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HomeMy WebLinkAboutCHEF REF Round 14 Standard Application FormRenewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 1 of 32 11/16/2021 SECTION 1 – APPLICANT INFORMATION Please specify the legal grantee that will own, operate, and maintain the project upon completion. Name (Name of utility, IPP, local government, or other government entity) Naterkaq Light Plant Tax ID # 192-0063399 Date of last financial statement audit: Mailing Address: Physical Address: PO Box 11 Chefornak, AK 99561-0011 Telephone: Fax: Email: (907) 867-8115 cyf_tcoffice@yahoo.com 1.1 Applicant Point of Contact / Grants Coordinator Name: Title: Anna Abraham Utility Manager Mailing Address: See above Telephone: Fax: Email: (907) 867-8213 Naterkaq_plant@yahoo.com 1.1.1 Applicant Signatory Authority Contact Information Name: Title: Anna Abraham Utility Manager Mailing Address: See above Telephone: Fax: Email: (907) 867-8213 Naterkaq_plant@yahoo.com 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Adeline (907) 867-8147 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 2 of 32 11/16/2021 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/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) Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 3 of 32 11/16/2021 SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Naterkaq Light Plant battery installation and integration 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 60°09'38.0"N Longitude 164°16'08.2"W [Other description of location] 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Chefornak 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 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 4 of 32 11/16/2021 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. Naterqak Light Plant (NLP) is constructing a high penetration wind diesel battery system. NLP is requesting a grant of $355,000 to complete and improve the battery installation and optimize its performance. Intelligent Energy Systems (iES) has teamed with Hatachi Energy Grid Edge Solutions to furnish, install and integrate a 500kW/713 kWh battery energy storage system into the community of Chefornak’s electrical grid. NLP has contracted with Intelligent Energy Systems (iES) of Anchorage, which haS in turn teamed with Hatachi Energy Grid Edge Solutions to furnish, install, and integrate a 500kW/713 kWh battery energy storage system into the community of Chefornak’s electrical grid. Combined iES and Hatachi Energy represent the most experienced team in Alaska to successfully deliver this project successfully. NLV is requesting a grant of $352,000 from round 14 of the REF to complete and improve the performance of the overall project. 2.5 Scope of Work Provide a short narrative for the scope of work detailing the tasks to be performed under this funding request. This should include work paid for by grant funds and matching funds or performed as in-kind match. Funds are being requested to improve and complete the BESS installation. Funds will be used for the following purposes: 1. Improved site access: decks and protection steel frame and pile foundation support 2. Site services: additional labor and support service 3. Advanced metering and monitoring, 1. Improved access and battery security: The current project calls for the delivery of the BESS on a trailer, which will be located on a trailer adjacent to the City shop. The preferred installation would be to place the power store off the main road, on a separate a steel foundation. This would make better use of the available land, and improve energy system resiliency and security, by enabling the location of PowerStore, further up the road from the river and from the main access to the community facilities. Funds would be used to build a pile based steel foundation to support the PowerStore , module. This foundation would enable the PowerStore to be located closer to the wind site approximately 100 feet off the only community road, away from the power distribution line to the airport, and apart from the main traffic areas. This would provide better use of the available property, and improve safety and security of the BESS and other facilities. The BESS foundation would be expanded to include placement of the BESS on a 3x12 treated lumber deck 16 x 24 foot Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 5 of 32 11/16/2021 deck, with 100 foot of 4 foot wide board walk for access. $ 155,000 is required for this improvement. 2. Site Services: Funds are being requested to contract with iES to provide a 2 year service and support level contract to provide engineering and technical technical support to insure the wind diesel battery system is operating properly. The service and support contract has two elements: advanced remote monitoring and technical assistance. The technical assistance includes: System component support and on call support. System component support is provided through during normal business hours from 8 am to 5pm Alaska standard time, 5 days per week excluding US holidays. The support package includes an advanced monitoring package, and a facility support program, which entitles up to 24 hours of remote assistance annually for each of first two years of operation, and 80 hours per year of on-call support. Remote assistance support consists of a regular support calls and data analysis to evaluate system status. Based on previous experience local operators and managers require a higher level of remote support during the first two years of operation. This level of service is call support is provided The support package requires that Naterqak Light Plant provide a secure access portal to the wind diesel supervisory control system and the PowerStore BESS system, via a secure tunnel. If iES or Hatachi technicians or engineers determine that onsite work is required to remedy an issue, either under warranty a service visit will be scheduled with Naterqak to perform the necessary work. While Naterqak will be responsible for maintaining the internet. This extended maintenance contract for 2 years is $72,000 and includes yearly on-site technical visits each year for up to 3 days each time. The on-site visits include travel, with the utility to provide local housing and transportation. It is anticipated that the need for a high level of on-site technical assistance will not be required after the first two years of operation. On-site technical assistance is intended to provide training and assistance to maintain the wind, battery, and electric thermal storage systems. $ 72,000. Funds are being requested to furnish and install an advanced cloud-based energy monitoring system designed to automatically, manage and analyze battery and overall wind diesel system performance. The system is designed to aggregate data from the various distributed assets, as well as meters and sensors, to automatically track performance. The primary purpose of the advanced monitoring system is to create a holistic view of each component in the system to ensure overall power system reliability, grid stability, increase renewable availability and optimize overall power system operations. 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 ($) 8 Chefornak wind heat system 1139 N 7 Chefornak high penetration wind diesel system 1086 N Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 6 of 32 11/16/2021 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 Project agreements Procurement Notice of Award 30 Days Finalize agreements and schedule of work, Notice to Proceed 2 Work Plan Finalize installation plan, note site control and permitting in place 30 days of award notice 60 days of Award Approve workplan with BESS site selection, 3 Final design Foundation and boardwalk and battery interconnect design 30 days of NTP 90 days of NTP Design documents, interconnection plan 4 Procurement Procurement and shipping of Battery foundation materials and decking 30 days NTP 120 days of NTP Order and ship foundation materials 5 Procurement e- Mesh hardware, metering, weather station Procurement e- Mesh hardware, metering, weather station 1 month of NTP 4 month s of NTP Order hardware, weather station gateway, additional metering (SEL735) 6 Installation e- mesh monitor Two phased installation, Phase 1 base lines, Phase 2 final integration 3 months of NTP 6-10 month s of NTP A quick deployment of this system is proposed to characterize baseline operation. The second phase of on-site/remote system deployment will be completed once the BESS is installed and operational. 7 Construction The BESS has been ordered, with arrival scheduled for August – September 2022. Construction will begin as soon as 4 months from NTP 6 month s of NTP Foundations and boardwalks, will be installed using local heavy equipment during the Fall and is required as part of the BESS installation, training begins . Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 7 of 32 11/16/2021 materials arrive in August 8 Commissioning Integration of emesh with wind diesel and battery system 9 months of NTP 12 month s from NTP System operation begins, with as-built documentation 9 O&M Support Agreement begins Operational support for 24 months operational support 6 -9 months of NTP Thru 2024 System support scheduled, monthly check in, and on-line technical assistance begins. Onsite visits, 2023, 2024, 10 E-Mesh monitor 4 monitoring and reporting begines 6 -9 months of NTP Jan 2023 thru Dec 2026 Duration 4 calendar years beginning January 2023- 2026, on line access to semi-realtime status and automated dashboards and monthly performance reports Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 8 of 32 11/16/2021 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 $325,000 Cash match to be provideda $93,960 In-kind match to be provideda $844,164 Energy efficiency match providedb $ Total costs for project phase(s) covered in application (sum of above) $1,290,124 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. The community is supportive of the project and has supplied matching funds, cash and in-kind, totaling $938,124. 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. None 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 [Actual/Estimated] $1,209,124 Total Project Costs (sum of above) Estimated $1,209,124 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, 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) None anticipated Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 9 of 32 11/16/2021 3.2.3 Budget Forms Applications MUST include a separate worksheet for each project phase that was identified in Section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail your proposed project’s total budget. Be sure to use one table for each phase of your project, and delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771-3081. Phase 4 — Construction Milestone or Task Anticipat ed Completi on Date RE- Fund Grant Funds Grantee Matchin g Funds Source of Matching Funds: Cash/In- kind/Feder al Grants/Ot her State Grants/Ot her TOTALS (List milestones based on phase and type of project. See Sections 2.3 thru 2.6 of the RFA ) $352,000 $ 93,960 $ 844,164 $1,290,124 Final design $ $ 10,000 $ 10,000 Order long lead time items (85% deposit) 12-16 weeks after funding $ $ 39,538 $ 661,538 $ 701,076 Shipping and installation of battery system 16-20 weeks after funding $ 152,000 $ 182,626 $ 334,626 Advanced Monitoring System 12 weeks, from NTP through Dec 2026 $ 128,000 $128,000 Integration and commissioning of battery and full system 6-8 months after funding $ $ 44,422 $ 44,422 Operation, monitoring, support 24 months $ 72,000 $ $ 72,000 TOTALS $ 352,000 $ 93,960 $844,164 $ 1,290,124 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ 68,000 $ $ 68,000 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 10 of 32 11/16/2021 Materials & Supplies $ 131,600 $ 39,538 $ 844,164 $ 1,015302 Contractual Services $ 152,400 $ 54,422 $ 206,822 Construction Services $ $ $ Other $ $ $ TOTALS $ 325,000 $ 93,960 $ 1,209124 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. Naterqak Light Plant (NLP) is a standalone diesel generating and electrical distribution utility which provides electricity to the Village of Chefornak. NLP received a grant of $2,900,000 from the USDA High Energy Cost Program in 2019 to construct a 300-kW wind heat system and integrate the energy into their power system. This system is currently under construction and the funds have been used to install 3, Frontier 24-100 kW wind turbines on 40 meter tilt-up towers, upgrade 1.5 miles of electrical distribution to interconnect the wind farm, installation of wind diesel supervisory control system, a 200 kW load balancing boiler and 20 electric thermal storage devices to capture surplus wind energy to displace heating fuel. In 2021, the Native Village of Chefornak received a grant of $840,000 from the USDoE tribal energy program to install a 500 kW/713kWh battery energy storage system to enable diesel off operation. The battery energy storage system selected for the project is an Hatachi PowerStore. The PowerStore is able to simulate the grid to allow autonomous wind only operation. The application of the battery combined with the electric thermal storage will allow the wind system to run uncurtailed. This system will enable 3,500 hours of annual diesel off operations, and provide up to an additional 80,000 kWhrs of surplus wind energy available to displace heating fuel. Funds are being requested to improve and complete the BESS installation. Funds will be used for the following purposes: Improved site access: decks and protection steel frame and pile foundation support Site services: additional labor and support service Advanced metering and monitoring 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? Utility manager Anna Abraham and her team have successfully executed several large-budget projects and have the necessary skills and practices to report project status to AEA. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 11 of 32 11/16/2021 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. Utility manager Anna Abraham and her team have successfully executed several large-budget projects and have the necessary skills and practices to manage project finances and reporting. 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. 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. 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. 4.2 Local Workforce Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 12 of 32 11/16/2021 Describe how the project will use local labor or train a local labor workforce. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 13 of 32 11/16/2021 SECTION 5 – TECHNICAL FEASIBILITY 5.1 Resource Availability 5.1.1 Assessment of Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application (See Section 11). Likelihood of the resource being available over the life of the project. See the “Resource Assessment” section of the appropriate Best Practice Checklist for additional guidance. Chefornak has invested in a wind energy system due to its excellent wind resource. The BESS will allow the system to get the most out of the available wind resource, and this project will allow the BESS to be installed and integrated into the system in the most efficient way. 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. N/A 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 5.2 Project Site Describe the availability of the site and its suitability for the proposed energy system. Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. See the “Site control” section of the appropriate Best Practice Checklist for additional guidance. The installation of the BESS out of the congested community area will improve safety and expand usable real estate. All necessary permits have been acquired in previous construction projects. 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? Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 14 of 32 11/16/2021 • 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. Technical risk is low. NLP and its contractors have extensive experience with this type of project and are prepared to adapt their schedule and approach if necessary. 5.3.2 Environmental Risk Explain whether the following environmental and land use issues apply, and if so which project team members will be involved and how the issues will be addressed. See the “Environmental and Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance. • Threatened or endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and describe other potential barriers The installation of the BESS out of the congested community area will improve safety and expand usable real estate. No habitat or migration disruptions are anticipated with this project. All necessary permits have been acquired in previous construction projects. 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 system consists of onsite hardware and cloud-based software platform designed to monitor system operation and constantly analyze and compare system performance to key performance Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 15 of 32 11/16/2021 indicators. The system is designed to continuously process real-time data and use machine learning algorithms to forecast energy production needs. The constant monitoring, historical profiling and alarm processing will ensure consistent performance, improved generation efficiency as well as the effectiveness of operations and maintenance planning. The proposed system will be supplied by Hatachi as their e-Mesh monitor. The system will be installed and maintained by iES. The e-mesh is provided as an add-on to the PowerStore, as a scalable energy data collection platform which is interfaced with cloud-enabled digital storage and analysis tools. The e-mesh combines information technology and operational technology. iES will install and configure on e-mesh site gateways to the onsite system requirements. The onsite hardware consists of advanced metering, weather station, signals, and registers from various system components, including diesel generator controllers, weather sensors, the battery management system, wind turbine controllers, electric metering and relays as well as fuel and BTU meters, which are. The system can be scaled to include other distributed energy assets such as solar or EV chargers, remote boilers. The e-mesh platform is intended to provide a convenient, powerful and easy to access single source of operational and business insights. The e-mesh will be fully integrated with the BESS, facilitating better performance, increased productivity, reduced downtime and improve business decisions. Funds are requested to implement the e-mesh system and support 4 years of operation. 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: Frontier 24-100 kW turbine Unit 2: Frontier 24-100 kW turbine Unit 3: Frontier 24-100 kW turbine Unit 4: Unit 5: Unit 6: 5.4.2.2 Existing Distribution System Describe the basic elements of the distribution system. Include the capacity of the step-up transformer at the powerhouse, the distribution voltage(s) across the community, any transmission voltages, and other elements that will be affected by the proposed project. 5.4.2 Existing Energy Generation Infrastructure and Production In the following tables, only fill in areas below applicable to your project. You can remove extra tables. If you have the data below in other formats, you can attach them to the application (see Section 11). Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 16 of 32 11/16/2021 5.4.2.3 Existing Thermal Generation Units (if applicable to your project) Generation unit Resource/ Fuel type Design capacity (MMBtu/hr) Make Model Average annual efficiency Year Installed Hours 5.4.2.5 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) (kWh) Generatio n (Type 2) (kWh) Generatio n (Type 3) (kWh) Fuel Consumptio n (Diesel- Gallons) Fuel Consumptio n [Other] Pea k Loa d Minimu m Load January February March April May June July August Septembe r October November December Total 5.4.2.6 Annual Heating Fuel Consumption (Existing System) Use most recent year. Include only if your project affects the recovered heat off the diesel genset or will include electric heat loads. Only include heat loads affected by the project. Month Diesel (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood (Cords, green tons, dry tons) Other January 5.4.2.4 O&M and replacement costs for existing units Power Generation Thermal Generation i. Annual O&M cost for labor ii. Annual O&M cost for non-labor iii. Replacement schedule and cost for existing units Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 17 of 32 11/16/2021 February March April May June July August September October November December Total 5.4.3 Future Trends Describe the anticipated energy demand in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year by year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal variations, etc. that will affect the project. An important benefit of the installation of the BESS is the ability to eliminate needed investments in upgrading of the bulk fuel storage system. The community of Chefornak has outgrown its current bulk fuel storage capacity by at least 12,000 gallons annually. This has caused the utility and the Corporation to ration heating fuel each winter for the past 4 years. During that time, the NLP has been required to fly-in fuel to maintain reliable power generation. The installation and integration of the BESS with the wind system will keep the community from expansion of its bulk fuel storage capacity, thus eliminating future investments. 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. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 18 of 32 11/16/2021 The current project calls for the delivery of the BESS on a trailer, which will be located on a trailer adjacent to the City shop. The preferred installation would be to place the power store off the main road, on a separate a steel foundation. This would make better use of the available land, and improve energy system resiliency and security, by enabling the location of PowerStore, further up the road from the river and from the main access to the community facilities. Funds would be used to build a pile based steel foundation to support the PowerStore module. This foundation would enable the PowerStore to be located closer to the wind site approximately 100 feet off the only community road, away from the power distribution line to the airport, and apart from the main traffic areas This would provide better use of the available property and improve safety and security of the BESS and other facilities. The BESS foundation would be expanded to include placement of the BESS on a 3x12 treated lumber deck 16 x 24 foot deck, with 100 feet of 4 foot wide board walk for access. 5.4.4.1 Proposed Power Generation Units Unit # Resource/ Fuel type Design capacity (kW) Make Model Expected capacity factor Expected life (years) Expected Availability 5.4.4.2 Proposed Thermal Generation Units (if applicable) Generation unit Resource/ Fuel type Design capacity (MMBtu/hr) Make Model Expected Average annual efficiency Expected life 5.4.5 Basic Operation of Proposed Energy System • To the best extent possible, describe how the proposed energy system will operate: When will the system operate, how will the system integrate with the existing system, how will the control systems be used, etc. • When and how will the backup system(s) be expected to be used See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional guidance. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 19 of 32 11/16/2021 The battery energy storage system selected for the project is an Hatachi PowerStore. The PowerStore is able to simulate the grid to allow autonomous wind only operation. The application of the battery combined with the electric thermal storage will allow the wind system to run uncurtailed. This system will enable 3,500 hours of annual diesel off operations and provide up to an additional 80,000 kWhrs of surplus wind energy available to displace heating fuel. 5.4.3.1 Expected Capacity Factor 28% 5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System) Month Generation (Proposed System) (kWh) Generation (Type 2) (kWh) Generation (Type 3) (kWh) Fuel Consumption (Diesel- Gallons) Fuel Consumption [Other] Secondary load (kWh) Storage (kWh) January February March April May June July August September October November December Total 5.4.5.3 Annual Heating Fuel Consumption (Proposed System) Month Diesel (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood (Cords, green tons, dry tons) Other January February March April May June July August September Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 20 of 32 11/16/2021 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. $31,500 2. Hours diesel OFF/year: 3,500 3. $72,000 extended maintenance contract (included) 5.4.7 Fuel Costs Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of operation) Diesel (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood Other Unit cost ($) 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. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 21 of 32 11/16/2021 The system consists of onsite hardware and cloud-based software platform designed to monitor system operation and constantly analyze and compare system performance to key performance indicators. The system is designed to continuously process real-time data and use machine learning algorithms to forecast energy production needs. The constant monitoring, historical profiling and alarm processing will ensure consistent performance, improved generation efficiency as well as the effectiveness of operations and maintenance planning. The proposed system will be supplied by Hatachi as their e-Mesh monitor. The system will be installed and maintained by iES. The e-mesh is provided as an add-on to the PowerStore, as a scalable energy data collection platform which is interfaced with cloud-enabled digital storage and analysis tools. The e-mesh combines information technology and operational technology. 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data, including costs, to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications The new system, in addition to existing operation and maintenance logs, will provide all the information required for reporting. SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Economic Benefit Annual Lifetime Anticipated Diesel Fuel Displaced for Power Generation (gallons) Anticipated Fuel Displaced for Heat (gallons) Total Fuel displaced (gallons) 42,000 420,000 Anticipated Diesel Fuel Displaced for Power Generation ($) $147,000 $1,470,000 Anticipated Fuel Displaced for Heat ($) Anticipated Power Generation O&M Cost Savings $31,500 $315,000 Anticipated Thermal Generation O&M Cost Savings Total Other costs savings (taxes, insurance, etc.) Total Fuel, O&M, and Other Cost Savings $178,500 $1,785,000 6.1.2 Economic Benefit Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 22 of 32 11/16/2021 Explain the economic benefits of your project. Include direct cost savings and other economic benefits, and how the people of Alaska will benefit from the project. Note that additional revenue sources (such as tax credits or green tags) to pay for operations and/or financing, will not be included as economic benefits of the project. Where appropriate, describe the anticipated energy cost in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year-by-year forecasts The economic model used by AEA is available at https://www.akenergyauthority.org/What-We- Do/Grants-Loans/Renewable-Energy-Fund/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. Naterqak Power Company is undertaking this project to reduce its community’s dependency on imported diesel fuel for power generation and heating and increase community energy security and resiliency. Modeling studies indicate the BESS wind system can enable 3500+ hours of diesel off operations and produce in excess of 80,000 surplus kWhs of wind energy. The diesel off operation has the potential to displace in excess of 42,000 gallons of diesel fuel used for power generation. On an annual basis at $3.50/gallon this is equivalent to a saving of $147,000 and can generate deferred diesel operational savings @ $9/ operating hour, or $31,500 annually. Additionally, the wind system has the potential to produce an additional 60,000 kWhs of surplus electricity which is available to displace 2,600 gallons of home heating fuel. An important benefit of the installation of the BESS is the ability to eliminate needed investments in upgrading of the bulk fuel storage system. The community of Chefornak has outgrown its current bulk fuel storage capacity by at least 12,000 gallons annually. This has caused the utility and the Corporation to ration heating fuel each winter for the past 4 years. During that time, the NLP has been required to fly-in fuel to maintain reliable power generation. The installation and integration of the BESS with the wind system will keep the community from expansion of its bulk fuel storage capacity, thus eliminating future investments. 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 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 23 of 32 11/16/2021 • Other factors The primary risk to the project budget is the weather, which could impact shipping and construction. NLP and its contractors are prepared to make adjustments to the budget and timeline as necessary. 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. Renewable energy resource availability (kWh per month) Estimated direct sales to private sector businesses (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales for use by the Alaskan public (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) 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 Reducing dependence on fossil fuels improves the sustainability of our community by: -Reducing funds spent on fuel, which immediately takes cash out of our small economy as all fuels must be imported; -Reducing storage costs of fuel in our tank farm, including the maintenance and long-term replacement costs of our storage facilities; and -Reducing the wear and tear on our diesel generators, again reducing both near-term and long-term costs to our community. Increasing our use of renewable energy will: -Stabilize the cost of energy for our remote community within a year of this project being completed. We will reap the benefits and they will continue over the long term. Without harnessing Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 24 of 32 11/16/2021 renewable energy, a remote-rural community like Chefornak has limited options and is at the mercy of volatile fuel prices. -Allow our community to create local jobs because dollars that otherwise would flow out of the community to pay for fuel can be utilized for community needs. Expanding the harvest of local renewable energy resources fosters a stronger economy for the village and the region. In addition to reducing purchases of diesel fuel, NLP will be able to use the savings to increase employment at the utility and continue to build a regional workforce for hybrid power systems. The socioeconomic benefits of this project are far-reaching and long-term. The value that locally available energy will provide to our community is immense. It will help make existing economic activities more affordable and sustainable while promoting investment from ANCSA corporations in our economic growth. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 25 of 32 11/16/2021 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 Funds are being requested to contract with iES to provide a 2 year service and support level contract to provide engineering and technical support to insure the wind diesel battery system is operating properly. The service and support contract has two elements: advanced remote monitoring and technical assistance. The technical assistance includes system component support and on call support. System component support is provided through during normal business hours from 8 am to 5pm Alaska standard time, 5 days per week excluding US holidays. The support package includes an advanced monitoring package and a facility support program, which entitles up to 24 hours of remote assistance annually for each of first two years of operation, and 80 hours per year of on-call support. Remote assistance support consists of regular support calls and data analysis to evaluate system status. Based on previous experience local operators and managers require a higher level of remote support during the first two years of operation. This call support is provided in a maThe support package which requires that Naterqak Light Plant provide a secure access portal to the wind diesel supervisory control system and the PowerStore BESS system, via a secure tunnel. If iES or Hatachi technicians or engineers determine that onsite work is required to remedy an issue, either under warranty or not, a service visit will be scheduled with Naterqak to perform the necessary work. Naterqak will be responsible for maintaining the internet. This extended maintenance contract for 2 years is $72,000 and includes yearly on-site technical visits each year for up to 3 days each time. The on-site visits include travel, with the utility to provide local housing and transportation. It is anticipated that the need for a high level of on-site technical assistance will not be required after the first two years of operation. On-site technical assistance is intended to provide training and assistance to maintain the wind, battery, and electric thermal storage systems. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 26 of 32 11/16/2021 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. With the improvements proposed, the system is expected to work more efficiently a cost-effectively. Equipment is operated and maintained by competent local crews and management. 7.1.2.1 Revenue Sources Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. If there is expected to be multiple rates for electricity, such as a separate rate for intermittent heat, explain what the rates will be and how they will be determined Collect sufficient revenue to cover operational and capital costs • What is the expected cost-based rate (as consistent with RFA requirements) • If you expect to have multiple rate classes, such as excess electricity for heat, explain what those rates are expected to be and how those rates account for the costs of delivering the energy (see AEA’s white paper on excess electricity for heat).. • Annual customer revenue sufficient to cover costs • Additional incentives (i.e. tax credits) • Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) NLP successfully operates its utility, and the revenues from the wind project keep energy prices stable while providing funds to pay staff. 7.1.2.2 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 27 of 32 11/16/2021 • Potential power purchase/sales price - at a minimum indicate a price range (consistent with the Section 3.16 of the RFA) Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price range. Indicate the proposed rate of return from the grant-funded project. Include letters of support or power purchase agreement from identified customers. N/A SECTION 8 – PROJECT READINESS 8.1 Project Preparation Describe what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Specifically address your progress towards or readiness to begin, at a minimum, 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. NLP received a grant of $2,900,000 from the USDA High Energy Cost Program in 2019 to construct a 300-kW wind heat system and integrate the energy into their power system. This system is currently under construction and the funds have been used to install 3, Frontier 24-100 kW wind turbines on 40 meter tilt-up towers, upgrade 1.5 miles of electrical distribution to interconnect the wind farm, installation of wind diesel supervisory control system, a 200 kW load balancing boiler and 20 electric thermal storage devices to capture surplus wind energy to displace heating fuel. In 2021, the Native Village of Chefornak received a grant of $840,000 from the USDoE tribal energy program to install a 500 kW/713kWh battery energy storage system to enable diesel off operation. The battery energy storage system selected for the project is an Hatachi PowerStore. The PowerStore is able to simulate the grid to allow autonomous wind only operation. The application of the battery combined with the electric thermal storage will allow the wind system to run uncurtailed. This system will enable 3,500 hours of annual diesel off operations and provide up to an additional 80,000 kWhrs of surplus wind energy available to displace heating fuel. Funds are being requested to improve and complete the BESS installation. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 28 of 32 11/16/2021 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, 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 November 16, 2021. Please note that letters of support from legislators will not count toward this criterion. The community has supported renewable energy efforts throughout several earlier efforts, and will continue to support the current project. SECTION 10 – COMPLIANCE WITH OTHER AWARDS Identify other grants that may have been previously awarded to the Applicant by AEA for this or any other project. Describe the degree you have been able to meet the requirements of previous grants including project deadlines, reporting, and information requests. NLP has successfully complied with requirements for all previous grants. 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. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 29 of 32 11/16/2021 SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 30 of 32 11/16/2021 SECTION 13 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Native Village of Chefornak Regular Election is held: December Date: 1/18/2022 Authorized Grant Signer(s): Printed Name Title Term Signature I authorize the above person(s) to sign Grant Documents: (Must be authorized by the highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: Phone Number: Fax Number: Email Address: Federal Tax ID #: Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 31 of 32 11/16/2021 SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resumes of Applicant’s Project Manager, Project Accountant(s), key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and 3.6. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 9. C. For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: • Commits the organization to provide the matching resources for project at the match amounts indicated in the application. • Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. • Provides as point of contact to represent the applicant for purposes of this application. • Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Anna Abraham Signature Title Utility Manager Date January 18, 2022 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 32 of 32 11/16/2021