 0-7), and the individual village NORTEC reports. However, there appears to be a discrepancy in that the recommendations of the NORTEC summary report are not presented in the same priority as some of the individual reports. Specifically the individual reports recommend investigation before specific action is taken on new projects, while the summary report recommends immediate installation of central diesel generators in eight villages. We offer a'few general comments for consideration. There appears to be a disparity between the two reports in that Acres assumed that conservation was not within the scope of consideration while NORTEC did, Neither put a "value" on conservation in terms of energy reduction. A summary comparison of energy cost per kWh for each generation technology would enhance the Acres report. Presentation of costs in terms of kWh units and a summary by technologies would also enhance the NORTEC report. Neither report addresses actual present and projected electric power costs with or without consideration of the residential subsidy under AS 44.83.162. DIOMEDE D-48 Extending a single energy cost for a given technology to several communities leads to risk of invalid comparison based on local conditions. The description of each technology in each report is a good approach to inform lay consumers of the basic parameters. It is good to see a description of the state-of-the art of technologies that are not yet practical for power generation in remote locations such as wind, biomass, and geothermal. Thanks for the opportunity to comment. Sincerely, Robert J. Cross Administrator FSUMMERS:gs:sr 3/18/82 Yould Letter FLOYD4 1. 2. Comment : Response: Comment : Response: DIOMEDE D-49 ACRES' RESPONSE . Acres assumed that conservation was not within the scope of consideration." No such assumption was ever made either explicitly or implicitly. In a number of village reports, the primary recommendation was that aggressive energy audit programs be undertaken forthwith. It was repeatedly noted that village residents were more concerned about the costs of home heating and the inefficiencies of their homes than they were about the supply of electricity within their village. While the study of the means necessary to achieve any meaningful savings of space heating energy was beyond the scope of the study, the effects of such savings were incorporated where appropriate. It was assumed that new housing designs which would be implemented in the villages after 1985 would be 25 to 30 percent more efficient than existing units. No "value" was placed on such improvements for the reason noted above. It is the opinion of Acres' staff that electrical energy conservation is a function of electric energy cost and is inversely related to disposable income: consumers will purchase and use those electricity-consuming devices for which they feel a need or desire. As the real cost of using these items increases, their use will likely (but not necessarily) decrease. The incorporation of so-called energy efficient lights or motors is not expected to have perceptible impact on any village's energy or demand forecast. No comment or change in report text is needed. "A summary comparison of energy cost per kWh for each generation technology would enhance the Acres report." Without site-specific parameters such as fuels costs, construction costs, and annual O&M charges, such a summary would be meaningless. Not all technologies are appropriate or available to all villages. Even where two villages may share access to a particular technology, such as diesel generation, local conditions including fuel costs, fuel consumption rates, and O&M considerations may make comparisons invalid. The comment is noted to be contradictory to the later comment that "Extending a single energy cost for a given technology to several communities leads to risk of invalid comparison based on local conditions." No comment or change in report text is needed. 3. Comment : Response: DIOMEDE D-50 "Neither report addresses actual present and projected electric power costs with or without consideration of the residential subsidy under AS 44.83.162." This omission is deliberate at the direction of the Alaska Power Authority. Study costs given are busbar costs calculated without governmental subsidy. The availability of a subsidy does not affect the economics of a power production facility; it merely shifts the burden of paying the operation costs to the government. It is also worth noting that the - subsidy programs are continued from year to year at the pleasure of the legislature. No comment or change in report text is needed. DIOMEDE 0-51 J.3 - Comments Received From The State of Alaska Department of Fish and Game | STATE OF ALASKA [=e DEPARTMENT OF FISH AND GAME OFFICE OF THE COMMISSIONER F048 0 Xnse2000 JUNEAU, ALASKA 99802 PHONE: 465-4100 April 8, 1982 RECEIvep APR 12 1982 ALASKA POWER AUTHORITY Alaska Power Authority 334 West 5th Avenue Anchorage, Alaska 99501 Attention: Eric P. Yould, Executive Director Gentlemen: The Alaska Department of Fish and Game has reviewed the Power Authority's Draft FY 82 Energy Requirement Reconnaissance Reports for several Alaska communities. We have no comments to offer at this time. We wish, however, to review subsequent studies as they become available. Sincerely, a Oi Gouna fe Ronald 0. Skoog Commissioner DIOMEDE 0-53 ACRES' RESPONSE No comment or change in report text is needed. DIOMEDE 0-54 J.4 - Comments Received From U. S. Fish and Wildlife Service in Anchorage DIOMEDE D-55 United States Department of the Interior FISH AND WILDLIFE SERVICE Western Alaska Ecological Services 733 W. 4th Avenue, Suite 101 Anchorage, Alaska 99501 RE (907) 271-4575 ECEIVED APR ~ 9 1989 Mr. Eric P. Yould "AI Executive Director ALASKA POWER AUTHORITy Alaska Power Authority 6 334 West 5th Avenue @ APR 1982 Anchorage, Alaska 99501 Dear Mr. Yould: We have reviewed the Alaska Power Authority's (APA) Draft FY 1982 Energy Reconnaissance Reports. If the conclusions and recommendations stated in the individual reports become those of the APA, and if the APA undertakes feasi- bility studies in fulfillment of the recommended alternatives, then the U.S. Fish and Wildlife Service (FWS) requests that the information and studies outlined below be made a part of the feasibility studies. Without current site-specific resource information and a more complete description of the proposed project, it is difficult to assess what impacts, if any, will occur to fish and wildlife resources and associated habitat. Information should be acquired and studies conducted to identify the fish and wildlife resources of the study area, identify adverse project impacts to those resources, assess alternatives to the proposed action and devise a mitigation plan that would prevent a net loss to fish and wildlife resources. Specific information to be collected and studies to be conducted which the FwS feels are necessary to adequately assess potential impacts include the following: i. Plans for construction activities and project features to minimize damage to fish, wildlife, and their habitats should be devised, e.g., erosion control, revegetation, transmission line siting, construction timing, siting the powerhouse, diversion weir, and penstock above salmon spawning habitat, etc. 2. Losses of fish and wildlife habitat should be held to a minimun, and measures to mitigate unavoidable losses and enhance resources should be devised. 5. If there is to be a diversion of water or if substantial water temperature fluctutations are imminent, then these factors should be addressed because of their possible influence on water quality and fish habitat. Aquatic data collection should at least include the following: DIOMEDE D-56 Page 2 (a) Identification of species composition and distribution of resident and anadromous fish within and downstream of the pro- ject area. Standard sampling methods such as fyke netting and minnow trapping, as well as visual observation of spawning and/or redds, should be used. (b) Surveying and mapping of fish spawning, rearing, and over- wintering habitat as defined in the FWS Instream Flow Techniques or similar guidelines. (c) Harvest levels and subsistence use data, if applicable. It should be incumbent upon the APA to document animal species within the project boundary. If it is determined that impacts to terrestrial mammals or bird habitat is imminent, the APA should gather habitat and population infor- mation in a manner consistent with the FWS' Habitat Evaluation Procedures. 4. Terrestrial data collection should include the following: (a) Verification of game and non-game species use and occurrence within the project area. 1. Mammals. ae Historical and current harvest levels and subsistence use data. b. Site-specific wildlife observations, including wild- life sign, denning sites, feeding sites, migration routes, winter use areas, and calving areas. 2. Birds. Raptor nesting surveys within the project area. (bo) Description of vegetation, cover typing, and areal extent of each type. The FWS requests that bald eagle surveys be undertaken. If nest sites are encountered, the APA should notify the FWS. The FWS seeks to maintain a 330-foot protective zone around all active and inactive nests. Compliance with provisions of the Bald Eagle Protecton Act is mandatory. We request that the following be accomplished during the course of the studies: ale During the period of project planning, the APA should consult with federal, state, and local agencies having an interest in the fish and wildlife resources of the project area, including the Fish and Wildlife Service, prior to preparing any environmental reports. 2. The APA shall investigate and document the possible presence of any endangered or threatened species in the project area. If endangered of threatened species are determined to be present, the FWS should be notified. DIOMEDE D-57 Page 3 3. The APA shall design and conduct at project cost, as soon as prac- ticable, preparatory studies in cooperation with the FWS and the Alaska Department of Fish and Game. These studies shall include, but not be limited to, the above aquatic and terrestrial data. The studies shall also identify and evaluate general measures to avoid, offset, and/or reduce adverse project-caused impacts on fish and wildlife resources. Information from these fish and wildlife related studies shall be provided to the concerned state and federal resource agencies. Future correspondence on this, or other projects proposed by the APA should include a clear map, in sufficient detail to show the exact location of the project. This will enable the FWS to accurately determine whether or not Interior managed lands are involved. + is the desire of the FWS to work with the APA to resolve any concerns relating to fish, wildlife, and other resources. If it is determined that the project will result in resource impacts, the FWS will assist the APA in attempting to modify the project to alleviate or mitigate any adverse effects. Please feel free to contact me if you have any questions regarding our suggested feasibility studies. Sincerely, Field Supervisor 1 Comment : Response: DIOMEDE 0-58 ACRES' RESPONSE "Without current site-specific resource information and a More complete description of the proposed project, it is difficult to assess what impacts, if any, will occur to fish and wildlife resources and associated habitat. Information should be acquired and studies conducted to identify the fish and wildlife resources of the study area, identify adverse project impacts to those resources, assess alternatives to the proposed action and devise a mitigation plan that would prevent a net loss to fish and wildlife resources." The reconnaissance study scope does not provide for any but the most general identification of sites, definition of project design characteristics, and assessment of environmental consequences. The level of study effort suggested in the USF&WS letter is appropriate to a feasibility-level study of a project. No change in report text is required. DIOMEDE D- 59 J.5 - Comments Received From U.S. Bureau of Land Management (BLM) DIQMEDE 9-60... United States Department of the Interior BUREAU OF LAND MANAGEMENT Anchorage District Office 4700 East 72nd Avenue Anchorage, Alaska 99507 APR 6 1982 RECEIVED APR - 8 1982 Mr. Eric P. Yould ‘ACASKA POWER AUTHORITY Alaska Power Authority 334 West 5th Avenue Anchorage, AK 99501 Dear Mr. Yould; Reference your letter dated 3 March 1982 in which you requested comments concerning your draft FY1982 energy reconnaissance reports. This agency agrees with the contractors basic conclusions that further feasibility studies of hydro power potential should be evalu- ated at applicable locations. Generally there is little or no BLM land involved at any sites. Most locations are native selected or other non-BLM land. When actual construction plans formulate land use and ownership will be determined on a case by case basis. The opportunity to comment on this report is appreciated. Should you have further questions feel free to contact me. Sincerely, BLA! Unina DIOMEDE D-61 ACRES' RESPONSE No comment or change in report text is needed. PROPERTY OF: Alaska Power Authority S34 W. 5th Ave. Anchorage, Alaska 99501