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HomeMy WebLinkAboutKwigillingok REF Round 14 application form signedRenewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 1 of 28 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) Kwig Power Company Tax ID # 92-0097305 Date of last financial statement audit: Mailing Address: Physical Address: PO box 90 Kwigillingok, AK 99622 Telephone: Fax: Email:kpcmanager@kwigtribe.org 907) 588-8626 (907) 588-8627 1.1 Applicant Point of Contact / Grants Coordinator Name: Title: Sam Atti Utility Manager Mailing Address: See Above Telephone: See Above Fax: Email: 1.1.1 Applicant Signatory Authority Contact Information Name: Sam Atti Title: Utility Manager Mailing Address: See above Telephone: See Above Fax: Email: 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Jon Lewis 907-588-2070 jlewis@kwigtribe.org Diane Atti 907) 588-8626 kpcaccounting@starband.net Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 2 of 28 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 28 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. Kwigillingok wind turbine upgrade 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 59.874661 Longitude -163.190432 [Other description of location] Kwig wind site 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Kwigillingok 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 28 11/16/2021 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. Kwig 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. KPC proposes to upgrade these turbines by acquiring four (4) sets of SERI Thin Airfoil blades. 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. KPC will purchase and ship four blade sets to Kwigillingok. Blade sets are packed in pairs and will be delievered via barge. KPC needs to also acquire 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 ($) None Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 5 of 28 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 Grant agreement and release of funds 2 Procurement Engage contractor for solar project. Confirm shipping plan/cost estimate 1 month from start 5 months from start Supply Agreement, details of supply and cost estimate/quotation, up tower crane, blade sets 3 Shipping and mobilization staging Photos documenting crane off-loading of blades – in Seattle and then in SW Alaska – Kwig or nearby e.g., Bethel 5 month s from start 12 months from start Logistics and site preparation 5 Shipping 6 month s from start 12 months from start Photo documentation of blade off-loading 6 Installation Purchase and assemble up tower crane, remove old blades, install new blades 9 month s from start 12 months from start Installation and photo documentation 7 Reporting 11 month s from start 12 months from start Written reports Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 6 of 28 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 $ 278,176 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) $ 292,216 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. Local labor to install the blades 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 • 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. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 7 of 28 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 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 $ $ $ 292,216 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 8 of 28 11/16/2021 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, bringing the cost of four sets to $174,716. Blade sets are packed and shipped in pairs for $42,000 per pair, totaling $84,000 for this project. Estimates for in-kind labor ($13,500) and solar design ($50,000) are based on the experience of Kwig and its energy contractor, Intelligent Energy Systems (iES) of Anchorage. Kwig must have an upload crane to make repairs to turbines when needed. There is one such crane in SW Alaska that can be moved to Kwig for $20,000. Total funding request is $278,716 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 Sam Atti, the general manager of the Kwig Power Company. Mr. Atti will use KPC 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. Diane Atti will provide quarterly financial reports to AEA. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 9 of 28 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 Sam Atti, the general manager of Kwig Power Company. Mr. Jon Lewis is the Tribal Administrator and the former KPC manager 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. Diane Atti is KPC’s accountant 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 Sam Atti, general manager of the Kwig Power Company. The retrofitting of the four wind turbine rotors will be conducted by KPC staff using an up-tower service crane. The KPC staff and wind technicians have been responsible for operating and maintaining the wind turbines for 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 Kwig Power Company. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 10 of 28 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. KPC’s wind turbines have been operating since 2012. The purpose of this project is to retrofit four 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 Kwig’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 KPC. 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? Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 11 of 28 11/16/2021 • 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, KPC and our 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 KPC team has the technical expertise and familiarity with the equipment necessary to ensure safe and efficient operation. 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 turbine blade component of the project upgrades an existing facility which has appropriate permits in place already. 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 KPC team operates and manages the system. It is the purpose of this project to replace the airfoils on four (4) of five (5) turbines and evaluate their performance. All turbines are still performing with low-capacity factors. This is due to conservative operational choices aimed at steady production. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 12 of 28 11/16/2021 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 5.4.2.2 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 2012. 5.4.2.3 Existing Thermal Generation Units (if applicable to your project) 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 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) 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 AEA 23001 Page 13 of 28 11/16/2021 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 February March April May June July August September October November December Total Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 14 of 28 11/16/2021 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 of similar turbines in Alaska, of which there are several: 5 turbines in Kongiganak, 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. KPC is proposing to acquire four (4) sets of new SERI Thin Airfoil blade sets to retrofit its Windmatic turbines. 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 15 of 28 11/16/2021 5.4.4.2 Proposed Thermal Generation Units (if applicable) 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. KPC Power Company currently operates a wind+diesel+battery+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 the 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 four 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%- 30% 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 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 16 of 28 11/16/2021 (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. 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 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 17 of 28 11/16/2021 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 ($) 5.5 Performance and O&M Reporting For construction projects only 5.5.1 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. Below is an example of the type of report we get with out equipment monitoring system. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 18 of 28 11/16/2021 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data, including costs, to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications KPC has kept turbine maintenance logs throughout the operating life of its system and will rely upon these records prepare reports to AEA. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 19 of 28 11/16/2021 SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Economic Benefit Annual Lifetime Anticipated Diesel Fuel Displaced for Power Generation (gallons) 2,499 49,980 Anticipated Fuel Displaced for Heat (gallons) 2,499 49,980 Total Fuel displaced (gallons) 4,998 99,960 Anticipated Diesel Fuel Displaced for Power Generation ($) $10,819.50 $216,390 Anticipated Fuel Displaced for Heat ($) $17,317.50 $173,160 Anticipated Power Generation O&M Cost Savings Reduced 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 the retrofitting of three turbines could 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. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 20 of 28 11/16/2021 At present, Kwig Power Company customers pay $0.67/kWh (Alaska Energy Authority 2020 PCE Report, page 102), almost 500% of the national average per unit cost benchmark for electricity. 6.1.3 Economic Risks Discuss potential issues that could make the project uneconomic to operate and how the project team will address the issues. Factors may include: • Low prices for diesel and/or heating oil • Other projects developed in community • Reductions in expected energy demand: Is there a risk of an insufficient market for energy produced over the life of the project. • Deferred and/or inadequate facility maintenance • Other factors Economic risks of this project are low. The SERI Airfoil has been designed to replace and increase the productivity of the Aerostar blades. The Airfoils are expected to increase the productivity of a stall regulated turbine. The self-resetting tip brakes are standard on blade retrofits in California. According to US Census data, the population of Kwigillingok has remained steady or increased over the past decade, and energy demands are likely to follow suit. 6.1.4 Public Benefit for Projects with Direct Private Sector Sales For projects that include direct sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See Section 1.6 in the Request for Applications for more information. Any power generated with locally sourced fuel means less money spent on imported diesel, decreased environmental hazard of delivery and storage of bulk fuel, and increased local job opportunities. Renewable energy resource availability (kWh per month) Approximate increase in annual energy production per machine: 16,500 kW Estimated direct sales to private sector businesses (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) 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: Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 21 of 28 11/16/2021 • 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 Kwig 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 KPC 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 Kwig 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; -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 Kwigillingok 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, Kwig 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. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 22 of 28 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 The new blades have features that will reduce the need for maintenance that KPC 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 improvements proposed, the turbines are expected to harvest more wind energy. The turbines are 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 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 23 of 28 11/16/2021 • 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) KPC 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 from Scientia Energy 2. Shipping: The blades will be shipped in a 40-foot container from California to Kwigillingok 3. Installation: The up-tower service crane will be installed by KPC 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 Kwigillingok Wind project is currently permitted, and no additional permits are required. 8.2 Demand- or Supply-Side Efficiency Upgrades N/A Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 24 of 28 11/16/2021 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. KPC 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. N/A 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. N/A 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 25 of 28 11/16/2021 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 26 of 28 11/16/2021 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 27 of 28 11/16/2021 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 28 of 28 11/16/2021 SECTION 13 – AUTHORIZED SIGNERS FORM