HomeMy WebLinkAboutAPPLICATION - Chef REF Round 15 ApplicationApplication 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.
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.
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)
Naterkaq Light Plant
Tax ID #: # 92-0086932
Date of last financial statement audit:
Mailing Address: Physical Address:
PO BOX 11
Chefornak, AK 99561-0011
Telephone: Fax: Email:
907-857-8213 907-867-8724 naterkaq_plant@yahoo.com
1.1 Applicant Point of Contact / Grants Coordinator
Name: Anna Abraham Larsen Title: Utility Manager
Mailing Address:
Same as above
Telephone: Fax: Email:
1.1.1 Applicant Signatory Authority Contact Information
Name: Title:
Same as Above
Mailing Address:
Same as above
Telephone: Fax: Email:
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
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
☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05
CPCN #______, 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
☒ 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 gover ning
authority is necessary. (Indicate yes by checking the box)
☒ 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)
☒ 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)
☒ 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)
SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Chefornak Battery Installation, Integration and Commissioning
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 se lecting “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 Longitude
[Other description of location]
Chefornak is located at 60°9′33″N 164°16′10″W (60.159070, -164.269437)[5] on the
south bank of the Kinia River, 16 miles (26 km) upriver from its mouth in Etolin Strait, an
arm of the Bering Sea. The town is within the Yukon Delta National Wildlife Refuge .
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Chefornak, Alaska
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 ☒ 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 ☐ Final Design and Permitting
☐ Feasibility and Conceptual Design ☒ Construction
2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
Naterkaq Light Plant is a standalone diesel generating and electrical distribution utility providing
electricity to the community Chefornak. Energy Cost Program for a BESS system to augment our wind-
diesel project.
The DOE funds were used to purchase a 500kW/677 kWh Battery Energy Storage System (BESS)
Naterkaq Light Plant (NLP) is requesting $437,000 to complete the installation, integration, and
commissioning to enable upwards of 2600 hours of diesel off operation annually.
REF Funds will allow NLP to produce 600,000 kWh of wind energy annually, displacing more
than 39,030 gallons of diesel fuel used for power generation. This is equivalent to a savings of more than
$190,000 annually at $5.00/gallons and generate deferred diesel operating savings of $23,400 annually (at
$9 per operating hour) due to 2600 diesel-off hours.
This is an annual benefit of $213,400. Additionally, it will also improve safety and resiliency in
the community while eliminating requirements to invest in the expansion of bulk fuel storage.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this
funding request. This should include work paid for by grant funds and matching funds or
performed as in-kind match.
Funds are being requested to complete the installation, integration, and commissioning of the
BESS to improve operational support.
Work remaining includes:
• Complete BESS shelter - a 12 x 20 foot metal insulated building sitting on a separate
foundation adjacent to the diesel powerplant.
• Interconnect BESS with diesel plant switchgear
• Complete wiring of BESS
• Populate BESS with batteries
• Commission BESS, and the Entire Wind+Diesel System
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of
REF grant
awarded
($)
SECTION 3 – Project Management, Development, and Operation
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. Pleas e
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.
Milestone Description
Tasks
Start
Date End Date
Deliverables
Project Start is based on REF Project plan and final agreements between contractor and
community, schedule of work, Notice to Proceed (NTP) and completed Operations
Maintenance and Support plan all completed.
1 Project Plan Develop installation,
integration and
commissioning
schedules, project
performance targets.
10
days
from
NTP
40 days
from NTP
Approved
Project Plan
For BESS and
ETS installation,
integration, and
commissioning
2 Procure final materials Identify final number
and types of materials
are needed:
Conductors,
Component breakers,
Radios, Control
software.
30 days
from
NTP
60 days
from
NTP
Order and ship
installation
materials
3 Complete battery
installation
Wire BESS system
and metering to
diesel powerplant
buss.
2
months
from
NTP
6
months
from NTP
Complete
installation
Provide installation
report, photos etc.
4 Integration and
Commissioning of
battery energy storage
system
To be conducted after
installation and
commissioning system
components application
status review is
completed. This includes
power converter, battery
management system,
remote communications,
and auxiliary support
systems.
3 months
from
NTP
7 months
from NTP
BESS
Commissioning
Report
5 Integration and testing of
battery and wind system
Integration of battery
energy storage control
system with the wind
diesel supervisory
control and data
collection system.
4
months
from
NTP
8
months
from NTP
Integration and
testing
performance
report
8 Complete
commissioning of
wind+battery+diesel+
ystem
Commission full system
operations:
wind turbines, diesel
power plant, battery
energy storage and
communications.
6
months
from
NTP
10
months
from
NTP
Monthly
performance
reports
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 $ 437,000
Cash match to be provideda $
In-kind match to be provideda $ 854,000 + 4,000
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of
above)
$ 1,295,000
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
NLP will provide in-kind match from the DOE grant from which NLP purchased the BESS battery.
NLP will also provide housing and transportation for contractors when on site ($4,000)
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.
No shortfalls expected as contractor has pledged to provide all necessary support to
ensure system is operational and functioning.
3.2.3 Total Project Costs SEE BUDGET TABLE ON NEXT PAGE
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 [Actual/Estimated] $
Feasibility and Conceptual Design [Actual/Estimated] $
Final Design and Permitting [Actual/Estimated] $
Construction [Actual/Estimated] $437,000
Total Project Costs (sum of above) Estimated $437,000
Metering/Tracking Equipment [not included in project
cost]
Estimated $
Phase 4 - Construction
Source of
Matching
Milestone or Task
Anticip
ated
Comple
tion
Date
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Funds:
Cash/In-
kind/Federal
Grants/Other
TOTALS
State
Grants/Other
(List milestones based
on phase and type of
project. See Sections $437,000
$854,000
$4,000
$1,295,000
2.3 thru 2.6 of the RFA)
Project Start is based on REF Project plan and final agreements between contractor
and community, schedule of work, Notice to Proceed (NTP) and completed Operations
Maintenance and Support plan all completed.
July –
Notice to Proceed December
2023
1) Project Plan 4-6 weeks
from NTP $ 47,440
$ 42,440
2) Procure Final Materials 4-8 weeks
from NTP $ 72,560
$ 72,250
3) Complete battery
installation
5-6 months
from NTP
$ 81,500 $1,000
In-Kind $ 77,500
4) Integration and
Commissioning of
battery energy storage
system
6-7 months
from NTP $ 87,000 $1,000
In-Kind
$ 88,000
5) Integration and testing
of battery and wind
system
7-8 months
from NTP $ 91,500 $1,000
In-Kind $ 92,500
6) Complete
commissioning of
wind+battery+diesel+
system
10-12
months
from NTP
$ 57,000 $1,000
In-Kind $ 46,000
TOTALS $437,000 $ 4,000
$854,000
Federal USDOE
1,295,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ 4,000 $ 4,000
Equipment $ $
Materials & Supplies
Contractual Services $437,000 $437,000
Construction Services
Other $854,000
$854,000
TOTALS $ 437,000 4,000 $854,000
$1,295,000
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)
N/A
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.
Cost quote from experienced contractor, included as an attachmen t.
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?
The contractor will provide on-going reports to the NLP, based on milestones and
deliverables. NLP will then provide those deliverables to AEA with a request for cost
reimbursement. Our selected contractor has worked with NLP for several years and has soun d
experience working with other communities that have received AEA-REF grants and
understands AEA-REF’s reporting requirements.
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 w ill be requested for
reimbursement from the REF Grant Program.
The contractor will provide invoices based on milestones/deliverables to NLP, and we will
then provide those deliverables to AEA with a request for cost reimbursement.
Only contractor’s cost will be requested from the REF Grant Program.
Pati Crofut, an independent grant administrator, accountant, consultant, and trainer, will also
support our efforts.
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.
Patrick Boonstra (Lead Project Manager). Senior Project Manager with Intelligent Energy
Systems, LLC and more than 25 years’ experience wor king on logistically-challenging projects
in remote locations. Clients include the Department of Defense (DOD), Federal Aviation
Association (FAA), U.S. Fish and Wildlife Service (USFWS), and General Services
Administration (GSA). Experience spans renewabl e energy systems in the Alaska interior to
installation of radiation detection portals in Armenia. Recognized as possessing a unique ability
to devise out-of-the-box solutions to management and integration issues. Extensive project
experience across Alaska , specializing in the renewable energy field. IES has established the
same level of ongoing commitment to Chefornak as it has to other remote, rural communities in
Alaska.
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 soli cit financial accounting
support.
Pati Crofut (Grants Manager), Highly experienced rural utility accounting consultant and trainer.
She has been solely responsible for the grant accounting and financial management on
numerous USDA High Energy Cost and US Dept of Energy grants awarded to villages in
Western Alaska.
4.1.3 Expertise and Resources
Describe the project team including the applica nt, 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 cap acity to successfully select contractors and manage
complex contracts.
Key Personnel (RESUMES are included in Cost Quote)
Lead local contact and organizer for this project is Anna Abraham Larsen, Utility
Manager of the Naterkaq Light Plant. Ms. Larsen has extensive experience coordinating
projects of this type and is familiar with all required capacities for the project’s administration,
including managing employees and overseeing all financial aspects for the organization.
She has been working for NLP for more than 10 years.
The following contracted individuals and organizations will be the primary technical support for this
project.
Intelligent Energy Systems, LLC
Patrick Boonstra, Lead Project Manager and responsible for all Milestones being met. Intelligent
Energy Systems, LLC (IES). Patrick is an experienced and dedicated project manager and operations
manager for IES. He has 20+ years of experience bringing complex, remote projects to successful
completion. He has 10 years’ designing, managing, constructing, and commissioning hybrid microgrid
projects. Patrick has a keen sense for the practicalities of remote construction and this experience is
invaluable to plan and develop remote hybrid microgrids from budgeting, to knowing vendor capabilities
to working with subcontractors - including those locally hired from the remote communities IES works
in. In 2022 Patrick led the IES team to complete a similar system in Kokhanak. This experience is
important for efficient installation, integration, and commissioning of the BESS and ETS units with the
wind-diesel system. (Lead and project manager. Responsible for conducting all Milestones and Tasks.)
Tony D’Aoust (Renewable Energy Specialist). For over 20 years Tony has specialized in remote solar
and battery installations and operations, primarily aboard marine research vessels deployed for 3-6
months at a time. Deciding to transfer these skills and capabilities to remote communities, Tony is
supporting these communities’ efforts to increase their sustainability by reducing dependence on diesel
fuel. His work includes the first ever installation of Alaska’s coastal remote powered autonomous HF
radar system; this design was later incorporated into similar Antarctica deployment. In addition to being
well-versed in remote renewable energy systems, he has substantial experience working with research
teams from universities and federal agencies requiring detailed documentation of the projects for which
he is responsible. (Co-lead. Integral for accomplishing all Milestones and Tasks.)
Dennis Meiners, Principal and Founder of Intelligent Energy Systems, LLC (IES). Dennis has 25+
years developing alternatives to diesel-power generation for remote Alaskan communities. This project
will benefit from Dennis’s many years of experience, and his understanding of the importance of system
practicality, reliability, and ability to support field deployed technology. Over the years, Dennis has
developed IES into one of the most experienced and capable teams of renewable microgrid technologists
and specialists in North America. IES has demonstrated its ability to assist communities to develop high
penetration renewable projects from concept to operations. (As needed for all Milestone and or Task.)
Pati Crofut (Utility Financial Management Specialist and IES Grant Manager) Responsible for IES
(the contractor) reporting requirements and determination of business operating plans for standalone
community microgrids. Pati has spent the last 20 years of her career as a rural Alaskan utility accounting
consultant and trainer. She has been responsible for assisting communities like Napaskiak to develop
financial accounting and management practices. She provides QuickBooks training and consulting
services to the State of Alaska Department of Commerce & Rural Development. For the past 5 years, Pati
has been IES’s financial operations manager. (Fiscal responsibility for all Milestones.)
Renewable Energy Fund Round 15
Grant Application – Standard Form
AEA 23046 Page 14 of 31 10/04/2022
Dale Letourneau (Electrical Engineer), with more than 30 years of electrical and power system design
experience in Alaska. Dale has experience with controls, switchgear, electrical distribution, and power
systems integration design, and has worked with IES over the last 15 years. Specializing in standalone power
energy generation and grid integration. Dale has managed large and small projects across Alaska, and his
projects benefit from his years of practical experience, working with his family’s electrical business.
(Milestones 3-6 and related tasks + as needed.)
Terrance Meyer, Mechanical Engineer is a veteran of renewable energy having run his own development
company and consulting company as well as working for some of the major players in the field. His inspiration
was hydro power, interned in solar power, grew his career with the wind energy boom, and has supported
community scale and biomass projects. He has participated in assessments for hundreds of renewable energy
projects and various technologies. These include system design, strategic planning, feasibility studies, due
diligence investigations, performance testing, technical and financial analyses, product development research,
market analyses, and patent writing. The projects have been a wide variety of generation technologies from
utility scale to distributed generation and include wind, hydroelectric, biomass, pumped hydro energy storage,
ultracapacitors, batteries, renewable fuels, cogeneration, solar photovoltaic, solar thermal, hydroelectric, in
addition to conventional energy technologies. (As needed.)
Ian Knapp (Research & Technical Specialist) Ian is experienced and trained in both computer modelling
and the study of electricity. This includes working with relevant technologies such as R, Python, and
MATLAB Simulink, as well as work on simulations and characterization of renewable technologies. Recent
relevant work includes collecting and analyzing data from power systems in rural Alaska and substantial
work troubleshooting computer systems deployed on remote Alaskan microgrids.
(Assists with all Milestones and Tasks)
Carl Brothers, P.E., (Power Integration and Wind Energy Specialist) President of Frontier
Power Systems. Mr. Brothers is the former director of the Atlantic Wind Test Site, Canada’s
premier wind energy test facility. He has been responsible for the development of over 100 MW
of large-scale grid connected wind systems and is familiar with the full range of wind
technologies. Mr. Brothers has evaluated the performance of over 20 wind turbines and is
responsible for some of the most successful community scale and off grid wind diesel systems
in Eastern Canada. He has been responsible for design improvements to mid-sized wind
turbines, and is familiar with cost, deployment, installation, and integration issues. He is
involved with the growth of high penetration wind diesel systems across the Arctic. (Milestones
3-6 and as needed.)
Renewable Energy Fund Round 15
Grant Application – Standard Form
AEA 23046 Page 15 of 31 10/04/2022
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
Local power plant operators and manager will be required to assist and train on the hybrid system..
No funds are being requested for their time.
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.
According to HOMER modeling, the wind system and related wind resource are such that the installation and
integrations of the battery will allow our community to turn our diesel engines off and run on wind-only for
up to 2,600 hours, and based on systems in nearby communities, likely more than this.
The grid stabilization provided by the BESS system will increase fuel displacement to approximately 39,000
gallons of diesel. This is equivalent to a savings of more than $190,000 annually at $5.00/gallons and
generate deferred diesel operating savings of $23,400 annually (at $9 per operating hour) due to 2600 diesel-
off hours.
This is an annual benefit of $213,400. Additionally, it will also improve safety and resiliency in the
community while eliminating requirements to invest in the expansion of bulk fuel storage.
The Homer Assessment shows that by adding the Battery diesel-off hours increase to 3,306.
(9,385-6,079). With turbines only, Chefornak only realizes ~300 diesel hours off.
Dispatch Total
Produced
Fuel
Consumption
(Gal)
Diesel
Production
(kWh/yr)
Excess
Electricity
(kWh/yr)
Diesel
Operating
Hours
Diesel
Off
Hours
Wind
Production
(kWh/yr)
Diesel
Only
NA 1,248,343
86,979 1,248,343 42.9 9,385 0 0
+
Wind*
LF 1,500,851 63,182 868,526 252,551 9,086 0 632,325
667
Batt
CC 1,299,726 47,609 667,412 28,547 6,079 2,681 632,325
Renewable Energy Fund Round 15
Grant Application – Standard Form
AEA 23046 Page 16 of 31 10/04/2022
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.
Pros of adding BESS and ETS to System
-Diesel-off operation and savings
-Grid stability
-Ability to capture and use more available wind energy
-Ability to expand hybrid system with future solar, etc.
Cons of adding BESS and ETS: None
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
Due to the earlier funding, all permitting requirements have been met.
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.
Applicant owns the land and equipment to be included in project. Access is not a problem.
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.
Unpredictable weather and the logistics of transport to remote Alaska pose the greatest risk to
almost any renewable energy project. Because the BESS has already been purchased the risks
are very low. The project team has the technical expertise and familiarity with the equipment
necessary to ensure safe and efficient operation.
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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
The BESS project is not expected to require any oversight except with Fire Marshall.
We will reconfirm this and ensure all reviews and/or permitting are met.
No potential barriers have been identified or are anticipated based on prior experience, knowledg e
of the community, and coordination with community leaders.
Based on the USDA funding, the USFWS, U.S. Corps of Engineers, FAA, and State of Alaska
Department of Natural Resources - State Historic Preservation Office were all contacted and
requirements have been met. Agency consultations indicated that federal permits would not be
needed for this type of project. The proposed BESS site is not located on wetlands or streams.
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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 system. See the “Understanding the Existing
System” section of the appropriate Best Practice Checklist for additional guidance.
In 2022, we completed installing two (2) Frontier-24 wind turbines on 40 meter towers, along with
an automated control system and communications with our diesel generator system.
We’ve purchased a Battery Energy Storage System
HOMER programming (originally developed by NREL) estimates indicate an average annual
turbine output (including periods of diesel-off operations) to produce 300,000 kWh annually/total of
~600,000 and diesel generators.
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:
Unit 2:
Unit 3:
Unit 4:
Unit 5:
Unit 6:
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.
5.4.2.3 Existing Thermal Generation Units (if applicable to your project)
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).
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
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Generation
unit
Resource/
Fuel type
Design
capacity
(MMBtu/hr)
Make Model Average
annual
efficiency
Year
Installed
Hours
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
FROM FY21 PCE Summary: 1,248,032 kwh Generated 97,904 gallons
Month Generat
ion
(Type 1)
(kWh)
Generatio
n (Type 2)
(kWh)
Generatio
n (Type 3)
(kWh)
Fuel
Consumptio
n
(Diesel-
Gallons)
Fuel
Consumptio
n
[Other]
Pea
k
Loa
d
Minimu
m Load
January
February
March
April
May
June
July
August
September
October
November
December
Total
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
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
iii. Replacement schedule and cost for
existing units
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April
May
June
July
August
September
October
November
December
Total
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 energ y demand, peak load, seasonal
variations, etc. that will affect the project.
The population of Chefornak has held steady over the past decade, and the BESS project will
allow the power plant to keep up with current energy demands , which keep growing.
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 Pract ice Checklist for additional
guidance.
The BESS will be in a shed/garage built specifically for the BESS and adjacent to the diesel power
plant. There is space to provide additional environmental protection for the battery energy storage
system. The BESS system also includes a power converter. The PCS has a continuous power
rating of 180 kVa and is designed to be expandable up to 300 kVa.
5.4.4.1 Proposed Power Generation Units
Unit # Resource/
Fuel type
Design
capacity
(kW)
Make Model Expected
capacity
factor
Expected
life
(years)
Expected
Availability
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5.4.4.2 Proposed Thermal Generation Units (if applicable)
Generation
unit
Resource/
Fuel type
Design
capacity
(MMBtu/hr)
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 is designed to provide grid voltage and frequency stability during fluctuating
wind and load, sufficient to allow the diesel generators to be turned off whenever there is adequate
wind energy to meet our community load. At the start of a wind event, wind energy will be used to
charge the batteries to a level of around 80%. During a wind event, the fas t-rechargeable capacity
of the lithium-ion batteries will absorb and supply energy to and from the grid, keeping the grid
balanced.
5.4.3.1 Expected Capacity Factor %
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
Month Generation
(Proposed
System)
(kWh)
Generation
(Type 2)
(kWh)
Generation
(Type 3)
(kWh)
Fuel
Consumption
(Diesel-
Gallons)
Fuel
Consumption
[Other]
Secondary
load
(kWh)
Storage
(kWh)
January
February
March
April
May
June
July
August
September
October
November
December
Total
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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
September
October
November
December
Total
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 dies el
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.
$
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.
1. Non-Fuel Savings: $ 28,800
(3,200 hours of diesel off operation @$9.00/hour)
2. Hours diesel OFF/year: 3,300
3. $6,000-8,000 maximum
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5.4.7 Fuel Costs
Estimate annual costs for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
Other
Unit cost
($)
$5.00
Annual
Units
39,000
Total
Annual
cost ($)
$190,000
5.5 Performance and O&M Reporting
For construction projects only
5.5.1 Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the Request
for Applications.
Working with our contractor we will have electronic readings of our system. A report from Kong’s
system, which our will be similar to is below as an example.
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5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data , including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the Request for Applications
NLP will keep turbine maintenance logs throughout the operating life of our system and will rely
upon these records to prepare reports to AEA.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Economic Benefit
Annual Lifetime
Anticipated Diesel Fuel Displaced for Power
Generation (gallons)
Anticipated Fuel Displaced for Heat
(gallons)
Total Fuel displaced (gallons) 39,000 390,000
Anticipated Diesel Fuel Displaced for Power
Generation ($)
39,000 x $5= $190,000 $1,900,000
Anticipated Fuel Displaced for Heat ($)
Anticipated Power Generation O&M Cost
Savings
2600 hours off
x$9= $23,400
$234,000
Anticipated Thermal Generation O&M Cost
Savings
Total Other costs savings (taxes, insurance,
etc.)
Total Fuel, O&M, and Other Cost Savings $213,400 $2,134,000
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 applican ts. If used, please submit the model with
the application.
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The estimated $213,400 in annual cost savings from the BESS allows us to keep these funds in
our local economy each year. These savings and the resulting potential for new businesses and
jobs are significant in our remote, rural community where the overall poverty rate is ~25%. This
project will also help decrease dependence on diesel fuel. As we continue to expand our
renewable energy capacity, these benefits will increase.
6.1.3 Economic Risks
Discuss potential issues that could make the project uneconomic to operate and how the project
team will address the issues. Factors may include:
• Low prices for diesel and/or heating oil
• Other projects developed in community
• Reductions in expected energy demand: Is there a risk of an insufficient market for energy
produced over the life of the project.
• Deferred and/or inadequate facility maintenance
• Other factors
Economic risks for this project are low based on proven technology, experienced contractors, and
the success of similar projects in nearby communities.
6.1.4 Public Benefit for Projects with Direct Private Sector Sales
For projects that include direct sales of power to private sector businesses (sawmills, cruise ships,
mines, etc.), please provide a brief description of the direct and indirect public benefits derived from
the project as well as the private sector benefits and complete the table below. S ee Section 1.6 in
the Request for Applications for more information.
Any power generated with locally sourced fuel means less money spent on imported diesel,
decreased environmental hazard of delivery and storage of bulk fuel, and increased local job
opportunities.
Renewable energy resource availability (kWh per month)
Estimated direct sales to private sector businesses (kWh)
Revenue for displacing diesel generation for use at p rivate sector businesses ($)
Estimated sales for use by the Alaskan public (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($) $213,400
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 u nder 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
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• The project will promote or sustain long-term commercial economic development for the
community
Reducing dependence on fossil fuels improves the sustainability of our community by:
- Reducing funds spent on fuel, immediately keeping cash in our small economy as all diesel
fuels must be imported.
- Reducing storage costs of fuel in our tank farm. This includes maintenance and long-term
replacement costs of storage facilities.
- Reducing the wear and tear on our diesel generators ; reducing both near-term and long-term
costs to our community.
Increasing our use of renewable energy will:
- Stabilize the cost of energy for our remote community within a year of this project being
completed, and they will continue over the long term.
- Allow our community to create local jobs because dollars that otherwise would flow out of the
community to pay for fuel can be utilized for community needs.
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 s cheduled maintenance is performed
The power produced will be owned and sold by NLP. Maintenance and operations will be paid for
by ongoing energy sales. Annual maintenance costs are approximately $6,000 -$8,000, maximum
as the Battery is highly reliable with minimal technical issues, and why this BESS was selected for
our remote community. Additional unforeseen maintenance costs will be covered by an account
funded by $.01/KWhr of wind energy sold set aside ($3,400/yr). The savings and benefits of the
new system will be reported via the Power Cost Equalization Program reports.
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.
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The proposed project will increase the amount of renewable energy captured and generate d by the
NLP system and allow for diesel-off operation. The system will be operated and maintained by
competent local crews and management.
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)
NLP successfully operates its utility, and the revenues from the BESS project will keep energy
prices stable while providing funds to pay staff.
8.2.2.2 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.
N/A
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, t he 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 delive rables for
each project phase. Please describe below and attach any required documentation.
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Chefornak is ready to complete this project and AEA-REF funding will enable us to do so within 8-
12 month timeframe.
The USDOE grant provided Chefornak with the ability to purchase all the major components , and
we now need funds to complete this project.
We have an experienced contractor ready to continue working with us to complete the project. The
contractor has installed, integrated, and commissioned Wind -Diesel-Battery (BESS)-Heat systems
in about 10 other communities in the Bethel region. We have high confidence in IES’ ability to
complete this work. The community and utility are prepared to move forward with the project as
soon as funding is available.
8.2 Demand- or Supply-Side Efficiency Upgrades
If you have invested in energy efficiency projects that will h ave 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.
N/A
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 .
Resolution from NLP‘s Board of Directors is included in this application.
The community has been working toward getting this project operational for many years.
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 .
Chefornak Wind Renewable Energy – Round 4 Project Status: Project completed The grant is
closed.
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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SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration .
Cost Quote from Contractor.