HomeMy WebLinkAboutAPPLICATION - NEA_REF Round 15 Application, BESSRenewable Energy Fund Round 15
Grant Application – Standard Form
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round 15 of the Renewable Energy Fund (REF). A separate application form is available for
projects with a primary purpose of producing heat (see Request for Applications (RFA) Section
1.5). This is the standard form for all other projects, including projects that will produce heat and
electricity. An electronic version of the RFA and both application forms is available online at :
https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-Fund/2022-REF
-Application.
What follows are some basic information and instructions for this application:
●If you are applying for grants for more than one project, provide separate application forms for
each project.
●Multiple phases (e.g. final design, construction) for the same project may be submitted as one
application.
●If you are applying for grant funding for more than one phase of a project, provide milestones
and grant budget for each phase of the project (see Sections 3.1 and 3.2.2).
●In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3 Alaska
Administrative Code (ACC) 107.605(1).
●If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases are
completed and funding for an advanced phase is warranted.Supporting documentation may
include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof
of site control, utility agreements, business and operation plans, power sale agreements,
relevant data sets, and other materials. Please provide a list of supporting documents in
Section 11 of this application and attach the documents to your application.
●If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with your
submission or reference a web link where it can be downloaded or reviewed. Please provide a
list of additional information; including any web links, in Section 12 of this application and attach
the documents to your application. For guidance on application best practices please refer to
the resource-specific Best Practices Checklists; links to the checklists can be found in the
appendices list at the end of the accompanying REF Round 15 RFA.
●In the Sections below, please enter responses in the spaces provided. You may add additional
rows or space to the form to provide sufficient space for the information, or attach additional
sheets if needed.
●If you need assistance with your application, please contact AEA’s Grants Coordinator by email
at grants@akenergyauthority.org or by phone at (907)771-3081.
AEA 23046 Page 1 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
REMINDER:
●AEA is subject to the Public Records Act AS 40.25, and materials submitted to AEA may be
subject to disclosure requirements under the act if no statutory exemptions apply.
●All applications received will be posted on the Authority web site after final recommendations
are made to the legislature. Please submit resumes as separate PDFs if the applicant would
like those excluded from the web posting of this application.
●In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary
company data be kept confidential subject to review and approval by AEA. If you want
information to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their application.
o Receive concurrence from the Authority that the information will be kept confidential. If
the Authority determines it is not confidential, it will be treated as a public record in
accordance with AS 40.25 or returned to the applicant upon request.
AEA 23046 Page 2 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate, and maintain the project upon completion.
Name (Name of utility, IPP, local government, or other government entity)
Naknek Electric Association, Inc.
Tax ID #92-0027674
Date of last financial statement audit:12/31/2021
Mailing Address:Physical Address:
PO Box 118 1 School Road
Naknek, AK 99633 Naknek, AK 99633
Telephone:Fax:Email:
907-246-4261 service@naknekelectric.com
1.1 Applicant Point of Contact / Grants Coordinator
Name:Mark Huber Title:Chief Financial Officer
Mailing Address:
PO Box 118
Naknek, AK 99633
Telephone:Fax:Email:
907-244-2779 MarkH@naknekelectric.com
1.1.1 Applicant Signatory Authority Contact Information
Name:Dianne King Title:General Manager
Mailing Address:
PO Box 118
Naknek, AK 99633
Telephone:Fax:Email:
907-246-4261 diannek@naknekelectric.com
1.1.2 Applicant Alternate Points of Contact
Name Telephone:Fax:Email:
AEA 23046 Page 3 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
1.2 Applicant Minimum Requirements
Please check as appropriate. If applicants do not meet the minimum requirements, the application
will be rejected.
1.2.1 Applicant Type
X An electric utility holding a certificate of public convenience and necessity under AS 42.05
CPCN #__22__, or
☐An independent power producer in accordance with 3 AAC 107.695 (a) (1)
CPCN #______, or
☐A local government, or
☐A governmental entity (which includes tribal councils and housing authorities)
Additional minimum requirements
X 1.2.2 Attached to this application is formal approval and endorsement for the project by the
applicant’s board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s governing
authority is necessary.(Indicate yes by checking the box)
X 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement
(Section 3 of the RFA).(Indicate yes by checking the box)
X 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-Fund/2022
-REF-Application (Any exceptions should be clearly noted and submitted with the
application.)(Indicate yes by checking the box)
X 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries.(Indicate yes by checking the box)
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Renewable Energy Fund Round 15
Grant Application – Standard Form
SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Naknek Electric Battery Energy Storage System
2.2 Project Location
2.2.1 Location of Project – Latitude and longitude (preferred), street address, or
community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information, please contact
AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907)
771-3081.
Latitude 58.73059 Longitude -157.00734
Naknek Electric Association Power Plants and offices.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Naknek, South Naknek, and King Salmon
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐Wind ☐Biomass or Biofuels (excluding heat-only)
☐Hydro, Including Run of River ☐Hydrokinetic
☐Geothermal, Excluding Heat Pumps ☐Transmission of Renewable Energy
☐Solar Photovoltaic X Storage of Renewable
☐Other (Describe)☐Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐Reconnaissance X Final Design and Permitting
☐Feasibility and Conceptual Design X Construction
AEA 23046 Page 5 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
Naknek Electric Association (NEA) proposes to install a battery energy storage system (BESS) to
increase reliability and more efficiently manage existing diesel electric generators. The installation
of a BESS will allow NEA to reduce online generation by 24.6% and operate the remaining 75.4%
of generators at a high efficiency. The reduced online generators will save approximately 4.9% fuel
or 80,154 gallons of fuel. The reduced runtime will reduce O&M costs by approximately 24.6%.
This is the first and the central element for NEA to reduce its reliance on diesel fuel. With
powerplant integration secured, NEA can install wind turbines and expand its existing solar PV
array, enabling diesel-off operation and further reducing diesel consumption. The expansion of the
existing solar array and the addition of wind turbines will be a second project and a future NEA
grant application, which NEA anticipates next year in Round 16. The REF13-funded Naknek
Service Area Renewable Energy Feasibility and Conceptual Design is almost complete and will
provide the details required for project two of NEA’s plans to expand renewable energy in their
system.
The currently proposed BESS project is the first project of NEA’s plan to reduce diesel
consumption. The first project is required before integration of additional renewable energy beyond
the existing solar array due to the critical nature of the commercial customers NEA provided power
to during the commercial fishing season in Bristol Bay as well reliability during the winter months
for the community. Project two will be based on the final results of the ongoing feasibility study NEA
is conducting for renewable energy integration. With the report complete, NEA will provide cost
estimates and a plan to integrate renewables. Project two will again reduce diesel consumption
even further and eventually lead to NEA future plan of going diesel off for extended periods of time.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this
funding request. This should include work paid for by grant funds and matching funds or performed
as in-kind match.
This funding will facilitate final design and permitting as well as the purchase of a BESS system
and installation of the BESS at the NEA facility shown in the attachments. NEA intends to upgrade
the existing power plants switchgear and feeder sections due to age and limitations within the
existing electrical bus bar. This upgrade will also allow NEA to bring in additional energy sources
like the BESS and future renewables. The switchgear upgrade project provides NEA with matching
funds for the project to include the BESS project. The combined project will replace end of life
equipment and allow for the installation of a BESS.
The BESS project funds will include design, integration, procurement and installation of the BESS
onsite. The first task will include design and producing a document or request for proposal for the
BESS system. The second task will include the selection of a BESS vendor, electrical and
structural design based on the BESS vendor chosen. The third task will include installation of the
BESS and supporting infrastructure and the final task of integrating the BESS into the NEA system.
AEA 23046 Page 6 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application #,
if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
13 Naknek Service Area Renewable
Energy Feasibility and Conceptual
Design
13005 yes $103,500
AEA 23046 Page 7 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points, including go/no go decisions, in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases (I. Reconnaissance, II. Feasibility and
Conceptual Design, III. Final Design and Permitting, and IV. Construction) of your proposed project.
See the RFA, Sections 2.3-2.6 for the recommended milestones for each phase. Add additional
rows as needed.
Task
#Milestones Tasks
Start
Date
End
Date Deliverables
1 REF Funding Awarded
12-05-22 07-03-23
AEA notice to fund
NEA BESS REF 15
2 BESS RFP
Development
35% Design (Final
Design and permitting)
07-10-23 08-04-23
35% design drawings
and draft RFP for
BESS procurement
3 BESS RFP Release 65% Design (Final
Design and permitting)
08-04-23 09-15-23
65% design drawings
and FinalRFP for
BESS procurement
4 Review and Award
BESS to Manufacturer
(Final Design and
permitting)
09-15-23 09-22-23
Review and send intent
to award to BESS
manufacturer
5 BESS IFC Design 100% Design (Final
design and Permitting)09-18-23 10-20-23
100% design drawings
issued for construction
6 BESS Procurement Construction 10-23-23 07-03-24 BESS procurement
7 BESS Shipping to
Naknek
Construction
07-03-24 07-22-24
Shipping BESS to
Naknek
8 Construction Material
Procurement
Construction
05-06-24 07-03-24
Construction Material
for BESS installation
9 BESS Foundation and
Conduit Installation
Construction
07-03-24 08-11-24
BESS foundation
construction
10 Installation of BESS Construction
08-14-24 08-25-24
Install BESS on
foundation and connect
cables to existing NEA
system
11 Integration into NEA
System
Construction
08-28-24 09-08-24
Integrate BESS into
NEA system
12 BESS Final Acceptance
Testing
Construction
09-11-24 09-22-24
Final Acceptance
testing of BESS into
NEA system
13 Closeout
Documentation
Construction
09-25-24 10-06-24
Closeout
documentation and
as-built drawings
AEA 23046 Page 8 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
3.2 Budget
3.2.1 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $ 2,172,984
Cash match to be provideda $ 1,950,000
In-kind match to be provideda $
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of
above)
$
Describe your financial commitment to the project and the source(s) of match. Indicate whether
these matching funds are secured or pending future approvals. Describe the impact, if any, that
the timing of additional funds would have on the ability to proceed with the grant.
NEA will be providing funding for the new switchgear module and interconnection between the
existing new plant substation and the old plant upon board approval. The REF 15 funding will be
used to design, procure, install and integrate the BESS into the NEA system.
Alternatively, if the funding for the new switchgear module is denied or delayed by the NEA board,
the BESS will be connected into the existing new power plant switchgear module through existing
conduit which was originally installed during the new power plant installation in 2019. This spare
conduit is planned for future expansion due to NEA’s continued load growth, however, it could be
used in the event the new switchgear module is delayed in delivery or not funded by the board.
NEA would take financial responsibility for any future changes to how the BESS is interconnected
to the NEA system.
a Attach documentation for proof (see Section 1.18 of the Request for Applications)
b See Section 8.2 of this application and Section 1.18 of the RFA for requirements for Energy Efficiency
Match.
3.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
The majority of this project is large equipment that is in high demand currently. Due to this demand
and increased costs due to inflation, NEA is prepared to use its own savings to cover cost
increases or unexpected cost overruns. The projects will be approved by the board of directors and
estimates to complete (ETC’s) will be provided to the board. ETC’s allow the project to be tracked
monthly and compare actual costs to current project costs. This cost tracking will not only prevent
or reduce cost overruns, it will also project final costs of the project for the duration of the project.
The board of directors and NEA management will discuss project costs during the monthly board
meetings. As shown in our schedule, procuring the BESS as soon as possible will reduce the
possibility of cost overs for the project.
AEA 23046 Page 9 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
3.2.3 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual
costs for completed phases. Indicate if the costs were actual or estimated.
Reconnaissance N/A $ N/A
Feasibility and Conceptual Design N/A $ N/A
Final Design and Permitting Estimated $ 308,228
Construction Estimated $ 3,814,756
Total Project Costs (sum of above)Estimated $ 4,122,984
Metering/Tracking Equipment [not included in project
cost]
N/A $ N/A
3.2.4 Funding Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application, describe
the anticipated sources of funding and the likelihood of receipt of those funds.
●State and/or federal grants
●Loans, bonds, or other financing options
●Additional incentives (i.e. tax credits)
●Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
Once the BESS has been installed and integrated, NEA will pursue additional funding to install new
sources of renewable energy into the NEA system. Currently there are feasibility studies being
performed for Wind and Solar in the Naknek and King Salmon area. Due to the large commercial
fishing loads during the peak months and older generator units, adding renewable energy sources
could cause additional damage or outages to the system until a BESS has been integrated into
NEAs power system.
AEA 23046 Page 10 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
3.2.3 Budget Forms
Applications MUST include a separate worksheet for each project phase that was identified in
Section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail
your proposed project’s total budget.Be sure to use one table for each phase of your project, and
delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA’s Grants Coordinator by email at
grants@akenergyauthority.org or by phone at (907)771-3081.
Phase 3 —Final Design and Permitting
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-kind/
Federal
Grants/Other
State
Grants/Other
TOTALS
BESS RFP Development
(35% Design)08-04-23 $33,845.00 $$33,845.00
BESS RFP Release
(65% Design)09-15-23 $69,614.00 $$69,614.00
Review and Award BESS to
Manufacturer 09-22-23 $33,845.00 $$33,845.00
BESS IFC Design
(100% Design)10-20-23 $20,924.00 $$20,924.00
$$$
$$$
Switchgear Module
(35% Design)07-03-23 $$37,500.00 Cash/Loan $37,500.00
Switchgear Module
(65% Design)08-15-23 $$75,000.00 Cash/Loan $75,000.00
Switchgear RFP and Award 08-22-23 $$15,000.00 Cash/Loan $15,000.00
Switchgear Module
(100% Design)09-20-23 $$22,000.00 Cash/Loan $22,000.00
$$$
$$$
TOTALS $158,228.00 $150,000.00 $308,228.00
Budget Categories:
Direct Labor & Benefits $ 153,816.00 $ 140,000.00 $293,816.00
Travel & Per Diem $ 4,412.00 $ 10,000.00 $14,412.00
Equipment $$$
Materials & Supplies $$$
Contractual Services $$$
Construction Services $$$
Other $$$
TOTALS $ 158,228.00 $ 150,000.00 $308,228.00
AEA 23046 Page 11 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
Phase 4 —Construction
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-ki
nd/Federal
Grants/Ot
her State
Grants/Ot
her
TOTALS
BESS Equipment and
Construction Material
Procurement
07-03-24 $1,573,000.00 $$1,573,000.00
Shipping to Naknek (Barge)07-22-24 $15,000.00 $$15,000.00
BESS Foundation and
Conduits 08-11-24 $104,498.00 $$104,498.00
Installation of BESS 08-25-24 $184,130.00 $$184,130.00
BESS Integration 09-08-24 $108,128.00 $$108,128.00
BESS Final Acceptance
Testing 09-22-24 $20,000.00 $$20,000.00
Project Closeout 10-06-24 $10,000.00 $$10,000.00
$$$
Switchgear Module
Procurement 06-10-24 $$1,300,000.00 Cash/Loan $1,300,000.00
Switchgear Shipping 07-03-024 $$50,000.00 Cash/Loan $50,000.00
Switchgear Foundation and
Conduits 07-22-24 $$80,000.00 Cash/Loan $80,000.00
Switchgear Installation 09-08-24 $$370,000.00 Cash/Loan $370,000.00
TOTALS $2,014,756.00 $1,800,000.00 $3,814,756.00
Budget Categories:
Direct Labor & Benefits $118,128.00 $$
Travel & Per Diem $20,000.00 $$
Equipment $1,573,000.00 $1,300,000.00 $
Materials & Supplies $$80,000.00 $
Contractual Services $$$
Construction Services $288,628.00 $370,000.00 $
Other $15,000.00 $50,000.00 $
TOTALS $2,014,756.00 $1,800,000.00 $3,814,756.00
AEA 23046 Page 12 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
3.2.4 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget, including costs for future
phases not included in this application.
The costs for this project were developed based on recent NEA projects for foundation,
underground electrical work and communications work. Additionally, major equipment costs were
sourced from vendors and other community BESS projects around the state. Material cost
increases were included to the estimates assuming major equipment will be procured in the second
half of 2023. All engineering estimates were provided by a local engineering firm familiar with
BESS design and integration.
3.3 Project Communications
3.3.1 Project Progress Reporting
Describe how you plan to monitor the progress of the project and keep AEA informed of the status.
Who will be responsible for tracking the progress? What tools and methods will be used to track
progress?
NEA will provide AEA with a detailed project schedule with milestones once the grant has been
funded. This schedule will be updated monthly and provided to AEA, along with cost schedules to
ensure the project is on schedule and within budget. The project schedule can be created using
microsoft excel or microsoft schedule, whichever AEA prefers. Additionally, the cost schedule is
developed using excel and will include percent complete on project milestones and costs to date.
Based on NEA’s previous large projects, this information will be readily available to AEA if needed
and provided monthly to keep AEA informed of progress.
3.3.2 Financial Reporting
Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary
and necessary will be allocated to this project. Also discuss the controls in place that will ensure
that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the REF Grant Program.
The project will be designed and issued for construction drawings produced. These drawings will
define the project scope and allowable expenses for the project. Due to the technical nature of the
project, most work will be put out for bid based on the design drawings or provided by local NEA
contractors. The controls in place to prevent unallowed costs for this project include project
budgeting, project scope definitions and demarcation points and only approving expenses that are
specific to the BESS project.
Contractor and subcontractor proposals or bids will be approved by NEA before completing the
work. NEA will develop a work breakdown structure for the project that will include costs for each
portion of the project. This will also prevent additional charges being applied to the project that are
not specific to the BESS project.
AEA 23046 Page 13 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
SECTION 4 –QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Include resumes for known key personnel and contractors, including all functions below, as an
attachment to your application. In the electronic submittal, please submit resumes as separate
PDFs if the applicant would like those excluded from the web posting of this application.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information. If the
applicant does not have a project manager indicate how you intend to solicit project management
support. If the applicant expects project management assistance from AEA or another government
entity, state that in this section.
The project manager will be Jacob Pomeranz who is NEA’s engineer of record. Mr. Pomeranz is a
registered engineer in the State of Alaska and has worked with NEA since 2018.
4.1.2 Project Accountant
Indicate who will be performing the accounting of this project for the grantee. If the applicant does
not have a project accountant indicate how you intend to solicit financial accounting support.
Mark Huber, NEA’s CFO will perform all accounting activities for this project.
4.1.3 Expertise and Resources
Describe the project team including the applicant, partners, and contractors.
For each member of the project team, indicate:
●the milestones/tasks in 3.1 they will be responsible for;
●the knowledge, skills, and experience that will be used to successfully deliver the tasks;
●how time and other resource conflicts will be managed to successfully complete the task.
If contractors have not been selected to complete the work, provide reviewers with sufficient detail
to understand the applicant’s capacity to successfully select contractors and manage complex
contracts.
NEA has partnered with Electric Power Systems to perform the design and material RFP
responsibilities laid out in 3.1. The tasks listed below show the responsibilities of the NEA partners
that will help complete the project.
Milestones Tasks Responsible Party
REF Funding Awarded AEA
BESS RFP Development 35% Design (Final Design and permitting)NEA/EPS
BESS RFP Release 65% Design (Final Design and permitting)NEA/EPS
Review and Award BESS
to Manufacturer
(Final Design and permitting)
NEA/EPS
BESS IFC Design 100% Design (Final design and Permitting)NEA/EPS
BESS Procurement Construction NEA/EPS/BESS Vendor
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Renewable Energy Fund Round 15
Grant Application – Standard Form
BESS Shipping to Naknek Construction Freight Company
Construction Material
Procurement
Construction NEA/Construction
Contractor
BESS Foundation and
Conduit Installation
Construction NEA/Construction
Contractor
Installation of BESS Construction NEA/Construction
Contractor
Integration into NEA
System
Construction
NEA/EPS
BESS Final Acceptance
Testing
Construction
NEA/EPS/BESS Vendor
Closeout Documentation Construction NEA/EPS
EPS has been providing design and construction management services in the State of Alaska for
over 25 years. EPS supported the design and construction management of NEA’s new power plant
and has most recently supported several remote communities with BESS design, procurement,
integration and construction. EPS has successfully integrated renewable energy and BESS
systems for AEA.
The BESS project is critical for NEA to integrate renewables into the power system. Due to the
importance of the project, NEA will prioritize the BESS project to a critical level to ensure future
renewable energy work is not delayed. Project schedules and deadlines will be managed by NEA
management and shared with AEA to show project completion. Additional projects onsite will be
managed or reviewed by the same team to make sure project timelines are being met.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
NEA will solicit bids from local contractors to perform most of the work, including, but not limited to
foundation, underground and excavations work. Logistics and transportation of major equipment
will be coordinated with shipping vendors NEA has used for several years. All design, integration
and construction will be performed by Alaska companies.
AEA 23046 Page 15 of 36 10/04/2022
Renewable Energy Fund Round 15
Grant Application – Standard Form
SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
5.1.1 Assessment of Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. For pre-construction applications, describe the resource to
the extent known. For design and permitting or construction projects, please provide feasibility
documents, design documents, and permitting documents (if applicable) as attachments to this
application (See Section 11). Likelihood of the resource being available over the life of the project.
See the “Resource Assessment” section of the appropriate Best Practice Checklist for additional
guidance.
The BESS system for this project will displace 80,156 gallons of diesel fuel. Additionally it will
reduce 24.6% engine runtime based on NEA’s generator run time for the last year. The initial
project reduces diesel fuel and allows NEA to prepare for renewable energy integration. NEA
currently has a study being conducted that will provide the details needed to install a wind turbine
and solar panels in the future. However, before the renewable energy sources can be integrated a
BESS is required to prevent unplanned outages, equipment damage due to outages and revenues
lost during the peak operating season. Additional variable loads or energy sources will cause a
very fragile electrical grid more problems and maintenance issues without a BESS.
The BESS installation will reduce NEA’s fuel consumption and reduce O&M costs on an aging
infrastructure of power generation units.
5.1.2 Alternatives to Proposed Energy Resource
Describe the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
No alternatives have been proposed. Battery technology will be selected at the time of
procurement as the technology is rapidly changing.
5.1.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues. See the “Environmental and Permitting Risks” section of the appropriate
Best Practice Checklist for additional guidance.
●List of applicable permits
●Anticipated permitting timeline
●Identify and describe potential barriers including potential permit timing issues, public
opposition that may result in difficulty obtaining permits, and other permitting barriers
Local building and construction permits will be required by the borough.
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5.2 Project Site
Describe the availability of the site and its suitability for the proposed energy system. Identify
potential land ownership issues, including whether site owners have agreed to the project or how
you intend to approach land ownership and access issues. See the “Site control” section of the
appropriate Best Practice Checklist for additional guidance.
The BESS will be located on NEA property at the powerplant on 1 School Road in Naknek.
5.3 Project Technical & Environmental Risk
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
●Which tasks are expected to be most challenging?
●How will the project team reduce the risk of these tasks?
●What internal controls will be put in place to limit and deal with technical risks?
See the “Common Planning Risks” section of the appropriate Best Practice Checklist for additional
guidance.
There will be several challenges to the project, but the most challenging part will be supply chain
and material availability. Cost increases due to inflation and demand have caused most vendors to
only hold their pricing for 30 days. The material availability may cause schedule slip and due to
NEAs location and barge only access the project could be delayed. Cost overruns are a concern,
but will be managed by ordering long lead time during the initial design phase. This will reduce the
risk of cost overruns due to material pricing increases. Additionally, another challenging aspect of
this project is integration between the two existing power plant buildings. A new switchgear module
will be installed that will allow the BESS to be interconnected with the existing power grid. This
switchgear module will include vacuum circuit breakers, modern electronic protective relays and be
fully integrated into the NEA SCADA system. The BESS will be added into the existing ETAP
power model and coordinated with the other generation on the system.
5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so which project
team members will be involved and how the issues will be addressed. See the “Environmental and
Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance.
●Threatened or endangered species
●Habitat issues
●Wetlands and other protected areas
●Archaeological and historical resources
●Land development constraints
●Telecommunications interference
●Aviation considerations
●Visual, aesthetics impacts
●Identify and describe other potential barriers
There will be no direct environmental risks with the proposed BESS project since the installation
will be on NEA property at the existing power plant.
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5.4 Technical Feasibility of Proposed Energy System
In this section you will describe and give details of the existing and proposed systems. The
information for existing system will be used as the baseline the proposal is compared to and also
used to make sure that proposed system can be integrated.
Only complete sections applicable to your proposal. If your proposal only generates electricity, you
can remove the sections for thermal (heat) generation.
5.4.1 Basic Operation of Existing Energy System
Describe the basic operation of the existing energy system including: description of control system;
spinning reserve needs and variability in generation (any high loads brought on quickly); and
current voltage, frequency, and outage issues across the system. See the “Understanding the
Existing System” section of the appropriate Best Practice Checklist for additional guidance.
The Naknek Electric Association system is unique due to the large load increases during the
summer fishing season. The system has two main modes of operation: peak season (May through
July), and off-season (August through April). During the off-season months of operation the system
loads are very stable, ranging from 1,500 kW to 2,300 kW. The system uses reclosers on the three
main distribution lines to reduce outages that would affect the entire system. During the off-season
months the utility operates three or four diesel generators simultaneously to produce power and
provide heat recovery to community buildings. The old power plant provides power during the
off-season, while the new power plant is used exclusively for peaking power during peak season to
serve fish processors. Due to aging infrastructure and controls in the old power plant, there is
typically at least one unit worth of spinning reserve in the system.
During peak season the system loads balloons to almost 15 MW. The fish processors regularly
bring large compressor loads on and off the system which requires the plant to run more spinning
reserve.
5.4.2 Existing Energy Generation Infrastructure and Production
In the following tables, only fill in areas below applicable to your project. You can remove extra
tables. If you have the data below in other formats, you can attach them to the application (see
Section 11).
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5.4.2.1 Existing Power Generation Units
Include for each unit include: resource/fuel, make/model, design capacity (kW), minimum
operational load (kW), RPM, electronic/mechanical fuel injection, make/model of genset
controllers, hours on genset
Unit 1: 865kW, 1200RPM, Caterpillar 3512, Mechanical Injection, 2301A, Diesel
Unit 2: 865kW, 1200RPM, Caterpillar 3512, Mechanical Injection, 2301A, Diesel
Unit 3: 865kW, 1200RPM, Caterpillar 3512, Mechanical Injection, 2301A, Diesel
Unit 4: 1322kW (75% load max due to mechanical installation), 1200RPM, Caterpillar
3512, Electronic Injection, Diesel
Unit 5: 1050kW, 1200RPM, Caterpillar 3512, Electronic Injection, Diesel
Unit 6: 1050kW, 1200RPM, Caterpillar 3512, Electronic Injection, Diesel
Unit 7: 1050kW, 1200RPM, Caterpillar 3512, Electronic Injection, Diesel
Unit 8: 1000kW, 600RPM, White Superior, Mechanical Injection, Diesel (Emergency use
only)
Unit 9: 1135kW, 1200RPM, Caterpillar 3516, Mechanical Injection, 2301A, Diesel
Unit 10: 1135kW, 1200RPM, Caterpillar 3516, Mechanical Injection, 2301A, Diesel
Unit 11: 1360kW, 1800RPM, Caterpillar 3512, Electronic Injection, Diesel
Unit 12A/B: (2 units in Mobile) 900kW each, 1800RPM,
Cummins 1000DQFAD-A034N303, Diesel
Unit 13: 3.3 MW, 900RPM, Caterpillar C280, Electronic Injection, Diesel
Unit 14: 3.3 MW, 900RPM, Caterpillar C280, Electronic Injection, Diesel
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
Yes,while there is a district heat system,
there is no metering in place. Although
theoretically there is a small reduction in
heat generation with the new operating
scenario, this is due to the higher efficiency
operation, and heat rejection will be similar
between the two scenarios. Rough
estimates of this project's impact to district
heat is (economically) less than 3% of the
benefit.
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5.4.2.2 Existing Distribution System
Describe the basic elements of the distribution system. Include the capacity of the step-up
transformer at the powerhouse, the distribution voltage(s) across the community, any transmission
voltages, and other elements that will be affected by the proposed project.
The NEA distribution system consists of three main feeder lines:North Naknek,South Naknek and
King Salmon.The North and South Naknek lines operate at 12.47kV nominal voltage and the King
Salmon line operates at a nominal voltage of 24.9kV.There are step-up transformers for each
generation plant.The old plant has a 5MVA and a 2.5MVA -2,400V/12.47kV transformers and a
5MVA and a 2.5MVA -2,400V/24.9kV transformers.The new plant has one 7.5MVA -
4.16kV/12.47kV transformer and one 12.5MVA -4.16kV/24.9kV transformer.The two plants are
tied together at the distribution level on each of the three feeds.There is also a contingency
transformer bank which connects the South Naknek and the King Salmon lines together.This bank
is used during maintenance periods and if there was ever a major equipment failure at the power
plant substation.
5.4.2.3 Existing Thermal Generation Units (if applicable to your project)
Generation
unit
Resource
/
Fuel type
Design
capacity
(MMBtu/hr)
Make Model Average
annual
efficiency
Year
Installed
Hours
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
i.Annual O&M cost for labor $183,380.00
ii.Annual O&M cost for non-labor $389,682.00
iii. Replacement schedule and cost for
existing units
NA
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5.4.2.5 Annual Electricity Production and Fuel Consumption (Existing System)
Use most recent year. Replace the section (Type 1), (Type 2), and (Type 3) with generation
sources
Month Generati
on
(Diesel)
(kWh)
Genera
tion
(N/A)
(kWh)
Generati
on (N/A)
(kWh)
Fuel
Consumpti
on
(Diesel-Gal
lons)
Fuel
Consum
ption
[Other]
Peak
Load
Minimum
Load
January 1,350,262 100,192 2,243 1,404
February 1,169,917 86,022 2,103 1,458
March 1,322,708 96,915 2,198 1,391
April 1,380,309 102,056 2,981 1,650
May 2,369,410 170,379 7,404 685
June 2,473,725 176,369 8,397 976
July 6,559,673 459,582 12,384 3,584
August 1,386,500 102,627 4,019 1,321
September 1,065,685 80,563 1,647 943
October 1,103,959 83,451 1,746 301
November 1,117,207 83,551 1,827 578
December 1,240,841 92,140 2,180 1,348
Total 22,540,197 1,633,846
5.4.2.6 Annual Heating Fuel Consumption (Existing System)
Use most recent year.Include only if your project affects the recovered heat off the diesel
genset or will include electric heat loads. Only include heat loads affected by the project.
Month Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January
February
March
April
May
June
July
August
Septembe
r
October
November
December
Total
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5.4.3 Future Trends
Describe the anticipated energy demand in the community, or whatever will be affected by the
project, over the life of the project. Explain how the forecast was developed and provide year by
year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal
variations, etc. that will affect the project.
Future energy increases are anticipated to affect the peak season months more than the
off-season months.The driving factor behind anticipated future energy demands are expansions
and conversions to electrical powered freezing and processing equipment by the fish processors.
There are minimal off-season projects that would add enough load to the system to affect the
normal operations of the plant during the winter months.NEA is currently in discussion with several
of the fish processors which are not on the NEA system about bringing those processors onto utility
power,potentially adding between 2 and 4 MW of power in the next 2 years.Leader Creek
Fisheries is also planning to add an additional 1.5MW to their existing 3MW load.These
expansions could push power production for the NEA system above 16MWs.NEA is working to
provide for these expansion projects by upgrading the distribution system and investing in more
generation capacity.
NEA is working with the large customers and the community to try to reduce the overall diesel fuel
usage by NEA.As new customers request power for their growing facilities,NEA plans to introduce
more renewable energy sources.Due to the critical nature of the Bristol Bay Salmon Fishery,
additional battery storage will be needed as more renewable energy becomes available.
5.4.4 Proposed System Design
Provide the following information for the proposed renewable energy system:
●A description of renewable energy technology specific to project location
●The total proposed capacity and a description of how the capacity was determined
●Integration plan, including upgrades needed to existing system(s) to integrate renewable
energy system: Include a description of the controls, storage, secondary loads, distribution
upgrades that will be included in the project
●Civil infrastructure that will be completed as part of the project—buildings, roads, etc.
●Include what backup and/or supplemental system will be in place
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
NEA typically operates with an additional generator online at all times due to the age of existing
generators and for system reliability should there be a loss of a single generator. To reduce
additional generators online and diesel fuel consumption, NEA is proposing to add a 1.25 MW/1.25
MWh battery energy storage system (BESS) to the existing electrical grid. The BESS consists of
an inverter and batteries. The proposed inverter is an EPC CAB1000 and the proposed batteries
will be Saft or Narada. The BESS will be containerized and set on a 20 ft. x 40 ft. concrete pad.
Underground conduit with cable will be run to the new switchgear enclosure. Control and
monitoring conduit and cable will be run between the BESS and the switchgear enclosure to a data
concentrator.
The BESS will replace an additional unit online reducing diesel fuel consumption and increasing
efficiency of the remaining generation online. The sizing of the BESS was based on the equivalent
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generator size most commonly operated during fishing season and the winter season. Upon the
loss of a single unit, the BESS would provide a bridge until NEA is able to bring another unit online.
The bridging BESS system would then be charged using the additional generation online.
Additionally, NEA operates with additional generations or spinning reserves online during the
fishing season due to the large industrial loads of the processors. The BESS would again reduce
online generation and upon the loss of a generator would support grid frequency and voltage.
Integration of the BESS will require a new switchgear section operating at 4.16kV. A step-up
transformer 4.16kV/690V will be procured as part of the BESS. Additionally, a new concrete pad for
the BESS foundation will be installed. Underground conduits and cables will be run between the
new switchgear building and the BESS and stubbed up in the BESS foundation. Auxiliary loads to
maintain the BESS HVAC and heating systems will be required and run from the old plants station
service.
Due to NEA’s aging generation fleet and the required reliability during the fishing season, a BESS
system is needed before NEA can introduce renewable energy sources into the grid. The loss of a
generation unit currently or a large industrial load starting or stopping through the fishing season
cause voltage and frequency deviations. Adding renewable energy sources before a BESS is
installed will increase the chances of outages and increase wear on the already aging generator
units.
Once the BESS is integrated into NEA’s system, NEA would then request additional funding to add
wind and expand the existing solar array into the system. NEA’s long term goal is to increase
renewable energy sources so that in the near future NEA can operate in a diesel-off mode and
completely rely on the BESS and renewable energy. In the future, the existing waste heat system
will be powered by an electric boiler that will be fed from renewable energy sources during
diesel-off modes of operation.
5.4.4.1 Proposed Power Generation Units
Unit #Resourc
e/
Fuel type
Design
capacity
(kW)
Make Model Expecte
d
capacity
factor
Expecte
d life
(years)
Expected
Availability
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5.4.4.2 Proposed Thermal Generation Units (if applicable)
Generation
unit
Resourc
e/
Fuel type
Design
capacity
(MMBtu/h
r)
Make Model Expected
Average
annual
efficiency
Expected
life
5.4.5 Basic Operation of Proposed Energy System
●To the best extent possible, describe how the proposed energy system will operate: When
will the system operate, how will the system integrate with the existing system, how will the
control systems be used, etc.
●When and how will the backup system(s) be expected to be used
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
The BESS system will primarily operate in a grid following or grid forming mode to provide
frequency and voltage support in the event of diesel generation loss. The BESS will replace the
need for diesel spinning reserve and allow the online diesels to operate at optimal efficiency.
Reducing the number of online diesel generators will lower maintenance costs by reducing runtime.
With an operational BESS and with concomitant upgrade of utility infrastructure, NEA will move
forward with installing wind turbines and expanding its solar array.
Project two as previously described will include wind turbines and the expansion of the existing
solar array. These projects are dependent on installation of a BESS as the first project. With a fully
functional BESS and with large-scale renewable energy, the SCADA will be programmed to
dispatch diesel generators as necessary to maintain battery state-of-charge while the wind and
solar assets serve as primary sources of power. With this, NEA will substantially reduce its diesel
fuel consumption, enabling diesel-off operation and expansion of renewable energy in the future.
During peak season when load demand is exceptionally high, diesel generators will provide most of
the power needs and the BESS will provide synthetic spinning reserve that otherwise requires
additional operating diesel capacity. During peak season, diesel-off operation is not anticipated.
5.4.3.1 Expected Capacity
Factor
10-50%
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5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
Month Generation
(Proposed
System)
(kWh)
Generation
(Type 2)
(kWh)
Fuel
Consumption
(Diesel-Gallo
ns)
Fuel
Consumption
[Other]
Secondary
load
(kWh)
Storage
(kWh)
January 1,350,262 93,316
February 1,169,917 81,098
March 1,322,708 91,486
April 1,380,309 95,135
May 2,369,410 163,067
June 2,473,725 170,502
July 6,559,673 450,025
August 1,386,500 95,597
September 1,065,685 73,722
October 1,103,959 76,270
November 1,117,207 77,505
December 1,240,841 85,968
Total 22,540,197 1,553,693
5.4.5.3 Annual Heating Fuel Consumption (Proposed System)
Month Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January
February
March
April
May
June
July
August
Septembe
r
October
November
December
Total
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5.4.6 Proposed System Operating and Maintenance (O&M) Costs
O&M costs can be estimated in two ways for the standard application. Most proposed renewable
energy projects will fall under Option 1 because the new resource will not allow for diesel
generation to be turned off. Some projects may allow for diesel generation to be turned off for
periods of time; these projects should choose Option 2 for estimating O&M.
Option 1:Diesel generation ON
For projects that do not result in shutting down
diesel generation there is assumed to be no
impact on the base case O&M. Please indicate
the estimated annual O&M cost associated with
the proposed renewable project.
1. Hours diesel OFF/year: 11,048
2. Diesel Fuel savings: 80,156
3. $ 133,992 annual maintenance saving by
reducing 24.6% runtime
Option 2: Diesel generation OFF
For projects that will result in shutting down
diesel generation please estimate:
1.Annual non-fuel savings of shutting off
diesel generation
2.Estimated hours that diesel generation
will be off per year.
3.Annual O&M costs associated with the
proposed renewable project.
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5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood Other
Unit cost
($)
$ 3.60
Annual
Units
1,553,693
Total
Annual
cost ($)
$5,593,294
5.5 Performance and O&M Reporting
For construction projects only
5.5.1 Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the Request
for Applications.
Revenue grade metering located in the 5kV switchgear will be provided.Additionally,the BESS will
be procured with local metering to meet the requirements of Section 3.15.
5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data, including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the Request for Applications
The BESS will be integrated into the existing SCADA system for monitoring and control. NEA will
create detailed reports on BESS usage and system performance for maintenance requirements.
The BESS will be monitored by the SCADA system which will be stored on NEA servers. These
servers have sufficient capacity for the task.
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SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Economic Benefit
Annual Lifetime
Anticipated Diesel Fuel Displaced for
Power Generation (gallons)
80,000 1,600,000
Anticipated Fuel Displaced for Heat
(gallons)
Total Fuel displaced (gallons)80,000 1,600,000
Anticipated Diesel Fuel Displaced for
Power Generation ($)
$288,000 $5,760,000
Anticipated Fuel Displaced for Heat ($)
Anticipated Power Generation O&M Cost
Savings
$133,992 $2,679,840
Anticipated Thermal Generation O&M Cost
Savings
Total Other costs savings (taxes, insurance,
etc.)
Total Fuel, O&M, and Other Cost Savings $421,992.00 $8,439,840.00
6.1.2 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings and other economic
benefits, and how the people of Alaska will benefit from the project. Note that additional revenue
sources (such as tax credits or green tags) to pay for operations and/or financing, will not be
included as economic benefits of the project.
Where appropriate, describe the anticipated energy cost in the community, or whatever will be
affected by the project, over the life of the project. Explain how the forecast was developed and
provide year-by-year forecasts
The economic model used by AEA is available at
https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-Fund/2022-REF
-Application. This economic model may be used by applicants but is not required. The final
benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all
applicants. If used, please submit the model with the application.
The economic benefit for this project includes the reduced diesel fuel consumption and reduced
operation and maintenance costs. The reduced costs by reducing O&M as well as diesel for NEA is
a large benefit to the utility and its customers. These savings will be passed on to customers as
well as improve other portions of NEA’s system.
The fuel savings by adding a BESS to the system will be 80,000 gallons per year, reflected by a
reduction of 11,000 run hours per year of diesel generation. The forecast for savings and reduced
run time calculations are attached in the documents provided by NEA. Using historical data from
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NEA’s existing SCADA system NEA was able to calculate the reduced generation needed using
online generation and system load.
6.1.3 Economic Risks
Discuss potential issues that could make the project uneconomic to operate and how the project
team will address the issues. Factors may include:
●Low prices for diesel and/or heating oil
●Other projects developed in community
●Reductions in expected energy demand:Is there a risk of an insufficient market for energy
produced over the life of the project.
●Deferred and/or inadequate facility maintenance
●Other factors
The economic risks for this project are low due to the increased cost of diesel fuel in remote
Alaska. Additionally, the NEA’s customer base continues to grow and is expected to increase for
the next 5 to 10 years.
6.1.4 Public Benefit for Projects with Direct Private Sector Sales
For projects that include direct sales of power to private sector businesses (sawmills,cruise ships,
mines,etc.),please provide a brief description of the direct and indirect public benefits derived from
the project as well as the private sector benefits and complete the table below.See Section 1.6 in
the Request for Applications for more information.
The project provides benefits to all NEA’s customers that require reliable power. Reducing online
generating capacity, or spinning reserve, with a BESS will ensure grid stability for all customers.
Renewable energy resource availability (kWh per month)
Estimated direct sales to private sector businesses (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales for use by the Alaskan public (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($)
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6.2 Other Public Benefit
Describe the non-economic public benefits to Alaskans over the lifetime of the project.For the
purpose of evaluating this criterion,public benefits are those benefits that would be considered
unique to a given project and not generic to any renewable resource.For example,decreased
greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category.
Some examples of other public benefits include:
●The project will result in developing infrastructure (roads,trails,pipes,power lines,etc.)that
can be used for other purposes
●The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
●The project will solve other problems for the community (waste disposal, food security, etc.)
●The project will generate useful information that could be used by the public in other parts of
the state
●The project will promote or sustain long-term commercial economic development for the
community
The BESS will reduce diesel fuel consumption, reduce greenhouse gas emissions, and will provide
the central integrating element of large-scale wind and solar development in the Naknek.
SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
At a minimum for construction projects, a business and operations plan should be attached and the
applicant should describe how it will be implemented. See Section 11.
7.1.1 Operation and Maintenance
Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed
project for its expected life
●Provide examples of success with similar or related long-term operations
●Describe the key personnel that will be available for operating and maintaining the
infrastructure.
●Describe the training plan for existing and future employees to become proficient at operating
and maintaining the proposed system.
●Describe the systems that will be used to track necessary supplies
●Describe the system will be used to ensure that scheduled maintenance is performed
Battery energy storage has been employed in rural Alaskan communities for a few decades during
which the technology has improved considerably. They are low maintenance and should have a
nominal functional life of at least 20 years. NEA will maintain the BESS per manufacturer
recommendations to ensure functionality over time. NEA operators will be trained in proper
maintenance procedures per manufacturer recommendations and all manufacturer maintenance
intervals will be recorded and followed.
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7.1.2 Financial Sustainability
●Describe the process used (or propose to use) to account for operational and capital costs.
●Describe how rates are determined (or will be determined). What process is required to set
rates?
●Describe how you ensure that revenue is collected.
●If you will not be selling energy, explain how you will ensure that the completed project will be
financially sustainable for its useful life.
Capital project costs are accounted for in a designated CWIP account separate from operational
cost. While operational costs are expensed in their current year, Capital Project costs are
transferred to a fixed asset account when the project is complete and depreciated over multiple
years. NEA staff reviews and codes invoices to Operations or Capital Projects as appropriate.
Electric consumption rates are determined following a rate study by outside consultants. Fuel rates
are determined following a fuel delivery by a formula which uses fuel costs and fuel efficiency to
calculate the rate.
Each month our billing system generates a report of past due active accounts and we contact the
customers to encourage payment. If the account remains unpaid after our efforts to work with the
customer, we hang disconnect tags at the service address and if the account still remains unpaid,
we disconnect service. For non active delinquent accounts the AR Aging report is reviewed for
seriously past due accounts and we contact the customer to try and work payment arrangements.
7.1.2.1 Revenue Sources
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. If there is expected to be multiple rates for electricity, such as a
separate rate for intermittent heat, explain what the rates will be and how they will be determined
Collect sufficient revenue to cover operational and capital costs
●What is the expected cost-based rate (as consistent with RFA requirements)
●If you expect to have multiple rate classes, such as excess electricity for heat, explain what
those rates are expected to be and how those rates account for the costs of delivering the
energy (see AEA’s white paper on excess electricity for heat).
●Annual customer revenue sufficient to cover costs
●Additional incentives (i.e. tax credits)
●Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
While the BESS itself will have minor financial impact on electric rates in the Naknek Service Area,
it is a crucial component of NEA’s plans to integrate large-scale wind and solar energy with a final
goal of diesel-off operation. When the new renewable energy sources are integrated into the
system, electric rates will decrease as fossil fuel usage will substantially decrease.
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Renewable Energy Fund Round 15
Grant Application – Standard Form
7.1.2.2 Power Purchase/Sale
The power purchase/sale information should include the following:
●Identification of potential power buyer(s)/customer(s)
●Potential power purchase/sales price - at a minimum indicate a price range (consistent with the
Section 3.16 of the RFA)
Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price
range. Indicate the proposed rate of return from the grant-funded project. Include letters of support
or power purchase agreement from identified customers.
Not applicable to this project.
SECTION 8 – PROJECT READINESS
8.1 Project Preparation
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin, at a minimum, the following:
●The phase(s)that must be completed prior to beginning the phase(s)proposed in this
application
●The phase(s) proposed in this application
●Obtaining all necessary permits
●Securing land access and use for the project
●Procuring all necessary equipment and materials
Refer to the RFA and/or the pre-requisite checklists for the required activities and deliverables for
each project phase. Please describe below and attach any required documentation.
NEA is ready to begin phase 3 with final design and permitting for the project. In working with EPS
and other rural Alaska electric utilities that operate BESS systems, NEA sees its next step towards
a diesel-off operation as installation of a BESS. The BESS will be located on NEA power plant
property; all required building permits will be acquired through Bristol Bay Borough. The BESS and
required switchgear equipment are long lead items which NEA will begin sourcing upon award.
8.2 Demand- or Supply-Side Efficiency Upgrades
If you have invested in energy efficiency projects that will have a positive impact on the proposed
project, and have chosen to not include them in the economic analysis, applicants should provide
as much documentation as possible including:
1.Explain how it will improve the success of the RE project
2.Energy efficiency pre and post audit reports, or other appropriate analysis,
3.Invoices for work completed,
4.Photos of the work performed, and/or
5.Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
Not applicable to this project.
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Renewable Energy Fund Round 15
Grant Application – Standard Form
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated,for the project.Include letters,
resolutions, or other documentation of local support from the community that would benefit from
this project. Provide letters of support, memorandum of understandings, cooperative agreements
between the applicant, the utility, local government and project partners. The documentation of
support must be dated within one year of the RFA date of October 4, 2022. Please note that letters
of support from legislators will not count toward this criterion.
NEA’s board of directors has attached a board resolution supporting the project.
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by AEA for this or
any other project. Describe the degree you have been able to meet the requirements of previous
grants including project deadlines, reporting, and information requests.
NEA was awarded a REF Round 13 grant for feasibility and conceptual design to explore the
technical and economic practicality of constructing a wind farm and expanding its solar PV capacity
to create a medium-to-high penetration wind-solar-diesel-BESS hybrid power system. The BESS is
the central, integrating element of a renewable energy hybrid system and as such should be
installed first. The REF13 feasibility study and conceptual design will continue to be developed in
parallel with BESS and other power plant planning to achieve a coordinated, comprehensive,
holistic plan to guide NEA’s continued development.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below,please provide a list of additional documents attached to support completion of
prior phases.
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Renewable Energy Fund Round 15
Grant Application – Standard Form
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
NEA BESS Scenario Analysis.pdf
NEA BESS Scenario Analysis - 1 - Data Summary.pdf
NEA BESS Scenario Analysis - 2 - Data Analysis.pdf
NEA BESS Scenario Analysis - 3 - Generator Staging.pdf
NEA BESS Scenario Analysis - 4 - Generator Perf Data.pdf
NEA BESS Scenario Analysis - 5 - Data filter.pdf
NEA Matching Switchgear Module Budgetary ROM - S15020 (41700-TX1) EPS - ROM Budget
Proposal Rev 0.pdf
BESS Concept Layout - ndpp-bess-concept.pdf
NEA_Board_BESS_Resolution.pdf
abe_ryota_resume.pdf
j_pomeranz_resume.pdf
buss_david_full.pdf
j_venables_res_2022.pdf
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Renewable Energy Fund Round 15
Grant Application – Standard Form
SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: Naknek Electric Association
Regular Election is held:Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
Mark Huber Finance Manager Continuous
I authorize the above person(s) to sign Grant Documents:
(Must be authorized by the highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Dianne King General Manager
Grantee Contact Information:
Mailing Address:
PO Box 118, Naknek, AK 99633
Phone Number:
907-246-4261
Fax Number:
907-246-6242
Email Address:
service@naknekelectric.com
Diannek@naknekelectric.com
Federal Tax ID #:
92-0027674
Please submit an updated form whenever there is a change to the above information.
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Grant Application – Standard Form
SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A.Contact information and resumes of Applicant’s Project Manager, Project Accountant(s),
key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and
3.6.
Applicants are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web site.
B.Letters or resolutions demonstrating local support per application form Section 9.
C.For projects involving heat: Most recent invoice demonstrating the cost of heating fuel
for the building(s) impacted by the project.
D.Governing Body Resolution or other formal action taken by the applicant’s governing
body or management per RFA Section 1.4 that:
●Commits the organization to provide the matching resources for project at the match
amounts indicated in the application.
●Authorizes the individual who signs the application has the authority to commit the
organization to the obligations under the grant.
●Provides as point of contact to represent the applicant for purposes of this
application.
●Certifies the applicant is in compliance with applicable federal, state, and local, laws
including existing credit and federal tax obligations.
E.An electronic version of the entire application on CD or other electronic media, per RFA
Section 1.7.
F.CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful and
correct, and that the applicant is in compliance with, and will continue to comply with, all
federal and state laws including existing credit and federal tax obligations and that they
can indeed commit the entity to these obligations.
Print Name Dianne King
Signature
Title General Manager
Date 12-2-2022
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