HomeMy WebLinkAboutNJUS REF Round 14 ApplicationRenewable Energy Fund Round 14
Grant Application – Standard Form
AEA 23001 Page 1 of 32 11/16/2021
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round 14 of the Renewable Energy Fund (REF). A separate application form is available for pro-
jects 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 electric-
ity. 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/2021-
REF-Application.
What follows are some basic information and instructions for this application:
• The Alaska Energy Authority (AEA) expects this application to be used as part of a two-year
solicitation cycle with an opt-out provision in the second year of the cycle.
• 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 recommen-
dations for grants to preliminary development phases in accordance with 3 Alaska Administra-
tive 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, rele-
vant 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 review-
ing 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 addi-
tional information; including any web links, in Section 12 of this application and attach the docu-
ments to your application. For guidance on application best practices please refer to the re-
source-specific Best Practices Checklists; links to the checklists can be found in the appen-
dices list at the end of the accompanying REF Round 14 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.
Renewable Energy Fund Round 14
Grant Application – Standard Form
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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 infor-
mation 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 ac-
cordance with AS 40.25 or returned to the applicant upon request.
Renewable Energy Fund Round 14
Grant Application – Standard Form
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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)
Nome Joint Utility System
Tax ID # 92-0019767
Date of last financial statement audit: Dec. 2021 for year ending 12/31/2020
Mailing Address: Physical Address:
Nome Joint Utility System Nome Joint Utility System
P.O. Box 70 1226 Port Rd.
Nome, AK 99762 Nome, AK 99762
Telephone: 907-443-6587 Fax: Email: KenM@MJUS.org
1.1 Applicant Point of Contact / Grants Coordinator
Name: Kenneth Morton, P.E. Title: Assistant Manager / Utility Engineer
Mailing Address:
P.O. Box 70
Nome, AK 99762
Telephone: 907-443-6304 Fax: Email: KenM@njus.org
1.1.1 Applicant Signatory Authority Contact Information
Name: John Handeland Title: General Manger / Chief Operating Officer
Mailing Address:
P.O. Box 70
Nome, AK 99762
Telephone: 907-443-6587 Fax: Email: JohnH@NJUS.org
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Toni Barron (907)443-6587 ToniB@NJUS.org
1.2 Applicant Minimum Requirements
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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 #_150_, 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 ap-
plicant is a collaborative grouping, a formal approval from each participant’s governing au-
thority 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 (Sec-
tion 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 iden-
tified in the Standard Grant Agreement template at https://www.akenergyauthority.org/What-
We-Do/Grants-Loans/Renewable-Energy-Fund/2021-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.
Nome Battery Energy Storage System
2.2 Project Location
2.2.1 Location of Project – Latitude and longitude (preferred), street address, or commu-
nity name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s lo-
cation on the map and then right clicking with the mouse and selecting “What is here? The coordi-
nates 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 64.505019 Longitude -165.429919
Snake River Power Plant
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Nome, Alaska
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐ Wind ☐ Biomass or Biofuels (excluding heat-only)
☐ Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
☐ Solar Photovoltaic ☒ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction ☐ Reconnaissance ☐ Final Design and Permitting
☐ Feasibility and Conceptual Design ☒ Construction
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2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
Nome Joint Utility System (NJUS) proposes construction of a 2 MW/2 MWh battery energy storage
system (BESS) to improve utilization (net capacity factor) of its two EWT DW52-900 wind turbines
and to enable future expansion of renewable energy, including additional wind turbine, and wind-
to-heat systems in the community. A BESS will allow NJUS to operate a smaller and more efficient
diesel generator with the wind turbines and will eventually enable occasional diesels-off operation
where power will be provided solely by wind turbines and the BESS.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this fund-
ing request. This should include work paid for by grant funds and matching funds or performed as
in-kind match.
NJUS will procure, install, commission, and operate at the Snake River Power Plant a modular de-
sign 2 MW/2 MWh capacity BESS comprised of lithium-ion (Li-ion) storage batteries with a grid-
forming inverter. NJUS will self-fund integration of the BESS into its power system.
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you re-
ceive a
grant? Y/N
Amount of REF
grant awarded
($)
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Grant Application – Standard Form
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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 Con-
ceptual 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 Design and feasi-
bility require-
ments
Needs analysis to im-
prove net CF of existing
EWT DW52-900 wind
turbines completed.
2019
Saft America, Inc. ESS Mod-
eling for Wind-Diesel System
reports, rev. 1, 2018 and rev.
2, 2019. Updated internal or
contracted BESS analysis.
2 Bid documents Solicit bids from Go
Electric, Hitachi ABB,
others for approx. 2
MW/2 MWh system. 8/1/22 9/15/22
Competitive bids.
3 Vendor selection
and award
Select BESS vendor
based on best value.
Contract EPS, Inc.
(NJUS’ electrical engi-
neering contractor) to
assist with integration
design. 9/16/22 10/31/22
Award contract for 2023 de-
livery of approx. 2 MW/2
MWh BESS. Task EPS, Inc.
to evaluate integration re-
quirements.
4 Construction Prepare site for contain-
erized BESS units near
powerplant; integration
(transformers, connec-
tion points, SCADA tie-
in, etc.) design; receive
and transport BESS to
site; complete integra-
tion and connection. 6/1/23 9/30/23
Prepare site for BESS units.
Receive BESS units at port
and transport to site. Com-
plete electric connection and
integration.
5 Integration and
testing
System testing with ven-
dor personnel and NJUS
engineering and opera-
tions staff. 8/1/23 10/31/23
6 Decommission-
ing of old system
Not applicable
Not applicable
7 Final acceptance,
commissioning,
and start-up
Final testing and agree-
ment between vendor
and NJUS that BESS is
fully operational. 11/1/23 11/15/23
NJUS acceptance of BESS
functionality.
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Task
# Milestones Tasks
Start
Date
End
Date Deliverables
8 Post-construction
certification and
report
Final system reviewing
and report for granting
agency.
11/16/2
3 1/31/24
Report to AEA.
9 Operations re-
porting
Ongoing BESS evalua-
tion. 12/1/23 6/30/24
Reports to AEA.
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3.2 Budget
3.2.1 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $2,000,000
Cash match to be provideda (25% of grant amount for transformer,
switch gear, SCADA, engineering, etc. – estimated amount)
$500,000
In-kind match to be provideda (all NJUS staff time and equipment – es-
timated amount of $100k from operating budget)
$0
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of
above)
$2,500,000
Describe your financial commitment to the project and the source(s) of match. Indicate whether
these matching funds are secured or pending future approvals. Describe the impact, if any, that
the timing of additional funds would have on the ability to proceed with the grant.
NJUS budgets and funds construction projects annually. With the stated REF Round 14 grant
funding availability dates and anticipated BESS manufacturing and delivery schedules, this project
will be included in the calendar year 2023 budget.
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.
NJUS maintains a $1M cash reserve which can be tapped to fund BESS integration costs beyond
those anticipated.
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/Estimated] $
Feasibility and Conceptual Design [Actual/Estimated] $
Final Design and Permitting [Actual/Estimated] $
Construction Estimated $2,500,000
Total Project Costs (sum of above) Estimated $2,500,000
Metering/Tracking Equipment [not included in project
cost]
Estimated $
3.2.4 Funding Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application, de-
scribe 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 pro-
grams that might be available)
N/A
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3.2.3 Budget Forms
Applications MUST include a separate worksheet for each project phase that was identified in Sec-
tion 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final
Design and Permitting, and IV. Construction. Please use the tables provided below to detail your
proposed project’s total budget. Be sure to use one table for each phase of your project and delete
any unnecessary tables. The milestones and tasks should match those listed in 3.1 above.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA’s Grants Coordinator by email at
grants@akenergyauthority.org or by phone at (907) 771-3081.
Phase 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
Design and feasibility re-
quirements 7/31/22 $0 $5,000 $5,000
Bid documents 8/30/22 $0 $15,000 $15,000
Vendor selection and award
(based on 9/2021 Go Elec-
tric quote; includes com-
missioning and testing (se-
lected bid may differ) 10/31/22
$0 $0 $0
Construction (includes
BESS transportation from
vendor, site prep, trans-
former(s) as needed 9/30/23
$1,823,139 $390,000 $2,213,139
Integration and testing 10/31/23 $176,861 $50,000 $226,861
Decommissioning of old
system $ $ $
Final acceptance, commis-
sioning, and start-up 11/15/23 $ $20,000 $20,000
Post-construction certifica-
tion and report 1/31/24 $ $10,000 $10,000
Operations reporting 6/30/24 $ $10,000 $10,000
TOTALS $2,000,000 $500,000 $2,500,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $1,679,269 $390,000 $2,069,270
Contractual Services $176,861 $ $176,860
Construction Services $ $110,000 $253,870
Other $143,870 $ $
TOTALS $2,000,000 $500,000 $2,500,000
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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.
Go Electric quote, dated Sept. 15, 2021, of $1.856M for 2MW/2MWh BESS , shipping not included.
Although the cost basis of this grant proposal, NJUS will solicit competitive bids from at least two
BESS vendors (Go Electric, Hitachi ABB, and others) to make final best value selection. Note that
site preparation, NJUS staff project support, electrical connection, and SCADA integration costs
were estimated by NJUS staff.
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?
NJUS’ Assistant Manager/Utility Engineer will monitor construction process to track construction
progress. He will use the procurement contract and capital budgets to track construction progress
(time & funding).
3.3.2 Financial Reporting
Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary
and necessary will be allocated to this project. Also discuss the controls in place that will ensure
that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the REF Grant Program.
Charges will be coded by NJUS’ Chief Financial Officer and reviewed by the Utility Engineer for
reasonableness and accuracy. NJUS will not submit for recovery of indirect costs.
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SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Include resumes for known key personnel and contractors, including all functions below, as an at-
tachment 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.
Ken Morton, P.E. (Alaska CE9139), NJUS Assistant Manager/Utility Engineer
With 25 years of experience as a licensed civil engineer, and more than 20 years as a project/pro-
gram manager, Ken is well suited to manage this project. His relevant experience includes:
• Alaska DOT Central Region Utility Section Chief, 2004-2011. Administered the region’s per-
mitting, relocation agreement development and construction management functions re-
lated to utility activities.
• Alaska DOT Central Region Preconstruction Engineer, 2011 to 2016. Supervised subordi-
nate managers of the pre-design & environmental, design, traffic, right-of-way, surveying,
and material sections. Determined which projects in the region would advance each year
based on priority, budget & delivery challenges.
• Dillingham Public Works Director, 2016-2017. Managed the day-to-day operations of seven
work units (roads, landfill, water, sewer, buildings, landfill, and administration).
• NJUS Assistant Manager/Utility Engineer, 2017 to present. Manages capital projects and
day-to-day operations for the power production, line crew, and water and sewer depart-
ments.
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.
Chris Williamson, NJUS Chief Financial Officer
With his accounting degree, 3 years’ experience as NJUS CFO and 5 years of experience as grant
accountant at Norton Sound Health Corporation, Chris will code project cost elements and control
documentation to support billings and audits.
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 con-
tracts.
The project team consists of:
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NJUS - All Tasks
- John Handeland, GM / COO for executive oversight
- Ken Morton, AM / UE for project management and day-to-day project oversight
- Chris Williamson, CFO for project costing
- Lucas Bauman, NJU Power Plant Foreman for delivery of PP resources to support the project
Electric Power Systems / Constructors - All Tasks
EPS is a full-service provider of electrical engineering & electric construction services and has
been NJUS’ partner delivering electrical solutions for more than 20 years. EPS designed and as-
sisted with the construction of NJUS’s Snake River Power Plant and continues to support NJUS
with equipment testing, SCADA / automation engineering, and system improvements. EPS devel-
oped NJUS’ SCADA system (and that used by KEA, Cordova Electric, City of Unalaska, etc.) and
was key in integration the BESS solutions for KEA and Cordova Electric.
BESS Vendor – Tasks 2,4,5,7,8
SAFT America / GO Electric, Hitachi ABB, or other as identified by competitive procurement will (by
RFP requirements) have successfully supplied & integrated battery storage solutions with isolated,
hybrid wind-diesel energy grids in Alaska.
NJUS will manage the project’s delivery, as it has with dozens of other projects over the last twenty
years. While the Nome Battery Energy Storage System Project involves technological sophistica-
tion, the procurement and integration of the BESS to seamlessly support NJUS’ wind-diesel hybrid
grid is a well thought out solution that will be a relatively simple project to deliver.
EPS will assist NJUS with development of the BESS RFP; will size / specify the integration equip-
ment for NJUS to procure; engineer / update Snake River Power Plant drawings; work with the
NJUS PP crew for construction elements that can be done prior to BESS delivery; and when the
BESS is on-site, work with NJUS and the BESS vendor to install, integrate and test the storage so-
lution; support final acceptance / commissioning and be a resource for NJUS to work through any
future BESS-related activities – such as integrating wind-to-heat solutions on future projects.
The BESS Vendor will provide the storage system per the RFP and assist with the integration of
the battery with NJUS’ system.
Supply chain challenges represents the most likely obstacle to deliver of the BESS project as ini-
tially scheduled. To help mitigate this, if there is early favorable indications of grant success, NJUS
anticipates engaging EPS early to develop BESS RFP and plant integration plans with plans to
start procurement as soon as formal notice of funding availability.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
Local labor for construction activities will largely consist of NJUS personnel prepping the site (with-
out charge to the REF grant) for BESS and transformer delivery, installing ducts & pulling cables,
placing equipment, assisting with the integration and ultimately operating the system.
Local workforce training will largely consist of NJUS power plant personnel operating & maintaining
the system in accordance with the BESS manufacturer’s recommendations.
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SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
5.1.1 Assessment of Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average re-
source 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 doc-
uments, design documents, and permitting documents (if applicable) as attachments to this appli-
cation (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 guid-
ance.
Two separate studies (Saft America, Inc., ESS Modeling for Wind-Diesel System, rev. 1 in 2018
and rev. 2 in 2019 and Banner/Wind NJUS Wind-to-Heat Feasibility Study, 2020) calculated
NJUS’s curtailed wind resource at 1,784 MWh/y and 1,945 MWh/y, respectively.
While not relevant to this immediate grant application, a re-evaluation of the Banner Ridge wind re-
source by V3 Energy, LLC has confirmed the viability of adding two additional wind turbines (most
likely EWT DW58-1000 models) to complement Nome’s two existing EWT DW52-900 wind tur-
bines. NJUS intends to pursue construction of the additional wind turbines at soonest opportunity.
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.
Nome’s renewable wind energy resource is presently developed with two operational EWT DW52-
900 turbines on Banner Ridge, but their power output must be curtailed significantly to maintain
electrical power system stability with NJUS’ spinning reserve requirements and mix of diesel gener-
ators. An approx. 2 MW/2 MWh BESS will significantly reduce curtailment and will serve as the
“backbone” for further development of Nome’s renewable energy wind resources, development of
wind-to-heat at the school, hospital, and recreation center, and use of NJUS’ smaller and more
fuel-efficient diesel generators. Future expansion of the BESS is planned to accommodate more
renewable energy generation and to enable diesels-off operations.
There are no drawbacks, technical or economic, to installing a BESS to better use NJUS’ existing
and planned future renewable energy assets.
5.1.3 Permits
Provide the following information as it may relate to permitting and how you intend to address out-
standing 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 opposi-
tion that may result in difficulty obtaining permits, and other permitting barriers
This project consists of placing connex-like structures on underutilized City of Nome property adja-
cent to and within the Snake River Power Plant. No aspect of the project will require resource
agency involvement or regulatory permitting.
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5.2 Project Site
Describe the availability of the site and its suitability for the proposed energy system. Identify po-
tential 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 appro-
priate Best Practice Checklist for additional guidance.
The project consists of placing prefabricated battery units stored in prefabricated containers (likely
connex-like shipping containers) adjacent to the Snake River Power Plant building with the inverter
and switch gear located inside the power plant building.
All project construction activities will occur on property owned by the City of Nome and used by
(the City-owned) Nome Joint Utility System for power generation.
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.
The project elements are not technically challenging nor will require new development work. NJUS
is proposing a wind-diesel-BESS model like Kotzebue Electric Association (KEA) has operated for
several years. NJUS and KEA contract with the same electrical engineering firm: Electric Power
Systems, Inc. of Anchorage.
The only risk identified by the project team is that of supply chain challenges, which NJUS plans to
mitigate by initiating long-lead time purchases as soon as possible after project award in 2022 for
BESS delivery and installation in 2023.
5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so, which project
team members will be involved and how the issues will be addressed. See the “Environmental and
Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance.
• Threatened or endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and describe other potential barriers
All project activities will occur at the City of Nome’s Snake River Power Plant, an industrial area
west of Nome proper. Environmental risks have been not identified for this project, nor are any an-
ticipated.
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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 infor-
mation 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 cur-
rent voltage, frequency, and outage issues across system. See the “Understanding the Existing
System” section of the appropriate Best Practice Checklist for additional guidance.
NJUS serves Nome’s mean load of 4 MW and base load of 2.5 MW. NJUS typically operates one
of its two installed 5 MW Wartsila units, supplemented with energy from two EWT DW52 -900 wind
turbines on nearby Banner Ridge. To maintain a minimum 2.8 MW loading on the Wartsila unit(s),
wind energy production is frequently curtailed. This occurs automatically via the powerplant
SCADA system.
NJUS’ older 3.6 MW Caterpillar 3616 generator is more fuel efficient than the Wartsila units, partic-
ularly when diesel loading requires the Wartsila to operate at half loading. With a BESS and in con-
junction with wind production from the existing wind farm, NJUS can continuously operate the Cat-
erpillar generator throughout the summer months at minimum, saving an appreciable amount of
fuel (as detailed in the 2018 and 2019 Saft analyses).
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 12: Diesel / Caterpillar 3616 / 3,660 kW rated / 2,200 kW min./Woodward/131,184 hrs
Unit 14: Diesel / Caterpillar 3516B-LS / 1,875 kW rated / 1,200 kW min./Woodward/16,711 hrs
Unit 15: Diesel / Wartsilla12V32B / 5,211 kW rated / 2,800 kW min./Woodward/60,236 hrs
Unit 16: Diesel / Wartsilla12V32B / 5,211 kW rated / 2,800 kW min./Woodward/64,088 hrs
Unit 18: Diesel / Caterpillar 3456 / 400 kW rated / 200 kW min./Woodward/598 hrs
EWT 1: Wind / EWT DW52-900 wind turbine / 900 kW rated
EWT 2: Wind / EWT DW52-900 wind turbine / 900 kW rated
5.4.2.2 Existing Distribution System
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 ta-
bles. If you have the data below in other formats, you can attach them to the application (see Sec-
tion 11).
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
NJUS uses generator jacket water waste
heat to raise community drinking water
temperature from 35F to 48F year-round.
This is equivalent to an 1,100 kW continu-
ous load.
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Describe the basic elements of the distribution system. Include the capacity of the step-up trans-
former at the powerhouse, the distribution voltage(s) across the community, any transmission volt-
ages, and other elements that will be affected by the proposed project.
The Banner Ridge wind farm connection is the 25.9 kV Rock Creek Feeder to the powerplant. From
the powerplant, five feeders distribute diesel and wind power to the community:
- CITY1 at 4.16 kV through Nome proper, then stepped up to 12.47 kV east of Nome
- CITY2 at 4.16 kV
- NORTH at 12.47 kV
- Hospital at 12.47 kV
- FAA at 4.16 kV
Note that Nome does not have transmission voltage circuits with substations. A BESS project will
not affect the NJUS distribution system.
5.4.2.3 Existing Thermal Generation Units (if applicable to your project)
Genera-
tion unit
Resource/
Fuel type
Design ca-
pacity
(MMBtu/hr)
Make Model Average
annual
efficiency
Year In-
stalled
Hours
5.4.2.5 Annual Electricity Production and Fuel Consumption (Existing System)
Use most recent year. Replace the section (Type 1), (Type 2), and (Type 3) with generation
sources
Month Genera-
tion (die-
sel)
(kWh)
Genera-
tion (wind)
(kWh)
Genera-
tion
(Type 3)
(kWh)
Fuel Con-
sumption
(Diesel-Gal-
lons)
Fuel Con-
sumption
[Other]
Peak
Load
Mini-
mum
Load
January 2,802,115 219,922 169,640 4,883 3,099
February 2,724,116 96,354 168,831 4,907 3,271
March 2,725,215 252,161 183,535 4,920 3,240
April 2,504,626 177,178 158,617 4,612 2,849
May 2,369,169 135,733 165,959 4,117 2,571
June 2,233,912 150,187 144,228 3,990 2,013
July 2,293,443 182,122 144,340 3,976 1,668
August 2,294,855 148,155 147,998 4,152 2,530
Septem-
ber 2,278,323 158,184 147,743 4,112 2,607
5.4.2.4 O&M and replacement costs for ex-
isting units
Power Generation Thermal Generation
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
iii. Replacement schedule and cost for ex-
isting units
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October 2,429,135 265,404 150,368 4,368 2,760
November 2,797,735 130,123 179,411 5,032 3,054
December 2,877,256 299,005 188,173 5,132 2,379
Total 30,329,900 2,214,426 1,948,843
5.4.2.6 Annual Heating Fuel Consumption (Existing System)
Use most recent year. Include only if your project affects the recovered heat off the diesel
genset or will include electric heat loads. Only include heat loads affected by the project.
Month Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January
February
March
April
May
June
July
August
Septem-
ber
October
November
December
Total
5.4.3 Future Trends
Describe the anticipated energy demand in the community, or whatever will be affected by the pro-
ject, 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 varia-
tions, etc. that will affect the project.
Nome’s annual power generation has been gradually trending downward as the community has be-
come more energy efficient:
29
30
31
32
33
34
35
36
2011 2013 2015 2017 2019 2021
MWh/yr
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Installation of a BESS matches this load well. Also, in the event of substantial growth in the commu-
nity, such as may occur following construction of the near-term Arctic Deep Draft Port Project, NJUS’
mix and depth of generation equipment will also work well with the proposed (expandable) BESS.
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 en-
ergy system: Include a description of the controls, storage, secondary loads, distribution up-
grades 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.
Nome proposes to install a battery energy storage system (BESS) to help capture wind energy that
is otherwise curtailed when system loads drop to diesel minimums.
The BESS was sized to accommodate a 30-minute system-wide power outage (assuming a 4 MW
load), to allow time for the diesel generators to come on-line and to assume community load.
The integration plan will follow the model of Kotzebue Electric Association’s BESS system (NJUS
uses the same engineering and SCADA firm as KEA). Power from the battery system (installed in
“connex” containers adjacent to the power plant) will be stepped up to 2400/4160 V and connected
to the power plant’s generation bus (the power plant was constructed with the vision of accommo-
dating future generation units and has empty cabinets in the switch gear to accommodate the BESS
tie-in). NJUS’ SCADA will operate the BESS as another generator (with a 30-minute fuel tank): when
power production (diesel + wind) is less than community load, the energy needed will be drawn from
the BESS. This will facilitate operation of smaller, more efficient diesel generators in conjunction with
variable wind that can reliably meet Nome’s electricity needs.
The proposed BESS is the backup/supplemental system that will enable more cost-effective diesel
and wind power generation.
5.4.4.1 Proposed Power Generation Units
Unit # Re-
source/
Fuel type
Design ca-
pacity (kW)
Make Model Ex-
pected
capacity
factor
Ex-
pected
life
(years)
Expected
Availability
5.4.4.2 Proposed Thermal Generation Units (if applicable)
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Generation
unit
Re-
source/
Fuel type
Design ca-
pacity
(MMBtu/hr)
Make Model Expected Av-
erage annual
efficiency
Expected
life
5.4.5 Basic Operation of Proposed Energy System
• To the best extent possible, describe how the proposed energy system will operate: When will
the system operate, how will the system integrate with the existing system, how will the
control systems be used, etc.
• When and how will the backup system(s) be expected to be used
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
At present the NJUS power system operates with one or more diesel generators supplying the
Nome electric load, supplemented by wind energy from two EWT DW52-900 turbines located on
Banner Ridge. The system SCADA is programmed to curtail wind power when Electric Load –
Wind Power < Diesel Generator Minimum Loading. In other words, if wind power pushes diesel
loading under its minimum setpoint, the SCADA will dynamically curtail the turbines by pitching the
blades to a less optimal setting, spoiling airflow, and reducing power output. If dynamic curtailment
is insufficient, the SCADA is programmed to secure one or both turbines. A typical curtailment situ-
ation is low electric load demand combined with high winds.
A BESS is necessary to reduce wind turbine curtailment by enabling excess wind energy (above
the load demand to minimum diesel loading difference) to charge the batteries and be used later
when the wind slows. The BESS will also allow NJUS to operate one of its smaller Caterpillar gen-
erators (3.6 MW or 1.8 MW capacity) in place of its larger 5 MW Wartsila generators by providing a
virtual spinning reserve. The effect is a lower minimum diesel loading which allows a larger amount
of wind power to serve the load real-time. The BESS in these two scenarios will reduce wind power
curtailment and improve the wind net capacity factor.
Operationally, the BESS will be controlled by SCADA algorithms that will dynamically assess elec-
tric load demand, wind turbine power input, battery state of charge, inverter output and capacity,
available diesel generators, spinning reserve requirement, and real and virtual spinning reserve
availability. These algorithms will be developed and tuned with experience to minimize wind turbine
curtailment (maximize turbine net capacity factor), maximize operation of the Caterpillar diesel gen-
erators, and maximize battery life through optimal cycling and energy discharge considerations.
5.4.3.1 Expected Capacity Factor %
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
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Month Genera-
tion
(Pro-
posed
System)
(kWh)
Genera-
tion
(Type 2)
(kWh)
Genera-
tion
(Type 3)
(kWh)
Fuel Con-
sumption
(Diesel-Gal-
lons)
Fuel Sav-
ings Con-
sumption
[Gal]
Second-
ary load
(kWh)
Stor-
age
(kWh)
January 4,785
February 2,334
March 1,816
April 5,706
May 7,478
June 7,372
July 5,306
August 5,208
Septem-
ber
9,491
October 14,186
November 4,032
December 3,152
Total 70,900
5.4.5.3 Annual Heating Fuel Consumption (Proposed System)
Month Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January
February
March
April
May
June
July
August
Septem-
ber
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 genera-
tion 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.
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Option 1: Diesel generation ON
For projects that do not result in shutting down
diesel generation there is assumed to be no im-
pact on the base case O&M. Please indicate the
estimated annual O&M cost associated with the
proposed renewable project.
The BESS is estimated to use 5,000 to 8,000
kWh / month to operate.
Using 6,500 kWh / month and the current fuel
surcharge / PCE, NJUS will bill itself $20,085 /
year for this additional electricity.
This addition to the “station service” load will be
offset by wind production gains.
Option 2: Diesel generation OFF
For projects that will result in shutting down die-
sel 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. Hours diesel OFF/year:
3. $
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of opera-
tion)
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
Other
Unit cost
($)
Annual
Units
Total An-
nual cost
($)
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.
BESS metrics will be programmed into and tracked by the existing power plant SCADA system.
NJUS’ SCADA platform was developed by Electric Power Systems, Inc. and is nearly identical to
that used by Kotzebue Electric Association. Data is recorded each second and is tabulated daily for
reporting purposes.
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 require-
ment identified in Section 3.15 of the Request for Applications
Operational metrics of the BESS will be programmed into and recorded by the SCADA with a com-
mon timestamp in relation to NJUS’ other generation equipment. This will enable comprehensive
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evaluation of BESS performance and long-term health such as time to charge, charge cycling, etc.
By working with the vendor, EPS, Inc., and others, NJUS’ objective through the first year of opera-
tion is to closely monitor BESS metrics and fine tune BESS setpoints as necessary for optimal
function.
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) Assume 20 years;
modeling based on 1 MWh BESS capacity
(Saft analyses), may be conservative.
70,900 1,417,000
Anticipated Fuel Displaced for Heat (gal-
lons)
Total Fuel displaced (gallons) 70,900 1,417,000
Anticipated Diesel Fuel Displaced for Power
Generation ($) 2024 Nome fuel cost from
REF Round 14 Evaluation Model spread-
sheet, Diesel Fuel Prices worksheet
$248,893
2024 fuel cost,
$3.51/gal
$5,657,970
20-year project life, 2024-
2043 REF14 fuel costs
Anticipated Fuel Displaced for Heat ($)
Anticipated Power Generation O&M Cost
Savings
Anticipated Thermal Generation O&M Cost
Savings
Total Other costs savings (taxes, insurance,
etc.)
Total Fuel, O&M, and Other Cost Savings $248,893 $5,657,970
6.1.2 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings and other economic ben-
efits, 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 in-
cluded as economic benefits of the project.
Where appropriate, describe the anticipated energy cost in the community, or whatever will be af-
fected by the project, over the life of the project. Explain how the forecast was developed and pro-
vide year-by-year forecasts
The economic model used by AEA is available at https://www.akenergyauthority.org/What-We-
Do/Grants-Loans/Renewable-Energy-Fund/2021-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.
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A Saft America, Inc. BESS modeling analysis, dated July 3, 2018, predicted an annual fuel savings
of 268,233 liters (approx. 70,900 gallons) with operation in the existing Nome wind-diesel power
system of a Saft Intensium +20M BESS aged to 80% of rated energy. This is a similar discharge
rating as the quoted Go Energy 2 MW/2 MWh, but with lower energy storage. Thus, the modeled
fuel savings may be conservative.
Fuel savings that a BESS will enable are two-fold: improved net capacity factor of the NJUS’ two
EWT DW52-900 wind turbines and significantly longer continuous operation of NJUS’ Cat 3616
(3.6 MW , min 2.2 MW ) or Cat 3516B-LS (1.8 MW , min 1.2 MW ) in place of a larger Wartsila
12V32B (5.2 MW, min 2.8 MW). These savings are explained and detailed in the Saft analysis re-
port. In short, with respect to turbine net CF, Saft estimates that turbine curtailment will be reduced
from approx. 1.7 GWh/y at present to 0.6 GWh/y. Note again that an Intensium +20M BESS with a
lower energy ~1 MWh storage capacity than the planned 2 MWh capacity was modeled. NJUS an-
ticipates that larger battery energy storage capacity will enable additional turbine net CF improve-
ment than the Intensium +20M.
Note too that wind turbine curtailment can be reduced further with introduction of a large electric
load, such as wind-to-heat. The rev. 2 Saft analysis (2019) demonstrated that wind curtailment
could be reduced from 1.7 GWh/y to 0.06 GWh/y with 800 kW capacity dispatchable water heater
in the community school hydronic system.
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 pro-
duced over the life of the project.
• Deferred and/or inadequate facility maintenance
• Other factors
A BESS is the heart of a microgrid renewable energy system and as such, economic risks of the
proposed project are minimal. A BESS will enable higher net capacity factor of the existing EWT
wind turbines and more efficient use of the diesel generators. The Go Electric BESS is modular in
concept and design, which will enable incremental expansion of the system to accommodate two
additional planned wind turbines, possible solar PV, wind-to-heat, and eventual diesels-off opera-
tion as NJUS gains experience with the BESS and becomes confident of its capabilities.
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)
Estimated direct sales to private sector businesses (kWh)
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Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales for use by the Alaskan public (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($)
6.2 Other Public Benefit
Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the pur-
pose 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 com-
munity
As the essential integrating element of any wind-diesels microgrid, the Go Electric 2 MW/2 MWh
BESS will enable NJUS to expand its wind power capacity, install solar PV assets, encourage de-
velopment of wind-to-heat, and given its modular design, expand battery capacity to enable die-
sels-off operation. Nome benefits with construction and operations jobs and lower energy costs.
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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 infrastruc-
ture.
• 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
Being the sole-provider of electric power, potable water and sanitary waste collection utility ser-
vices in a remote, Western-Alaska community necessitates being substantially self-reliant for typi-
cal operation and maintenance tasks. Regular operation and maintenance activities are performed
by NJUS’ long-term staff in accordance with maintenance schedules provided by manufacturers
(such as Caterpillar for engines 12, 14,18 and Wartsila for engines 15 and 16).
For specialized work (SCADA programming, transformer & switch gear testing) and capital project
work (e.g., Snake River Power Plant construction, EWT wind turbine construction and integration,
Wartsila PLC replacement, HVAC controls replacement, etc.) NJUS relies upon its long-term con-
sulting firms (Electric Power Systems, CE2 Engineers, CRW Engineers, etc.).
For the proposed BESS, NJUS will require the system manufacturer to provide a two-year war-
ranty. As a solid-state system though, there are no mechanical wear items. Proper operation of the
BESS to ensure proper battery cycling and long life will be programmed into SCADA by Electric
Power Systems with information provided by the BESS vendor.
Routine BESS maintenance will be performed by NJUS’ power plant staff (1 foreman, 1 electrician,
6 operator / mechanics) in accordance with the BESS manufacturer’s recommended maintenance
schedule (work descriptions, parts used, employee names, system operational time, remarks, etc.
will all be noted with the maintenance records). Specialized work, such as modifying SCADA and
machine automation will be performed by Electric Power Systems (with records of activities simi-
larly maintained).
NJUS operations (electric, water, sewer) occur at the end of a long supply chain. All supplies and
materials much be barged or flown in. All NJUS departments evaluate supply needs monthly with
particular attention given to critical and long -term items and the barge shipping schedule. NJUS’
attention to maintaining inventory levels has been of significant value during the on-going supply
chain challenges the nation is experiencing.
All NJUS activities are supported by its administrative staff which is led by:
John Handeland, the Utility Manager / Chief Operating Officer of more than twenty years. During
John’s tenure, NJUS has advanced more than $60M of capital funds to advance utility projects,
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(Snake River Power Plant, EWT Wind Generation, and many, many water and sewer projects),
and aided by
Ken Morton PE, the Assistant Manager / Utility Engineer with more than twenty years of project-
delivery experience.
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.
Cost Controls: NJUS develops an O&M and a capital budget each year. These budgets are coded
in accordance with the utility’s financial accounting system (AP, AR, project, etc.). All operational
and capital costs are initially coded in accordance with the budget and controls established for spe-
cific projects by the Utility’s CFO. Both the GM and the AM review invoice coding prior to pro-
cessing. Additionally, NJUS’ books receive an independent audit each year to help ensure opera-
tions are compliant with laws / regulations.
Rates: Electric rates are developed by rate studies (the last one occurred in 2015 and the fuel sur-
charge is calculated annually) under the direction of the Nome Joint Utility Board, with final ap-
proval given by the Nome Common Council.
Revenue collection: NJUS meters all electrical consumption (including NJUS internal use) and bills
accordingly each month. NJUS’ Customer Service Department monitors the collection process and
provides additional attention to past-due accounts using several strategies, including frequent con-
tacts, establishing payment plans, seasonal termination of service and use of collection services.
In the short term, this project will enable use of otherwise curtailed wind energy and displacing die-
sel consumption. In the long term, it will enable future wind-to-heat projects which would grow elec-
trical sales by offsetting fuel-oil use.
7.1.2.1 Revenue Sources
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. If there is expected to be multiple rates for electricity, such as a
separate rate for intermittent heat, explain what the rates will be and how they will be determined
Collect sufficient revenue to cover operational and capital costs
• What is the expected cost-based rate (as consistent with RFA requirements)
• If you expect to have multiple rate classes, such as excess electricity for heat, explain what
those rates are expected to be and how those rates account for the costs of delivering the
energy (see AEA’s white paper on excess electricity for heat)..
• Annual customer revenue sufficient to cover costs
• Additional incentives (i.e. tax credits)
• Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or pro-
grams that might be available)
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NJUS’ most recent base electrical rate study and change was in 2015. The fuel surcharge is
recomputed each fall after the last fuel delivery for the year. The anticipated 70,900 gal/y fuel sav-
ings will directly factor into the fuel-surcharge within a year following construction.
Having the BESS in place however will enable future wind-to-heat projects, such as that docu-
mented by the 2020 Banner Wind / Nome Joint Utility Systems Wind-to-Heat Feasibility study that
evaluated selling otherwise-curtailed wind energy to the Nome Beltz Jr-Sr High School with an esti-
mated savings of $71k/yr. How the savings would be split between the utility and the school has
yet to be negotiated in detail but would likely follow KEA/Maniilaq Health Center model in
Kotzebue.
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.
N/A for this application.
SECTION 8 – PROJECT READINESS
8.1 Project Preparation
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin, at a minimum, the following:
• The phase(s) that must be completed prior to beginning the phase(s) proposed in this application
• The phase(s) proposed in this application
• Obtaining all necessary permits
• Securing land access and use for the project
• Procuring all necessary equipment and materials
Refer to the RFA and/or the pre-requisite checklists for the required activities and deliverables for
each project phase. Please describe below and attach any required documentation.
The first wind project on Banner Ridge, about 4.5 miles northwest of downtown Nome, became op-
erational in 2008. The project was developed by two local native corporations that formed an
independent power production company and negotiated a power purchase agreement with the City
of Nome. Initially the project consisted of eighteen 50 kW Entegrity turbines, of which 15 were op-
erational in 2013. After the full value of the tax credits was realized by Banner Wind LLC, the com-
pany sold the Banner Wind project to NJUS along with the long-term lease for the land, effective
January 2015.
In 2013, two EWT DW52-900 kW wind turbines were installed by the utility, using funds from the
Alaska Renewable Energy Fund program and a contribution from the local fishing community de-
velopment quota program, Norton Sound Economic Development Corporation. These combined
efforts allowed the Nome grid to operate for short periods at wind power penetrations exceeding
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50%.
Operating the Entegrity turbines became increasingly expensive due to a scarcity of parts and fre-
quent need for servicing, and in 2021 the units were removed from Banner Ridge. With the re-
moval of these turbines, a re-evaluation of the Banner Ridge wind resource by V3 Energy, LLC
confirmed the viability of adding two additional wind turbines (most likely EWT DW58-1000 models)
to complement Nome’s two existing EWT DW52-900 wind turbines. NJUS intends to pursue con-
struction of the additional wind turbines, but only after the installation of a BESS.
BESS: NJUS worked with SAFT America in 2018 and 2019 to evaluate the merits and the costs of
installing a BESS to help take advantage of the significant amount of wind energy that is being cur-
tailed. These reports, which are included with this application, confirmed the value of installing a
BESS in Nome.
Phases that must be complete prior to beginning this construction phase:
1. Size and spot equipment locations.
2. Develop and solicit bid documents for BESS, transformer, protection relays (long lead time
items).
The BESS project involves construction only in and around the Snake River Power Plant, which is
owned by the City of Nome. No permits are needed for this project. Minimal engineering is needed
to advance to construction, and SCADA/automation engineering by others will minimize those ef-
forts for this project.
8.2 Demand- or Supply-Side Efficiency Upgrades
If you have invested in energy efficiency projects that will have a positive impact on the proposed
project, and have chosen to not include them in the economic analysis, applicants should provide
as much documentation as possible including:
1. Explain how it will improve the success of the RE project
2. Energy efficiency pre and post audit reports, or other appropriate analysis,
3. Invoices for work completed,
4. Photos of the work performed, and/or
5. Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
N/A
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated, for the project. Include letters, res-
olutions, 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 November 16, 2021. Please note that
letters of support from legislators will not count toward this criterion.
The Nome Joint Utility Board is publicly-elected by the community to manage and operate all utili-
ties owned by the City. Resolution R22-01 of the NJUB affirms the support of the community,
through its elected representatives, and authorizes the utility to apply for the REF#14 grant.
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SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by AEA for this or
any other project. Describe the degree you have been able to meet the requirements of previous
grants including project deadlines, reporting, and information requests.
Installation of Nome’s two-900 kW wind turbines on Banner Ridge was funded, in part, by the
Alaska Renewable Energy Fund program. NJUS readily met all REF grant requirements while im-
plementing this project.
Additionally, over the last twenty-years NJUS has managed / delivered more than $60M of projects
(construction of a new power plant and more than 30 water/sewer capital projects) with funding
sources from many agencies (USDA, AEA, ADEC, EPA, NSEDC) – all while meeting various fund-
ing-agency obligations.
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.
Feasibility and design elements of the proposed BESS project were accomplished at NJUS ex-
pense, working principally with SAFT America, Inc. and its vendors, including GO Electric. No as-
pects of this projects were funded by previous rounds of the REF.
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
Nome Joint Utility System ESS Modeling for Wind-Diesel System, Rev. 1, Saft America, Inc., July
3, 2018
Nome Joint Utility System ESS Modeling for Wind-Diesel System, Rev. 2, Saft America, Inc., Feb-
ruary 19, 2019
Banner Wind / Nome Joint Utility Systems Wind-to-Heat Feasibility Study, January 27, 2020.
Battery Energy Storage System at the Nome Joint Utility Systems (proposal and supporting docu-
mentation), GO Electric Inc., Sept. 15, 2021
Technical Proposal, LYNC Secure Battery-Enabled Microgrid Preliminary Design for Battery
Energy Storage System at the Nome Joint Utility Systems
Budgetary Quotes
Single Line Diagram
Technical Proposal
Overview
Go Electric Brochure
LYNC DR & LYNC Secure System Manual
LYNC DR & Battery Commissioning Plan
RenewableEnergyFundRound14GrantApplication—StandardFormALASKAENERGYAUTHORITYSECTION13-AUTHORIZEDSIGNERSFORMCommunity/GranteeName:JohnK.Handeland,GeneralManager/ChiefOperatingOfficerCityofNomeDBANOMEJOINTUTILITYSYSTEMAppointedtoPosition:1999Date:January18,2022•AuthorizedGrantSigner(s):PrintedNameJohnK.HandelandKennethM.Morton,PETitleNJUSGeneralManager!ChiefOperatingOfficerNJUSAssistantManager!UtilityEngineerSignatureIauthorizetheaboveperson(s)tosignGrantDocuments:(Mustbeauthorizedbythehighest-rankingorganization/community/municipalofficial)PrintedNameTitleCarlEmmonsChairman,NomeJointUtilityBoardGranteeContactInformation:MailingAddress:PhoneNumber:FaxNumber:EmailAddress:FederalTaxID#:P.O.Box70Nome,AK99762907-443-6587KenMNJUS.org92-0019767Pleasesubmitanupdatedformwheneverthereisachangetotheaboveinformation.Termn!an/aAFA23001Page31of3211/16/2021
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SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A.Contact information and resumes of Applicant’s Project Manager, Project Accountant(s),
key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and
3.6.
Applicants are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web site.
B.Letters or resolutions demonstrating local support per application form Section 9.
C.For projects involving heat: Most recent invoice demonstrating the cost of heating fuel
for the building(s) impacted by the project.
D.Governing Body Resolution or other formal action taken by the applicant’s governing
body or management per RFA Section 1.4 that:
•Commits the organization to provide the matching resources for project at the match
amounts indicated in the application.
•Authorizes the individual who signs the application has the authority to commit the
organization to the obligations under the grant.
•Provides as point of contact to represent the applicant for purposes of this applica-
tion.
•Certifies the applicant is in compliance with applicable federal, state, and local, laws
including existing credit and federal tax obligations.
E.An electronic version of the entire application on CD or other electronic media, per RFA
Section 1.7.
F.CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name John K. Handeland
Signature
Title General Manger / Chief Operating Officer
Date January 18, 2022
� NOME JOINT UTILITY SYSTEM
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
NOME JOINT UTILITY BOARD
RESOLUTION 22-01
A RESOLUTION AUTHORIZING AND SUPPORTING THE RENEWABLE ENERGY FUND
GRANT APPLICATION TO THE ALASKA ENERGY AUTHORITY
FOR A BATTERY ENERGY STORAGE SYSTEM
the City of Nome through the Nome Joint Utility System (NJUS) owns and operates diesel and
wind turbine energy generators for the community of Nome, Alaska; and,
the Alaska Legislature established a Rural Energy Grant Fund and the Alaska Energy Authority
is soliciting proposals for funding of renewable energy projects on behalf of the State of Alaska;
and,
recent studies estimate that NJUS curtails between 1,784 to 1,945 MWh of wind energy
production annually in order to maintain minimum diesel generation loads;
integration of a Battery Energy Storage System (BESS) into NJUS operations will allow greater
utilization of the wind resource and more fuel-efficient diesel operations; and
NOW THEREFORE BE IT RESOLVED that the Nome Joint Utility Board authorizes management to submit the Nome
Battery Energy Storage System Project grant application to the Alaska Energy Authority; and,
BE IT FURTHER RESOLVED, that the Nome Joint Utility Board anticipates the inclusion of $500,000 project match
funds as part of the 2023 capital budget; and
BE IT FURTHER RESOLVED, that the Nome Joint Utility Board designates and authorizes the Utility Manager as
Chief Operating Officer to be the point of contact to represent Nome for purposes of the application; and,
BE IT FURTHER RESOLVED, that NJUS attests that it is in compliance with all federal, state and local laws, including
existing credit and federal tax obligations.
SIGNED THIS DAY OF ____ ___, 2022 AT NOME, ALASKA.
Carl Emmons! Chairman David Barron, Secretary
14th January