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HomeMy WebLinkAboutSt Paul 80% Feasibility Study application 2015 Ref9 - 15 Sept 2015 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 1 of 26 7/8/14 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII of the Renewable Energy Fund. A separate application form is available for projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the Request for Applications (RFA) and both application forms is available online at: http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9.  If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org.  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases (e.g. final design, construction) for the same project may be submitted as one application.  If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project.  In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1).  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. Supporting documentation may include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof of site control, utility agreements, power sale agreements, relevant data sets, and other materials. Please provide a list of supporting documents in Section 11 of this application and attach the documents to your application.  If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. Please provide a list of additional information; including any web links, in section 12 of this application and attach the documents to your application. For guidance on application best practices please refer to the resource specific Best Practices Checklists; links to the checklists can be found in the appendices list at the end of the accompanying REF Round IX RFA.  In the sections below, please enter responses in the spaces provided. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER:  Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 2 of 26 7/8/14  In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. AEA 15003 Page 3 of 26 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form Tax ID # 92-0167220 Tax Status: X For-profit ☐ Non-profit ☐ Government (check one) Date of last financial statement audit: May 2015 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) TDX Power, Inc. Type of Entity: Fiscal Year End: Electric Utility Sept. 30th Mailing Address: Physical Address: 615 E. 82nd Ave., Suite 200 615 E. 82nd Ave., Suite 200 Anchorage, AK 99518 Anchorage, AK 99518 Telephone: Fax: Email: 907-762-8450 907-278-2332 jlyons@tdxpower.com 1.1 Applicant Point of Contact / Grants Manager Name: John Lyons Title: General Manager Mailing Address: 615 E. 82nd Ave., Suite 200 Anchorage, AK 99518 Telephone: Fax: Email: 907-762-8478 907-278-2332 jlyons@tdxpower.com 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMAT ION Name: Kord Christianson Title: President TDX Power Mailing Address: 615 E. 82nd Ave., Suite Anchorage, AK 99518 Telephone: 907-762-8450 1.1.2 Applicant Alte Name 200 Fax: Email: 907-278-2332 kord@tdxpower.com rnate Points of Contact Telephone: Fax: Email: Travis Hammond 907-762-8439 1.2 Applicant Minimum Requirements thammond@tdxpower.com AEA 15003 Page 4 of 26 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. 1.2.1 Applicant Type X 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. X 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 by checking the box) X 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) X 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/Programs/Renewable -Energy-Fund/Rounds#round9. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) X 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) AEA 15003 Page 5 of 26 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. St. Paul Island 80% Renewable Energy Feasibility Study. 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 at 907-771-3031. 57.122962,-170.279317 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. St. Paul, St. Paul Island, AK 99660 2.3 Project Type Please check as appropriate. 2.3.1 Renewable Resource Type X Wind ☐ Biomass or Biofuels (excluding heat-only) □ Hydro, Including Run of River ☐ Hydrokinetic □ Geothermal, Excluding Heat Pumps X Transmission of Renewable Energy X Solar Photovoltaic X 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 X Reconnaissance ☐ Final Design and Permitting X Feasibility and Conceptual Design ☐ Construction Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 6 of 25 7/8/14 2.4 Project Description Provide a brief one paragraph description of the proposed project. TDX owns and operates three 225 kW wind turbines that provide wholesale power the City of St. Paul Utility as well as the TDX owned and operated St. Paul Airport and TDX facilities. However, most of the electric power on the island is generated by diesel generators. Diesel fuel is expensive and generates harmful emissions in the combustion process. TDX is committed to reduce emissions and energy cost and at the same time establish a sustainable source of energy that makes the island essentially independent of imported energy. In order to achieve this, TDX proposes to install additional renewable energy sources such as wind turbines, solar panels etc. to increase the generation capacity of renewable energy sources. On the demand side TDX proposes to promote, facilitate and install energy savings measures such as LED lighting, electric heaters and/or heat pumps with storage capacity to make use of excess wind energy, energy efficient appliances and improved building insulation. Declared goal is to generate 80% of the energy consumption (electricity, heating, ground transportation) of the entire island locally with renewable energy sources. To initiate the project, TDX proposes a detailed feasibility study to assess the current situation and identify the most cost effective means and timelines to achieve the declared goal. 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. 1) Document existing situation. Reconnaissance of possible wind and solar sites. Study of electric distribution. 2) Feasibility study. Establish size, placement, equipment, cost estimate, economic viability. 3) Conceptual Design 4) Public presentation 5) Identification of pilot sites. SECTION 3 – Project Management, Development, and Operation 3.1 Schedule and Milestones Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail. 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 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. Add additional rows as needed. Milestones Tasks Start Date End Date Deliverables Initiate Study Submit Study 1) Define Existing Energy Consumption Sept 2016 Feb 2017 1.1) Community Workshops 1.2) City Power Consumption Review 1.3) Define Existing Energy Consumption Island Energy Usage Study Completed Submit Comprehensive Plan 2) Develop Comprehensive Plan Feb 2017 Jul 2017 2.1) Community Formulation Meetings 2.2) City Power Plant and Distribution Meetings 2.3) Prepare Comprehensive Plan and Goals Comprehensive Plan and Goals Submit Feasibility Study 3) Develop Feasibility Study Jul 2017 Dec 2017 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 7 of 25 7/8/14 3.1) Define Path Towards Comprehensive Goals 3.2) Define Feasibility Design and Cost Estimates 3.3) Present to Community 3.4) Finalize Feasibility Study Feasibility Study 3.2 Budget Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel, and other project items meet industry standards 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. Total Project cost is estimated at $331,500. TDX will provide a cash/in-kind match of $66,300 (20%) 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 Grante e Matchi ng 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 ) $ $ $ Submit Study $ $ $ 1)Define Existing Energy Consumption $ $ $ 1.1) Community Workshops $ 19,400 $ 4,850 Cash $ 24,250 1.2) City Power Consumption Review $ 19,200 $ 4,800 Cash $ 24,000 1.3) Define Existing Energy Consumption $ 43,000 $ 10,750 Cash $ 53,750 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ 81,600 $ 20,400 $ 102,000 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 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. The milestones and tasks should match those listed in 3.1 above. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 8 of 25 7/8/14 Budget Categories: Direct Labor & Benefits $ 81,600 $ 20,400 Cash $ 102,000 Milestone or Task 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 ) $ $ $ Submit Comprehensive Plan $ $ $ 2) Develop Comprehensive Plan $ $ $ 2.1) Community Formulation Meetings $ 19,200 $ 4,800 Cash $ 24,000 2.2) City Power Plant and Distributions Meetin $ 19,200 $ 4,800 Cash $ 24,000 2.3) Prepare Comprehensive Plan and Goals $ 24,000 $ 6,000 Cash $ 30,000 Submit Feasibility Study $ $ $ 3) Develop Feasibility Study $ $ $ 3.1) Define Path Toward Comprehensives Goal $ 35,920 $ 8,980 Cash $ 44,900 3.2) Define Feasibility Design with Cost Estim $ 38,800 $ 9,700 Cash $ 48,500 3.3) Present to Community $ 18,240 $ 4,560 Cash $ 22,800 3.4) Finalize Feasibility Study $ 28,240 $ 7,060 Cash $ 35,300 TOTALS $ 183,600 $ 45,900 $ 229,500 Budget Categories: Direct Labor & Benefits $ 118,600 $ 29,650 Cash $ 148,250 Travel & Per Diem $ 65,000 $ 16,250 Cash $ 81,250 Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ 183,600 $ 45,900 $ 229,500 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 9 of 25 7/8/14 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. Cost estimates are based upon prior project experience 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 $265,200 Cash match to be provided $66,300 In-kind match to be provided $ Total costs for project phase(s) covered in application (sum of above) $331,500 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 $88,000 Feasibility and Conceptual Design $243,500 Final Design and Permitting $ Construction $ Total Project Costs (sum of above) $331,500 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 N/A 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 1. $ 2. Hours diesel OFF/year: 3. $ 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. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 10 of 25 7/8/14 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. TDX Power's project management team will closely monitor project performance with regular internal progress and results reporting. Since the community will be involved in the information gathering, periodic communication will be made as required. Technical and budgetary progress will be reports to AEA monthly throughout the projects, or as directed by AEA. Report findings will be issued at the completion of the project. 3.4 Operational Logistics 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 energy from the completed project. A community that is energy self-sufficient is able to supply its own needs without external assistance. How many truly self-sufficient communities are there? By 2020, the island community of St. Paul, Alaska intends to become extraordinarily close. The use of reliable wind turbines, a Class 7 wind resource, and competent management by TDX Power position St. Paul for success. Wind is abundant in Alaska, and a growing number of rural communities are incorporati ng wind into their islanded electric utility systems. These wind -diesel systems provide electricity, yet most homes, buildings and facilities in rural Alaska are still heated with fuel oil (diesel) in a stove or furnace that produces heat directly, or via forced air or hot water. Fuel oil generally comes via barge, or in very remote villages by plane; fuel costs in remote areas of Alaska often range between $5-$10 per gallon. In order to meet its goal of utilizing 80% renewable energy for electricity, heat ing and transportation by 2020, St. Paul must capture as much wind power as possible, and utilize high-penetration renewable integration controls that provide both heat and power, increasing wind-only, diesel-off generation time. Incorporating fast acting dispatchable loads, flywheel electric energy storage, microgrid controls, will allow St. Paul to increase its wind power resource utilization and provide effective regulation of the electric grid. Fast Dispatchable Loads Combined heat and power concepts can be successfully used to operate and control high- wind-penetration wind-diesel systems on remote or isolated “islanded” grid systems without the use of electrical energy storage. Fast dispatchable loads such as water heating act as ‘thermal batteries’. Excess energy is stored as heat as wind energy production fluctuates into the grid: given signals from the utility, heaters shed load or take on additional load. In essence this is a wind powered heating system – under normal operation the heater is only powered by renewable energy sourced from wind, and if the wind isn’t blowing the heating system utilizes conventional heating methods only after the stored renewable energy is exhausted. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 11 of 25 7/8/14 Flywheels Flywheels may be used to store electrical energy generated by wind turbines during off-peak periods or during high wind speeds. During periods of excess wind the flywheel absorbs energy, then recycles it back into the system during subsequent drops or lulls in wind production. Flywheels allow for an increased amount of available wind energy to be utilized by the local grid, decreasing reliance on diesel-powered generators. Funding from the Alaska Energy Authority’s Emerging Energy Technology Fund has provided TDX Power the opportunity to demonstrate the compatibility of flywheel energy storage with hybrid power plants. Successful flywheel integration will reduce wind curtailment, as well as reduce diesel fuel consumption. TDX’s flywheel technology will enable TDX to further improve wind utilization by increasing diesel-off, wind-only time by +15%. Microgrids TDX Power has been awarded a contract with National Electric Testing Laboratory (NETL), a division of the US Dept. of Energy, to engineer, design, simulate and build a microgrid controller for the St Paul community. The microgrid’s component libraries will provide the platform necessary to control distributed fast dispatchable loads and integrated energy resources in both grid connected and island modes; the system will be designed to operate as a partial feeder, as a full feeder, and as a substation area microgrid. Microgrids are sections of the utility that can be disconnected from the utility and still maintain power. When the utility returns to normal operations, the isolated microgrid can once again be reconnected and the system returns to the normal configuration. The deployment of microgrid technology can increase utility resiliency and reliability of service. (next section) Installed and operated in 1999 by the Tanadgusix Corporation (TDX), S t. Paul is currently home to a stand-alone hybrid wind-diesel power system. This high-penetration renewable system differs from low and medium-penetration renewable systems because when wind power is sufficiently strong it can operate with its diesel generators turned off. Improving strategies for operating in off-diesel mode has clear benefits for the community and the environment – however, high-penetration wind-diesel systems require a high level of system integration and advanced controls. The current stand-alone system provides electricity and primary space heating for the airport and industrial complex where it is located, the St. Paul Airport Business Park, and Renewable Technology and Training Center. The core components of the plant include three 2 25-kW Vestas V27 wind turbines, a pair of 150-kW Volvo diesel-engine generators, a 160 kW, 30 kWh Beacon flywheel, a 300kVA synchronous condenser, a 6,000-gallon hot water tank, with immersion water heating elements acting as fast dispatchable loads that m anage integration of wind energy into the electrical grid. Under favorable wind conditions, the St. Paul Island Business Park can be serviced entirely by wind energy – without any use of the diesel engines – one of the first demonstrations of this Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 12 of 25 7/8/14 type of system architecture in the world. The plant takes advantage of low-cost thermal storage to maintain system stability. A thermal network redirects excess wind energy – via fast dispatchable loads (Thermal Storage) – to generate hot water for commercial and domestic use throughout the site’s more than 80,000 square feet. Redirecting excess wind energy to fast dispatchable loads via an automatic control system is nearly instantaneous. The system has been in continuous operation since 1999 and on average has cut diesel fuel consumption by more than 50 percent. In order to meet the 80% renewable by 2020 goal for the entire community, TDX Power expand the existing windfarm to match the load. Stability Increasing wind generation presents the challenge of effective grid regulation. Incorporating a power source that inherently varies its supply into a grid that inherently varies its demand highlights the stability challenge faced by the operator. Renewable energy resources are naturally variable in their gener ation. Wind ramps up and down quickly – and isn’t often, if ever, in sync with the ups and downs of the demands on the grid. A productive use is needed for the ‘extra’ energy created during periods of high wind and low demand; at the same time, stored energy is needed during periods of low wind and high demand. Fast acting dispatchable loads provide this tool. Fast dispatchable loads alleviate the variability of the generation side, while also addressing the need for grid management and the ability to regu late available power. Loads must be increased or decreased quickly in order to meet the shifting demands of the grid, and fast dispatchable loads provide a fast regulation/balancing resource that is responsive in a short time period. Fast dispatchable loads interface with microgrid controllers, responding to load and generation changes, , and legacy load management relays to either add or shed load. The microgrid can report how much dispatchable load they is available for a determined period of time, and when dispatchable loads across the community are aggregated a sizeable ‘battery’ is created. Environment ???. The TDX-operated high-penetration wind-diesel system operates 20% to 30% of the time wind-only, diesel-off using only fast dispatchable loads (resistive heaters mounted in a 6,000 gallon insulated water tank). Preliminary results utilizing a flywheel with 15-20 minutes of stored electricity indicate that in the future this facility will be able to operate wind -only, diesel- off +35-45% of the time. As a result overall greenhouse gas (GHG) emissions are reduces by over 70%. As TDX increases St. Paul’s renewable capacity in order to reach its 2020 goal, the incorporation of fast dispatchable loads will reduce generator fuel consumption and associated emissions. Community Additional wind turbines, and corresponding meters and controls – as well as a robust distributed dispatchable load scheme- will be required to meet St. Paul’s sustainability goal. Realizing this goal will create design, construction, management, operations jobs, with significant ancillary benefits for the community. TDX’s as the developer and operator of a successful high-wind penetration utility system in rural Alaska that community support and operator interest is critical for sustainable success. Because TDX is the local Alaska Native Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 13 of 25 7/8/14 village corporation created to provide economic wellbeing for the people of St. Paul, TDX Power is well positioned to successfully engender community support. TDX Power has had significant success developing hybrid power systems in remote locations, demonstrating the cost effectiveness of renewables. Over the past 15 years TDX has installed three hybrid wind-diesel systems in remote Alaskan communities. All three locations had existing diesel generators and also benefited from excellent wind-resources. Importantly, these three remote sites required continuous energy availability, as even temporary power lapses could be damaging to valuable equipment. Demonstrating power stability and proving the viability of hybrid systems has allowed TDX Power to enter into a relationship with the City of St. Paul Municipal Electric Utility, and recently connecting two of the site’s three 225kW wind turbines to the city’s power grid. Over a two month period TDX Power supplied 160,000 kWh to the City of St Paul Municipal Electric Utility grid, reducing the utility’s fuel usage by approximately 12,000 gallons. While TDX is still in the early phases of its project with the St. Paul municipal utility, the proven success of the hybrid system performance has caught the attention of other parties throughout Alaska who guide power-infrastructure decisions. Dependable systems that deliver demonstrable value are of clear interest to forward-thinking municipalities. Renewable energy generation must be sustainable: TDX Power will continue its long term commitment of improving infrastructure over time. With self -sufficiency by 2020 on the horizon, the time for St. Paul’s energy infrastructure improvement is now. 4.1 Project Team Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and experience to successfully complete 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. SECTION 4 – QUALIFICATIONS AND EXPERIENCE Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 14 of 25 7/8/14 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 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 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. Travis Hammond, Senior Project Manager, TDX Power, will serve as the Project Manager for this project. Mr. Hammond also has 8 years specialized experience in protective relay design and interface of AC/DC systems used in utility transmission and distribution systems. He has performed and led product testing, working with technicians to troubleshoot problems. He has designed analog and digital circuits for new products, schedules for software, manufacturing, and hardware teams; and prepares operational and functional test documents. Mr. Hammond’s hands-on experience will be beneficial in engineering design, construction and implementation for remote systems worldwide. 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 complex 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 this application Jan Tierson PE, Engineering manager/Lead EE Steve Hoskins PE, Lead EE Daniel Lenel, Lead ME Jason Motyka, EE Please refer to the attached resumes NEED RESUMES 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. Laura Bain, Controller Cindy L. Byfield, Project Costs and Controls 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 from the Renewable Energy Fund Grant Program. TDX Power has stringent accounting policies and procedures in place which are according to GAAP. All charges are reviewed for accuracy and for appropriate coding for the grant. Each cost must pass an approval process to insure that it is allowed by the terms of the grant. Additional review occurs when the grant reports are completed. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 15 of 25 7/8/14 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. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 16 of 25 7/8/14 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 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. There is no proposed system for this grant application. Grant proceeds will be used to fund the feasibility study. The study will form the basis for future energy design, production, and distribution. 5.1.2 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and describe potential barriers TDX Power will identify permits at the feasibility stage. 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. As the major land owner on St Paul, TDX has committed that excess property is available on St Paul near the existing TDX windfarm that will be made available for renewable development. TDX has also received permission from the FAA to located additional metrological towers on proposed wind farm expansion areas. Final new windfarm sites will be determined once all permitting and community approvals are obtained 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. TDX Power will identify technical risks at the feasibility stage. SECTION 5 – TECHNICAL FEASIBILITY Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 17 of 25 7/8/14 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  Aviation considerations  Visual, aesthetics impacts  Identify and describe other potential barriers All of the above environmental issues will be addressed and included as part of final site selection in this feasibility study. 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. The City of St. Paul operates a diesel power plant with the following diesel generators:  2 diesel generators Caterpillar Model 3512, rated at 830 kW each  1 diesel generators Caterpillar Model 3512, rated at 650 kW  1 diesel generator Caterpillar Model 3406, rated at 200 kW  1 diesel generator Caterpillar Model 3412, rated at 300 kW TDX power operates the POSS facility with the following generation assets:  2 generators Volvo Model TWD710G, rated at 150 kW each  3 Wind turbines Vestas V27, rated at 225 kW each Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 18 of 25 7/8/14 Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other 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) N/A b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor N/A ii. Annual O&M cost for non-labor N/A 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] N/A ii. Fuel usage Diesel [gal] N/A Other N/A iii. Peak Load N/A iv. Average Load N/A v. Minimum Load N/A vi. Efficiency N/A vii. Future trends N/A 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 N/A 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. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 19 of 25 7/8/14 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. It is hoped that if the community of St Paul can reach 80% utilization of renewable energy for electricity, heating, and ground transportation it will make the community more economically sustainable, prosperous, and thus promote long-term economic growth. 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. The basic assumption (based upon TDX’s own history of owning and operating a high wind penetration wind-diesel system for the past 15 years at its airport facility) is that renewable energy can be generated and delivered at a lower cost than conventional diesel fueled power sources. From past experience pre PCE rates will be reduced, post PCE rates will remain about the same. Residential heating costs and ground transportation (using electric vehicles) cost should be reduced 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 Each of the above issues will be addressed as part of this feasibility study. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 20 of 25 7/8/14 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] In order to reach 80% renewable for the community of St Paul it is expected that 4 MW – 8 MW’s of additional renewable nameplate generation capacity will be required b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ~ 80% of community load or ~ 2.5 MWh/yr ii. Heat [MMBtu] ~ 80% of community heating or 250,000 gallons/yr c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] N/A ii. Coal [tons or MMBtu] N/A 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) N/A 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. This will be evaluated as part of the overall feasibility study. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 21 of 25 7/8/14 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. Purpose of the feasibility study is to identify generation and demand improvement opportunities that are economically viable. 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 price - 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. This will be included as part of the overall project economic feasibility analysis SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 22 of 25 7/8/14 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. Lowering overall energy costs to a community leave more dollars available to be spent on other goods and services within the community. The purpose of finding ways to improve and increase renewable utilization in remote communities like St Paul is that fundamentally renewables can and should be a lower cost source of energy than conventional diesel fuel. This feasibility study will help define when adding additional renewable resources may no longer be cost effective (too much renewable) and when implementation of energy conservation measures (reduce energy demand) is most cost effective. In addition, this feasibility study will establish an energy baseline that can be used to measure and verify future energy reductions or utilization of renewable energy. Renewable energy resource availability (kWh per month) N/A Estimated sales (kWh) N/A Revenue for displacing diesel generation for use at private sector businesses ($) N/A Estimated sales (kWh) N/A Revenue for displacing diesel generation for use by the Alaskan public ($) N/A 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 application. 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? Project financing will be determined at the feasibility stage 6.2.3 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. TDX is prepared to absorb any additional cost increases beyond what is stated in this proposal. 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. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 23 of 25 7/8/14 This feasibility study will a complete project on its own merits. However, it may be used as a base for future projects. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 24 of 25 7/8/14 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 See 6.1.3 The feasibility study in itself will not benefit the public other than raise public awareness of the benefit renewables can provide. However, projects borne from the conclusions of the feasibility study will benefit the public and lead to stronger more economically sustainable community with better paying jobs. Once large scale renewable projects are implemented positive there should be positive global exposure as to how remote Alaskan communities are addressing the high cost of energy and finding cost effective renewable and sustainable solutions. 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. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 25 of 25 7/8/14 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 administratively 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 The results from this feasibility study will be used as the basis to implement a larger renewable project for the community of St Paul. TDX has successfully developed and implemented previous renewable projects and intends to do so again. 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 Once the grant is awarded, work on the feasibility study may begin immediately. 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. The Documentation of support must be dated within one year of the RFA date of July 8, 2015. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 26 of 25 7/8/14 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. TDX Power competitively won a $1.2 million Microgrid grant for DOE that will help identify and control issues associated with fast, medium, and slow response renewable dispatchable loads. TDX successfully intertied 2 x 225 kW wind turbines into the City of St. Paul’s electrical distribution system and has the City’s support for Microgrid implementation. TDX has successfully owned and operated a 550 kW high wind penetration wind-diesel system for the last 15-years (since 1999) that operates >20% of the time in wind-only mode (diesel-off) without any electrical storage. This system supplies reliable electricity and heat to the Business Park and industrial area next to the St. Paul airport. 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. No prior project phases. 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 IX Grant Application - Standard Form AEA 15003 Page 27 of 25 7/8/14 Community/Grantee Name: Regular Election is held: Date: Printed Name Title Term Signature Kord Christianson President, TDX Power 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 See Attached TDX Board Resolution Mailing Address: 615 E 82nd Ave, Suite 200 Anchorage, AK 99518 Phone Number: 907-762-8439 Fax Number: E-mail Address: kord@tdxpower.com Federal Tax ID #: 92-0167220 Please submit an updated form whenever there is a change to the above information. Grantee Contact Information: Authorized Grant Signer(s): SECTION 13 – AUTHORIZED SIGNERS FORM Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 28 of 25 7/8/14 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 Kord Christianson Signature Title President, TDX Power, Inc. Date 9/15/2015 SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: