HomeMy WebLinkAboutKEA REF 9 Solar application finalRenewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 1 of 21 7/8/14
SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate, and maintain the project upon completion .
Name (Name of utility, IPP, or government entity submitting proposal)
Kotzebue Electric Association Inc.
Type of Entity: Fiscal Year End:
Non Profit Electric Cooperative December 31
Tax ID #
Tax Status: ☐ For-profit ☒ Non-profit ☐ Government (check one)
Date of last financial statement audit: December 31, 2014
Mailing Address: Physical Address:
PO Box 44 Kotzebue, Alaska
Kotzebue, Alaska 99752
Telephone: Fax: Email:
(907) 442-3491 (907) 442-2482 B_reeve@kea.coop
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Title:
Brad Reeve KEA General Manager
Mailing Address:
PO Box 44
Kotzebue, AK 99752
Telephone: Fax: Email:
(907) 442-3491 (907) 442-2482 b_reeve@kea.coop
1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
Matt Bergan (907) 442-3491 (907) 442-2482 M_bergan@kea.coop
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1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as approp riate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
☒ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
☐ A local government, or
☐ A governmental entity (which includes tribal councils and housing authorities)
1.2 APPLICANT MINIMUM REQUIREMENTS (continued)
Please check as appropriate.
☒ 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 ap proval from each participant’s governing
authority is necessary. (Indicate 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 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
http://www.akenergyauthority.org /REFund8.html. (Any exceptions should be clearly noted and
submitted with the application.) (Indicate by checking the box)
☐ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in space below.
100 Kilowatt Solar Array for Kotzebue
2.2 Project Location –
2.2.1 Location of Project – Latitude and longitude, street address, or community name.
Project will be co-located with existing wind farm, located approximately 4 miles southeast of
Kotzebue at 66°50'18.22"N - 162°33'20.05"W
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Kotzebue. Alaska
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
☐ Wind ☐ Biomass or Biofuels (excluding heat-only)
☐ Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
☒ Solar Photovoltaic ☐ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐ Reconnaissance ☒ Final Design and Permitting
☐ Feasibility and Conceptual Design ☒ Construction
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
While it is well understood that Solar PV panels provide little energy in the arctic during the winter,
there is a solar resource during the shoulder seasons and Kotzebue experiences 35 days of
constant daylight during the summer.
Recent declines in prices for PV panels mean that there is sufficient power produced during the
spring, summer and early fall months to justify the cost of installing a solar array in Kotzebue. Using
NREL’s September 2014 release of PV Watts’s photovoltaic modeling software, an optimized
estimate of the useful power that would be produced by a solar array was prepared. It appears that
the PV panels can be obtained for about $0.79 per Watt.
KEA has successfully worked with piling systems on its wind site since 1996 using both standard
and freeze-back pilings to install wind turbines. KEA’s significant experience with foundations on
the site will allow the use of a piling system to be used for a solar installation which will reduce
design costs. The site has had 3 extensive geophysical surveys that will be relied upon to assist in
the foundation design and help minimize costs. Inverters can be installed in the existing wind farm
structures.
2.5 Scope of Work
Provide a scope of work detailing the tasks to be performed under this funding request. This
should include work paid for by grant funds and matching funds or performed as in -kind match.
The scope of work proposed in the Grant Application includes RFP for panels, inverters, mounting
arrays suitable for our environment, design modifications to DOE PV configuration to meet our
requirements, preparation of site per design, installation of selected hardware, site acceptance
testing, and commissioning the PV array.
SECTION 3 – Project Management, Development, and Operation
3.1 Project Schedule and Milestones
Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, an d described in adequate detail
Please fill out the schedule below. Be sure to identify key task s and decision points in 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 of your proposed project . You may add additional rows as
needed
Milestones Tasks
Start
Date
End
Date
Deliverables
Review information,
data and reports on
existing solar projects
Evaluate successful Alaskan solar
projects to develop a list of
potential suppliers
1/4/16 3/1/16
List of potential vendors
for PV panels, inverters,
mounting hardware, &
balance of system
(BOS)
Identify PV panel,
racking and foundation
suppliers
Create and issue RFP to vendors,
evaluate responses, select
supplier or suppliers 2/15/16 4/15/16
RFP, Short list of
vendors, vendor(s)
selection
Purchase PV
modules, racking
system and invertors.
Issues “Purchase Orders” for
hardware including PV panels,
racking system and invertors 4/15/16 4/29/16
Purchase Order delivery
& confirmation
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Purchase, Foundation
system
Issues “Purchase Orders” for
Foundation system and other
associated hardware 4/15/16 4/29/16
Purchase Order delivery
& confirmation
Site Preparation Gravel Pads 6/15/16 7/15/16 PV site ready for install
Balance of Plant
Installations
Distribution wiring will be buried
for the panels. Breaker panels,
transformer connections metering
and other communications will be
installed 7/18/16 8/31/16
PV site with balance of
system components
installed
Foundation Installation The foundation will be installed
when the ground is frozen to
minimize damage to the tundra 3/1/17 3/31/17
Panel mounting
foundations completed
Install racking, PV
panels and inverters
The majority of the system will be
installed. 3/15/17 4/14/17
PV Panels mounted on
Racks
Finish balance of plant
installation
Final system and grid connections
will be done 4/17/17 4/28/17
PV panels wired to BOS
components
Commissioning Inspect and finalize system
operation 5/1/17 5/12/17
Tested & Live PV
operation
3.2 Budget
Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel, and
other project items meet industry standa rds or are otherwise justified.
3.2.1 Budget Overview
Describe your financial commitment to the project. List the amount of funds needed for project
completion and the anticipated nature and sources of funds. Consider all project phases, including
future phases not covered in this funding request.
KEA is fully supportive of the project and will be committing staff for the design, project management
and for the majority of the installation work. This will be a substantial match commitment of over
$64,000.
We are requesting $384,730 from AEA for purchase of the PV panels, wiring, foundation, racking
system, and inverters. KEA will provide the site, the equipment for the foundatio n system, and the
skilled labor required to install the PV panels
3.2.2 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 an d 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 . 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 at 907 -771-3031 or by emailing the Grants
Administrator, Shawn Calfa, at scalfa@aidea.org.
Milestone or Task RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
Evaluate successful solar
projects and products to $1,200 $1,000 Cash $2,200
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develop a list of potential
suppliers
Create and issue RFP to
vendors, evaluate responses,
select supplier or suppliers
$30,800 $4,000 Cash $34,800
Issues “Purchase Orders” for
hardware including PV
panels, racking system and
invertors
$149,704 $12,000 Cash $161,704
Issues “Purchase Orders” for
Foundation system and other
associated hardware
$55,767 $3,478 Cash $59,245
Site and Gravel Pad
Preparation $53,394 $0 Cash $53,394
Distribution wiring will be
buried for the panels. Breaker
panels, transformer
connections metering and
other communications will be
installed
$3,192 $28,250 Cash $31,442
The foundation will be installed
when the ground is frozen to
minimize damage to the tundra
$22,459 $0 Cash $22,459
The majority of the system will
be installed. $49,010 $8,620 Cash $57,630
Final system and grid
connections will be done $19,204 $2,550 Cash $21,754
Inspect and finalize system
operation $0 $4,550 Cash $4,550
TOTALS $384,730 $64,448 $449,178
Budget Categories:
Direct Labor & Benefits $93,700 $14,102 Cash $107,802
Travel & Per Diem $ $9,458 Cash $9,458
Equipment $126,562 $15,478 Cash $142,040
Materials & Supplies $6,945 $23,590 Cash $30,535
Contractual Services $42,393 $1,820 Cash $44,213
Construction Services $79,230 $0 $79,230
Other $35,900 $0 $35,900
TOTALS $384,730 $64,448 $449,178
3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
KEA used NRECA/DOE solar project costing spreadsheet developed in 2015. This
comprehensive project estimator includes national supplier discounts available to KEA because of
NRECA’s efforts.
3.2.4 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 $384,730
Cash match to be provided $64,448
In-kind match to be provided $
Total costs for project phase(s) covered in application (sum of above) $449,178
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3.2.5 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual
costs for completed phases.
Reconnaissance $4,500
Feasibility and Conceptual Design $32,500
Final Design and Permitting $25,000
Construction $387,178
Total Project Costs (sum of above) $449,178
3.2.6 Operating and Maintenance Costs
O&M costs can be estimated in two ways for the standard application. Most proposed RE 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.
Options O&M Impact of proposed RE project
Option 1: Diesel generation ON
For projects that do not result in shutting down
diesel generation there is assumed to be no
impact on the base case O&M. Please indicate
the estimated annual O&M cost associated with
the proposed renewable project.
$
Option 2: Diesel generation OFF
For projects that will result in shutting down
diesel generation please estimate:
1. Annual non-fuel savings of shutting off
diesel generation
2. Estimated hours that diesel generation
will be off per year.
3. Annual O&M costs associated with the
proposed renewable project.
1. $
2. Hours diesel OFF/year:
3. $
3.3 Project Communications
Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is
described in adequate detail.
Describe how you plan to monitor the project and keep the Authority informed of the status.
The project will be connected to the KEA SCADA system for power and operational observation.
This would be a minor extension of the existing KEA wind system and will connect to the overall
power reporting system of the utility.
KEA has done several projects with the AEA and is comfortable reporting on grant projects. The
reporting is done in a team fashion with Jessi Hampton a CPA doing the financial reporting. Matt
Bergan P.E. will provide reporting on the technical and operational aspects of projects, and Brad
Reeve will report on the administrative aspects of the project.
3.4 Operational Logistics
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Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and maintaining
the project throughout its lifetime and selling energy from the completed project are reasonable and
described in adequate detail.
Describe the anticipated logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling ener gy from the completed project.
The project will be maintained by KEA’s staff. Maintenance and operation of a 100kW solar array
is expected to be minimal effort. The energy produced from this project will offset energy produced
by diesel generation and be used as base load generation for our members consumption.
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and
experience to successfully comple te and operate the project. If the applicant has not yet chosen a
contractor to complete the work, qualifications and experience points will be based on the applicant’s
capacity to successfully select contractors and manage complex contracts.
Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully
complete and operate the project.
Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
Criteria: Stage 2-2.D: The project team has positive past grant experience.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information, and a
resume. In the electronic sub mittal, please submit resumes as separate PDFs if the applicant would
like those excluded from the web posting of this application. If the applicant does not have a project
manager indicate how you intend to solicit project management support. If the app licant expects
project management assistance from AEA or another government entity, state that in this section.
KEA will use Brad Reeve, General Manager. Brad will work with solar experts provided to him
through his membership in NRECA’s Technical Advis ory capacity.
4.1.2 Expertise and Resources
Describe the project team including the applicant, partners, and contractors. Provide sufficient detail
for reviewers to evaluate:
• the extent to which the team has sufficient knowledge and experience to successfully
complete and operate the project;
• whether the project team has staffing, time, and other resources to successfully complete
and operate the project;
• how well the project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
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 co mplex
contracts. Include brief resumes for known key personnel and contractors 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 thi s application
The majority of the project will be completed by existing KEA staff and technical review from
NRECA’s DOE Solar project team. These staff have completed 15 solar deployments at other
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cooperatives in 2014 and 2015 . For infrastructure work, KEA has worked with Kikiktagruk Inupiat
Corporation (KIC), the local native village corporation of Kotzebue on all of its prior work with
foundations. KIC owns a drill rig that has been used in the installation of the pilings throughout the
wind site.
4.1.3 Project Accountant(s)
Indicate who will be performing the accounting of this project for the grantee and include a resume.
In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those
excluded from the web posting of this application. If the applicant does not have a project accountant
indicate how you intend to solicit financial accounting support.
Jessi Hampton will be the Project Accountant. KEA has a successful track record with working
collaboratively with AEA and Jessi has several years of grant reporting she has done on prior
projects.
Accountant contact: Jessi Hampton (907) 632-0777, jessi@sunmountaincpa.com
4.1.4 Financial Accounting System
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 f rom the
Renewable Energy Fund Grant Program.
A competitive RFP process will be used to identify the most reasonable components and services
for this project. The accounting system that will be used is the KEA accounting system. Grant
reporting will be done through a work order system tied to project deliverables and Jessi Hampton,
a 3rd party CPA, will provide overall accounting supervision. KEA has an established record of
financial and administrative oversight with grants and grant reporting. As an applicant, KEA has the
administrative and financial management systems in place to comply with the standards set forth in
the grant agreement. Annual audits are also a requirement of the Cooperative.
4.2 Local Workforce
Criteria: Stage 2-2.E: The project uses local labor and trains a local labor workforce .
Describe how the project will use local labor or train a local labor workforce.
Kikiktagruk Inupiat Corporation (KIC), the local native village corporation of Kotzebue will perform
infrastructure work.
Jessi Hampton from Sun Mountain CPA, will be the Project Accountant.
KEA staff will learn about Solar PV from NRECA Solar training documentation.
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SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and project
permits and other authorizations can reasonably be obtained.
5.1.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available , including average
resource availability on an annual basis. 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. For
pre-construction applications, describe the resource to the exte nt known. For design and permitting
or construction projects, please provide feasibility documents, design documents, and permitting
documents (if applicable) as attachments to this application.
Solar photovoltaic power opportunity for Kotzebue has been
calculated using NOAA data, which is based on the incoming
solar resource at the top of the atmosphere and average cloud
cover.
The proposed array rack technology is dual axis to ensure
maximum automatic snow load shed, which reduces manual
cleaning, and is factored into the analysis below. Furthermore,
shading will not be an issue as the picture shows. The PV
array siting is proposed south of wind turbines and no other
structures exist on the proposed parcel.
NREL data indicates expected information such as there is very little solar energy available during
the late fall and winter, but also that there is good solar radiation available April-Sept.
Utilizing National Renewable Energy Laboratories PV Watts with the above data, the PV array would
provide sufficient energy to justify the cost with an investment return of 10 ½ years.
5.1.2 Permits
Provide the following information as it may relate to permitting and how you intend t o address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and describe potential barriers
KEA has the following research on the proposed site:
- Environmental Impact Statement completed in 1996.
- US Fish and Wildlife migratory study completed 2003.
- Army Corp of Engineers wetland impact study completed 2011.
- Update to existing site reviews will be performed in 2016.
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5.2 Project Site
Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system.
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.
The site is leased from Kikiktagruk Inupiat Corporation with a 15 year extension signed in 2012.
The site has been reviewed extensively and an Environmental Impact Statement was done in 1996
when the first wind turbines were in stalled.
The site has also been reviewed over a 5 year period by the US Fish and Wildlife for conflicts with
waterfowl migration.
In 2011 the site was again reviewed by the Army Corp of Engineers and a wetlands permit was
issued for road extensions to 2 larger wind turbines. As the solar equipment will be installed in the
winter, no new road extensions will be needed and the foundation racking system is expected to be
driven or screw anchor. This will leave a minimal disturbance to the tundra.
At this point in time, further reviews will be done but we are not expecting any significant permitting
issues that have not been addressed by previous permitting done for the wind farm.
5.3 Project Risk
Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable.
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
1. Installing and operating large PV array in the Arctic -There is minimal risk in a project of this
technology as long as the equipmen t selected is rated for arctic conditions. There are a number of
existing installations in the area that have done well in local conditions. KEA also has experience
with a 3 kW project done with the NW Arctic Borough School District at the Alaska Technic al Center
that demonstrated the stability of a solar installation in cold weather and severe storm conditions.
2. Blockage of PV panels from snow-Panels will be elevated off the ground sufficient to allow
snow to blow under panels without accumulation. Due to the windy winter conditions and prevailing
direction that are typical in Kotzebue snow drifts accumulate on the western side of buildings and
structures that are elevated tend to not accumulate drifting snow. With the prevailing winds from the
east and the panel system facing the south there will be a low possibility of significant snow blockage.
Panel angle in winter will be near vertical, allowing gravity and wind to remove snowfall on panel
surface.
5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so how they will be
addressed:
Threatened or endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
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Aviation considerations
Visual, aesthetics impacts
Identify and describe other potential barriers
The site is leased from Kikiktagruk Inupiat Corporation with a 15 year extension completed in 2012.
The site has been reviewed extensively and an Environmental Impact Statement was done in 1996
when the first wind turbines were installed. The site has also been reviewed over a 5 year period
by the US Fish and Wildlife for conflicts with waterfowl migration. In 2011 the site was again
reviewed by the Army Corp of Engineers and a wetlands permit was issued for road extensions to
2 larger wind turbines. As the solar equipment will be installed in the winter no new road
extensions will be needed and the foundation racking system is expect ed to be driven or screw
anchor for the foundation. This will leave a minimal disturbance to the tundra. At this point in time,
further reviews will be done but we are not expecting any significant permitting issues that have not
been addressed by previous permitting done for the wind farm.
5.4 Existing and Proposed Energy System
Criteria: Stage 2-3.D: The proposed energy system can reliably produce and deliver energy as
planned.
5.4.1 Basic Configuration of Existing Energy System
Describe the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
Kotzebue Electric Association currently operates a Wind -Diesel plant to serve an average 2,450 kW
load, with diesel plant efficiency of 14.43 kWh/gallon. The diesel plant consists of four (4) – 710
EMD’s, and one (1) 3516 Caterpillar plus a wind farm of 2.94 MW. Energy Storage and use of excess
wind for heating loads are planned but not yet implemented.
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Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other: Diesel Generators (5) 6MW
ii. Rated capacity of generators/boilers/other: Wind farm 2.94MW
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
vi. Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 23,157,000
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load 3.7 MW
iv. Average Load 2,450 kW
v. Minimum Load
vi. Efficiency
vii. Future trends Steady
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
Energy growth at KEA has followed trends similar to other Alaskan coastal villages : energy efficient
devices, along with increased electronic devices has resulted in even load growth. The aging diesel
plants will continue to increase in maintenance while cleaner energy production is called for by the
EPA.
5.4.3 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area
over the life of the project. For PCE eligible communities, please describe the expected impact would
be for both pre and post PCE.
This project will set the stage for future solar projects at KEA. If production matches prediction, our
cost of consumer energy could reduce with deployment of larger s cale projects.
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
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Integration plan
Delivery methods
A description of renewable energy technology specific to project location:
100 kW PV array co-located with existing wind farm near Kotzebue.
Optimum installed capacity
Solar arrays are stand-alone units. Scales of economy begin at 1MW. KEA has chosen 100
kW to have a measureable impact on diesel fuel consumption and provide a basis for other
rural utilities to help evaluate their solar capability.
Anticipated capacity factor
100kW PV plant will yield a 16.0% capacity factor per data generated by NREL PV Watts .
Anticipated annual generation
Using NREL’s PV Watts modeling software, our project is estimated to produce 140,257 kW -
hours of total annual production.
Anticipated barriers
Long term operation may be affected by arctic climate related issues —degradation caused by
thermal cycling, wind damage, snow blowing into electrical systems.
Basic integration concept
The maximum output from KEA’s proposed PV panels i s 90KW which is less than 5% of KEA’s
average load; this should not cause significant integration issues. Compatible inverter
parameters will be selected to allow direct integrate with KEA distribution grid.
Delivery methods
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Power from PV array will be integrated into existing wind farm power delivery system.
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non -renewable fuels)
a) Proposed renewable capacity (Wind,
Hydro, Biomass, other)
[kW or MMBtu/hr]
100 kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 140,257
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other
d) i. Estimate number of hours renewable
will allow powerhouse to turn diesel engines
off (fill in as applicable)
Reduction of diesel engine fuel consumption only.
5.4.5 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.
KEA will be providing utility grade metering for the project. The solar system will also be connected
to the KEA SCADA system for complete monitoring of the system.
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SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel,
operation and maintenance, and capital costs over the life of the proposed project).
6.1.1 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings, and how the people of
Alaska will benefit from the project. The benefits information should include the following:
Anticipated annual and lifetime fuel displacement (gallons and dollars)
Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate)
Additional incentives (i.e. tax credits)
Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
The economic model used by AEA is available at
http://www.akenergyauthority.org/Programs/Renewable -Energy-Fund/Rounds#round9. 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.
Utilizing NREL’s Model and AEA’s project analysis spreadsheet, 140,257 kW -hours will be saved,
decreasing diesel fuel consumption by 9,720 gallons per year .
6.1.2 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales p rice - at a minimum indicate a price range
Proposed rate of return from grant -funded project
Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price range.
Indicate the proposed rate of return from the grant-funded project.
KEA will utilize the power with any excess capacity being sold to the regional hospital. A 15 year
thermal sales agreement is in place with the Maniilaq Medical Center.
Return on investment to the state will be through reduced diesel fuel consum ption, resulting in
decreased PCE payments required.
The lifetime rate of return for this project is 9.42% annually using AEA inputs. NREL’s PV Watts
Model shows a break-even point at 10 ½ years.
6.1.3 Public Benefit for Projects with Private Sector Sales
For projects that include 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.
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Renewable energy resource availability (kWh per month) Variable
Estimated sales (kWh) 140,257
Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($)
6.2 Financing Plan
Criteria: Stage 2-4.B: The project has an adequate financing plan for completion of the grant -funded
phase and has considered options for financing subsequent phases of the project .
6.2.1 Additional Funds
Identify the source and amount of all additional funds needed to complete the work in the phase(s)
for which REF funding is being applied in this applic ation. Indicate whether these 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.
6.2.2 Financing opportunities/limitations
If the proposed project includes final design or construction phases, what are your opportunities
and/or limitations to fund this project with a loan, bonds, or other financing options?
KEA Financial loan covenant ratios such as Current Ratio, Equity Ratio, TIER, OTIER, and
margin/revenue cannot support investment in this project without subsidization.
6.2.3 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding .
Project sizing is very adjustable and can support increase or shortfa ll in funding.
6.2.4 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 .
No subsequent phases are planned at this time.
6.3 Other Public Benefit
Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone will
not be presumed to be in the best interest of the public.
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
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The project will promote or sustain long -term commercial economic development for the
community
Few PV projects exist north of the Arctic Circle in the world. A presentation on this project’s results
will be created, highlighting lessons learned. This presentation will be submitted to NRECA and
APPA for inclusion in their national conferences subsequent to project completion.
SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
Include at a minimum:
Capability of the Applicant to demonstrate the capacity, both admin istratively and financially, to
provide for the long-term operation and maintenance of the proposed project
Is the Applicant current on all loans and required reporting to state and federal agencies?
Likelihood of the resource being available over the life of the project
Likelihood of a sufficient market for energy produced over the life of the project
Project will be owned and operated by KEA, and will be incorporated into existing utility operations.
Maintenance and operation for the system will be from KEA Operations and Maintenance annual
budget.
Operational issues identified include replacement of in verters, panel replacements, and other
maintenance duties.
KEA will continue to meet reporting obligations to AEA per funding stipulations.
SECTION 8 – PROJECT READINESS
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
The site for a project has been established. KEA has been evaluating PV with the assistance of
NRECA Cooperatives Research Network (CRN). CRN has provided current PV panel pricing, so
KEA is aware of recent price decreases in this technology. We have conducted two modeling
studies to see how adding a PV array to our existing system would affect our syst em, and have
concluded that the PV array would provide additional fuel savings at a positive BCR of 1.64.
Additional benefits from the PV array could be realized if Energy Storage system is successfully
installed, and from sales of excess electricity per our PPA. Once awarded, KEA will proceed with
ordering the PV panels. Prior to a grant award KEA will begin panel vendor selection, designing a
foundation and doing site preparation.
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
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this project. The Documentation of support must be dated within one year of the RFA date of July
8, 2015.
Support from KEA board of directors attached. The Kotzebue community has been supportive of
all attempts to reduce community dependence on diesel fuel. Letters from the City of Kotzebue
and NW Arctic Borough will be forthcoming.
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by the Authority 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 .
KEA received funding from AEA for wind turbines. KEA was able to comply with AEA reporting,
information requests and deadlines.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below please provide a list additional documents attached to support completion of prior
phases.
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration.
Kotzebue Array Mount
Kotzebue Array Plan
Kotzebue Array Rendering 1
Kotzebue Array Rendering 2
Kotzebue Array Rendering 3
NWAB Support Letter 2014
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SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: Kotzebue Electric Association Inc.
Regular Election is held: Annually for Directors
Date: Early Sept. annually
Authorized Grant Signer(s):
Printed Name Title Term Signature
Brad Reeve General Manager/CEO N/A
Matt Bergan Project Engineer
N/A
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Brad Reeve General Manager/CEO N/A
Grantee Contact Information:
Mailing Address: P.O. Box 44 Kotzebue, Alaska 99752
Phone Number: 907-442-3491
Fax Number: 907-442-2482
E-mail Address: B_reeve@kea.coop
Federal Tax ID #: 92-0021979
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 Brad Reeve
Signature
Title General Manager/CEO
Date 9/15/2015