HomeMy WebLinkAboutKONG REF Round 14Renewable Energy Fund Round 14
Grant Application – Standard Form
AEA 23001 Page 1 of 33 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)
Puvurnaq Power Company
Tax ID #
9200091186
Date of last financial statement audit:
Mailing Address: Physical Address:
PO Box 5009 10 Main Way
Kongiganak, AK Kongiganak, AK
99545-5009 99545
Telephone: Fax: Email:
(907) 557-2121, (907) 557-5616 907-557-5614 Kongppc6@gmail.com
1.1 Applicant Point of Contact / Grants Coordinator
Name: Title:
Roderick Phillip General Manager, PPC
Mailing Address:
See above
Telephone: Fax: Email:
(907) 557-2121, (907) 557-5616 907-557-5614 Kongppc6@gmail.com
1.1.1 Applicant Signatory Authority Contact Information
Name: Title:
Roderick Phillip General Manager, PPC
Mailing Address:
See above
Telephone: Fax: Email:
(907) 557-2121, (907) 557-5616 907-557-5614 Kongppc6@gmail.com
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Moody Phillip 907-557-2568 907-557-5614 Kongppc6@gmail.com
Darlene Daniel 907-557-2280 907-557-5614 Kongppc6@gmail.com
1.2 Applicant Minimum Requirements
Renewable Energy Fund Round 14
Grant Application – Standard Form
AEA 23001 Page 2 of 33 11/16/2021
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 33 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.
Kongiganak wind upgrade with airfoil blades for turbines.
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 N 59* 57.778 Longitude W 162* 52.016
[Other description of location]
Kongiganak Wind Site
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Kongiganak, 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
Renewable Energy Fund Round 14
Grant Application – Standard Form
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2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
Puvurnaq Power Company’s existing hybrid renewable system is due for upgrades and expansion. Its five
wind turbines still have 1980s-era blades installed, which are inefficient and not optimized for the rough
conditions of southwest Alaska. PPC proposes to upgrade these turbines by acquiring four (4) blade sets of
SERI Thin Airfoil blades to add to the two it has already received funding to purchase. The new blades will
increase energy production through improved aerodynamic efficiency allowing the rotors to harvest more
energy from a given rotor area and through improved peak stall characteristics which will allow an increase
of rotor RPM from 50 to 56 or 60 RPM. In addition, we must purchase our own up-tower crane to service our
turbines/blades.
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.
Due to the packaging and shipping constraints of the manufacturer, PPC is required to purchase and ship four
blade sets to Kongiganak, rather than only 3. The fourth set will be kept as backup or possibly made
available to a neighboring community, which has the same 1980-s era blades.
In order to do this PPC needs to also purchase an up-tower service crane in order to remove and replace the
older blade sets with the advanced airfoils.
Testing will involve installation of the new airfoils on underperforming turbines. Monthly readings of the
electrical meters on the turbines will provide production quantities. These quantities will be compared to
previous years’ performance.
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
13 Improved airfoil for wind turbines in
Kongiganak
Y $108,000
Renewable Energy Fund Round 14
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
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 Grant agreement and
release of funds
2 Procurement Confirm shipping
plan/cost estimate 1 month
from
start
5
months
from
start
Supply Agreement, details of
supply and cost agreement,
for up tower crane and blade
sets
3 Shipping and
mobilization staging
Photos documenting
crane off-loading of
blades – in Seattle
and then in SW
Alaska – Kong or
nearby eg Bethel
5
months
from
start
12
months
from
start
Logistics and site preparation
4 Shipping 6
months
from
start
12
months
from
start
Photo documentation of blade
off-loading
5 Installation Purchase and
assemble up tower
crane, remove old
blades, install new
blades
9
months
from
start
12
months
from
start
Installation and photo
documentation
6 Reporting Monitoring and
performance reports
11
months
from
start
12
months
from
start
Written reports.
Yearly performance reports
Renewable Energy Fund Round 14
Grant Application – Standard Form
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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 $ 328,716
Cash match to be provideda $
In-kind match to be provideda $ 13,500
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of
above)
$ 342,216
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.
Puvurnaq Power Company is requesting $278,716 to purchase 4 sets and install three (3) sets of advanced
airfoils.
Due to requirements by manufacturer, blades need to be purchased in sets of 2 each. Therefore, PPC needs
to purchase 4 blades. This will allow us to have a spare set when needed.
PPC will also deploy $13,500 of in-kind match in the form of local labor which will further enable the
timely completion of this project.
PPC’s use of local labor and experienced contractors ensures the efficiency of this project once funding is
secured, and the flexibility to adapt project timelines if necessary.
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] $ 292,216
Total Project Costs (sum of above) Estimated $ 292,216
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
Renewable Energy Fund Round 14
Grant Application – Standard Form
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• 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)
No additional phases planned at this time.
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Grant Application – Standard Form
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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
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Sections 2.3 thru 2.6 of
the RFA )
$ $ $
Procurement 5 months
from start $ 174,716 $ $ 174,716
Shipping 8 months
from start $ 84,000 $ $ 84,000
Installation – includes
purchase of up-tower crane
($20k)
9-12
months
from start
$ 20,000 $ 13,500 $ 33,500
Reporting 12 months
from start $ $ $
TOTALS $ 278,716 $13,500 $ 292,216
Budget Categories: $ $
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $ 278,716
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $ 13,500
Other $ $ $
TOTALS $278,716 $13,500 $ 292,216
Renewable Energy Fund Round 14
Grant Application – Standard Form
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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.
According to quotes from the turbine blade supplier, each blade set costs $43,679. Due to packaging and
shipping constraints, blade sets can only be shipped in pairs, so Kong must order 4 sets at a cost of $174,716.
Shipping costs for each pair is $42,000 totaling $84,000 for this project. Estimates for in-kind labor
($13,500).
Kong also needs an upload crane to make repairs to turbines when needed. There is only one crane in SW
Alaska, and that is owned by a private sector firm. From time-to-time it’s available to us, but it requires a
good deal of coordination and transport. An uptower crane can be purchased for $20,000 and would be a
valuable asset to PPC.
No future phases are planned at this time, though cost savings resulting from this project could be used for
future renewable energy efforts.
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?
Project reports will be the responsibility of Roderick Phillip, the general manager of the Puvurnaq Power
Company. Mr. Phillip will use PPC monitoring equipment and have access to remote support from iES if
needed.
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.
Ron David will provide quarterly financial reports to AEA.
Renewable Energy Fund Round 14
Grant Application – Standard Form
AEA 23001 Page 10 of 33 11/16/2021
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Include resumes for known key personnel and contractors, including all functions below, as an
attachment to your application. In the electronic submittal, please submit resumes as separate
PDFs if the applicant would like those excluded from the web posting of this application.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information. If the
applicant does not have a project manager indicate how you intend to solicit project management
support. If the applicant expects project management assistance from AEA or another government
entity, state that in this section.
The Project Manager is Roderick Phillip. Mr. Phillip is the general manager of Puvurnaq Power Company.
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.
Ronnie David is the accountant for the Puvurnaq Power Company and will be responsible for the project
accounting.
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.
The project will be managed by Roderick Phillip, general manager of the Puvurnaq Power Company. The
retrofitting of the three wind turbine rotors will be conducted by PPC staff with an up-tower service crane.
The PPC staff and wind technicians have been responsible for operating and maintaining the wind turbines
for the last 9 years and are highly qualified to complete this scope of work.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
Construction work will be conducted by the staff and wind technicians of the Puvurnaq Power Company.
Renewable Energy Fund Round 14
Grant Application – Standard Form
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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
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.
PPC’s wind turbines have been operating since 2013. The purpose of this project is to retrofit three turbines
with advanced airfoils to improve efficiency and performance.
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.
Improving the performance of existing assets is the best option for Kong’s wind resource.
5.1.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues. See the “Environmental and Permitting Risks” section of the appropriate
Best Practice Checklist for additional guidance.
• List of applicable permits
• Anticipated permitting timeline
• Identify and describe potential barriers including potential permit timing issues, public
opposition that may result in difficulty obtaining permits, and other permitting barriers
The turbine blade component of the project upgrades an existing facility which has appropriate permits in
place already.
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 existing wind farm is located on land owned by PPC.
Renewable Energy Fund Round 14
Grant Application – Standard Form
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5.3 Project Technical & Environmental Risk
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
• Which tasks are expected to be most challenging?
• How will the project team reduce the risk of these tasks?
• What internal controls will be put in place to limit and deal with technical risks?
See the “Common Planning Risks” section of the appropriate Best Practice Checklist for additional
guidance.
Unpredictable weather and the logistics of transport to remote Alaska pose the greatest risk to this project
budget and timeline. While we cannot control the weather or other shipping disruptions, PPC and its
experienced contractors are prepared to adapt plans as necessary should delays or complications arise and
will keep AEA apprised.
Technical risks are low as the PPC team has the technical expertise and familiarity with the equipment
necessary to ensure safe and efficient operation.
Puvurnaq Power Company has experienced wind technicians, but needs an up tower hoist. The hoist is
designed to raise and lower components from the nacelle, and will be used to lower the rotor. The scope of
work is considered routine for local team and there are no identifiable barriers or obstacles that present
themselves as an impediment to completing the project as proposed.
The amount of fuel capable of displacement depends on the variable nature of the wind
resource, and heating requirements. The purpose of the project is to improve the productivity of the existing
wind system.
The self resetting tip brake systems have been deployed in California for many years and represent a major
improvement to the manually reset brake systems.
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
No permits required – the proposed project is to make improvements to existing wind system.
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Grant Application – Standard Form
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5.4 Technical Feasibility of Proposed Energy System
In this section you will describe and give details of the existing and proposed systems. The
information for existing system will be used as the baseline the proposal is compared to and also
used to make sure that proposed system can be integrated.
Only complete sections applicable to your proposal. If your proposal only generates electricity, you
can remove the sections for thermal (heat) generation.
5.4.1 Basic Operation of Existing Energy System
Describe the basic operation of the existing energy system including: description of control system;
spinning reserve needs and variability in generation (any high loads brought on quickly); and
current voltage, frequency, and outage issues across system. See the “Understanding the Existing
System” section of the appropriate Best Practice Checklist for additional guidance.
The current wind-diesel system has been operating for 9 years. The PPC team operates and manages the
system. It is the purpose of this project to replace the airfoils on three (3) of five (5) turbines and evaluate
their performance. Two (2) sets of airfoils have already been funded and will be installed approximately a
year before the next 3 for which funding is being requested in Round 14. All turbines are still performing
with low-capacity factors. This is due to conservative operational choices aimed at steady production.
The rotor rpm is currently constricted due to potential overspeed conditions which can result during winter
operations. When the peak rotational speed exceeds 60 RPM, the blade brakes of the current blades deploy,
slowing the rotor RPM to around 40 rpm. The turbine must then be stopped, and the brakes reset. With the
new blades, a blade tip brake/tiplet will deploy and reduce rotor RPM to 30 rpm. The tiplet brakes stay
deployed as long as the rotor continues to turn. When the rotor stops, the tip brakes self-reset.
Annual energy output versus wind speed is the primary quantity to be measured.
The utility manager and wind techs will also record over-speed events and tip brake resets when they are
known to occur.
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: 95 kw/ 17-meter rotor Windmatic wind turbine with variable speed drive
Unit 2: 95 kw/ 17-meter rotor Windmatic wind turbine with variable speed drive
Unit 3: 95 kw/ 17-meter rotor Windmatic wind turbine with variable speed drive
Unit 4: 95 kw/ 17-meter rotor Windmatic wind turbine with variable speed drive
Unit 5: 95 kw/ 17-meter rotor Windmatic wind turbine with variable speed drive
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 14 of 33 11/16/2021
5.4.2.2 Existing Distribution System
Describe the basic elements of the distribution system. Include the capacity of the step-up
transformer at the powerhouse, the distribution voltage(s) across the community, any transmission
voltages, and other elements that will be affected by the proposed project.
The wind system has been in operation since 2013, and the existing distribution system was replaced in 2016-
2017.
5.4.2.3 Existing Thermal Generation Units N/A
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
The purpose of project is to improve productivity of the existing wind system. We expect to increase
available wind energy by well over 50,000+ kWhs annually with these upgrades.
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 Electricity Propane Coal Wood Other
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
i. Annual O&M cost for labor TBD N/A
ii. Annual O&M cost for non-labor N/A N/A
iii. Replacement schedule and cost for
existing units
N/A N/A
Renewable Energy Fund Round 14
Grant Application – Standard Form
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(Gallons) (Gallons) (Tons) (Cords,
green tons,
dry tons)
January
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.
This project will ultimately influence improvements in energy production in similar turbines in Alaska, of
which there are 5 turbines in Kwigillingok, 5 in Tuntutuliak, 6 in Kipnuk, 2 in Kokhanok, and one in Kotzebue.
5.4.4 Proposed System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• The total proposed capacity and a description of how the capacity was determined
• Integration plan, including upgrades needed to existing system(s) to integrate renewable
energy system: Include a description of the controls, storage, secondary loads, distribution
upgrades that will be included in the project
• Civil infrastructure that will be completed as part of the project—buildings, roads, etc.
• Include what backup and/or supplemental system will be in place
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
The Puvurnaq Power Company has been operating five Windmatic 17S wind turbine for the last eight
years. These are wind turbines are fitted with the original Aerostar blades which were design in Denmark in
the 1980’s.
In the 1990’s, the U.S. Solar Energy Research Institute (SERI), which subsequently became the National
Renewable Energy Laboratory (NREL), commenced a program to design and test an improved airfoil
designs specifically for these types of Danish wind turbines. One of these new airfoils became known as the
SERI Thin Airfoil. Blades with this airfoil were retrofitted on a number of test wind turbines on operating
wind farms in California, where improved performance was measured and documented. In each test instance
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Grant Application – Standard Form
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the annual energy output was increasing by 20 to 30%, while not causing increased loading on the tower,
gearbox and drive train. Over 80 sets of these blades were installed on various wind farms in California.
Puvurnaq is proposing to acquire three (3) sets of new SERI Thin Airfoil blade sets to complement the two
sets already purchased.
NREL design engineer James Tangler oversaw the final design of these blades and ensured that they met the
design criteria he developed while with SERI/NREL. The SERI-designed airfoils employ tip brakes design
for emergency over-speed protection. The tiplet brakes are designed to improve overspeed protection compared
to the air brake design on the current wind turbine blades. The tiplet brakes are self-resetting, after an over
speed event. This will reduce maintenance calls to the turbines.
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
1 wind 95 Windmatic 85+
2 wind 95 Windmatic 85+
3 wind 95 Windmatic 85+
4 wind 95 Windmatic 85+
5 wind 95 Windmatic 85+
Renewable Energy Fund Round 14
Grant Application – Standard Form
AEA 23001 Page 17 of 33 11/16/2021
5.4.4.2 Proposed Thermal Generation Units N/A
5.4.5 Basic Operation of Proposed Energy System
• To the best extent possible, describe how the proposed energy system will operate: When will
the system operate, how will the system integrate with the existing system, how will the
control systems be used, etc.
• When and how will the backup system(s) be expected to be used
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
Puvurnaq Power Company currently operates a wind+diesel+battery+50 ETS system.
The battery system enables diesel-off operation when the average wind energy is sufficient to meet the
electrical load. Any surplus wind energy is directed to 50 electric thermal stoves, or an electric load-controlled
boiler which is plumbed into the diesel plant heat loop.
The purpose of the project is to increase the energy output of three of the existing wind turbines by replacing
the existing 17-meter rotor blades with more efficient airfoils.
5.4.3.1 Expected Capacity
Factor
20%-
35%
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 Electricity Propane Coal Wood Other
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(Gallons) (Gallons) (Tons) (Cords,
green tons,
dry tons)
January
February
March
April
May
June
July
August
September
October
November
December
Total
5.4.6 Proposed System Operating and Maintenance (O&M) Costs
O&M costs can be estimated in two ways for the standard application. Most proposed renewable
energy projects will fall under Option 1 because the new resource will not allow for 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 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. $ 12,135
2. Hours diesel OFF/year increase: 150
3. $ TBD (fewer brake resets, expect two per
year)
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
A fuel price of $5.88/gallon ($1.55/Liter) was chosen by reference to Alaska Fuel Price Projections 2013-
2035, prepared for Alaska Energy Authority by the Institute for Social and Economic Research (ISER), dated
June 30, 2013, and the 2013_06_R7Prototype_final_07012013 Excel spreadsheet, developed by ISER for
AEA.
The $5.88/gallon price reflects the average value of all fuel prices between the 2015 ($4.91/gallon) and the
2034 ($7.04/gallon) using the medium price projection analysis with an average social cost of carbon (SCC)
of $0.61/gallon included.
By comparison, the fuel price for Kongiganak (without social cost of carbon) reported to the Regulatory
Commission of Alaska for the 2012 PCE report was $4.33/gallon ($1.02/Liter), without inclusion of SCC.
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Assuming an SCC of $0.40/gallon (ISER Prototype spreadsheet, 2013 value), the 2012 Kongiganak fuel
price was $4.73/gallon ($1.25/Liter).
Heating fuel displacement by excess energy diverted to thermal loads is valued at $6.93/gallon ($1.83/Liter)
as an average price for the project period. This price was determined by reference to the
2013_06_R7Prototype_final_07012013 Excel spreadsheet where heating oil is valued at the cost of diesel
fuel (with SCC) plus $1.05/gallon.
Using an average fuel cost of $4.33/gallon for fuel displaced for power generation, and a generous
conversion efficiency of 14/kWh/gal, this potential value of a diesel-off kWh is $0.30/kWh, whereas heating
fuel at $6.93 for 30 kWh per gallon is the equivalent fuel value of $0.23/kWh.
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
Other
Unit cost
($)
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.
Kong’s system is automatically monitored. A sample report from our system is inserted on the next
page.
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5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data, including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the Request for Applications
PPC has kept turbine maintenance logs throughout the operating life of its system, and will rely upon these
records prepare reports to AEA.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Economic Benefit
Annual Lifetime
Anticipated Diesel Fuel Displaced for Power
Generation (gallons)
2,499
49,980
Anticipated Fuel Displaced for Heat
(gallons)
2,499 49,980
Total Fuel displaced (gallons) 4,998 99,960
Anticipated Diesel Fuel Displaced for Power
Generation ($4.33)
$10,819.50 $216,390
Anticipated Fuel Displaced for Heat ($6.93) $17,317.50 $173,160
Anticipated Power Generation O&M Cost
Savings
Reduced
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Anticipated Thermal Generation O&M Cost
Savings
Same
Total Other costs savings (taxes, insurance,
etc.)
Total Fuel, O&M, and Other Cost Savings Conservative estimate
$19,477.50
6.1.2 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings and other economic
benefits, and how the people of Alaska will benefit from the project. Note that additional revenue
sources (such as tax credits or green tags) to pay for operations and/or financing, will not be
included as economic benefits of the project.
Where appropriate, describe the anticipated energy cost in the community, or whatever will be
affected by the project, over the life of the project. Explain how the forecast was developed and
provide year-by-year forecasts
The economic model used by AEA is available at https://www.akenergyauthority.org/What-We-
Do/Grants-Loans/Renewable-Energy-Fund/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.
It is estimated that retrofitting / upgrading three turbines would increase the annual energy production overall
from 75,000 to 120,000 kWh in increased wind power. The turbines are in different positions and represent
different levels of productivity.
The energy produced from the turbines would be used to displace both diesel fuel used for power generation
and fuel used for home heating.
At present, Puvurnaq Power Company customers pay $0.65/kWh (Alaska Energy Authority 2020 PCE Report,
page 96), almost 500% of the national average per unit cost benchmark for electricity.
6.1.3 Economic Risks
Discuss potential issues that could make the project uneconomic to operate and how the project
team will address the issues. Factors may include:
• Low prices for diesel and/or heating oil
• Other projects developed in community
• Reductions in expected energy demand: Is there a risk of an insufficient market for energy
produced over the life of the project.
• Deferred and/or inadequate facility maintenance
• Other factors
Economic risks of this project are low. The SERI Airfoil has been designed to replace and increase the
productivity of the Aerostar blades. The Airfoils are expected to increase the productivity of a stall regulated
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turbine. The self-resetting tip brakes are standard on blade retrofits in California. According to US Census
data, the population of Kongiganak has remained steady or increased over the past decade, and energy demands
are likely to follow suit.
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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.
Any power generated with locally sourced fuel means less money spent on imported diesel, decreased
environmental hazard of delivery and storage of bulk fuel, and local job opportunities.
Renewable energy resource availability (kWh per month) Approximate
increase in
annual energy
production per
machine: 16,500
kW
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) 49,500 kWh
Revenue for displacing diesel generation for use by the Alaskan public ($) $8,745
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
There are at least 25 Windmatic turbines powering villages in southwest Alaska. Retrofitting turbines in
Kong with improved blades can increase efficiency and productivity and provide a model for other
communities with these turbines of how to increase their renewable energy capacity affordably and with
minimal disruption. The more diesel fuel PPC can displace the more funds will be available to hire
permanent workers as renewable energy technicians and/or for other jobs such as efficiency projects that can
help reduce heating fuel use.
As renewable energy expands throughout the state, the experiences of small communities like Kong can
inform the design, operation, and upkeep of larger systems.
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;
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-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, a remote-rural community like Kongiganak 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, Puvurnaq Power Company 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.
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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
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
The new blades have features that will reduce the need for maintenance that PPC technicians already have
experience performing.
The replacement blades have tiplet over-speed protection instead of spoiler brakes on the back of each blade.
These devices are deployed if the turbine rotor goes over-speed in high winds. The tiplets have a hydraulic
ram and spring mechanism inside tip of the blade. When an over-speed condition occurs, centrifugal force
unlock the tiplet and an internal spring rotates the tip 90 degrees to create drag. When the rotor slows the
tiplets are snapped back into place.
The current over-speed system uses an air brake which slides out from the back of the blade. A technician
must climb up the turbine to reset these airbrakes. Sometimes resetting air brakes requires two technicians.
The tiplets are an improvement over the blade brakes which have been used on mid-sized machines since the
mid 1990’s.
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 proposed improvements, the turbines are expected to harvest more wind energy. The turbines are
operated and maintained by competent local PPC 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
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• 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)
PPC 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 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.
The turbine blade project is divided into four milestones:
1. Procurement: The blade sets will be purchased
2. Shipping: The blades will be shipped in a 40-foot container
3. Installation: The up-tower service crane will be installed by PPC staff, the existing rotors will be removed,
and the existing hubs will be retrofitted with the new blade sets. This is estimated to take 1 to 4 weeks
depending on the weather.
4. Monitoring and measurement: The turbines are instrumented with wind speed and direction sensors, as
well as production metering. Data is recorded on the power system SCADA computer, and the production of
the retrofitted turbines will be compared to the un-retrofitted machines.
The Kongiganak Wind project is currently permitted, and no additional permits are required.
8.2 Demand- or Supply-Side Efficiency Upgrades N/A
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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.
PPC has successfully secured funding for and completed previous projects and has full community support.
Supporting documents are attached.
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.
PPC received an AEA REF Round 13 award for a similar project and is currently on track with project tasks.
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.
Due to the timing of AEA’s award for Round 13, and COVID, weather-related issues, supply chain
issues, PPC has not been able to initiate purchase of the blades AEA-REF funded in 2020.
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
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SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: Puvurnaq Power Company, Kongiganak
Regular Election is held: October
Date: 1/18/2022
Authorized Grant Signer(s):
Printed Name Title Term Signature
Roderick Phillip Manager N/A
Moody Phillip Chairman 2022
Leroy Igkurak Vice Chairman 2022
Kenneth David Jr Secretary 2014
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
Joseph Joseph President 2022
Grantee Contact Information:
Mailing Address: PO BOX 5009
Phone Number: 907-557-5616
Fax Number: 907-557-5614
Email Address: Kongppc6@gmail.com
Federal Tax ID #: 92-0091186
Please submit an updated form whenever there is a change to the above information.
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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
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 Roderick Phillip
Signature
Title Manager
Date 1/18/2022
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ATTACHMENTS
Letter of Support from Utility General Manager, Roderick Phillip
Resume: Roderick Phillip