HomeMy WebLinkAboutREF_VIII_Kwigillingok Wind Heat Electric Thermal Storage FINAL AEA!
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Renewable Energy Fund Round VIII Application
Kwigillingok Electric Thermal Heat Expansion
Prepared for the Alaska Energy Authority
September 22nd, 2014
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Prepared By:
Intelligent Energy Systems
110 W15th Ave Suite B
Anchorage, AK 99501
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Renewable Energy Fund Round VIII
Grant Application – Heat Projects
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 Heat Projects only. If your application is for energy
projects that will not primarily produce heat, please use the standard application form (see RFA
section 1.5). An electronic version of the Request for Applications (RFA) and both application
forms are available online at: 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 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 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.
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Kwig Power Company
Type of Entity: Village Utility Fiscal Year End: December 31
Tax ID #92-0097305
Tax Status: ☐ For-profit Non-profit ☐ Government (check one)
Date of last financial statement audit: 2012
Mailing Address: Physical Address:
Kwig Power Company Kwigillingok, Alaska
PO Box 90
Kwigillingok, AK 99622
Telephone: Fax: Email:
907-588-8626 907-588-8267 wmigkurak@att.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Title:
William Igkurak General Manager
Mailing Address:
PO Box 90, Kwigillingok, AK 99622
Telephone: Fax: Email:
907-588-8626 907-588-8627 wmigkurak@att.net
1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
Ona Brause 907-297-2868 907-677-1886 ona@iesconnect.net
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Grant Application – Heat Projects
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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)
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.
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)
1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement
(Section 3 of the RFA). (Indicate by checking the box)
1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/vREFund8.html. (Any exceptions should be clearly noted
and submitted with the application.) (Indicate by checking the box)
1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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Grant Application – Heat Projects
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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.
Kwigillingok Wind Heat System – Electric Thermal Storage
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.
The community of Kwigillingok lies at 59°52′20″N 163°09′58″W
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The beneficiaries of this project are the residents of Kwigillingok, Alaska.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind to Heat ☐ Biomass or Biofuels
Hydro to Heat ☐ Solar Thermal
Heat Recovery from Existing Sources ☐ Heat Pumps
Other (Describe) ☐
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 X Construction
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Grant Application – Heat Projects
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
This project expands the heat storage capacity of Kwigillingok Wind Heat Smart Grid System by
increasing the number of electric thermal storage (ETS) devices from 27 to 50 units.
The community of Kwigillingok (Kwig) has an operational, utility scale wind project that is
designed to produce excess wind energy, and this excess energy is captured in residential ETS
devices to displace home heating fuel. Additional ETS storage capacity is needed to make use of
the full capacity of the wind system.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this heat project, (such as
reduced fuel costs, lower energy costs, local jobs created, etc.)
The project benefits are as follows:
• Increased displacement of diesel fuel with wind energy
• Reduced residential heating costs
• Increased revenues to local utility through thermal electric sales
• Reduced impact on PCE program funds
• Strengthened local economy by reducing export of dollars from the community to outside
fuel providers.
• Increased efficiency of existing wind system
• Reduced reliance on the volatility of fuel prices
• Increased education on energy use and conservation
*It should be noted; that prior experience has shown that with the inclusion of ETS devices has
increased community awareness and support for the wind project. When residents believe the
wind turbines should be working and they are not, they call the local wind technicians to find out
why. This interest is driven by the direct monetary savings realized by residents who currently use
an ETS unit in their home. *
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.
Total Project Cost = $284,562.00
Local Match (Kwig Power Company) = $5,000.00
REF Funding Request = $279,562.00!
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2.7 COST AND BENEFIT SUMARY
Summarize the grant request and the 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 $ 279,562
2.7.2 Cash match to be provided $ 0
2.7.3 In-kind match to be provided $ 5,000
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) $ 284,562
Other items for consideration
2.7.6 Other grant applications not yet approved $ 0
2.7.7 Biomass or Biofuel Inventory on hand $ 0
2.7.8 Energy efficiency improvements to buildings
to be heated (upgraded within the past 5 years or
committed prior to proposed project completion) $ 0
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.9 Total Project Cost
Summary from Cost Worksheet, Section 4.4.4, including
estimates through construction.
$ 284,562
2.7.10 Additional Performance Monitoring Equipment not
covered by the project but required for the Grant
Only applicable to construction phase projects
$ 0 (existing)
2.7.11 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.
$ 614,685 (gross from AEA
worksheet)
2.7.12 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.
$380,540 (project life) in
increased revenue to utility
for heat sales not currently
realized
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Grant Application – Heat Projects
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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 anticipates project management assistance from AEA or another
government entity, state that in this section.
The project manager for the Kwig Power Company (KPC) will be William Igkurak, the manager of Kwig
Power Company. Mr. Igkurak will be the direct point of contact for the project and will be assisted by the
staff of Intelligent Energy Systems, LLC (IES). IES has worked with the community of Kwigillingok for
over 7 years and is responsible for the design of the existing wind heat system. IES is familiar with
community needs and has the demonstrated capabilities and experience required to complete this project.
Patrick Boonstra of IES, will be the project manager for this project.
The electrical engineer for this project is Albert Sakata, P.E. of Sakata Engineering LLC. Sakata
Engineering is a long time Alaskan engineering firm, which provides a range of design and engineering
services, including controls, generation, distribution and communications. Other key participants and
resources for this project include Al Takle of the Steffes Corporation as the supplier of the Electric Thermal
Storage units. !
Each of these participants has previous experience in the community of Kwigillingok, with installation of
ETS units and controls on Wind Heat Smart Grids. See attached resumes and bios from project team
participants.
Project tasks, timelines, and budgets have been approved by KPC with acknowledgement of the supporting
match fund commitments from KPC. No project management assistance or project support is expected of
AEA or any other government entity.
3.2 Project Schedule and Milestones
Please fill out the schedule below. 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.
Milestones Tasks
Start
Date
End
Date
1 DP Design/Finalize installation implementation
(community designation)/Design 7/15 8/15
1 CP Purchase ETS units, hardware, and controls for
installation 7/15 8/15
2 CP Freight all items to site 8/15 9/15
3 CP Install hardware and ETS units 9/15 10/15
4 CP Commission additional controls unit 10/15 12/15
5 CP Monitor and Reporting 12/15 6/16
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Project Tasks/Milestones:
! Task #1DP – Select installation sites and complete final installation design, project
implementation plan (community designation and design) of ETS residential units (Kwig
Council members, KPC staff, local technicians and project team)
! Task #1CP - Purchase ETS devices, connection hardware, and necessary electrical components
(Project team)
! Task #2CP - Freight and deliver all ETS and electrical components (Project team)
! Task #3CP - Install ETS units, including any software upgrade at the power plant (Local
technicians and project team)
! Task #4CP - Final commissioning of additional ETS units on the existing Wind Heat Smart Grid
(Project team)
! Task #5CP – System support and data collection. Collect and report on ETS use and fuel offset
at the residential and utility level (KPC staff and project team)
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.
Kwig Power Company has staff trained to install the ETS units. Kwig Power Company employees
will be assisted through project completion by the IES project management and oversight team
from IES, Sakata Engineering, and Steffes Corporation.
All other project activities will be coordinated by Kwig Power Company and supported by project
management and coordination with IES. IES is familiar with the reporting and reimbursement
requirements of the REF program and is prepared to support the bookkeeping and reporting
requirements of the grant agreement.
*See attached resumes and bios for project partners. *
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 existing project reporting plan includes project status reports, project communications and
project accounting. The project reporting point of contact will be Ona Brause of IES. As the
Director of Finance & Operations, Ms. Brause has provided assistance and reporting on other grants
for KPC and Chaninik Wind Group projects. Ms. Brause will coordinate all reports, meetings,
audits, accounting requirements, as well as maintain project records and insure that project
management, progress and accounting reports are completed and provided to AEA in an appropriate
and timely manner.
Ms. Brause has experience in grant and financial requirements for many State and Federal agencies
and has successfully completed grant projects with funding from the State of Alaska, Department of
Commerce, Community and Economic Development; the State of Alaska, Renewable Energy Fund;
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Grant Application – Heat Projects
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the State of Alaska, Denali Training Fund; the US DOE Tribal Energy Program; and the Denali
Commission. She can be reached at 907-297-2868 or ona@iesconnect.net for project questions.
Narrative and financial reports will be submitted quarterly or monthly as required and as approved
by the grantee. Project reports will include description of activities completed, activities projected
for next reporting period, any project problems or delays, adherence to proposed project budget, and
overall project completion as a percentage representation out of 100.
This project includes improvements to the power plant data collection system, which will help with
project reporting and analysis of energy usage.
3.5 Project Risk
Discuss potential problems and how you would address them.
As with all remote projects there are the general logistical challenges of working in rural Alaska.
This ETS infrastructure has been installed in Kwigillingok in 27 homes and many of the problems
that could be encountered have previously been overcome and are accounted for in this proposal.
Over half of the project budget consists of supplies and freight. Both of these are known quantities
and do not present a barrier to completion. However, should this grant be awarded, it is in the
interest of the project to provide the funds as early as possible, so that the ETS units may be
purchased and shipped to Seattle in sufficient time to make the one yearly barge to Kwig. A
shipping delay could either significantly increase cost or delay the benefits of the project for another
year.
As this is a familiar project for all community and team members involved, there are no identifiable
barriers or obstacles that present themselves as an impediment to completing the project as
proposed.
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 accounting support.
Project accounting will be the responsibility of IES. Ona Brause at IES will be the lead for budget
and accounting. Ms. Brause will be working directly with KPC for budget approval and reporting
purposes. Contact information for Ms. Brause is ona@iesconnect.net, 907-297-2868 phone and
907-677-1886 fax.
3.7 Financial Accounting System
Discuss the accounting system that will be used to account for project costs and who will be the
primary user of the accounting system.
The financial accounting system for the project will be based in QuickBooks on a cash basis with a
separate bank account to insure seclusion from other project monies and records. The primary user
of the accounting system will be Ona Brause of IES. All project expenditures are reviewed and
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approved by the grantee before expense for the proposed budget, on an individual basis for large
items and collectively for each report.
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.
The budgets are created before approval of funding to secure no inclusion of overhead expenses or
unallowable costs. As invoicing is approved and received, it is measured against the proposed
budget to make sure it is in compliance. As some budget fluctuations occur because of estimated
costs vs. actual costs and a time and materials change or other unknowns, it is not guaranteed that
budget adjustments won’t occur, but because of the awareness of the Grantors reimbursement rules,
no unallowable costs are expected or allowed to be included as they would be debted to the project
partners.
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 the project and the funding request is 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, in 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.
Diesel is the primary fuel source for both heating and electric power generation. The existing Wind
Heat Smart Grid project was commissioned in May of 2013. This project is capable of displacing at
least 35% of the diesel used for power generation and between 25% and 50% of the fuel each ETS
recipient uses to heat their home.
Kwigillingok is located 8 miles east of Kongiganak along the Kuskokwim delta. Kongiganak was
selected by wind resource experts from the National Renewable Energy Laboratory as a regionally
relevant monitoring location and the AEA provides a complete wind resource assessment report.
Wind resource evaluation indicates an outstanding wind resource with an average wind speed of
7.78 m/s, with the power distribution well suited for the capture of wind energy. The wind resource
report includes 10-minute average of temperatures for 2004 to 2005. The annual average
temperature of this time period was 1.4°C, which at sea level corresponds to an air density of 1.286
kg/m³. The data was analyzed, along with survey information to estimate the availability of wind to
charge ETS units.
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The temperature data was compared with 20-year historical heating degree day records. The
measured period was warmer than the average year, with a total of 9607 heating degree days
(11/1/04 to 10/31/05) compared with the 20-year average of 10916 heating degree days. In round
numbers, Kwigillingok residents can expect experience around 10,000 annual degree days.
The temperature, wind speed, diesel engine fuel consumption curves, wind turbine power
production curves, and village load profiles were modeled in HOMER to determine the excess
energy output available to each ETS device.
The temperature, wind data, power generation fuel consumption, and wind power output was
modeled based on efficiency curves developed for the John Deere 6090 generator sets and
minimum diesel generator loading of 40 kW against village load profiles consistent with “kilowatt-
watt hours generated” as reported to PCE for 2011 and 2012, and recent operational data.
Residential survey results from the Chaninik Wind Group villages (Tuntutuliak, Kongiganak,
Kwigillingok and Kipnuk) indicated that average household size was 1000 square feet and with an
annual heating fuel usage of 766 gallons. In order to estimate the use and consumption of wind heat
energy by electric thermal storage units, a conservative residential heat loss was based on a loss rate
of 5.5 watts per square foot was assigned to a typical residence. This is a number frequently used
by designers of electric heating systems for a well insulated house at outdoor ambient temperatures
of 0F. This heat loss estimate was scaled to a maximum average heat loss of 7 watts per square foot
at -25F. Insufficient data was available to correlation as the affect of wind speed on heat loss,
however there is strong anecdotal evidence to indicate that the influence of wind chill is significant.
Each ETS stove has a maximum charge capacity of 6.5 kW and a total energy storage capacity of
33.75 kWh, which is equivalent to at least one gallon of diesel fuel. Once an ETS unit is charged it
is able to continuously provide heat. Modeling indicated that during the coldest, windiest days of
the year, a 6 kW ETS unit would just keep up with the room heat demand. Modeling studies also
indicate that ETS units are not only effective at providing immediate heat during windy periods as
stored energy to bridge lulls in the wind, but, in many instances extends the heating period for many
hours after the wind has stopped.
4.1.1 For Biomass Project only
Identify any wood inventory questions, such as:
• Ownership/Accessibility. Who owns the land and are their limitations and restrictions to
accessing the biomass resource?
• Inventory data. How much biomass is available on an annual basis and what types (species)
are there, if known? Please attach any forest inventory reports
Not applicable for this project.
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4.2 Existing Energy System
4.2.1 Basic configuration of Existing Heating Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
The existing energy system consists of:
• 2 ea John Deere 6090, 275 kW diesel electric generators
• 1 each John Deere 6125 190 kW diesel electric generator
• 1 each John Deere 6045 90 kW diesel electric generator
• 5 each Windmatic 17s, 95 kW wind turbines, with regenerative drive control
• 1 each load balancing boiler, plumbed to heat recovery loop
• 27 each Steffes 2105, residential electric thermal storage units. 6.0 kW peak charge rate,
33.75 kWh of energy storage
• Wind-diesel supervisory control system
• Various heat sources in individual community residences to be replaced or supplemented
with ETS installation.
4.2.2 Existing Heating 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.
• The village electrical load in Kwigillingok is 1,093,800 kWh.
• Gross annual estimated energy output of 5 Windmatic 17 S wind turbines is 1,270,000 kWh.
This is derated to an estimated annual production of 1,016,000 kWh.
In 2013, Kwig Power plant generated 1,185,025 kWh. This load is expected to grow around to
1,500,000 kWh in the near future due to tripling the size of the new school currently under
construction. Based on modeling studies that use 80% of the estimated annual energy production,
the wind system produces 1,016,000 kWh of electrical energy. Operation of the wind diesel system
requires maintaining a constant balance between power generation and load through fast activation
ETS units and precise cycling of load balancing electric boiler, which is plumbed into the power
plant.
!
The total amount of heat available to be absorbed by the residential stoves was derived using
available data and HOMER production modeling that incorporates available wind power.
Additional modeling was done to estimate the effects of varying outdoor temperature with village
electrical and residential heating loads. This model was used to provide an estimate heat required
for and energy available to electric thermal storage devices.
Of the 1,016,000 kW produced by the wind project, 544,191 kWh of wind energy is anticipated to
displace diesel power generation. The remaining wind generated energy is portioned between the
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heat recovery loop, load balancing boiler and existing ETS. When additional ETS are installed, the
available energy shifts from the boiler to being dispatched to the ETS units in homes. 413,611 kWh
would be available for use in residential electric thermal storage units to displace home heating fuel.
Currently the Kwig system has 27 ETS units, which are capable of capturing 215,792 kWh of the
wind energy. However, it has been demonstrated that this level of energy storage is saturated about
6 hours into most wind events, causing wind output to be curtailed. In order to prevent the
curtailment of wind turbines, this project is requesting funds to increase the number of ETS units
from 27 to 50. This addition increases the instantaneous energy capture of the system from a peak
of 162 kW to 300 kW, and the maximum energy storage capacity from 911 kWh to 1688 kWh. The
expansion of the ETS capacity meets two objectives, increasing the productivity of the wind system
to prevent curtailing of wind turbines, and capturing more wind energy for home heating.
The supervisory control system for the electric thermal storage devices is able to charge ETS units
in a number of ways, such as allowing the emptiest ETS units to charge first, or dividing the
available wind energy evenly among the available units. It is assumed the 413,611 wind generated
kilowatt-hours will be evenly distributed between 50 ETS over the course of the year. Using an
estimate of 31 kWh of electrical energy as the equivalent to one gallon of heating fuel, modeling
studies indicate the potential to provide each residence with 8,272 kWh of electricity or a
displacement of 267 gallons of home heating fuel. This represents 35% of the average annual
residential heating fuel usage of 766 gallons. At $ 6.93 per gallon (see ISER estimates below), 267
gallons of stove oil would cost $1,850. Surplus wind energy sold at $0.10 per kWh as electric heat
using the ETS devices would result in an annual household savings of $1,023. 50 ETS units provide
an annual benefit of $51,150 to residential customers, an increase of $23,529 from the existing ETS
installed.
At the same time, revenues to the utility are increased by selling energy that would be curtailed to
regulate the village load. The amount is equal to $41,361 in increased revenue to the utility for 50
ETS, an increase of $19,027 over the existing system.
*Note: #2 heating fuel has a heating value of 134,000 Btu/ gallon; with an 80% conversion
efficiency this is equivalent to 107,200 usable Btu/gallon. This is the effective heat energy a
homeowner would experience. Electrical heating is nearly 100% efficient. Since efficiencies
vary, an equivalent electrical energy of 31 kWh/gal is used as the diesel fuel heating equivalent.*
4.2.3 Existing Heating Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Fuel Costs:
For the purposes of this analysis, a fuel price of $5.88/gallon ($1.55/Liter) was chosen by reference
to Alaska Fuel Price Projections 2013-2035, prepared for Alaska Energy Authority by the Institute
for Social and Economic Research (ISER), dated June 30, 2013 and the
2013_06_R7Prototype_final_07012013 Excel spreadsheet, developed by ISER for AEA.
The $5.88/gallon price reflects the average value of all fuel prices between the 2015 (the assumed
project start year) fuel price of $4.91/gallon and the 2034 (20 year project end year) fuel price of
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$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 Kwigillingok (without social cost of carbon) reported to
Regulatory Commission of Alaska for the 2012 PCE report is $4.47/gallon ($1.18/Liter), without
inclusion of SCC. Assuming an SCC of $0.40/gallon (ISER Prototype spreadsheet, 2013 value),
the 2013 Kwigillingok fuel price was $4.87/gallon ($1.28/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.
Fuel%cost%table%(SCC%included)%
ISER!medium!
cost!
projection!
2015!
(/gal)!
2034!
(/gal)!
Average!
(/gallon)!
Average!
(/Liter)!
Diesel!fuel!$4.91 $7.04 $5.88!$1.55!
Heating!oil!$5.92 $8.09 $6.93!$1.83!
The community of Kwigillingok has 87 occupied homes. Half of these homes have been
constructed within the last 10 years, the other homes were constructed over the last 40 years. The
power plant has a short heat recovery loop which provides jacket water heat to the washeteria.
Based on information gathered during energy surveys, residential customers are desperate for lower
cost heating options, as heating fuel costs exceed $6.00/gallon currently.
As the community’s experience with wind heat increases, the interest in and demand for ETS units
has grown. Almost every one of Kwig’s 87 homeowners has requested an ETS unit.
Electric Thermal Storage is a method by which surplus wind generated electricity can be stored as
heat so that it can be used 24 hours per day. The excess wind energy will be offered to customers at
$ .10/kWh, which is equivalent to heating oil at $3.00. Since there is no local wood, peat or coal
available, wind heat is the most affordable heating source available and therefore is highly
desirable.
The availability of wind correlates well with heating needs. The proposed system supplies heat as it
is needed and stores the surplus. For instance, there are many times when a wind event occurs at
night the electrical loads are low, the ETS units are able to absorb this wind for heating during the
day and the utility is able to increase its revenues from electrical sales. This project will result in an
additional heating fuel reduction of 6,141 gallons for an additional 23 homes. Heating fuel
represents the single greatest cost of maintaining a residence. Typical costs exceed $5,000 per
household. This project is expected to reduce annual household heating costs by approximately
$1,023 per household (using the 20 year average for heating oil). This represents a 35% reduction
in fuel purchases and a 20% cost savings.
The Kwigillingok wind power system was commissioned in May of 2013 with only 27 residential
ETS units installed. The ETS units were sized to provide about the same heating capacity as the
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popular Toyo stove, with a storage capacity of 33.75 kWh. During wind events, the 27 existing
units become saturated after about 6 hours after which time wind turbine output must be curtailed.,
as there is no place for the energy to go. Curtailment requires either reducing wind turbine output
or turning them off completely. Curtailment affects the efficiency and productivity of the whole
energy system. The addition of 23 more ETS will reduce curtailment by increasing energy storage
capacity wind energy from 911 kWh to 1,688 kWh.
It is anticipated that the benefits of the Kwig ETS program can be improved upon in several ways;
First, improved weatherization and conservation programs which reduce heat loss in existing
dwellings will extend the value of ETS wind heat.
Secondly, improvements in wind system operations and maintenance and the application of
advanced airfoils promise to significantly improve the productivity of the wind turbines. As
experience with the wind systems grow, power plant operators and wind technicians are steadily
improving their operating and maintenance practices. Newer airfoils, which are making their way
into the marketplace, have the potential to increase energy production from the existing wind plant
by 15%.
Third, Kwig is the site of a battery energy storage demonstration that will enable diesel-off wind
only operation. Currently, the diesel gensets are operated at a minimum load of around 40 kW and
the load balancing boiler is operated at 15 kW. These loads will potentially be eliminated through
the use of the battery system, freeing up to an additional 160,000 kWh for beneficial use.
Finally, and most importantly, as community members with ETS units begin to rely on the wind
heat system to lower home heating costs, the community will develop a heightened awareness of,
and attention to, the importance of reliable wind turbine operation. This interest provides additional
impetus to keep the wind systems operating.
4.3 Proposed System
Include information necessary to 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
Wind Heat Electric Thermal Storage
An average home in Kwigillingok 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 expands the capture of wind produced energy and uses it to displace home heating fuel,
using Electric Thermal Storage (ETS). ETS is the method of capturing excess wind generated
electricity as heat and storing it for use at a later time.
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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. The current wind system consists of
five Windmatic 17S 95 kW wind turbines with a total installed capacity of 475 kW. The average
load in the community is around 175 kW. During wind events, the load on the diesel generators at
the power plant is reduced to 40 kW, and with the exception of 20 kW diverted to the heat recovery
load balancing system, wind energy is used to meet the community electrical load. During most
wind periods, surplus wind is produced. This surplus is diverted to residential ETS units where it is
either used immediately or stored to displace home heating fuel.
The ETS units are provided with specialized controls which enable each ETS unit to rapidly adjust
it charge cycle to fit with the available wind energy. The charging of a unit is activated through a
signal from the power plant supervisory controller, which is broadcast at sub-second intervals.
Each ETS unit is sub-metered to keep track of surplus wind energy consumption. A thermostat
regulates the delivery of the heat to the residence. The excess wind energy is sold for $.10 per
kilowatt-hour. This wind heat system provides a low cost, low maintenance method of home
heating which reduces the homeowners’ heating bill and increases revenues to the local utility that
provides local jobs.
The ETS method of capturing wind energy for heat was selected because of the ease of installation,
proven performance, and low maintenance costs. Installation requires the addition of a circuit to
residential service panels and in some cases a plywood base is used to support the additional weight
(650lbs) of the unit. Local utility workers have been trained in the installation of these units and
will be responsible for the majority of the installations. The supervisory control system at the power
plant will be modified to expand the number of controlled units from 27 to 50.
A model was developed to correlate charging of ETS units with available wind energy. Heating
surveys indicate that average hourly living room heat for a residence in Kwigillingok is 14,000
Btu/hr. Each ETS unit can both produce and store up enough energy depending on the charge
schedule to output 20,000 Btu/ per hour per unit, 24 hours a day. This is similar in size and energy
output to a Toyo Stove. The pictures below present an exterior and interior view of a room unit. The
dimensions are 58 inches in length, 24.5 inches in height, and 10.5 inches in depth, and when filled
with heat charge bricks each unit weighs 650 lbs.
The room units (shown above) are non-ducted and are designed to heat the room or area where they
are placed. These heaters can be used in new construction applications or as a retrofit or supplement
to an existing heating system, and only require an electrical connection to operate.
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A fan inside the unit circulates stored heat evenly and quietly throughout the room. Individual units
are easy to operate and require very little maintenance. The amount of heat stored in the brick core
of the heater is regulated (either manually or automatically) according to seasonal weather
conditions using either the onboard microprocessor, or manual override by the homeowner.
The ETS devices are manufactured in Dickinson, North Dakota by Steffes Corporation. The
multiple unit control technology was jointly developed by Steffes and IES. Steffes has been
manufacturing ETS units since the mid-1980’s and over the last 2 years have adapted these units for
advanced wind diesel micro grid integration. This “off the shelf” technology is currently in use in
Kwigillingok. There is widespread support for the expansion of this project in Kwig.
The Steffes room units are provided with a 5-year limited warranty. That warranty covers parts, but
not travel to the site to make repairs. Local operators have previously been trained in maintenance
and replacement of parts. The units are designed for a 20-year life. Life expectancy depends on
proper sizing, installation and operating environment. The Steffes Heating Systems are simple and
have proven to be very reliable, with low maintenance requirements.
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 land ownership issues for this project. Installation of project materials will occur at
the Kwig Power Company power plant and in individual homes and buildings on an opt-in basis
with full participation from the building and homeowners.
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
This project requires no permitting. There is broad community support for this project and there are
more requests for ETS units than currently available energy.
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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
There are no environmental or land use issues, no SHPO clearances, no development constraints, no
telecommunications interference, and no aviation considerations. There are no visual or aesthetic
impacts and no other potential barriers to project completion.
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: Applicant’s 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 and cost for the design and construction phase is $284,562.00
Requested grant funding is $279,562.00
Applicant matching funds are $5,000.00, which will be provided by Kwig Power Company as an in-
kind contribution of labor.
The cost estimates for the project are based on varying sources of current quotes, estimated
materials and labor projections, and previous invoices on installation of ETS devices in Kwig. 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 come
from the Kwig Power Company as a match towards payroll for local technicians to perform the ETS
installation. This provides a total of $5,000.00 to the project in labor payroll and decreases the AEA
REF fund request to $279,562.00.
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The summary cost items below include freight, all materials for commissioning, and contingency
costs.
1 DP Finalize residential installation plans /Design $ 17,250
1 CP Purchase ETS units, hardware and controls for install $ 143,487
2 CP Freight all items to site $ 33,900
3 CP Install hardware and ETS units $ 47,175
4 CP Commission additional controls unit $ 32,300
5 CP Monitor and Reporting $ 10,450
Total Project Cost $ 284,562
Match Funds From Kwig Power Company
(payroll)
$ 5,000
REF Grant Funds Requested $ 279,562
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for any 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 recording the impacts of AEA projects on the
communities they serve.)
Local utility operators and installation technicians have been trained to install, operate, and maintain
the current wind heat system. Additional revenues from the wind system will be used to support
operations and maintenance of the system. Support can be provided from suppliers, IES and their
technical team. The local operations are supported through the SCADA system, which provides
operational reports and remote diagnostic capabilities. Remote access through high-speed
broadband connection allows engineers and technicians from all over the country to access
components for assisted troubleshooting and repair. Typically ETS units require little to no
maintenance and have components that are easily replaceable if they should fail. Initial spare parts
kits are included in the total project cost.
4.4.3 Heating Purchase/Sale
The heat purchase/sale information should include the following:
• Identification of potential energy buyer(s)/customer(s)
• Potential heat purchase/sales price - at a minimum indicate a price range
• Proposed rate of return from grant-funded project
The energy purchasers will be residential customers with ETS installed. The ETS units are sub-
metered and can be enabled and disabled on an individual basis remotely from the power plant.
Proposed heat sales will range from $.08 to $.15/kWh. It is the intention of the utility to make wind
heat available at all times for 50% or less than the existing retail diesel price in the community.
Currently in Kwigillingok, the ETS heat is sold at $.10/kWhr.
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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 and provide most recent heating fuel invoice that supports
the amount identified in “Project Benefits” subpart b below.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 7.78 m/s
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 4 gens, 1 boiler, 5 each 95 kW wind turbines
ii. Rated capacity of generators/boilers/other Boiler - 300kW, generators - 2@275 kW, 1 @ 190
kW, 1@90 kW
iii. Generator/boilers/other type Diesel generators, electric boiler
iv. Age of generators/boilers/other Engines, 2008, boiler 2012
v. Efficiency of generators/boilers/other Engines - approx. 13.2 kWhr,
electric boiler - approx. 100%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor On ETS units, approx $50 annual - $1350 aggregate for units
ii. Annual O&M cost for non-labor On ETS units,minimal - less than $10 annually, $270
aggregate for current system
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] 1,185,025
ii. Fuel usage
1!The!Railbelt!grid!connects!all!customers!of!Chugach!Electric!Association,!Homer!Electric!Association,!Golden!Valley!Electric!
Association,!the!City!of!Seward!Electric!Department,!Matanuska!Electric!Association!and!Anchorage!Municipal!Light!and!Power.!
!
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Diesel [gal] 85,324
Other
iii. Peak Load 350 kW
iv. Average Load 165 kW
v. Minimum Load 85 kW
vi. Efficiency 13.19
vii. Future trends Increase due to new school load (currently under construction)
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 766*23 = 17,618 ( ETS new installation households)
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 to Heat, increase Electric Thermal Storage capacity
by 2,648,565 BTU, or 470,856 BTU/hr charge capacity, or
138 kW/hr additional charge capacity
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 413,611 kWh
ii. Heat [MMBtu] 1411 MMBTU
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other
Project Cost
a) Total capital cost of new system $267,312
b) Development cost $17,250
c) Annual O&M cost of new system $1,380 (1,150 + 230)
d) Annual fuel cost 11,477 gallons (455 per home *23)
Project Benefits
a) Amount of fuel displaced for
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i. Electricity Varies based on wind availablility and increased efficiency of wind system
ii. Heat 6,141 gallons
iii. Transportation 0
b) Current price of displaced fuel $6.02 ($6.93 estimated for life of project)
c) Other economic benefits Increased revenue to utility = $19,027 annual
d) Alaska public benefits Decreased transportation of fuel, decreased storage
of fuel, increased community efficiency
Heat Purchase/Sales Price
a) Price for heat purchase/sale Currently $.10/kWh
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.29
Payback (years) 6.7 years
4.4.5 Impact on Rates
Please address the following items related to the proposed location of the heating project. If more
than one building will be impacted, please address this information for each building.
• Building name
Homeowner residence, various
• Type or primary usage of the building
Residential
• Location
Kwigillingok, Alaska
• Hours of operation
24 hours
• Single structure or multiple units
23 single structures
• Total square footage
Approximately 1000 sq. ft each
• Electrical consumption per year
500-600kWh Monthly, 500 x 12 = 6000kWh, 600 x 12 = 7200
• Heating oil/fuel consumption per year
766 gallons X 23 homes
• Average number of occupants
4-5 family members
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• Has an energy audit been performed? When? Please provide a copy of the energy audit, if
applicable.
No
• Have building thermal energy efficiency upgrades been completed?
o If applicable, please provide evidence of efficiency improvements including cost and
anticipated savings associated with upgrades.
No, but preference will be given to houses that have been weatherized when possible.
o Estimated annual heating fuel savings
N/A
• If the building is not yet constructed please provide evidence of the value of planned
building envelope efficiency investments beyond typical construction practices. Include
anticipated savings associated with efficiency investments if available.
All structures planned for installation currently exist.
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. In order for the applicant to receive credit for heating fuel
displaced the applicant must provide the most recent invoice for heating fuel purchased.
• Anticipated annual revenue (based on i.e. a Proposed Heat 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
The current population of Kwigillingok is 317 individuals. While the median income for
Kwigillingok is $43,750, 29% of the population lives in poverty, and 28% of the population makes
$5,000 or less annually, compared to 20% of Alaskan residents who fall into the same income
bracket. Subsistence hunting remains an important part of the lives of the people of Kwig. There
were 96 households in the village in 2010, and the average household size and the average family
size was 4.89 individuals.
Kwig produces power using diesel fuel and five Windmatic 17s wind turbines. The base rate of
electricity is $.61 kWh. Residents heat their homes using heating fuel #1. This fuel barged into the
community between spring thaw and winter freeze. The 2013 residential rate for heating fuel was
$6.02/gallon.
The project benefits are as follows:
• Increased displacement of diesel fuel with wind energy
• Reduced residential heating costs
• Increased revenues to local utility through thermal electric sales
• Reduced impact on PCE program funds
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• Strengthened local economy reducing export of dollars from the community to outside fuel
providers.
o Lower energy costs within the community can attract new business opportunities:
One of the major barriers to establishing new businesses in Alaska’s rural villages is
the high cost of energy. Lower energy costs may make it easier to start new
businesses in Kwig.
o Residential monthly fuel bills will be lower because of the use of lower cost
electricity from wind for home heating (for homes with ETS devices installed)
o Revenues to the local utility will increase with additional purchases of local
electricity
• Increased efficiency of existing wind system
• Reduced reliance on the volatility of fuel prices
• Increased education on energy use and conservation
The supervisory control system for the electric thermal storage devices is able to charge ETS units
in a number of ways, such as allowing the emptiest ETS units to charge first, or dividing the
available wind energy evenly among the available units. It is assumed the 413,611 wind generated
kilowatt-hours will be evenly distributed between 50 ETS over the course of the year. Using an
estimate of 31 kWh of electrical energy as the equivalent to one gallon of heating fuel, modeling
studies indicate the potential to provide each residence with 8,272 kWh of electricity or a
displacement of 267 gallons of home heating fuel. This represents 35% of the average annual
residential heating fuel usage of 766 gallons. At $ 6.93 per gallon (ISER average for project life),
267 gallons of stove oil would cost $1,850. Surplus wind energy sold at $0.10 per kWh as electric
heat using the ETS devices would result in an annual household savings of $1,023. 50 ETS units
provide an annual benefit of $51,150 to residential customers, an increase of $23,529 from the
existing ETS.
At the same time revenues to the utility are increased by selling energy that would be curtailed to
regulate the village load. The amount is equal to $41,361 in increased revenue to the utility for 50
ETS, an increase of $19,027 over the existing system.
Monies saved (simplified)
Homeowner - $1,023 annual, $23,529 project annual
Utility - $19,027 increased revenue annually
Total annual benefit (simple) - $42,556
*It should be noted; that prior experience has shown that with the inclusion of ETS devices has
increased community awareness and support for the wind project. When residents believe the
wind turbines should be working and they are not, they call the local wind technicians to find out
why. This interest is driven by the direct monetary savings realized by residents who currently use
an ETS unit in their home. *
SECTION 6– SUSTAINABILITY
Discuss the operation of the completed project so that it will be sustainable.
Include at a minimum:
• Proposed business structure(s) and concepts that may be considered.
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• How the maintenance and operations of the completed project will be financed 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
The continued O&M for ETS units will be supported by the additional revenue that they generate
for the Kwig utility totaling well beyond the O&M requirement for the ETS units. Potential
operational issues would include the need for replacing control units and/or ETS units, which would
be provided for under warranty. Other operational costs outside of the warranty can be covered by
the increased utility revenues.
Existing Wind Heat Smart Grid system SCADA collects ETS unit energy consumption, and
provides monthly production reports.
The sustainability of the system is provided through the ability of local personnel to operate and
maintain the system and by meeting the basic underlying objectives of:
1. Lowering energy costs
2. Reducing dependency on diesel fuel
3. Increasing revenues to the utility
!
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 proposed work on this project would begin immediately upon execution of a grant agreement.
Community buildings and homes would be designated for installation and project materials would
be procured to be available in time for the last barge of the 2015 season. Installation and
commissioning of ETS units would be completed before the end of 2015, with monitoring and data
collection occurring into 2016.
Kwigillingok has worked through numerous grant opportunities, including DCCED, AEA REF,
EECBG. All grants are executed in compliance and projects have been completed to proposed
scope.
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.
The community of Kwigillingok is supportive of this project and the installation of additional ETS
units. There is no known or anticipated opposition to the project.
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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
The budget for this project will come from REF funding and a local match from KPC for laborer
and technician payroll during the install of the ETS units. KPC is committed to providing the match
for this project, as funding will create additional employment opportunity in our community and
great savings to our residents.
Total anticipated project cost and cost for this phase is $284,562.00
Requested grant funding is $279,562.00
Applicant matching funds are $5,000.00
The cost estimates for the project are based on varying sources of current quotes, estimated
materials and labor projections, and previous invoices on installation of ETS devices in Kwig. 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 Kwig Power Company as a match towards payroll for local technicians to perform the ETS
installation. This provides a total of $5,000.00 to the project in labor payroll and decreases the AEA
REF fund request to $279,562.
The Milestone summary cost items below include freight, all materials for installation and
commissioning, and contingency costs.
1 DP Finalize residential installation plans /Design $ 17,250
1 CP Purchase ETS units, hardware and controls for install $ 143,487
2 CP Freight all items to site $ 33,900
3 CP Install hardware and ETS units $ 47,175
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4 CP Commission additional controls unit $ 32,300
5 CP Monitor and Reporting $ 10,450
Total Project Cost $ 284,562
Match Funds From Kwig Power Company
(payroll)
$ 5,000
REF Grant Funds Requested $ 279,562
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.
No additional metering equipment will be required above and beyond the smart metering system
that is currently installed in the individual residences and the control system at the power plant. The
ETS units and the multiple unit controller contain all the information required for reporting when
added to the wind system SCADA.
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
AEA 15003 Page 28 of 32 7/2/14
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
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 Grant 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
1 DP - Finalize installation
details (community
designation)/Design 8/15
$ 17,000
$250
$ 17,250
TOTALS $17,000 $250 $17,250
Budget Categories:
Direct Labor & Benefits $2,250!$250! $2,500
Travel & Per Diem $0 $0 $0
Equipment $0 $0 $0
Materials & Supplies $0!$0 $0!
Contractual Services $14,750 $0 $14,750
Construction Services $0 $0 $0
Other $0 $0 $0
TOTALS $17,000 $250! $17,250
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
AEA 15003 Page 29 of 32 7/2/14
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
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 Grant 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
Purchase ETS units,
hardware and controls for
install 8/15
$ 143,487
$0
$ 143,487
Freight all items to site 9/15 $ 33,900 $0 $ 33,900
Install hardware and ETS
units 10/15
$ 42,175 $4,750 $ 47,175
Commission additional
controls unit 12/15
$ 32,300 $0 $ 32,300
Monitor and Reporting 6/16 $ 10,450 $0 $ 10,450
TOTALS $262,562 $4,750 $267,312
Budget Categories:
Direct Labor & Benefits $18,925 $4,750 $23,675
Travel & Per Diem $0 $0 $0
Equipment $0 $0 $0
Materials & Supplies $143,487 $0 $143,487
Contractual Services $100,150 $0 $100,150
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
AEA 15003 Page 30 of 32 7/2/14
Construction Services $0 $0 $0
Other $0 $0 $0
TOTALS $262,562 $4,750 $267,312
SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address:
Phone Number:
Fax Number:
Renewable Energ y Fun d Round VIII
Grant Application - Heat Projects * •» ENERG Y AUTHORIT Y
SECTION 11 -ADDITIONA L DOCUMENTATIO N 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 loca l suppor t per applicatio n for m Section 8 .
C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel for
the building(s) impacted b y th e project .
D. Governing Body Resolution or other formal action taken by the applicant's governin g
body or management per RFA Sectio n 1.4 that :
Commits the organization to provide the matching resources for project at the
match amounts indicated in th e application.
- Authorizes the individual who signs the application has the authority to commit
the organization t o the obligations under th e grant .
Provides as point of contact to represent the applicant for purposes of this
application.
Certifies the applicant is in compliance wit h applicable federal , state, and local,
laws including existing credit and federa l ta x obligations.
E. An electronic version of the entire application on CD o r other electronic media, per
RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energ y 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 commi t th e entity to these obligations .
Print Name
Signature
Title
Date
William Igkurak
/ Sn^&£~- x^— —
General Manager, KPC
September 12, 2014
Renewable Energ y Fund Round VIII
Grant Application - Heat Projects : ENERGY AUTHORITY
SECTION 10-AUTHORIZED SIGNERS FOR M
Community/Grantee Name:
Kwig Power Company
Regular Election is held:Date: November 6 , 201 4
Authorized Grant Signer(s):
Printed Name
William Igkurak
Title
General Manager, KPC
Term
At will
Signature
/
}^^ff^^. 4/C- —/ *
I authorize the abov e person(s) to sig n Gran t Documents:
(Highest ranking organization/community/municipal official)
Printed Name
William Igkurak
Title
General Manager, KPC
Term
At will
Signature
<T
Grantee Contact Information:
Mailing Address:
Phone Number:
Fax Number:
E-mail Address:
Federal Tax ID #:
PO Box 90, Kwigillingok,AK 99622
907-588-8626
907-588-8627
wmigkurak@att.net
92-0097305
Please submit an updated form whenever ther e is a chang e t o the above information .
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Supporting!Documents!!
Kwig Power Company
P.O. BOX 49
KWIGILLINGOK, AK 99622
(9O7) 588-8626
September 10, 2014
Alaska Energy Authority
Renewable Energy Fund Program
Shawn Calfa
813 E. Northern Lights Blvd.
Anchorage, Alaska 9950 3
Dear Mr. Calfa,
I am th e General Manager of th e electrica l utility for the community of
Kwigillingok, a community of approximately 400 residents, on the Kuskokwim
River 50 miles south of Bethel. I a m writin g to you in support of our community
application to Round 8 of the Renewable Energy Fund.
Our community has participated in the Renewable Energy Fund in past rounds
and curently has an operational wind diesel system that is saving our utility fuel
and providing heat to individual homeowners with electric thermal stoves. The
savings our community has realized in jus t the time the wind turbines and stove s
have been operating has helped to stabilize our utility operations and provided
homeowners with a great savings in thei r stove oil costs.
People were skeptical at first that the stoves woul d work, but I'm happy to say
that we have seen the proof. Now, at every utility meeting and when I'm out in
the community, everyone is asking me whe n we they will have a stove in their
home. Our existing wind system is capable of handling more stoves and our
community members would greatly benefit from them. I hope that our communit y
support will be taken into consideration during the application review. If you have
any questions, please contact me at 907-588-8626.
Guyana,
William Igkurak
General Manager
Kwig Power Company
September 2, 2014
Shawn Calfa, Grants Administrator
Alaska Energy Authority
831 W . Northern Lights Boulevard
Anchorage, Alaska 99503
RE: Kwigillingok application to the Renewable Energy Fund Round VIII
Dear Mr. Calfa,
I live in Kwigillingok, Alaska. It is my home and has always been. Our community has
been struggling under the burden of high energy costs for years. I though t that w e
would never have a solution, but a few years ago we had wind turbines installed on our
lands. I wa s not sure how the y would wor k fo r our community, or if the y would reall y
make a differenc e to us. Once the system wa s completed and the thermal stoves wer e
installed in our homes, it did make a difference . Thw wind turbines provide us with
electricity and the stoves work. I have one in my home and it is saving my famil y money
that we would have spent on stove oil. That is money that stays in my community and
helps to support us locally. I know that others in our community want more stoves
installed to help the wind system and save us eve n more money. I wan t our community
to have a stove in every building that wants one.
On behalf of my fellow community members, I a m writing to ask for your consideratio n
of our application to the Alaska Energy Authority, Renewable Energy Fund for Round
VIII. The proposal , entitled "Kwigillingok Win d Heat System - Electric Thermal Storage,"
funds the installation of more thermal stoves in Kwig .
I ask fo r your ful l consideration and suppor t of our application.
Respectfully,
Kwigillingok Community Member