HomeMy WebLinkAboutAPPLICATION - 1. NWAB Selawik Solar PV Round 15 Standard Application-signedRenewable Energy Fund Round 15
Grant Application – Standard Form
AEA 23046 Page 1 of 42 10/04/2022
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.
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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.
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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)
Northwest Arctic Borough (NAB)
Tax ID # 92-0116661
Date of last financial statement audit: 6/30/21
Mailing Address: Physical Address:
P.O. Box 1110 163 Lagoon St
Kotzebue, AK 99752 Kotzebue, AK 99752
Telephone: Fax: Email:
907-442-2500 907-442-2930 imathiasson@nwabor.org
1.1 Applicant Point of Contact / Grants Coordinator
Name: Ingemar Mathiasson Title: Energy Manager
Mailing Address:
P.O. Box 1110
Kotzebue, AK 99752
Telephone: Fax: Email:
907-445-2031 907-442-2930 imathiasson@nwabor.org
1.1.1 Applicant Signatory Authority Contact Information
Name: Dickie Moto Title: Mayor
Mailing Address:
P.O. Box 1110
Kotzebue, AK 99752
Telephone: Fax: Email:
907-442-8201 dmoto@nwabor.org
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Erin Stephens 907-442-8221 907-442-2930 EStephens@nwabor.org
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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 governing
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)
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Selawik Solar PV
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 66.60088 Longitude -160.00472
The Village of Selawik is located in the Northwest Arctic Borough, at the mouth of the Selawik
River, about 90 miles east of Kotzebue. Selawik falls within the arctic climate zone, characterized
by seasonal extremes in temperature. Winters are long and harsh, and summers are short but
warm. Temperature extremes have been recorded from -50 to 83°F. The Selawik River is
navigable from early June to mid-October.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The community of Selawik will benefit from this project, which will complete the construction phase
of the solar PV project. Upon completion, Selawik will have a more resilient energy infrastructure
with the capability to supply its electricity needs with a reduced need for diesel generation. This
project will reduce pollution while creating energy independence and improving community
resilience in the face of climate change and extreme weather events. This project will also build
capacity for local project management and O&M skills for renewable energy systems. The Alaska
Village Electric Cooperative (AVEC), which is the electric utility for Selawik, will also benefit from
increased clean energy generation assets, improved reliability with less outages, less fuel shipping
needs, and enhanced local capacity.
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
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! 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.
The Northwest Arctic Borough (NAB) is requesting $1,134,500 for Phase IV Construction of a high
penetration distributed solar PV system for the community of Selawik. Based on Hybrid
Optimization for Multiple Energy Resources (HOMER) software modeling and AEA’s B/C Ratio
model, this system will displace about 27,278 gallons of imported diesel fuel annually and will
result in about 193 hours of diesels-off operation, saving the community about $81,698 during the
first year of operation. Lifetime savings for the project are estimated at 681,947 gallons of diesel
fuel and $2,511,674. In addition to reducing the cost of electrical generation, the solar PV system,
in conjunction with a related and separately funded project to construct a Battery Energy Storage
System, will result in a hybrid solar PV/battery/diesel system, will dramatically increase the
efficiency and resilience of the power generation system by providing spinning reserve and
significantly reducing brown-outs and black-outs and associated freeze-ups of the community
water system. This project will leverage the key learnings from other high penetration systems
operating and in development in the Northwest Arctic Borough, including Kotzebue, Deering,
Buckland, Shungnak-Kobuk, and Noatak. Upon completion of the project, this solar PV system will
be transferred to ownership as an IPP by the Native Village of Selawik and sell power to the Alaska
Village Electric Cooperative, similar to other projects in the region.
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.
The project scope will include the construction of 398 kW of solar PV to provide alternative energy
to the existing AVEC diesel power plant and planned Battery Energy Storage System currently
under development with separate funding under another initiative to support the community water
system. The project includes the following major tasks:
Review Project Plan from Design-Build contractor secured under design phase of this project and
issue notice to proceed once contractor satisfactorily submits schedule, submittals, and project
plan documents.
The second primary task will be to procure materials, to include microinverters, solar panels,
fencing, foundation for the panels, and other minor components.
After all major items are secured, items will be shipped by barge to Selawik and installed on site.
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The last major task of the construction phase of the project will be to test and commission the new
Solar PV with the existing diesel power plant and battery energy storage system currently under
development. This will include metering to confirm production and allow for IPP transactions
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
($)
14 Design/Permitting for Solar PV &
Battery Storage for Ambler, Kiana,
Noorvik, and Selawik
Y $147,500*
*One-fourth of total grant, representing amount allocated to Selawik
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
1.0 Grant agreement
executed
Execute related
documents 7/23 8/23
Signed agreement
2.0 Notice to Proceed
for Contractor
Review and approve
project schedule,
submittals, plan,
permits, and other
relevant documents
to previously selected
design-build
contractor. 9/23 10/23
Notice to Proceed
3.0 Procure Materials Procure major
materials for the
project 10/23 5/24
Material Take Off
3.1 Shipping Ship majority of
material via first barge
of the season to reach
Selawik 5/24 7/24
Barge Manifest of Shipment
3.2 Site Preparation Clearing, Grubbing,
and foundation for 6/24 8/24
Site Layout, Bi-Weekly
Reports
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solar PV panels,
installation of fencing
3.3 Trenching and
Cabling
Construct trench and
complete layout of
microinverters and
electrical connections
to power plant and
battery system. 7/24 8/24
Bi Weekly Reports
3.4 Install Solar PV Install Solar photo
voltaic panels and
connect to
microinverters and
wiring 8/24 9/24
Bi Weekly Reports
4.0 Testing and
Commissioning
Complete testing,
training, and
commissioning of the
systems; meter
production 10/24 6/25
As-Builts, Final Inspection
Report, Follow Up Field
Report
5.0 Grant closeout Prepare & submit final
reports
6/25 9/25
Submittal of final project
report and close-out
documentation
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 $1,134,500
Cash match to be provideda $251,500
In-kind match to be provideda $0
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of
above)
$1,386,000
The Northwest Arctic Borough has awarded the Native Village of Selawik funding from the Village
Improvement Fund program toward this and related energy projects; $251,500 of these funds will
be provided as cash matching funds for this application in order to complete construction of 400
kW of solar PV. These funds are local matching contributions and their original source is not
federal or state. The funds are already secured as of October 2022 and will not cause delay for
the project.
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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.
NAB has 3 high penetration solar, battery, diesel hybrid systems in operation (Buckland, Deering,
and Shungnak-Kobuk) and has one system in the design and construction phase (Noatak). The
NAB and NANA have also contributed funds and expertise to the high penetration solar PV array in
Kotzebue. Based on this experience, we are confident in our cost estimates to complete the work,
however, the pandemic has complicated the supply chain for engineering services. If there is a
shortfall in funding, the communities will request additional funding through the NAB’s Village
Improvement Fund, and the NRC Energy Program has also committed to providing additional
resources to fill any funding needs. The Village Improvement Fund is targeted for capital matching
funds exclusively for NAB communities and has been successfully leveraged for all of the above
projects and many others, resulting in the statewide leadership around energy initiatives in the
NAB/NANA region.
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 Actual $0
Feasibility and Conceptual Design Actual $Completed at
No Cost by
ANTHC - see
attachments
Final Design and Permitting Estimated $156,000
Construction Estimated $1,386,000
Total Project Costs (sum of above) Estimated $1,542,000
Metering/Tracking Equipment [not included in
project cost]
Estimated $included in
construction
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)
Not applicable; the construction phase will complete this project.
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.
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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 4 — Construction
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
(List milestones based on
phase and type of project.
See Sections 2.3 thru 2.6 of
the RFA )
$ $ $
Issue RFP for Construction $ 10,000 $5,000 $ 15,000
Equipment Procurement and
Shipping $675,000 $130000 $820,000
Mobilization and Site
Preparation $15,000 $10,000 $25,000
Construction $400,000 $75,000 $475,000
Commissioning $20,000 $20,000 $40,000
Project Management $14,500 $8,500 $23,000
Performance Data Collection $ $1,000 $1,000
Final Reports $ $1,000 $1,000
Grant Close-Out $ $1,000 $1,000
TOTALS $1,134,500 $251,500 $1,386,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $1,134,500 $251,500 $1,386,000
Construction Services $ $ $
Other $ $ $
TOTALS $1,134,500 $251,500 $1,386,000
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 construction costs estimate for this project was completed by the NAB project team based on recent experience from the design and installations of the high penetration projects in Deering, Buckland, Kotzebue, Shungnak, and Noatak, and with input from design and constructions partners on previous projects including Hitachi (formerly ABB) and Alaska Native Renewable Industries (ANRI). In general, the complete Cost of Construction for a solar PV field in rural Alaska is estimated at roughly $3/kW of solar PV installed. This cost is comprised of the procurement of panels, shipment of panels to the site, cost of string microinverters, site development, fencing, and assembly and construction on site.
Costs for this project were based upon previous, recent, relevant experience observed on similar
projects completed in the Northwest Arctic Borough.
The basis of costs is as follows:
Category Cost Notes
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Solar PV Construction $ 1,194,000 $3/Watt
Construction Admin $ 35,820 3% of Construction
Contingency $ 122,982 10% of Construction Costs
Project Management $ 33,198 2.45% of project
Total $ 1,386,000
This project is only possible to complete at these costs due to the separate funded project to
complete construction of a Battery Energy Storage System for the purposes of protecting the grid
and more specifically, the electrical requirements of the water and sewer system. Costs for
integrating into the existing power system, which are typically significant, are not accounted for
here as the power plant will already have upgraded controls and management systems due to the
integration of the battery as part of the separate Battery Energy Storage System funded by the
USDA, NANA, and Northwest Arctic Borough. The oversized (for energy purposes) Battery is being
installed to provide extended protection during blackouts in order to reduce freeze ups of the
community’s temperature sensitive water and sewer system.
Northwest Arctic Borough is seeking construction funding in advance of the design as the
anticipated engineering for the project will mirror recently successful projects in Shungnak and
other Northwest Arctic Borough communities and because our recent experience with similar
projects allows for relative cost certainty in advance of design efforts.
Future phases of this project would only include expansion of the solar PV. This phase is likely to
be similar in costs of construction as well as similar proportional benefits. Based upon the size of
the large BESS planned for Selawik, it is anticipated that an additional 600 kW of solar PV could be
added to the system cost effectively. The creation of an Independent Power Producer (IPP) selling
power generated from the solar PV system to AVEC provides further economic benefits for the
community.
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?
Progress will be measured based on a project charter with a timeline, milestones, and a
responsibility matrix to identify deficiencies before they impact project deliverables. We will also
have quarterly project meetings that include the AEA project manager to ensure tasks are being
performed according to the agreed-upon timeline and budget. The NAB Project Manager will
provide quarterly progress reports to NAB leadership and AEA that will detail the progress versus
plan and remediation strategies as needed to address deficiencies. Our intent is to include the AEA
project manager as an active member of the team to leverage their knowledge and experience in
the successful project. NAB and NANA Energy Project Managers will be in regular contact with
each other, the community, and AVEC, as they already have activities in all the region’s
communities, and this will facilitate status monitoring.
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
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that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the REF Grant Program.
The NAB Finance Department consists of a treasurer, controller, accounting assistant, and
specialized contractor. The Finance Department utilizes Caselle accounting software, which is
used by over 1,200 government entities nationwide. This system is used to provide monthly
financial reports to the Borough Assembly and track all expenditures and revenues. The NAB
undergoes a financial statement and single audit annually.
Our Finance Department will manage all financial transactions associated with the grant and will be
responsible for monthly financial reporting to the NAB Mayor and Assembly and quarterly financial
reporting to AEA and other project partners. Current financial statements and other financial
information are available upon request. The NAB Finance Department successfully manages
millions of dollars in federal and state grants every year and is very familiar with compliance and
reporting requirements.
In accordance with NAB policy, when a project is funded, an account and object account code is
created to track all materials and time related to that project. This is organized so that grant funds
as well as any matching funds are properly accounted for. The grant agreement is reviewed in
detail with the accounting team at the beginning of the project to ensure that only eligible and
reasonable costs are billed to the grant.
From a procurement standpoint, NAB will select contractors following all NAB and federal
procurement rules, including those found in 7 CFR part 1709 and 2 CFR part 200. NAB will seek
contractors that have demonstrated success, expertise, and commitment to this type of project in
our region as well as strong understanding of the region’s unique circumstances.
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.
Ingemar Mathiasson, NAB Energy Manager (907-445-2031,imathiasson@nwabor.org), works in
the NAB’s Economic Development Department. He will be the Project Manager and oversee all
aspects of the project. He has developed and managed renewable energy and energy efficiency
projects in all 11 communities within the Borough and has been the Project Manager for successful
solar, battery, and diesel hybrid systems in Buckland, Deering, Shungnak, and Noatak, along with
a biomass construction project in Ambler. Mr. Mathiasson will also ensure community engagement
and outreach in Selawik, in coordination with the Northwest Arctic Energy Steering Committee’s
education and outreach efforts.
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.
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Angie Sturm has been the NAB Treasurer since 2016. Ms. Sturm received her Bachelor of
Business Administration degree in Accounting and Management from the University of Alaska
Anchorage. Before accepting her position at the Borough, Angie was an Auditor for KPMG, an
international accounting firm with an office in Anchorage. She will oversee all financial transactions
and financial reporting associated with this project, providing appropriate information to AEA, the
NAB Assembly and the Mayor.
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.
Ingemar Mathiasson - NAB Energy Manager since 2009. Originally from Sweden, Mr. Mathiasson
has lived in Alaska since 1987. He built and lives in an off-the-grid homestead outside of Ambler,
complete with wind and solar power, batteries, and biomass for heating. He is a member of the
Board of Directors of the Renewable Energy Alaska Project (REAP) and has overseen more than
$15 million of renewable energy construction projects around the Borough in all 11 communities.
He will be the main Technical Contact on this project and will report to the NAB Economic
Development Director and the Finance Department. He will manage the subcontractors and
coordinate communication with all project partners. Mr. Mathiasson will be the key contact for
construction contractors. Outreach work will be coordinated with the Northwest Arctic Energy
Steering Committee (NAESC) education and outreach efforts for the region. The NAESC is a
regional collaborative that has been leading the development of energy plans for more than 12
years in the NAB, guided by the goals of reducing energy costs and improving energy resilience as
the top priorities of the region.
Sonny Adams – NANA Regional Corporation (NRC) Director of Energy Programs. Mr. Adams has
been involved in all aspects of village energy development with NANA communities since 2007. He
has served on the U.S. Department of Energy’s Indian Country Energy and Infrastructure Working
Group and is currently managing USDA-funded solar-wind-battery-diesel integration projects in
Buckland and Deering. Mr. Adams, a NANA shareholder originally from Kotzebue, has a Bachelor
of Science in Metallurgical and Materials Engineering from the University of Montana. He will
continue to lead NANA’s contribution to this project through collaboration with all project
stakeholders, especially in relation to the IPP, training and technical assistance, community
outreach and education, contractor support, and leadership within the NAESC.
Brian Hirsch – DeerStone Consulting Founder and CEO. Dr. Hirsch has worked in rural Alaska and
other remote locations on diesel-based renewable energy microgrids for over 25 years. Prior to
founding DeerStone, he served as an elected Board Member for Homer Electric Association, the
rural Electric Cooperative in his Alaska community; led the National Renewable Energy
Laboratory’s Alaska Initiative for over six years; worked across Southeast Asia, Canada, lower 48
US, Mexico, and Central America; and consulted for numerous non-profits and Tribal
organizations. He has a PhD in Natural Resources with a Master’s Certification in Energy Analysis
and Policy from the University of Wisconsin-Madison and a bachelor’s degree in
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Government/Political Science with three years of Electrical Engineering coursework from Cornell
University. DeerStone Consulting will continue to provide technical support to this project under
NANA Regional Corporation. Project support will focus on the solar installation and building
community capacity to manage projects and the IPP.
Leah Olsen is a licensed Mechanical EIT, who completed her bachelor’s in Mechanical
Engineering with a focus on renewable energy at the University of New Haven in Connecticut in
2019 and holds a prior bachelor’s degree in Chemistry from Williams College. At DeerStone, she
has experience with microgrid controls, wind and solar production optimization, system
troubleshooting, performance monitoring and verification, construction planning,
telecommunications, the development of community energy action plans, and system feasibility.
Leah also has experience in reliability engineering, working with asset management systems to
develop and maintain maintenance records for the manufacturing facility of a multinational
pharmaceutical company in Bend, Oregon. She has also worked at municipal utilities, including the
City of Bend Water Department, where she worked with water plant operators to develop
operational guides for the City water system. Her project management experience includes leading
a team of peers to design an air-filtration system for use in NASA spaceships. She is proficient in
Blue Mountain Regulatory Asset Manager (CMMS), Solidworks, and Hach WIMS. Her previous
professional endeavors include commercial fishing and natural building construction.
Subcontractors will be selected through a competitive procurement process and will be selected
based on their experience and technical expertise with similar projects in remote Alaska. A scoring
matrix will be developed during the procurement process, and the AEA project manager will be
invited to participate on the selection team.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
As with the recent solar PV projects that have been completed in NAB, local labor and capability
development will be a significant goal. The Shungnak high penetration solar and battery system
was constructed with a crew made up of about 90% local and Native members. We plan on
utilizing this experienced regional labor force on future construction projects and will actively train
additional crews in the solar PV installation skills.
Additionally, sustainability education and hands-on solar trainings will also be provided for
community members for future installation of the systems, in addition to the training provided to
locally hired laborers. This workforce training is already incorporated in other related projects we
are implementing including the upcoming Noatak high penetration solar PV and battery system.
Energy community champions have already been engaged in energy development through the
NAESC, and these champions will be engaged during the construction process to expand their
energy education and provide community specific feedback on the designs. We will also use this
project as an opportunity to recruit new energy champions and develop our next generation of NAB
energy leaders.
SECTION 5 – TECHNICAL FEASIBILITY
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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 following figure of Solar Insolation in Alaska was developed for the report “Solar Energy
Prospecting in Remote Alaska - An Economic Analysis of Solar Photovoltaics in the Last Frontier
State” by Paul Schwabe, National Renewable Energy Laboratory (2016). This report shows that
the Arctic and Interior regions of Alaska could expect high solar production predominantly from
March through August, with a steep dropoff in the shoulder months and little to no production in the
winter. Most communities in the NAB have an estimated value of 3.4 kWh/m2/Day for solar
insolation. Operating projects in Deering and Buckland, for example, are performing with a capacity
factor of approximately 10.5%. The solar PV array in Kobuk is demonstrating an annual capacity
factor of about 11% although this is much higher in the summer months and much lower in the
winter months. The general “rule of thumb” across the Northwest Arctic is that 1 kW of solar PV
produces about 1 MWh annually.
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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.
Energy planning has been at the forefront of the NAESC’s objectives during the last 10 years of its
existence. In that time, the region has installed many energy systems including heat recovery
systems, heat pumps, wind turbines, behind the meter solar systems, community scale solar and
battery systems, and wind, solar PV, battery, and diesel hybrid systems, along with developing the
first Power Purchase Agreement with AVEC. We have also focused on feasibility studies of
interties between communities and potential hydroelectric projects. The region has been very
active in energy efficiency improvements. One of our key learnings is that solar PV is a good first
step for a community to take on operations and maintenance of renewable energy systems. It is
the easiest technology to maintain as the communities learn the requirements of operating and
maintaining energy systems along with partnering with incumbent utilities.
For this project, 8 different options were considered and evaluated based on our primary goals to
reduce the reliance on expensive diesel fuel and the costs of generating electricity in our
communities:
• Option 1: Do nothing
• Option 2: Do minimum, Grid-tied Solar Power (up to utility limit)
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• Option 3: Install a Solar Photovoltaic (PV) Array with a Battery Energy Storage System
• Option 4: Energy Efficiency
• Option 5: Biomass
• Option 6: Powerline Interties between communities
• Option 7: Wind Turbines
Option 1 was eliminated because doing nothing will not reduce our reliance on diesel. Option 2
was also eliminated because of our desire to achieve significant diesel reductions and to work with
our partner AVEC and the utility limit with low penetration is only a minimal amount of renewable
production or fuel savings. Option 4 will continue to be a priority within our communities with a
focus on energy efficiency improvements for heating systems. Most impactful and cost effective
electrical energy efficiency improvements have been completed in our communities. Regarding
Option 5, biomass systems have been installed in communities with good wood resources.
Feasibility studies for wood heating in other NAB communities, including Selawik, have not
resulted in recommended systems. Options 6 and 7 are under consideration for other communities.
Wind turbines in multiple other communities, including Selawik, are not viable at this time. Option 4,
a Solar PV, Battery, Diesel Hybrid System was the most logical project for Selawik community-
scale renewable energy systems at this time; this application is for the solar project, with other
funding secured for the battery project in order to protect and support the community grid and
water/sewer system.
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
The following permits are required for a Solar PV installation:
● NAB Title 9 Planning Permit
● FAA Glint & Glare Review if potential interference with aviation traffic
● Analysis of wetlands and floodplain avoidance
● NEC compliance/PE stamps
● Consultation with State Historical Preservation Office
● Critical Habitat avoidance
The permitting consultations and applications, funded through an AEA REF Phase III Round 14
grant, will start as soon as the location of the PV array is finalized. The permitting is expected to
take 6 months to complete and is being accomplished under the previous award from the AEA for
the Design phase of this project. NANA also has engineering subsidiaries who can support the
project, in particular with the analysis of wetlands and floodplain avoidance, as they work on similar
issues for the Red Dog mine in the region.
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.
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The proposed project site is vacant land located adjacent to the existing AVEC power plant. Land
ownership issues are not a concern; the project site is located on a Deed of Easement to the City
of Selawik. Bk 41, Pgs. 965-967 9/3/1993 Parcel 93-P-3.
The City of Selawik and Native Village of Selawik have signed a joint resolution in support of this
project, and the City of Selawik has produced a Letter of Support for this project confirming
permission to construct on the proposed site identified above. Additionally, if siting of the project
must be adjusted during the design phase of the project nearby potential property is held and
managed by NANA Regional Corporation in Section 17, IC No. 552. NANA Regional Corporation.
If required, NANA will provide required access as they have provided a letter of support for this
project, contributed $500,000 to the associated but separate Battery Energy Storage System
project, and they have been a firm advocate for renewable energy development in the region,
including solar PV in Selawik.
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.
NAB does not foresee any major technical risks for completing the construction of this project. The
main technical aspects and potential challenges are being considered in the design process and
include: 1) permafrost soils supporting ground mounted racking for solar PV panels; 2) power
conversion system for grid forming inverter, and system controls/dispatch; and 3) challenging
logistics in a remote location. All of these issues have been addressed and resolved in similar
projects in nearby communities, but each project has unique site-specific circumstances. All of the
proposed equipment for this project is commercialized technology. Actual systems for
consideration must be “flight proven” through successful installations, ongoing commercial
performance in comparable field conditions, and covered by well established companies providing
commercial warranties.
To control these risks, the project team will prioritize siting location to minimize impact to
permafrost and facilitate conventional helical pile installation. The team will apply lessons learned
from recent similar installations and include extended commercialization technical support in
vendor contracts to assure that the integration control system is optimized. The project team will
address the challenging remote logistics by hiring experienced construction contractors and
planning extra time in the project schedule to allow for logistical issues.
Another technical risk in the past that has been successfully addressed is electrical integration of
new equipment into legacy infrastructure. This has been resolved with AVEC infrastructure through
upgraded switchgear, generator controls, and a proven microgrid controller. These lessons will be
applied to the project proposed here. Specifically, a solar PV system recently installed in
Shungnak, and one soon to be installed in Noatak, are designed to work with AVEC’s switchgear
and ComAp generator controllers, and any future microgrids will be required to be compatible with
this hardware and software.
5.3.2 Environmental Risk
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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
Threatened or endangered species: Technically, the location is considered to be within potnetial
Polar Bear Habitat.
https://ipac.ecosphere.fws.gov/location/4BGG65575RGA7GB5XLUQWKSX7A/resources Though
polar bears have not resided in the project area or seen in Selawik in at least the past 38 years,
and the community is not adjacent to the ocean or the sea ice that Polar Bears frequent for habitat
and food. Nevertheless, the project will issue stop work orders and minimize impacts to
endangered species should any be seen anywhere near the project site.
Habitat Issues: This project does not impact significant habitat, only a small area of tundra will be
impacted and there is minimal habitat present as the site is adjacent to a population center and
there is minimal plant growth in the proposed project site.
Wetlands: Using National Wetlands Inventory Mapper, no wetlands are anticipated to be impacted
by this project.
Archaeological and historical resources: No archaeological or historical resources are anticipated
to be impacted; a SHPO 106 consultation will be conducted.
Land development constraints: Land development is not considered to be a constraint; the project
location is previously distributed from repeated snow machine use.
Telecommunications interference: This project is not anticipated to impact telecommunications. No
additional radio or telecommunication equipment will be installed that is expected to impact existing
or future telecommunications. If anything, installation of additional fiber optics will provide
enhanced telecommunication capacity.
Aviation considerations: This project is not anticipated to impact aviation or airports as there are no
structures extending into active airspace and the construction is sufficiently distant from the local
airport.
Visual, aesthetics impacts: This project will produce a small visual impact of construction of a solar
field; though the construction will be generally located at ground level; there are not anticipated to
be public complaints and there has been documented public support for the project in spite of
these potential visual impacts.
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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.
The existing diesel power plant in Selawik consists of three generators: a 499 kW Cummins QST, a
499 kW Cummins QSX, and 900 kW Cummins K38G4. These generators were installed in 2020,
2019, and 2014 respectively. Aggregate generator efficiency in Selawik in 2021 was 13.11 kWh/gal
from the annual PCE report. The peak load in 2021 was 612 kW with an average load of 319 kW.
Spinning reserve is provided by a second gen-set, and there are currently no regular voltage or
current issues in Selawik.
However, Selawik has occasionally suffered from power outages in the past, most notably in
February 2022, causing a blackout during peak load and causing the community’s energy intensive
water and sewer system to fail. The Northwest Arctic Borough has secured $1,600,000 from the
USDA REPP, $500,000 from the NANA Village Economic Investment Fund, $100,000 from AVEC,
and $330,000 from the Borough VIF program to construct and integrate a 1 MWh battery to
address these issues and provide a minimum of 1.5 hours of battery backup at peak load.
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).
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: CMS QST30, Diesel, 750 kW, ComAps, 47 hours
Unit 2: CMS QSX15 G9, CPL 8142, 499 KW, NEW HC 1544F, 063297/01, ComAps,
75840 hours
Unit 3: CMS K38G4 1800, 900 kW, CMS 1000DF JD, G960612453, ComAps, 1821
hours
Unit 4: PLEASE SEE ATTACHMENT: AVEC FLEET Information, for additional detail on
above generators.
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Unit 5/:
Unit 6:
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
Yes, 9,200 gal. This project is not
expected to impact the heat recovery
system end users, because the
majority of diesel-off time will be
during the summer months. This will
be confirmed during the design
process.
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.
Selawik generates at 496 V and steps up to 7200 V for distribution. The following information
summaries the transformers:
Breaker 1: 3 ea 167kVA
Breaker 2: 3 ea 167kVA
Breaker 3: 3 ea 75kVA, 3 ea 100 kVA at wind turbine site
5.4.2.3 Existing Thermal Generation Units (if applicable to your project)
Generatio
n unit
Resourc
e/
Fuel type
Design
capacity
(MMBtu/h
r)
Make Model Average
annual
efficienc
y
Year
Installe
d
Hours
N/A
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
i. Annual O&M cost for labor Postage stamp rate - $140,000
per Power Plant for labor and
non-labor, per AVEC calculations
N/A
ii. Annual O&M cost for non-labor See above
iii. Replacement schedule and cost for
existing units
Oil Change at 500 hrs - $140
Tune-up at 3000 hrs - $2400
Top end at 10,000 hrs - $8600
Overhaul at 20,000 hrs - $40-
55,000
Replacement at 100,000 hrs
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 (Type
1)
Generati
on (Type
2)
Generati
on (Type
3)
Fuel
Consumption
Fuel
Consumpti
on
Pea
k
Minimu
m Load
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(kWh) (kWh) (kWh) (Diesel-
Gallons)
[Other] Loa
d
January 328,346 22,377 530
February 359,088 21,853 498
March 297,853 18,663 460
April 266,273 18,937 455
May 231,447 16,097 424
June 153,117 12,206 389
July 149,964 13,713 347
August 196,494 15,820 401
Septemb
er
196,693 14,836 413
October 225,401 16,591 422
Novemb
er
312,739 22,621 498
Decemb
er
322,702 26,074 636
Total 3,040,11
7
219,788 636
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 N/A
February
March
April
May
June
July
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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 energy demand, peak load, seasonal
variations, etc. that will affect the project.
Population trends in the region have been relatively stable since the 2010 census, including for
Selawik. Because of this population trend, electric usage is not expected to change significantly.
High energy costs have led to a focus on energy conservation, and this is not expected to change
without significant reduction in energy costs. While this project will slightly reduce rates, it is not
expected to reduce rates enough to change usage behaviors. As a result, significant load growth is
not expected.
The NAB has been supporting the installation of heat pumps in residential and community
buildings throughout the region for the last 5 years. To be cost effective for consumers, these
systems must be managed so electrical usage stays within the 750 kWh per month PCE allotment.
It is not expected that heat pump installations will greatly increase electrical demand in the future
once they are installed.
Because of the ease of operations and maintenance of solar PV systems, high penetration solar
PV will continue to be the technology of choice for rural communities without large hydroelectric or
wind resources.
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.
The proposed project is a high penetration distributed solar PV system that will be connected to the
local village electric grid and BESS. The system will be sized to maximize the diesels-off potential
during the months of highest solar availability using HOMER software. The feasibility modeling has
identified a PV array size of approximately 398 kW.
The core component of each system will most likely be an ABB/Hitachi or Ageto supervisory
microgrid controller with power electronic inverters and controls, coupled with a lithium-ion battery,
that will allow for periods of diesels-off operation when there is sufficient solar energy production
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and/or adequate charge in the batteries to safely run the entire grid. In our case, this will most
frequently occur for hours at a time between April and August, when there is significant solar
availability and the total system loads decrease because of warmer temperatures, less need for
electric lighting, and the local school closes for summer.
An ABB/Hitachi e-mesh PowerStore is shown below. It is a compact and integrated platform with
racks that accommodate various battery manufacturers, a single temperature control, and fire
suppression package to reduce overall installation costs. The system controls and optimizes
among diesel generators, solar PV, batteries, and electric heat loads to minimize diesel fuel
consumption. This is a sample of what could be installed subject to competitive selection. In the
most recent projects in the region, instead of ABB/Hitachi hardware, we have been using Ageto
ARC microgrid controller and EPC Power Conversion devices. These are conceptually very similar
but appear to be easier to integrate into AVEC’s diesel gen-set controllers.
Leveraging experience with similar systems within our region and elsewhere around Alaska, this
equipment is specifically designed for small isolated microgrids like that found in NAB. Over the
last several years, ABB/Hitachi and Ageto have provided similar “grid-forming” inverters with
batteries that allow for diesels-off operation in numerous remote microgrids around Alaska and
elsewhere, including in nearby Deering, Buckland and Shungnak. Kotzebue Electric Association
has ABB equipment in its powerhouse and local expertise and familiarity with the equipment for
regional support. Though the core power conversion technology is well proven, the supervisory
controllers are continually improving their programming based on growing experience with micro-
grids, especially their experience in remote locations across Alaska, Canada, and Australia.
5.4.4.1 Proposed Power Generation Units
Unit # Resource
/
Fuel type
Design
capacity
(kW)
Make Model Expecte
d
capacity
factor
Expecte
d life
(years)
Expected
Availability
1 Solar PV 398 TBD TBD 10.8% 25 99%
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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
N/A
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 operation of the high penetration solar system will be controlled by a microgrid system
controller. The concept of “system integration” essentially means overlaying new digital
technology on top of a legacy islanded diesel grid and ensuring that the diesel backbone is fully
supported. This requires a supervisory controller to continually monitor the entire system load to
determine the optimal combination of solar PV, diesel generation, and battery power necessary to
meet the load with the least amount of diesel generation but also ensure that the diesel generator,
when running, is at least 30% loaded relative to its generation capacity to provide grid stability and
avoid wet stacking to protect the diesel generator. Other operating constraints include maintaining
battery state-of-charge (SOC) typically between 20-80% of total capacity, considering spinning
reserve requirements on the diesel generator, and trying to minimize curtailment of solar output.
For example, in a community if the system load is 200 kW and the solar PV is producing 180 kW
and the batteries are 20% charged, the supervisory controller would send a signal to turn on, say,
a 315 kW diesel generator (the smallest in the fleet in this case) to meet the remaining 20 kW of
system load but it would also need to run at higher than 20 kW output. In fact, the diesel generator
would have a low-load setpoint so it could not produce power at a rate less than 94.5 kW (30% of
its nameplate rating of 315 kW). The excess power, above and beyond the 20 kW required to meet
the system load, would go to charge the batteries. If the system load stayed at 200 kW and the
solar PV output stayed at 180 kW, once the batteries were charged to 80% of their capacity, then
the supervisory controller would send a signal to turn off the diesel generator and meet the entire
system load with a combination of solar PV and battery output. When the batteries dropped in
charge, it would dispatch the diesel generator to meet the difference.
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It should be noted that the supervisory controller—the “brains” of the operation—does not directly
communicate with any of these generation assets, but rather receives inputs, and sends outputs, to
individual controllers for the solar inverter, the diesel powerhouse switchgear and generator
controls, and the battery management system (BMS), and then these units control the generation
assets. This requires digital compatibility among all parts of the system and a pathway for all of the
system components to communicate digitally, which can be done through fiber, ethernet, or
wirelessly, depending on the circumstances. Typically, if the assets are located near each other,
fiber or ethernet is preferred, but in some cases, such as when wind turbines or solar PV arrays are
relatively far from the power plant, wireless communications are necessary. AVEC is in the process
of updating the diesel powerhouse switchgear and generator controls for all of their communities,
which is an essential requirement for proper digital communication and system control. We have
been talking closely with AVEC to ensure that their new equipment will be digitally compatible with
industry leading power electronics, especially those that are already installed in the region such as
SMA and SolarEdge inverters and optimizers, Woodward Easygen and ComAp diesel generator
controls, Saft and BluePlanet BMS’s, and ABB/Hitachi and Ageto supervisory microgrid controllers.
5.4.3.1 Expected Capacity Factor 10.8 % to 11.2%%
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
Month Generati
on
(Propos
ed
System)
SOLAR
(kWh)
Generatio
n
(Type 2)
(kWh)
Generati
on
(Type 3)
(kWh)
Fuel
Consumpt
ion
(Diesel-
Gallons)
Fuel
Consumpt
ion
[Other]
Second
ary load
(kWh)
Stora
ge
(kWh)
January 640
Februar
y
6,700
March 26,732
April 51,491
May 63,696
June 70,924
July 66,893
August 47,580
Septem
ber
28,097
October 12,023
Novemb
er
2,476
Decemb
er
0
Total 377,253
5.4.5.3 Annual Heating Fuel Consumption (Proposed System)
Month Diesel Electricity Propane Coal Wood Other
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(Gallons) (Gallons) (Tons) (Cords,
green tons,
dry tons)
January N/A
February
March
April
May
June
July
August
Septembe
r
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 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.
$
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. $2,929
2. Hours diesel OFF/year: 193
3. $7,960
The O&M estimates were developed using the
AEA B/C ratio model. The non-fuel savings
include the O&M savings in the above table and
show the savings in diesel replacement costs.
This savings is calculated using the annual
diesels-off hours, typical life of the AVEC
gensets (100,000 hrs), and estimated gen-set
replacement cost ($75,000). See the
replacement cost details in the Attachments;
this includes an additional $145 in cost savings
identified annually for public benefit from
insurance and other cost savings.
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The O&M Savings are pulled directly from
AEA’s B/C ratio model.
This application takes a slightly different
approach from the estimated O&M costs from
the AEA recommended rule of thumb of 2% of
capital cost for Solar PV projects. This 2% is
the same recommended estimate for wind
projects, and experience in NAB and other
regions of Alaska has shown that Solar PV
O&M costs are significantly less than wind
projects. Industry rule of thumb for Solar PV
O&M costs including panels and inverters and
associated equipment is $10-$20 per year per
installed kW. We used $20 per installed kW for
a conservative estimate. Please refer to the
O&M Costs in the attachments for full O&M
calculations.
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
Other
Unit cost
($)
N/A
Annual
Units
Total
Annual
cost ($)
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.
The system will be designed with metering equipment that will allow the operator to understand
solar PV production, power flowing into and out of the battery, and battery system station service
including HVAC and battery round-trip efficiency. This metering equipment is standard for all high
penetration solar PV, battery, diesel hybrid systems. Typical meters cost about $500 each.
5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data, including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the Request for Applications
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The following documentation will be collected on a monthly basis by our finance department to
understand the impact of the solar PV:
● kWh produced by the Solar PV
● Diesel fuel usage in the power plant
● Cost of diesel fuel
● Battery round Trip Efficiency
● Diesels-off hours
● Maintenance and Material Costs
● Additional Labor hours
This information will be reported annually to AEA in the required format.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Economic Benefit
Annual Lifetime
Anticipated Diesel Fuel Displaced for
Power Generation (gallons)
27,278 681,947
Anticipated Fuel Displaced for Heat
(gallons)
Total Fuel displaced (gallons) 27,278 681,947
Anticipated Diesel Fuel Displaced for
Power Generation ($)
YEAR 1: $82,421 $2,434,926
Anticipated Fuel Displaced for Heat ($)
Anticipated Power Generation O&M Cost
Savings
$2,940 $73,502
Anticipated Thermal Generation O&M Cost
Savings
Total Other costs savings (taxes,
insurance, etc.)
$145 $3,625
Total Fuel, O&M, and Other Cost Savings $81,698 $2,511,674
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
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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.
Capital:
This project will allow for reduced cost of electrical production in Selawik. Cost savings are
anticipated to be shared between AVEC, who will purchase the produced electricity at a reduced
cost beneath their current cost of production, and the Native Village of Selawik, which will operate
an IPP. In addition to generating revenue to support maintenance, establishing a reserve for
replacement of the system, and potentially growth of the system. Any revenues generated beyond
these savings will be available for operations and investment of the Native Village of Selawik.
The shared benefits could reduce electricity prices, increase revenues available for government
operations, and will create a single part time job for maintenance of the solar PV systems. These
positive economic impacts will correspondingly reduce the cost of living in one of the highest cost
of living regions in the United States, and for a community with 74.85% of households qualifying as
low or moderate income per HUD.
Operations: The economic modeling used for this application was the AEA B/C ratio model.
Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated
renewable energy project: The project will displace 27,278 gallons of diesel fuel for electrical
generation annually. The average price of fuel from the B/C ratio model was used for our
estimates, and the 2024 cost in Selawik is projected to be $3.02/gallon.
Based on the output of the B/C ratio model, over the 25-year lifetime of the project, the solar PV,
will displace 681,947 gallons of diesel, with a lifetime cost savings of $2,511,674.
In the first year of operation, the renewable energy systems are expected to save the community
$81,698 that can be used toward utility operations and maintenance, a replacement reserve for
equipment, and operator and technical training. The B/C ratio is .1.01
Selawik has challenging economics due to the relatively low cost of diesel. This is a challenge that
many remote communities, especially AVEC communities, encounter when trying to justify the
extremely high construction costs for renewable energy projects with fuel that is purchased in bulk
for all their service areas and tank farms that have been subsidized and are not accounted for in
fuel costs. Thankfully, because Selawik has received funding to build an oversized battery to
support the electric system in order to provide freeze protection for their water and sewer system,
the cost of providing solar PV in Selawik is low. Without the capital cost burden of constructing a
battery and associated controls systems, the benefits of adding Solar PV are straightforward and
economical. The battery energy storage system project in Selawik will happen with or without Solar
PV additions to the generation mix; the opportunity to reduce fuel usage in the community, in
addition to providing cost savings and emissions reductions, will provide substantial benefits to
Selawik.
The assumptions used in the B/C ratio analysis are:
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• Annual solar production and diesels off hours – values calculated in the HOMER modeling
feasibility studies
• Annual Renewable Energy O&M costs - Solar PV O&M costs including panels and inverters
and associated equipment - $20 per year per installed kW (398 kW)
• Installed PV capacities from HOMER modeling feasibility studies
• Diesel Generator O&M - based on the size of the generators
• Displaced schedule component replacement cost savings due to diesels off - calculated
using actual AVEC genset replacement costs and typical lifetime hours
• Project life of 25 years
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 of the operation of these projects are very low if the pre-construction economic
analysis recommends project construction. The operating model used in NAB with an IPP
operating and maintaining the Solar PV was put in place to minimize economic risks. The ease of
operation of solar PV reduces the risk of operational failures due to inadequate maintenance from
an IPP and the revenues generated from an IPP provide incentive and cash flows required to
provide adequate maintenance.
Because the renewable energy is solar PV, there is no fuel cost that can create negative savings
for the communities. Low diesel costs will extend the payback of projects, but it is very unlikely that
the diesel prices will drop so low that there is not positive cash flow for this project. The system
sizing, which is relatively low compared to the community load for most of the year, and battery
support provided by other funding sources, further reduce the economic risks of the project.
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.
N/A
Renewable energy resource availability (kWh per month) ~31,500
Estimated direct sales to private sector businesses (kWh) 0
Revenue for displacing diesel generation for use at private sector businesses ($) 0
Estimated sales for use by the Alaskan public (kWh) ~31,500
Revenue for displacing diesel generation for use by the Alaskan public ($) $85,491
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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 overarching purpose of this project is to benefit the community and residents of Selawik by
increasing community resilience in the face of climate change and extreme weather events,
improving energy security, and reducing reliance on diesel fuel, including the risks associated with
long-distance marine-based fuel delivery. Further, we intend to establish an Independent Power
Producer (IPP) with the Native Village of Selawik that will be managing the systems and selling
power to AVEC. This will increase our local and regional capacity for the operations and
maintenance of renewable energy systems and potentially support the development of a regional
energy services provider in partnership with the regional stakeholders. This will ultimately result in
lower costs and improved maintenance of community-owned infrastructure.
Selawik residents who have expressed interest will participate in ongoing training and performance
optimization for one year after construction and commissioning of the system. This work will
include training for local operators, data collection and recording, troubleshooting, system
performance improvement, and management of specialty engineering, mechanical and electrical
contractors as needed to support each high penetration renewable energy system. The benefits of
this training and education will include increased job skills for participants and long-term jobs will
be created. The training and jobs will ensure local control over and increased effectiveness and
efficiency of operations and maintenance. A reduced reliance on outside contractors for O&M will
also lower costs over the life of the project. Additionally, future construction projects can benefit
from a trained and experienced local workforce, increasing employment opportunities as well as
saving on workforce mobilization costs.
The addition of this solar PV system to the battery energy storage project (funded separately) will
also reduce or eliminate brown-outs and black-outs, which can also lead to water system freeze-
ups, and maximize the fuel efficiency of the operating diesel engines.
Additional public benefits include:
● Reduced electric rates for commercial customers that could be passed to community members
through lower prices.
● Reduced electric rates for commercial customers could lead to economic development such as
opening a restaurant
● Improved Air Quality through reduction of diesel emissions
● Reduced Risk of fuel spills through reduced demand for diesel fuel, diesel storage, and
reduced quantity of diesel transfer from delivery barges.
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● Leverage opportunities for future construction with outside funding, such as federal grants, that
might otherwise not be brought into the communities.
● Maintain leadership within the state for the NAB/NANA region, and ongoing recognition of state
leadership within the global clean energy community focused on remote microgrids.
● Continued innovation, both technically and financially, that could ultimately be replicated at
scale across Alaska.
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
In a previous collaborative project between NAB and AVEC in Shungnak, the solar PV system
supported the establishment of a community-based Independent Power Producer that sells power
to AVEC. The separate planned battery and supervisory controller are operated and maintained by
AVEC because AVEC is responsible for the dispatch of the entire power generating system. The
AVEC maintenance organization supports these installations and has an extensive staff of skilled
mechanics and technicians. AVEC has proven over many years that they can successfully
maintain complex equipment and controls. By partnering with AVEC, all parties have an ongoing
interest in maintaining the system, reducing fuel use and system costs, and developing a trained
workforce.
Primary Operations and Maintenance requirements of the solar PV portion of the project include
snow removal and cleaning of panels, replacement of panels and microcontrollers as needed.
Another critical aspect of local operations and maintenance will be identification and recognition of
controls issues in coordination with the local AVEC operator.
In addition to construction funding for a battery energy storage system in Selawik, we have also
secured funding through a connected project (funded through the USDA) to create the Northwest
Arctic Renewable Energy Performance Optimization Program (REPOP), hosted by the Northwest
Arctic Borough. This program will provide a .75 FTE employee at the NAB for three years to
support and optimize performance of six systems in the region (including Selawik’s proposed
system). The three-year timeframe will allow Selawik residents to participate in and benefit from
ongoing training and performance optimization for a year after construction and commissioning of
the system. This work will include coordination of training for local operators, data collection and
recording, troubleshooting, system performance improvement, and management of specialty
engineering, mechanical and electrical contractors as needed to support each high penetration
renewable energy system.
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The REPOP begins with the key step of hiring or contracting the role of an optimization
coordinator. This role will oversee the performance of each Tribal Renewable IPP in the region
including Selawik, coordinate maintenance and optimization work, and lead training development
and programs. Additionally, the Borough will begin with establishing contracting relationships with
technical assistance providers such as ABB-Hitachi, DeerStone Consulting, and others to provide
specialized support to the participating communities. In general, optimization work will be iterative
and ongoing. These tasks will include monitoring performance of renewable energy systems and
batteries in the region, assigning contractors to optimize controls, addressing outages, applying
lessons learned between participant communities, training local power plant operators, and other
critical functions to ensure maximum renewable energy production.
An additional key early step will be to formalize and finalize the fee-for-service relationship with
each IPP to establish a pattern of payment for receipt of services and to carry the program
financially, especially after the three years of USDA startup grant funding expires.
It is anticipated that two operator trainings will be conducted in Kotzebue to provide education for
each operator, one in the first 18 months of the program, and the second a year later. The
Northwest Arctic Borough will develop materials for the training and will work with Kotzebue
Electric Association and Alaska Technical Center to implement the trainings in Kotzebue.
Operators from each community will be flown into Kotzebue to receive training and observe
performance of the KEA high penetration renewable system, meet with specialty contractors, and
learn about key maintenance practices of similar systems.
A business plan for the REPOP has been developed and is included in the attachments to this
application. Operations and Maintenance specifics for Selawik Solar PV will developed before
completion of the project in coordination wit the REPOP effort.
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.
NRC and NAB have worked with consultants to develop a rate setting calculator that takes into
account a Power Purchase Agreement (PPA) with utilities. This tool accounts for all annual
operations and maintenance costs and estimates the impact to PCE reimbursements to the
utilities. This tool will be used to develop rates for a PPA with AVEC to assure that the IPP, the
utility, and the rate payers benefit from the project. AVEC will continue to utilize their successful
revenue collection process with their rate payers, so non-payment is not an issue. All of these
details are addressed in the business plan for this project.
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)
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● 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)
The electrical rates will remain in the control of AVEC. However, the proposed solar and battery
system here will represent a cost-based opportunity for AVEC to lower their rates and for more
economic development to occur in the community through investment, job creation, and future
distribution from the Tribal IPP that will be established as a result of this effort. The transaction
price for the renewably generated kWh will be set in the PPA negotiations with AVEC during the
finalization of the business plan, and there is commitment from all parties that the projects will not
move forward to construction unless the benefits of the projects are shared between the IPP, the
utility, and the rate payers. To the degree that this project directly results in reduced fuel burn from
AVEC, they will be able to lower their rates to commercial customers without any loss of PCE
allocation.
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.
NAB has recently partnered with AVEC on a very similar project to what is proposed in this
application. An IPP owned by the Native Villages of Shungnak and Kobuk and supported by NAB
has entered into a PPA with AVEC for selling power generated from a solar PV and battery hybrid
system. The IPP operates and maintains the Solar PV array, and AVEC operates and maintains
the battery system.
AVEC has provided a letter of support indicating that they are interested in developing PPA’s for
future projects in the NAB. AVEC has also been actively involved in this application development.
The potential power purchase/sales prices will be developed through the business plan process
and will be based on AVEC displaced fuels costs. In general, the renewable generation will be
priced at the avoided fuel cost for AVEC minus O&M costs and other system encumbrances that
AVEC will need to cover as a result of the renewable asset inter-connected to AVEC’s generation
and distribution system. This will ensure fairly distributed benefits to all stakeholders in the
community.
SECTION 8 – PROJECT READINESS
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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.
The development of this project has followed the traditional renewable energy project development
process. A solar resource assessment for Alaska was conducted by the National Renewable
Energy Lab in 2016 to provide a basic framework for solar PV feasibility studies. We also have
excellent solar PV production data for all communities in the NAB/NANA region, including Selawik,
from a solar PV installation at the community’s water treatment plant, which was a precursor to this
proposed project and other solar PV systems throughout the region. Based on this production data,
we have detailed understanding of the reliability and performance of solar PV. In general, across
the Northwest Arctic region, solar PV systems have been installed for almost a decade and have
successfully weathered all storms and other environmental hazards, and consistently produce
annually about 1 MWh for each 1 kW of installed capacity. We now also have experience with
several village-scale installations in other nearby communities, so most residents have been
exposed to the technology and are very interested in developing it for their own communities. The
NAESC energy education process that has occurred for over a decade has also contributed to
widespread community readiness.
NAB and the Northwest Arctic Energy Steering Committee conducted community outreach and
educational activities to support the development of regional and community energy plans. Solar
PV and battery systems were high priorities. This application is an outgrowth of these efforts. A
regional energy plan, recently updated and posted on the NAB’s website, further reinforces the
widespread support, community readiness, and viability of these solar PV and battery systems.
Feasibility studies through the Alaska Native Tribal Health Consortium (ANTHC) were conducted
for Selawik, addressing optimum sizing of the solar PV array, battery and converter and performing
a basic economic viability analysis. The feasibility study showed that the system could result in
significant diesel savings and diesel-off operation.
Lastly, design of the System is currently underway with funding from REF Round 14 allocation in
concert with three other communities. The design, once completed, will provide the basis for
construction and lay the groundwork for bundling multiple projects at one time for further cost
reductions.
We are requesting construction funding for the solar array in advance of engineering Phse III being
complete in part because the costs for Solar PV development are reliable, regionally proven, and
not subject to significant variation with the ongoing design. NRC has expressed commitment to
providing land for the solar array, and funding for the battery installation project has already been
secured and is being pursued separately for the purposes of water and sewer freeze protection.
8.2 Demand- or Supply-Side Efficiency Upgrades
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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.
Our region, led by NAB, has been focused on energy efficiency measures since the early 2000’s.
The NAB School District has completed large LED lighting upgrades throughout the local schools.
The small local stores have been encouraged to carry LED bulbs in stock—a rarity in rural Alaska.
AVEC has aggressively constructed heat recovery systems in all NAB utilities, including in Selawik,
which has increased the heat rejection rate from some of its generators to facilitate the expansion
of the heat recovery systems. All of the above demonstrate our commitment for energy sovereignty
and our capability for successful project planning and implementation.
Selawik’s energy efficiency work has been focused on the water and sewer system that freezes up
regularly. Through the Village Energy Efficiency Program (VEEP), there has been significant
progress on repairing leaks in the vacuum system, adding insulation to the above-ground piping,
replacing aging and poorly sized pumps, and optimizing heat trace on the piping. Additional work is
still required and ANTHC is scoping capital projects for additional major repairs.
As well, throughout the region, NANA contributed about $2 million to energy efficiency initiatives
through the Energy Wise program with RurAL CAP from 2010-2013 with meaningful impact, saving
fuel and improving quality of life for shareholders and residents in all 11 communities.
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.
Because of the education and outreach work that has been completed by the NAESC over the last
12 years, communities, including Selawik, and regional entities are very engaged in the energy
development process. Active participation in the NAESC and Letters of Support have been
submitted by the following partners:
NAB Resolution
NANA Regional Corporation
Alaska Village Electric Cooperative
City of Selawik (includes commitment to provide land should selected site by City-owned)
Native Village of Selawik Resolution
This project is a high priority for the community and has not engendered any opposition that we are
aware of.
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
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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.
The NAB’s annual general fund appropriation is approximately $23 million, of which 80% of the
revenue ($18.7 million) is derived from the PILT agreement with the Red Dog Mine. The PILT is
negotiated every 5-10 years while the mine is in operation. The NAB has received numerous
federal grants, all of which were successfully administered and closed out and several grants from
the State of Alaska, mostly for public safety. All grants are in compliance, and reporting is
conducted by the appropriate administrators and the Finance Department. As well, because of the
VIF account, the NAB is in a similar position to AEA in that we administer community grants and
require careful accounting from our grant recipients, and we are accountable to all the communities
and Red Dog for providing the support. This has required careful financial management.
Currently, the NAB is helping the City of Ambler manage their USDA HECG Biomass Facility
project and we are managing a $2 million US DOE Indian Energy solar PV and battery construction
grant for the community of Noatak. It is further anticipated that the NAB will be managing the
USDA REPP funding for the Renewable Performance Optimization Program and the construction
of the high capacity battery for Selawik. The NAB also maintains an active SAM registration.
The following AEA grants have been awarded to the NAB:
Grant Project Award Year
Awarded
REF Wind Farms for Buckland Deering and Noorvik -
2195377
$10,738,438 2009
REF Upper Kobuk Biomass - 7040028 $185,867 2012
REF Design/Permitting for Solar PV & Battery Storage for
Ambler, Kiana, Noorvik, and Selawik
$590,000 2022
One of the strengths of energy development in the Northwest Arctic Borough is the diverse
collaboration among stakeholders within communities as well as numerous supporting
organizations and service providers outside the communities. The NAB and NRC are co-sponsors
of the Northwest Arctic Energy Steering Committee (NAESC), a collaboration of energy leaders
representing all the communities of the NAB. This organization has been instrumental in the
development of renewable energy systems in the region, resulting in an innovative and diverse
portfolio of successful projects. Our experience with federal funded assistance agreements shows
that our assembled project team has the breadth and depth of knowledge to successfully
implement this proposed solar PV construction project. In addition to those listed above for NAB,
the following table summarizes some of the many state and federal grants received by members of
our project team:
Recipient Grant Program Project Amount Year Awarded
NAB USDA - HECG Solar PV and Battery
in Shungnak
$2.1 million 2020
NAB DOE – Indian
Energy
Noatak Solar PV and
Battery
$2 million 2021
NAB USDA – High
Energy Cost
Ambler Biomass $700,000 2019
Renewable Energy Fund Round 15
Grant Application – Standard Form
AEA 23046 Page 39 of 42 10/04/2022
NANA Regional
Corporation
BIA: Tribal
Energy
Development
Capacity
Regional Energy
Support Organization
Formation
$100,000 2018
NANA Regional
Corporation
DOE – Indian
Energy
Solar PV in Kotzebue,
Buckland, & Deering
$1 million 2017
NANA Regional
Corporation
USDA - HECG Battery Energy
Storage in Buckland
and Deering
$1.6 million 2016
NANA Regional
Corporation
DOE – Indian
Energy
Regional Technical
Support
$500,000 2016
The NAB’s Comprehensive Economic Development Strategy and energy planning activities are
encapsulated in a detailed energy plan found on our website at: Northwest Arctic Borough
Comprehensive Economic Development Strategy - https://www.nwabor.org/wp-
content/uploads/NWA-Energy-Plan-Feb-2016_8.pdf
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.
Please see the following documents in the Attachments:
- “Reconnaissance - Solar Energy Prospecting in Remote Alaska - An Economic Analysis of Solar
Photovoltaics in the Last Frontier State” by Paul Schwabe, National Renewable Energy Laboratory
U.S.
- Selawik Solar PV Feasibility Study and HOMER Modeling
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
● Northwest Arctic Borough Regional Energy Plan - 2022
● AVEC Maintenance Schedule
● B/C ratio Economic models