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HomeMy WebLinkAboutREFVIII_Chefornak Wind Heat_2014 FINAL AEA! ! Renewable!Energy!Fund!Round!VIII!Application! Chefornak!Wind!Heat!System! Prepared!for!the!Alaska!Energy!Authority! September!22nd,!2014! ! ! ! Prepared!By:! Intelligent!Energy!Systems! 110!W15th!Ave!Suite!B! Anchorage,!AK!99501! !!!!!! ! Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 1 of 32 7/2/14 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/REFund8.html. • 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 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. • 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. • In the sections below, please enter responses in the spaces provided, often under the section heading. 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. • In accordance with 333 (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 is 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. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 2 of 32 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Chefornak/Naterkaq Light Plant Type of Entity: Local government/City Fiscal Year End: June 30 Tax ID #92-0068470 Tax Status: ☐ For-profit X Non-profit ☐ Government (check one) Date of last financial statement audit: November 2009 Mailing Address: Physical Address: City of Chefornak Chefornak, Alaska PO Box 29 Chefornak, AK 99561 Telephone: Fax: Email: 907-867-8147 907-867-8704 citychefornak@yahoo.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Title: Rosalie Mathew Mayor, City of Chefornak Mailing Address: City of Chefornak PO Box 29 Chefornak, AK 99561 Telephone: Fax: Email: 907-867-8147 907-867-8704 citychefornak@yahoo.com 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Anna Abraham 907-867-8213 907-867-8724 Naterkaq_plant@yahoo.com Ona Brause 907-297-2868 907-677-1886 ona@iesconnect.net Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 3 of 32 7/2/14 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. 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 X 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/REFund8.html. (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) Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 4 of 32 7/2/14 SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Chefornak Wind Heat System 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, 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. ! Chefornak is located on the south bank of the Kinia River at its junction with the Keguk River in the Yukon-Kuskokwim Delta. The village lies within the Clarence Rhode National Wildlife Refuge, established for migratory waterfowl protection. Chefornak is 98 air miles southwest of Bethel and 490 miles southwest of Anchorage. The city’s GPS coordinates are 60.159070, -164.269437. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. ! The City of Chefornak and its residents will be the primary beneficiary of the proposed project. !! 2.3 PROJECT TYPE Put X in boxes 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 ☐ 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 ☐ X Final Design and Permitting ☐ Feasibility and Conceptual Design ☐ Construction Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 5 of 32 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. ! This project consists of the installation and integration of five Windmatic 17S turbines 95 kW wind turbines (475 kW) into the Naterkaq Light Plant’s generation system. The integration of this wind energy includes the installation of a load balancing boiler, 40 residential electric thermal storage (ETS) units, wind-diesel supervisory control and data acquisition system (WDSC), and improvements to the electrical distribution system which include sectionalizing, the replacement of 3 power poles and one distribution transformer, as well as the extension of the distribution line by 3 power poles to the wind turbines. The proposed system is similar to those installed in the neighboring villages of Kongiganak, Kwigillingok and Tuntutuliak. ! 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) ! This project uses wind energy to displace diesel fuel resulting in lower energy costs, creation of local jobs, deferment of construction of additional bulk fuel storage, and improved generation efficiency. • Fuel displacement for power generation: (48,715 gallons displaced with wind) • Fuel displacement for home heating (8,720 gallons displaced with wind) • Fuel displacement in heat recovery loop (1,600 gallons displaced with wind) • Deferred bulk fuel storage (city usage 130,000 gallons, usable storage capacity 72,000) • Increased distribution efficiency (5% estimated reduction in line loss) • Creation of local jobs (2 part time wind techs, $45,000) • Improved power plant management The wind energy project is estimated to displace 60,700 gallons of diesel fuel annually. 48,715 used for power generation, 8,700 gallons of home heating fuel, and 1600 gallons are displaced in the power plant heating loop. The utility savings that can be passed on to the customers include reduced fuel purchases of $243,575 annually based on a $5.00/gallon average price for fuel over the life of the project. Additionally, the project will help lower heating costs to homeowners who have electric thermal storage (ETS) devices. These residents can expect annual savings of 220 gallons of heating fuel. This fuel is displaced using the electric thermal storage devices to capture surplus wind energy generated from the wind system. Excess wind energy will be sold by the electric utility for $.10 per kilowatt-hour (estimated), which is equivalent to paying approximately $2.90/gallon heating fuel. Homeowners use an average of 766 gallons of heating fuel, for which they currently pay $7.10 per gallon to have delivered ($6.78 when purchased in small amounts at the store – see heating receipt plus 2% sales tax). Annual savings for a residential customer with an installed ETS is an estimated $1,122.00 (8.00-2.90) x 220 = 1,122. 40 residential ETS units are proposed for this project, offering a total residential savings of up to $44,880. Increased utility revenues result from an estimated sales of 288,335 kWh of excess electricity as heat, for $28,833.50. 107,243 kWh will go to the heat loop @ $$.10/kWh= $10,724. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 6 of 32 7/2/14 Deferment of New Bulk Fuel Storage: Currently the Naterkaq Light Plant and the City of Chefornak have combined usable fuel storage of 76,840 gallons. The power plant usage exceeds 130,000 gallons annually. Once the City tanks are empty, fuel must be either purchased at a higher price from Chefarnmute Corporation, the school, or be flown in from Bethel. These types of emergency purchases typically raises the cost of fuel to over $7.00 per gallon. The proposed wind integration system will reduce the need to invest in addition bulk fuel storage capacity. Improved power plant management: The integration of the wind system will include the installation of a wind diesel control system. This system has the added benefit of improved remote diagnostic capability at the Naterkaq Light Plant. The combination of the SCADA system and distribution improvement can be expected to reduce line losses by 5 to 10%. This will increase generation fuel efficiency by up to 20,000 gallons per year. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. ! The project’s budget will be used to complete final design and permitting of the Chefornak Wind Heat System. The budget is comprised of the AEA Renewable Energy Fund Grant with matching funds contributed from City of Chefornak/Naterkaq Light Plant in the amount of $2,500 and Intelligent Energy Systems in the amount of $5,000 for a total of $382,400. Section 2.7 contains the budgetary break down. This application is for final design and permitting funding only. 2.7 COST AND BENEFIT SUMMARY Include a summary of grant request and your project’s total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $ 382,400 2.7.2 Cash match to be provided $ 0 2.7.3 In-kind match to be provided $ 7,500 2.7.4 Other grant funds to be provided $ 0 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4)$ 389,900 Other items for consideration 2.7.6 Other grant applications not yet approved $ 0 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including $ 4,526,458 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 7 of 32 7/2/14 estimates through construction. 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 0 2.7.9 Estimated Direct Financial Benefit (Savings) The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. $ 6,348,805 (Gross) 2.7.10 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. $ 2,091,140 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). 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. The management structure includes: • City of Chefornak; Mayor Rosalie Mathew, Anna Abraham the utility manager, and Alexie Jimmy utility board Chairman. • IES; Dennis Meiners, Patrick Boonstra, Ben May and Ona Brause will provide technical assistance, design, construction and operational support required to build, operate and manage this project. IES will coordinate the engineering and construction activities drawing on experience from similar projects. Additional assistance and consulting provided by experts in the field of wind, wind diesel and wind heating systems. • On-site supervisor; Patrick Boonstra, IES. • Local Project Manager; Alexie Jimmy. • Construction management; Jim St. George, STG. • Assistance available from Chaninik Wind Group technicians; technicians to provide local support for wind turbine construction and ETS installation. *Resumes for key Personal are attached* ! ! ! ! Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 8 of 32 7/2/14 ! 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points 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. Milestones Tasks Start Date End Date 1 Project scoping/Conceptual design framework for final design July 2015 July 2015 2 Permit applications July 2015 August 2015 3 Environmental assessment and mitigation plans July 2015 August 2015 4 Resolution of land rights and right of way issues July 2015 August 2015 5 Permit approvals July 2015 November 2015 6 Final design report – Draft July 2015 March 2016 7 System cost estimate March 2016 May 2016 8 Final business/operational plan March 2016 May 2016 9 Final design report and other documents - Final May 2016 May 2016 3.3 Project Resources Describe the personnel, contractors, personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Design and Permitting responsibility breakdown: • Dennis Meiners, IES; Albert Sakata, Sakata Engineering; and Carl Brothers, Frontier Power Systems: Overall system design, installation supervision, commissioning and performance monitoring. • Ona Brause, IES: financial management and reporting • Jim St George, STG: Pile foundations installations as well as the tower erections. • Alexie Jimmy, Naterkaq Light Plant: Local coordination and local crew supervisor. • Anna Abraham, Naterkaq Light Plant: Local accounting, financial supervision and reporting. All of the system components, control and integration, power system stability have been proven and are in operation in the region. Project support, training, installation, commissioning and emergency assistance is available. *Please see attached resumes*! Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 9 of 32 7/2/14 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. ! The main project point of contact will be Patrick Boonstra of IES. He will be supported by additional IES staff as well as the Naterkaq Light Plant, the City of Cherfornak and Alexie Jimmy. Anna Abraham’s will provide local grant assistance and record keeping and her counterpart in Anchorage will be Ona Brause with IES. Regular reports will be provided as required by the signed grant agreement. Throughout design and permitting, quarterly project status meetings will be held with the team to track progress and address issues as they arise. ! 3.5 Project Risk Discuss potential problems and how you would address them. ! There are risks inherent in any project, especially in any project in rural Alaska. Most risks for a project like this are related to the construction phase. IES has designed and constructed similar projects in three nearby communities. Confidence in the proposed design is high. However, there are many potential and interrelated variables that present risks at a new project site. Storms can make it impossible to work, and an early freeze up can hinder equipment and materials deliveries, whereas no freeze up or a late freeze up can prevent construction from being completed in the allotted time. These are recognized risks, and are addressed with careful scheduling and logistics. It is essential to have a schedule that makes the maximum use of the local workforce. Little to no risks for completing final design and permitting are known. Any risk shown will be mitigated to the best of the project team’s ability by creating a project plan and system design shaped by experience combined with proven system components and competent project partners. ! 3.6 Project Accountant(s) Tell us who will be performing the accounting of this Project for the Grantee and include contact information, a resume and references for the project accountant(s). 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 project management support. ! Financial management of the project accounting will be the responsibility of IES. Ona Brause be the lead for budget and accounting. Ms. Brause will be working directly with Chefornak and Anna Abraham at Naterkaq Light Plant for budget approval and reporting purposes. Contact information for Ms. Brause is ona@iesconnect.net, 907-297-2868 phone and 907-677-1886 fax. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 10 of 32 7/2/14 3.7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and whom will be the primary user of the accounting system. Financial accounting will be done in QuickBooks and monitored through a project specific bank account to insure separation of funds and ease of auditing. The responsible contact will be Ona Brause of IES. All project expenditures are reviewed and approved by the grantee before expended. 3.8 Financial Management Controls Discuss 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. All project funds will be managed from a project specific bank account to provide direct tracking. All invoices are referenced to budgeted items, which were developed based on allowable costs. As invoicing is approved and received it is measured against the proposed budget for compliance. Budgets are developed based on best-estimated costs and adjusted as the project proceeds to reflect actual costs, with time and materials costs set out. IES will be retaining and submitting copies of supporting documentation for all Grantors reimbursement, no unallowable costs are expected or allowed to be included. SECTION 4 – PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. 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 satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss 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. ! At least 12 months of wind speed, and direction data were collected at two anemometer heights. A complete resource assessment report, which provides data to support a finding of Class 6 or outstanding wind resource, was completed and submitted with the Chefornak Wind Heat Conceptual Design Report. The wind resource report is entitled: Chefornak, Alaska REF 7 Wind- Diesel Project Analysis. This report includes current wind resource, fuel cost estimated and modeling assumptions and results. A 30-meter NRG Systems, Inc. tubular-type meteorological (met) tower was installed in June 2012 on Native Corporation land immediately east of the village and near the Kinia River. A cellular Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 11 of 32 7/2/14 telephone communication tower is near this site. The met tower is well exposed to winds from all directions, particularly the prevailing northeasterly winds of winter. Collected data indicates high average wind speed mean of 16.9 mph, which higher average wind speeds in the winter, which moderate during the summer yet are sufficient for producing electricity. The wind resource evaluation indicates low turbulence intensity, with no indication of any significant icing conditions, which would result in diminished wind power production. Wind speeds correlate well with the typical village load profile with high wintertime electric and thermal energy demand and lower summer-time energy demand. Chefornak experiences moderately cool summers and cold winters with resulting higher than standard air density. The data set of the measured mean annual temperature of -0.9°C was compromised however by failure of the temperature sensor in mid-March, 2013. With inclusion of late March thru July, 2013 data, the mean annual temperature would be higher than indicated. Calculated annual mean air density during the met tower test period exceeds by 5.9 percent the 1.225 kg/m3 standard air density at a 20-meter elevation. There is a good correlation between when the wind power is produced and when it is needed, as wind turbines typically produce more power at low temperatures/high air density than at standard temperature and density. Chefornak met tower data synopsis: Data dates 6/6/2012 to 7/8/2013 (13 months) Wind power class Class 6 (excellent), based on wind speed and WPD Wind power density mean, 30 m 532 W/m2 Wind speed mean, 30 m 7.58 m/s (16.9 mph) Max. 10-min wind speed 24.2 m/s (54.1) Maximum 2-sec. wind gust 31.3 m/s (70.0 mph), January 2008 Weibull distribution parameters k = 2.10, c = 8.41 m/s Wind shear power law exponent 0.146 (low) Roughness class 1.18 (description: fallow field) IEC 61400-1, 3rd ed. classification Class III-c (at 30 meters) Turbulence intensity, mean (at 30 m) 0.082 (at 15 m/s) Calm wind frequency (at 30 m) 18% (< 4 m/s) (13 mo. measurement period) Wind Speed: Anemometer data obtained from the met tower, from the perspectives of both mean wind speed and mean wind power density, indicate an outstanding wind resource. Note that cold temperatures contributed to a higher wind power density than standard conditions would yield for the measured mean wind speeds. Anemometer data summary: Variable Speed 30 m A Speed 30 m B Speed 23 m Measurement height (m) 30 30 23 Mean wind speed (m/s) 7.46 7.42 7.08 MoMM wind speed (m/s) 7.55 7.53 7.19 Max wind speed (m/s) 24.2 24.5 23.3 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 12 of 32 7/2/14 Weibull k 2.10 2.13 2.09 Weibull c (m/s) 8.41 8.37 7.99 Mean power density (W/m²) 532 522 462 MoMM power density (W/m²) 532 522 462 Mean energy content (kWh/m²/yr) 4,664 4,575 4,045 MoMM energy content (kWh/m²/yr) 4,664 4,575 4,045 Energy pattern factor 1.797 1.792 1.819 Frequency of calms (%) 19.2 19.0 20.7 Possible records 57,096 57,096 57,096 Valid records 52,814 53,495 55,530 Missing records (ice, tower shadow) 4,282 3,601 1,566 Data recovery rate (%) 92.5 93.7 97.3 Time series calculations indicate high mean wind speeds during the winter months with more moderate, but still relatively high, mean wind speeds during summer months. This correlates well with the Chefornak village load profile where winter months see high demand for electricity and heat and the summer months have lower demand for electricity and heat. The daily wind profiles indicate relatively even wind speeds throughout the day with slightly higher wind speeds during night hours. 30 m A anemometer data summary: Year Month Recovery Mean Max Gust Std. Dev. Weibull k Weibull c Rate (%) (m/s) (m/s) (m/s) (m/s) (m/s) 2012 Jun 92.2 5.50 13.6 16.4 2.31 2.53 6.19 2012 Jul 89.3 6.62 16.4 21.0 3.05 2.28 7.46 2012 Aug 86.0 7.29 17.0 23.3 3.35 2.32 8.23 2012 Sep 93.3 7.47 17.1 22.6 3.78 1.98 8.36 2012 Oct 99.8 9.31 23.6 31.3 3.89 2.55 10.48 2012 Nov 97.5 8.65 18.1 22.9 3.77 2.46 9.75 2012 Dec 85.2 7.79 20.5 25.2 3.44 2.34 8.73 2013 Jan 96.0 9.20 24.2 28.7 4.46 2.15 10.36 2013 Feb 97.0 6.54 17.5 21.4 3.40 1.97 7.35 2013 Mar 93.3 7.46 18.3 22.1 3.75 2.08 8.41 2013 Apr 94.1 7.52 16.1 19.9 3.07 2.66 8.46 2013 May 96.1 6.71 18.1 21.8 3.64 1.90 7.55 2013 Jun 82.9 6.22 17.2 21.8 3.54 1.83 7.00 2013 Jul 93.8 6.84 14.4 17.9 2.38 3.06 7.65 All data 92.5 7.46 24.2 31.3 3.70 2.10 8.41 Mean of monthly means 7.55 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 13 of 32 7/2/14 Wind Direction: The Wind frequency and wind energy rose data indicates that winds at the Chefornak met tower site are primarily uni-directional, with northeasterly winds predominating. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Naterkaq Light Plant,serves the City of Chefornak and operates a diesel power plant consisting of 3 engine generator sets: • Gensets 1&2, 370 kW John Deere model 6125 diesel engines, each approximately 22,000 engine operating hours) • Genset #3. 180 kW, John Deere 6081, approximately 10,000 engine hours Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 14 of 32 7/2/14 (NLP is in the process of replacing the 6125 generators with newer rebuilt 6125’s.) The bulk fuel storage for the power plant is shared with the City of Cherfornak. The City has a usable diesel fuel storage capacity of 76,840 gallons. The City’s annual fuel purchase for diesel generation was 184,356 gallons last year. Due to the increased community infrastructure and population growth, bulk fuel storage capacity is now insufficient to meet the utility’s requirements. In 2013, the utility had used up its stored fuel by March and purchased 20,000 gallons at retail price ($6.50-$7.00/ gal) from the school and corporation. In 2014, one of the utility’s 5,000-gallon storage tanks will be decertified for service. This will increase the need for bulk fuel storage, and further increase the cost of power. Continued load growth is expected from increases in population, general energy usage and expansion of the water and sewer project. A significant value component of the wind project is not only the displacement of diesel fuel but also the reduction in investments in bulk fuel storage. An estimate has not been developed for the cost of adding 30,000 gallons of bulk fuel storage. Denali Commission guidelines for construction of small bulk fuel storage facilities indicate a cost benchmark of $18.17 per gallon. Therefore annual deferred investment costs of 20 years could easily exceed $20,000 annually. When added to the sometimes $4 per gallon upcharge for retail priced fuel (25,000 gallons x $4.00 = $100,000), the value of the wind farm deferring investment in bulk fuel storage and emergency fuel purchases could easily exceed $100,000 annually. Chefornak’s 7,200/12,470 kVA overhead electrical distribution system was constructed in 1986. Certain parts of the systems require replacement while other sections can be repaired. In the last few years, line loss has been reported to exceed 30%. Upon investigation, IES determined reported line losses were due to incorrect reading of three phase power meters. Today, reported line loses are less than 10%. Some of these losses are due to unmetered streetlights. Chefornak has replaced 27 of these streetlights with LED lights. Only one of these LED lights is metered, and the measurements extrapolated to the other meters. ! 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. ! Please see attached report: City of Chefornak, Final Energy Business Plan, May, 2012 • Chefornak currently has insufficient bulk fuel storage. The proposed wind integration system will reduce diesel consumption thereby reducing the existing and future bulk fuel needs deferring the need to build additional bulk fuel storage for the community. • The community is completely dependent on fossil fuels for power generation, heating and transportation. Utilizing wind will help lower the community’s reliance on fossil fuels. This will increase the longevity of the existing diesel generation plant. • Savings seen by the utility can be used to improve existing energy infrastructure. ! Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 15 of 32 7/2/14 ! 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. In 2013, Naterkaq Light Plant generated 1,812,860 kWh and sold 1,026,057 kWh. An investigation was undertaken to determine the source of the large line losses, and it was determined to be attributed primarily to reading errors. The power plant serves 101 Residential customers, 43 commercial customers, and 7 public facilities. The primary public facilities were the school and the washeteria. During 2013, average electrical load at the powerhouse was 209 kW. The minimum reported load is 167 kW, which occurred at night during the summer, and the maximum reported electrical demand was 357 kW, which occurred during an afternoon in February. A conceptual design was completed by AEA for the construction of the new power plant in 2008. The load has grown 3% annually since 2008. With the opening of the new school, the average load is expected to increase to 236 kW, with an expected increase of the minimum average electrical load by 50 kW. These additions have increased annual fuel demand at the utility by over 30,000 gallons. Annual kWh sales are estimated to reach 2,000,000 by 2018. Additional load growth is attributed to the operation of the Coastal Villages fish processing plant, the expansion of the water and sewer project, and new housing. The water and sewer plant is in the final design phase, with construction anticipated in 2018-2019. A more detailed analysis of load growth is discussed in the previously submitted CDR. Adding renewables will help lessen the impact of rising fuel costs and increased consumption on the community. These costs are discussed below. A fuel price of $5.88/gallon was chosen for the initial HOMER analysis by reference to Alaska Fuel Price Projections 2013-2035, prepared for Alaska Energy Authority by the Institute for Social and Economic Research (ISER), dated June 30, 2013 and the 2013_06_R7Prototype_final_07012013 Excel spreadsheet, also developed by ISER. The $5.88/gallon price reflects the average value of all fuel prices between the 2015 (the assumed project start year) fuel price of $4.91/gallon and the 2034 (20 year project end year) fuel price of $7.04/gallon using the medium price projection analysis with an average social cost of carbon (SCC) of $0.61/gallon included. By comparison, the fuel price for Chefornak (without social cost of carbon) reported to Regulatory Commission of Alaska for the 2012 PCE report is $4.33/gallon ($1.02/Liter. Assuming an SCC of $0.40/gallon (ISER Prototype spreadsheet, 2013 value), the 2012 Chefornak fuel price was $4.73/gallon ($1.25/Liter). Heating fuel displacement by excess energy diverted to thermal loads is valued at $6.93/gallon ($1.83/Liter) as an average price for the 20-year project period. This price was determined by reference to the 2013_06_R7Prototype_final_07012013 Excel spreadsheet where heating oil is valued at the cost of diesel fuel (with SCC) plus $1.05/gallon, assuming heating oil displacement between 1,000 and 25,000 gallons per year. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 16 of 32 7/2/14 Fuel cost table (SCC included) ! ! ! ! ! 4.3 Proposed System Describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 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 • Basic integration concept • Delivery methods ! The power system is designed for expansion through the addition of increased wind capacity and residential electric thermal storage (ETS) devices. The proposed project design offers a simple and reliable wind diesel architecture which has been proven in other villages in the region. The system consists of: • Five Windmatic 17 S wind turbines with regenerative drives. These turbines each have a nominal power rating of 95 kW. They will be mounted on lattice towers, with driven pile foundations. • Distribution line upgrade. A three-pole three-phase power line is required to reach the designated wind site. Repairs to the existing distribution system include the replacement of three failing power poles, as well as the installation of a distribution sectionalizer, and 225 kVa distribution transformer. • Upgraded diesel controls. The installation of advanced engine generator controllers. • Installation of a load balancing boiler • Wind Diesel Supervisory Control system, (WDSC) with multiple unit control of ETS devices • 40 Steffes residential electric thermal storage devices (ETS), model 2105. Each individual unit has a maximum charge rate of 6 kW, and an energy storage capacity of 33.75 kWh. The Chefornak Wind Heat System will consist of five Windmatic 17S 95 kW wind turbines, 475 kW of installed capacity. This system will provide a large proportion of wind energy used to offset fuel used to generate electricity at all times, even during periods of low wind. At more modest wind speeds, the system is designed to generate surplus energy that is then captured and stored as heat in residential electric thermal storage devices. Rapid fluctuations in energy are absorbed by a rapidly ISER medium cost projection 2015 (/gal) 2034 (/gal) Average (/gallon) Average (/Liter) Diesel fuel $4.91 $7.04 $5.88 $1.55 Heating oil $5.96 $8.09 $6.93 $1.83 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 17 of 32 7/2/14 responding electric boiler to provide frequency regulation. This boiler will be interfaced with the power plant coolant header and heat recovery loop. The system is designed to provide over 288,335 kWh of excess electricity. This electricity will be dispatched to 40 electric thermal storage (ETS) units where it will be used to displace 8,720 gallons of residential heating fuel. The entire wind diesel system will be controlled using a wind diesel supervisory control and data acquisition system (WDSC). Some improvements to the electrical distribution system and consideration of further options for diesel heat recovery, as well as expansion of the wind system will be included as part of the final design. Minor distribution upgrades are required to connect the wind system to the existing power system. Specific examination of a detailed design for an expanded heat recovery system will be considered in the final design. The final design will also include design and engineering of the electrical distribution sectionalizing equipment, the replacement or repair of select power poles, as well as the 3 pole distribution extension to the wind farm site. Wind Turbines Several wind turbines were considered for this project. These included: the Windmatic 17S, the Northwind 100, the Vestas V-27 and the EWT 900. The EWT turbine was eliminated from consideration, due to potentially problematic foundation and installation considerations, and FAA height restrictions. The runway at Cherfornak is over 3500 feet, which places height restrictions on projects in the area. The Windmatic 17S wind turbine was selected for this project for several reasons. First of all there are 15 of these turbines operating in the surrounding communities of Kongiganak, Kwigillingok, and Tuntutuliak. A regional support network for these machines has been established. The strategy of multiple machines, which can be worked on locally, is intended to provide redundancy so that the community is more likely to always have several turbines operating regardless of problems. The turbine has a track record of ruggedness and reliability. This is the same wind turbine AEA has selected for its project in St. George. The turbines will be installed on four legged 85-foot lattice towers using pile foundations. The turbines have a 17-meter rotor, and a rated capacity of 95 kW at 35 mph. They are available from a number of sources as fully remanufactured machines and most parts are available from a number of supplies as off the shelf components. Continuous improvements are being made and incorporated into existing machines. The wind turbines are equipped with both a regenerative drive and a customer interface. The regenerative drive improves weak grid integration by eliminating reactive power requirements and switching transients. The wind turbine controller sends information such as the state of the machine (running, stopped, on-line and off-line, power generated, alarms, nacelle position, etc.) to the wind system supervisory controller. Operating machine instructions include starting machines, stopping machines, reducing the power output of the machine. The wind turbines are connected to the diesel plant via fiber optic cable. These turbines will be placed approximately 250 feet apart and located 1000 feet from the existing 12.47 kV transmission line. Cost estimates for turbine installation were developed based on regional experience with similar projects and after review of geotechnical information and structural requirements. Gross annual estimated energy production for each turbine was arrived at through comparison of power curves and wind resource information using HOMER. A separate resource assessment and wind diesel Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 18 of 32 7/2/14 project analysis was conducted by Doug Vaught of V3 energy. This report includes a description of the resource assessment as well as how the wind turbine production was established. A 20-year investment horizon and a 5% nominal interest rate were used for economic analysis. These are the same investment guidelines as proposed in the Alaska Rural Energy Plan, April 2004, and supported by ISER analysis. Electric Thermal Storage A preliminary survey of the community indicated that the average home in Chefornak was 1100 square feet and uses over 766 gallons of heating fuel annually. During a windy week in the winter a single home can consume an entire 55-gallon drum of heating fuel. This project includes the installation of 40 Electric Thermal Storage (ETS) units. The ETS units are designed to capture excess wind generated electricity as heat and store it for use at a later time. An ETS unit is an insulated metal box, about the same size as a Toyo Stove, which contains electric heating elements embedded within special, high-density ceramic bricks. These bricks are capable of storing vast amounts of heat for extended periods of time. During periods of excess wind energy, the power plant supervisory controller broadcasts a control set point to each individual ETS unit adjusting duty cycle on a sub-second basis in a complementary manner to the availability of wind energy. A thermostat regulates the delivery of the heat to the room. The controller in each ETS unit broadcasts back its status and energy usage to the power system supervisory controller. There are over 100,000 of these units in operation in the mid-west states and this system is in use in the villages of Kongiganak, Kwigillingok and Tuntutuliak. The system provides a lower cost, low maintenance method of home heating. The individual room-heating units can be sized in order to fit the existing distribution system, and the room application. For instance a typical room unit, which is capable of providing heat for the main rooms of the house, has the dimensions of 58 inches in length, 24.5 inches in height, and 10.5 inches in depth, and when filled with heat charge bricks. The room units are non-ducted and are designed to heat the room or area into which they are placed. A room unit can be equipped with slow charge 6 kW elements or fast charge 10 kW elements. While the energy storage capacity (33.75 kW) and heat output (19,000 btu) of each unit remains the same, maximum charge capacity is limited in order to better fit with distribution loading. Homeowners who have the ETS devices can expect annual saving of 220 gallons of heating fuel. Excess wind energy is sold by the electric utility for $.10 per kilowatt-hour. This is equivalent which is equivalent to approximately $2.90/gallon heating fuel. Homeowners currently pay $7.10 per gallon of delivered heating oil in Chefornak. Annual savings for a residential customer with a wind enabled electric thermal storage device is estimated to be $1,122. (8.00-2.90)x 220 = $1,122 annual savings. 40 residential ETS units are proposed for this project, offering a combined savings of $44,800. Wind Diesel Supervisory Controls and Load Regulating Boiler Whenever wind energy is available, and there is a need for energy, the wind turbines will be able to automatically turn on and the produce energy that will be integrated into the grid. As the energy output of the wind turbines increases, the diesel power plant recognizes the incoming energy as a negative load, up to the point where the diesel generators reach their low power output threshold. At this condition, additional wind energy must be managed in order to keep the wind energy from Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 19 of 32 7/2/14 driving the diesel generator sets into a reverse power condition. As the wind power in the system surges, the diesel engine governors adjust to fill in lulls in the wind, and a fast acting boiler is added to absorb and release surplus wind energy. The proposed design includes the installation of a fast acting load regulating boiler to regulate system power flows. A boiler-ETS configuration provides redundancy for precise power system regulation to capture excess wind and balancing the energy generation. The boiler will rapidly absorb short and/or longer energy bursts. Each electric heat recovery boiler would be plumbed into the existing heating system and regulated using the same thermostatic controls. Excess wind energy captured by the boiler can provide heat to a waste heat recovery loop to provide heat to the community buildings. The school represents a new large, interruptible energy storage system that could benefit from future expansion of the wind project. All heat recovery loads will require separate metering and service panels, including cables and breakers. Some modifications will be required to the existing power system control panels to make room for a wind capable supervisory control and data acquisition system. In addition, the current diesel control system will be modernized to improve reliability and control functionality. These upgrades will consist of replacement of older Woodward Engine Generator controllers with units that have greater functionality and wider support. The WDSC will automate the paralleling and selection of engine generators; wind turbine and load control systems to match the community load and optimize the use of available wind power. The WDSC will provide remote monitoring and remote diagnostics to allow remote support of local operators. A fiber optic link is proposed to provide communication control between the diesel power plant and the wind system.! 4.3.2 Land Ownership 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. ! There are no foreseen land ownership issues in the design. The proposed wind heat system has the blessing of the City of Chefornak. The turbine siting is on city owned land. There are no known flood hazards at the selected wind site. A copy of the actual ANCSA 14(c) survey from the Bureau of Land Management was used to complete the site control for the Chefornak wind system. The wind turbine sites are all be located within Tract E, a 227-acre tract that will be conveyed to the City after the survey is signed and recorded in 2014. There is a signed settlement agreement between the City and Chefarnrmute dated June 19, 2008, stating the land identified on the map of boundaries will be conveyed to City within 120 days after the survey plat is recorded. The State Historic Protection Office (SHPO) has been contacted, and indicates that this is not area or archeological significance. All ETS units will be installed on an opt-in basis with the approval of the building occupants or owners. They will be installed in existing structures with respect to condition of the distribution system and phase balancing. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 20 of 32 7/2/14 4.3.3 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 discuss potential barriers After contacting the USFWS, the FAA and the Corp of Engineers it is determined that permitting for this project will be relatively simple. The power lines to the wind turbines will extend on grade from nearby 3-phase power. The wind turbines will be constructed on pile foundations that will not require any filling of wetlands, and do not require a Section 404 permit. It is not anticipated that any of the project will interfere with or result in the fatality of any endangered species or migratory birds. USFWS has requested that power lines be buried if possible, to refrain from using guyed towers, and to maintain lattice towers by keeping them free of raven nests. Preliminary locations were presented to the FAA, and they have requested a final review of the selected sites and that the wind turbines be surveyed within one month of installation. Andrew Grossman serves as an environmental consultant for the IES projects. He is retired USFWS and NMFS biologist experienced in permitting of construction projects in Alaska. • Threatened or endangered species USFWS has identified no nesting sites in the area • Habitat issues N/A • Wetlands and other protected areas N/A • Archaeological and historical resources N/A • Land development constraints N/A • Telecommunications interference N/A • Aviation considerations N/A • Visual, aesthetics impacts N/A • Identify and discuss other potential barriers N/A State Historic Preservation Office The SHPO issued a finding of No Historic Properties Affected for the project. U.S. Fish and Wildlife Service The U.S. Department of the Interior Fish and Wildlife Service has been consulted based on a 5 wind turbine project and consultation occurred with respect for impact to endangered species. On the Y– K Delta, spectacled eiders breed mostly within 15 kilometers (km) (9.3 statute miles (mi)) of the coast from Kigigak Island north to Kokechik Bay (Service 1996), with smaller numbers nesting south of Kigigak Island to Kwigillingok and north of Kokechik Bay to the mouth of Uwik Slough. The coastal fringe of the Y–K Delta is the only subarctic breeding habitat where spectacled eiders occur at high density (3.0–6.8 birds/square kilometer (km2), 1.2–2.6 birds/square mile (mi2)) (Service 1996). Nesting on the Y–K Delta is restricted to the vegetated intertidal zone (areas dominated by low wet-sedge and grass marshes with numerous small shallow water bodies). Nests are rarely more than 190 meters (m) (680 feet (ft)) from water. (Federal Register/ Vol. 66, No. 25) The Steller’s Eider is not known to breed around Chefornak, although the community is within the critical habitat region. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 21 of 32 7/2/14 Other wind projects in the region have cleared USFWS review, including those in Kwigillingok, Kongiganak and Tuntululiak do not appear to have negatively impacted either of these species. U.S. Army Wetlands Permit This project will not significantly disturb or place fill material on existing soil in a wetlands determination from the U.S. Army Corps of Engineers as this project for the placement of piling falls under the general Nationwide permit. Federal Aviation Administration Review The wind farm portion of this project requires approval by the Federal Aviation Administration (FAA) and review by the U.S. Fish and Wildlife Service (USFW). An FAA Aeronautical Study (No. 2008-WTW-5725-OE) was completed that authorizes construction of a single wind turbine up to 150 feet above ground level. The Aeronautical Study approval expired on January 10, 2013. A request for extension and an Actual Construction Notice, Form 7460-2, will be submitted to the FAA prior to expiration. New permits for specific turbines sites will be submitted for project completion. ! 4.3.4 Environmental Address 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 discuss other potential barriers ! The land for the project has been provided by the City of Chefornak. Currently, there is no federal funding involved, no significant filling of wetlands is to take place, there are no endangered species present, there are no anticipated conflicts or threats to migratory birds, the sites selected do not represent hazards to flight operations, and are not located in archeological sensitive areas. The project should have no appreciable impacts on coastal areas, as it is located well inland from any coastal area. It should have no appreciable impact on air, water quality, or wildlife and fish resources. Though it would have very minor or no impact on other resources, these issues are discussed individually below. Damage to wetlands will be mitigated by installing turbines on pile driven foundations and no fill will be used. Construction will take place during the winter to help mitigate damage to tundra. During construction stages of the project, there will be a project manager and site manager present to ensure that potential risks are mitigated. During construction with heavy equipment there is a slight risk that there will be a fuel spill. Chefornak has a spill response plan in place. Project and Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 22 of 32 7/2/14 managers will be familiar with this plan and have emergency procedures in place to address a spill if it were to occur. Managers will be aware of potential disturbances to the community and will conduct operations in a way that minimizes safety concerns workers and residents. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system ! Total anticipated project cost is $4,526,458 Total anticipated capital cost for the project is $4,136,558 Total cost for this phase (final design) is $389,900 Total requested funding from REF program for this phase $382,400 Applicant matching funds for this phase are $7,500 There are currently no other funding sources secured for this project, but all additional opportunities are explored and applied for if applicable. The potential for more project investment is great and will be explored until the project is built. The cost estimates for the project are based on varying sources of current quotes, estimated time and materials, and previous invoices for work performed. All grant funds will be expended on costs directly related to the performance of the scope of work, and administration and reporting of grant activities. The match funds contribution for the project comes from the City of Chefornak and their project partners as a match towards payroll for hours spent on the project by local employees and contractor in-kind labor. This provides a total of $7,500.00 to the project in labor payroll and decreases the AEA REF fund request to $382,400. 1 Project scoping/Conceptual design framework for final design $4,950 2 Permit applications $5,750 3 Environmental assessment and mitigation plans $5,250 4 Resolution of land rights and right of way issues $5,250 5 Permit approvals $10,500 6 Final design report – Draft $288,750 7 System cost estimate $15,400 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 23 of 32 7/2/14 8 Final business/operational plan $32,550 9 Final design report and other documents - Final $21,500 Total Project Cost $ 389,900 Match Funds From Chefornak and IES $ 7,500 REF Grant Funds Requested $ 382,400 ! 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Operations and Maintenance Summary: Annual Control and Integration Support $ 2,000 Wind Turbines $ 45,000 Repair/Replace/Insurance $ 15,000 Total Estimated O&M Costs Increase $ 62,000 (Does not include decreased diesel maintenance amount) Maintenance is divided into three categories, routine, unscheduled and scheduled. Routine maintenance is required to maximize performance, maintain safety, and ensure a full operating life of each turbine. An estimate of the cost of annual and 10 year maintenance is provided below. This estimate includes setting aside an amount annually for extended and unscheduled maintenance. Excluding major component inspections and replacements, the following maintenance schedules generally apply to each turbine type. Control System: The control, monitoring, and integration system come with a two-year warranty. A reserve is set aside for changes and/repairs of $150 per month. The local operators will be trained to use the control and integration system. Typically automated operation reduces the local labor burden. Wind Turbines: Wind Turbines are estimated to operate 350 days or 50 weeks per year with 2 weeks of scheduled maintenance annually. All routine service and maintenance will be performed by local technicians, IES will provide assistance when required. A budget of $9,000 or $.04/kWh per year is set aside to maintain each turbine. This includes daily operations, as well as ongoing quarterly maintenance. The turbines have advanced diagnostic package with remote access that enable full time monitoring, remote programming and remote technical assistance. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 24 of 32 7/2/14 4.4.3 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 ! None required 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability - Average annual wind speed is 7.55m/sec as reported in the Wind Resource Assessment prepared by V3 Energy. Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) 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 (3) Diesel Gensets ii. Rated capacity of generators/boilers/other (1) John Deere 6080 180kW, (2) John Deere 6125 380kW iii. Generator/boilers/other type Diesel iv. Age of generators/boilers/other (380kW) 22,000 hours, (180 kW) 10,000 hours v. Efficiency of generators/boilers/other Approx. 13.4 kW/gal b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $108,700 total 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] 1,812,860 ii. Fuel usage Diesel [gal] 132,248 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.! ! Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 25 of 32 7/2/14 iii. Peak Load 357 kW iv. Average Load 209 kW v. Minimum Load 167 kW vi. Efficiency 13.4 kW/Gal vii. Future trends Projected Growth increase to 2,000,000 kWh by 2018 d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 766 gal x 100 homes = 76,600 gallons ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 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] Wind Farm: (5) Windmatic Turbines each rated at 95kW totaling 475kW. b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 1,027,060 kWh/Year ii. Heat [MMBtu] 395,578 x 3412 = 1349712136 mmbtu 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] n/a iv. Other n/a Project Cost a) Total capital cost of new system $4,136,558 b) Development cost $389,900 c) Annual O&M cost of new system $62,000 + decreased diesel maintenance costs d) Annual fuel cost $0 Project Benefits a) Amount of fuel displaced for i. Electricity 48,175 gallons Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 26 of 32 7/2/14 ii. Heat 8720 gallons, additional 1600 gallons for the heat loop iii. Transportation n/a b) Current price of displaced fuel $5.80/gallon and 6.78/heating fuel c) Other economic benefits Increased revenue at the utility at $39,557 annually; deferred bulk fuel storage costs of $20,000 annually; local employment of wind techs for maintenance of the wind farm, estimated $45,000 per year d) Alaska public benefits Decreased impact on PCE, decreased transportation of fossil fuel, decreased need for bulk fuel storage Power Purchase/Sales Price a) Price for power purchase/sale n/a Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.55 Payback (years) 12.5 years 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discuss what the expected impact would be for both pre and post PCE. ! It is expected that rates in Chefornak will stabilize with the installation of wind power, however the utility must continue to make improvements to their distribution system. The saving from the wind plant will help pay for labor increases and reinvestment in plant and equipment during the early years of the project. SECTION 5– PROJECT BENEFIT Explain the economic and public 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: • Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 27 of 32 7/2/14 The project will achieve: • Fuel displacement for power generation: (48,715 gallons displaced with wind) • Fuel displacement for home heating (8,720 gallons displaced with wind) • Fuel displacement in heat recovery loop (1,600 gallons displaced with wind) • Deferred bulk fuel storage (city usage 130,000 gallons, usable storage capacity 72,000) • Creation of local jobs (2 part time wind techs) It is estimated that the utility’s savings can be passed onto the customers will include reduced fuel purchases of $243,575 annually based on an average price for fuel over the lifetime of this project of $5.00/gallon, and increased revenues 288,335 kWh in ETS sales, @ $.10/kWh = $28,833 and 107,243 kWh to the heat loop @ $.10/kWh = $10,724. To see more about project benefits please see section 2.5 “Project Benefit” 5.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) Lowering the cost of energy, whether electric or heat, positively impacts the community as a whole by making economic development more attractive. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits ! Like the CWG communities, the purpose of this project is to generate sufficient wind energy to support a profitable and sustainable wind project through decreased fuel purchases, and increased electrical energy sales. The wind turbines were selected specifically so they can be operated and maintained by local technicians. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 28 of 32 7/2/14 ! SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. ! The community of Chefornak has previously worked through the REF process with a wind heat conceptual design. If awarded, Chefornak and its project partners are immediately ready to move forward with planning and design activities. A conceptual design report has been completed and submitted to the Alaska Energy Authority (Renewable Energy Fund Grant #7040056). ! SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support 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 2, 2014 ! Rising fuel costs have been adding to social and economic stress of the community for years. Naterkaq Light Plant and IES have discussed turbine site locations and community impacts with the tribe, city, and the residents of the community. The Tribal Council and residents of Chefornak have shown support of this project and look forward to benefits to their community through the anticipated savings, jobs, reduction in diesel consumption and a lower carbon footprint. To date there has been no opposition to the project. *Please see attached letters and resolutions of project support* SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 29 of 32 7/2/14 Total anticipated project cost is $4,526,458 Total cost for this phase is $389,900 Total requested funding from REF program for this phase $382,400 Applicant matching funds for this phase are $7,500 The cost estimates for the project are based on varying sources of current quotes, estimated time and materials, and previous invoices for work performed. All grant funds will be expended on costs directly related to the performance of the scope of work, and administration and reporting of grant activities. The match funds contribution for the project comes from the City of Chefornak and their project partners as a match towards payroll for hours spent on the project by local employees and contractor in-kind labor. This provides a total of $7,500.00 to the project in labor payroll and decreases the AEA REF fund request to $381,400. 1 Project scoping/Conceptual design framework for final design $4,950 2 Permit applications $5,750 3 Environmental assessment and mitigation plans $5,250 4 Resolution of land rights and right of way issues $5,250 5 Permit approvals $10,500 6 Final design report – Draft $288,750 7 System cost estimate $15,400 8 Final business/operational plan $32,550 9 Final design report and other documents - Final $21,500 Total Project Cost $ 389,900 Match Funds From Chefornak and IES $ 7,500 REF Grant Funds Requested $ 382,400 9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. All necessary metering equipment for data collection and reporting for design phase of the project is currently installed at the power plant and being compiled to inform the final design for the project. 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 and Commissioning). Please use the tables provided Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 30 of 32 7/2/14 below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. 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 Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Project scoping/Conceptual design framework for final design July 2015 $4,200 $750 $4,950 Permit applications August 2015 $5,000 $750 $5,750 Environmental assessment and mitigation plans August 2015 $4,500 $750 $5,250 Resolution of land rights and right of way issues August 2015 $4,500 $750 $5,250 Permit approvals November 2015 $10,000 $500 $10,500 Final design report – Draft March 2016 $287,000 $1,750 $288,750 System cost estimate May 2016 $14,400 $1,000 $15,400 Final business/operational plan May 2016 $31,800 $750 $32,550 Final design report and other documents - Final May 2016 $21,000 $500 $21,500 TOTALS $382,400 $7,500 $389,900 Budget Categories: Direct Labor & Benefits $2,000 $2,500 $4,500 Travel & Per Diem $0 $0 $0 Equipment $0 $0 $0 Materials & Supplies $0 $0 $0 Contractual Services $380,400 $5,000 $385,400 Construction Services $0 $0 $0 Other $0 $0 $0 TOTALS $382,400 $7,500 $389,900 I Renewable Energy Fund Round VIII i Grant Application -Standard Form SECTION 10 -AUTHORIZED SIGNERS t:0RM ./ Regular Election is held:I Date:9/8/14 First Tuesday of October Community/Grantee Name:City of Chefornak I Authorized Grant Signer(s): Printed Name Title Term Signature Rosalie Mathew Mayor 2014 I&t?~c"·.-«-qEJt<- Alexie Jimmy Utility Board Chairman 2014 /J,,-I /' Anna Abraham Utility Manager ~~-: I authorize the above person(s)to sign Grant Documents: (H"h t k""f /"/""I ffi "I)Ig es ran ,"g orqamza Ion community murucipa 0 sera Printed Name Title Term Signature Rosalie Mathew Mayor 2014 1 Grantee Contact Information: Mailing Address: PO Box 29,Chefornak,AK 99561 Phone Number: 907-867-8147 Fax Number: 907-867 -8704 E-mail Address: citychefornak@vahoo.com Federal Tax 10 #: 92-0068470 Please submit an updated form whenever there is a change to the above information" Renewable Energy Fund Round VIII Grant Application -Standard Form j..:J ENERGY AUTHORITY SECTION 11 -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 8. 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 Rosalie Mathew Signature t1fPc:ve~C ~ Title Mayor Date 9/8/14 ! ! ! ! ! ! Supporting!Documents!! .er ~~~lE!!~~8lAS~!~1I!IPLANT (907)867-8213 FAX (907)867-8724 August 09,2014 Shawn Calfa,Grants Administrator Alaska Energy Authority 831 W.Northern Light Boulevard Anchorage,Alaska 99503 RE:Chefornak application to the Renewable Energy Fund Round VIII Dear Mr.Calfa, On behalf of Naterkaq Light Plant and the community of Chefornak,I am writing to ask for your consideration of our application to the Alaska Energy Authority,Renewable Energy Fund for Round VIII. The project proposal,entitled "Chefornak Wind Heat System,"funds the final design and permitting of a wind heat system for our community. Naterkaq Light Plant and the Native Village of Chefornak have watched over the last few years as the neighboring villages of Kongiganak,Kwigillingok and Tuntutuliak have installed innovative,high penetration wind heat systems and Chefornak hopes to be the next community in our region to enjoy the same success.These neighboring communities,as part of the Chaninik Wind Group,have seen a 30%reduction in their community diesel consumption at the electric utility and residential fuel oil use. We have completed our wind resource monitoring and assessment report,our system conceptual design and have explored permitting regulations to confirm that there are no systematic restrictions on installing this project.We need the support and funding of the Renewable Energy Fund to make the fuel savings that our neighboring villages are seeing a reality for us.Funding our application would take another step towards completing our community wind heat system and help create a more stable energy future for our region. With the support of our neighboring communities,our engineering and construction partners,and our State and Federal elected officials,we see a future with lower energy costs,more jobs and enhanced economic development opportunities for our village.We need the support of the Renewable Energy Fund to complete that vision. We appreciate your consideration of our application. Quyana, ~t~airman Naterkaq Light Plant City of Chefornak P.o.Box 29 Chefornak,Alaska 99561 Ph:907-867-8147 Fax:907-867-8724 September 09,2014 Shawn Calfa,Grants Administrator Alaska Energy Authority 831 W.Northern Lights Boulevard Anchorage,Alaska 99503 RE:Chefornak application to the Renewable Energy Fund Roun d VIII Dear Mr.Calfa, On behalf of the City of Chefornak,I am writing to ask for your consideration of our application to the Alaska Energy Authority,Renewable Energy Fund for Round VIII.The project proposal, entitled "Chefornak Wind Heat System,"funds the final design and permitting of a wind heat system for our community. Chefornak is a community of over 400 people on the coast of Western Alaska.We lead a strong subsistence lifestyle and existing on our land requires various sources of energy.Some we can control the cost of,some we cannot.The rising price of fuel over the past decade has demanded some community members to choose between heating their homes and feeding their children.We do not want to have to make these choices. We have seen in our neighboring villages that a solution to our energy problems could be harnessed in the wind.It seems that our neighboring communities,as members of the Chaninik Wind Group (CWG),have installed advanced technology wind systems that are providing their communities with an opportunity to displace diesel costs at their utilities and also offering homeowners an option for considerably lower cost heat for their homes.We want to install these same systems in our community.We have taken the first steps and measured and assessed our wind resource,and created a design for the system. The City of Chefornak supports the further completion of this wind heat system with Naterkaq Light Plant's application to your program.From what we have seen the CWG communities in our region,we know that Chefornak will benefit greatly from the installation of this system. We ask for your full consideration and support of our application.If you have any questions, please contact me at 907-867-2023. Respectfu Ily, Mayor Rosalie Mathew City of Chefornak Resolution )'4.DCJ;.ol A Resolution supporting the application of the City of Chefornak -Naterkaq Light Plant on behalf of the community of Chefornak for financial assistance to Renewable Energy Fund for the wind energy and wind heating system. WHEREAS:The Native Village of Chefornak is a federally recognized Tribal entity in the State of Alaska, and the Chefornak Traditional Council is the governing body for the Native Village of Chefornak,and; WHEREAS:The City of Chefornak provides electrical utility services to the community d.b.a.Naterkaq Light Plant,and; WHEREAS:The Naterkaq Light Plant is a certified electric utility serving Chefornak,governed by a Board of Directors,and; WHEREAS:Alaska Energy Authority is soliciting applications for the Renewable Energy Fund Round VIII for funding for renewable energy projects around the State of Alaska,and; WHEREAS:Naterkaq Light Plant desires to increase the energy efficiency of the local power plant,tribal homes and community buildings,while reducing the fossil fuel requirement,and; WHEREAS:Naterkaq Light Plant endeavors to pursue funding from the Renewable Energy Fund Round VIII to pursue renewable energy solutions; WHEREAS:Naterkaq Light Plant commits to providing the matching resources indicated in the application to the Renewable Energy Fund Round VIII; NOW THEREFORE BE IT RESOLVEDTHAT the Native Village of Chefornak hereby supports the City of Chefornak's application to the Renewable Energy Fund of Alaska and authorize Mayor Rosalie Mathew to represent them as an applicant for their efforts to apply for,secure,and obtain funding to construct a wind heat system. BE IT FURTHER RESOLVEDTHAT City of Chefornak is in good standing with respect to federal,state and local laws,including existing credit and federal tax obligations. CERTIFICATION The foregoing resolution was passed and approved by a duly convened meeting of the Chefornak Traditional Council,this jli'l\day of September 2014. Bya vote of ~YES,G-NO,and bVABSTAINING. Alexie Flynn -President o James Wasili -Secretary/Treasurer _SOL_DBY~~~I DArq -/7 -/<e NAME~,1u~Jc y-:c. CHEFARNRMUTE,INe P.o.Box 70 CHEFORNAK,AK 99561 (907)867·8115 _A_D_DR_ES_S I_p_HO_NE _ CITY ~CASHoC.O.D. o CHARGEoPAIDOUT o MERCHANDISE RETURNEDoPAIDONACCOUNT 3 4 IL ~ 5 6 7 8 9 10 11 12 13 14 15 16 RECEIVED BY TOTAL 246204 THANK YOU L -------- ... """- SOLD BY NAME ADDRESS CITY ----.---.----~---_. CHEFARNRMUTE,INC. RO.Box 70 CHEFORNAK,AK 99561 (907)867-8115 5 6 7 8 9 10 11 12 o MERCHANDISE RETURNED ••••••••of'IVD ON ACCOUNT 13 14 15 16 RECEIVED BY TOTAL N~224147