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Contents
Manokotak Renewable Energy Project
Alaska Energy Authority Application
2014
(1) Governing Body Resolution
(2) 2014 Alaska Energy Authority Application
(3) Support Letters
(4) Resume File
Contents
Manokotak Renewable Energy Project
Alaska Energy Authority Application
2014
Governing Body Resolution
Contents
Manokotak Renewable Energy Project
Alaska Energy Authority Application
2014
AEA Application
Renewable Energy Fund Round VIII
Grant Application - Standard Form
AEA 15003 Page 1 of 27 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 27 7/2/14
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Manokotak Natives Limited: Manokotak Power Company (MPC)
Type of Entity: Fiscal Year End:
Independent Power Producer IPP June 30, 2014
Tax ID # 92-0096111
Tax Status: ☒ For-profit ☐ Non-profit ☐ Government (check one)
Date of last financial statement audit: 2013
Mailing Address: Physical Address:
Manokotak Power Company
P.O. Box 149
Manokotak, Alaska 99628
Telephone: Fax: Email:
907.289.2041 907.289.2042 mucky@gci.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Michael Alakayak Title: President
Mailing Address:
P.O. Box 149
Manokotak, Alaska 99628
Telephone: Fax: Email:
907.289.2041 907.289.2042 mucky@gci.net
1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
Bonnie Ayojiak 907.289.2041 907.289.2042
Kenneth Nukwuk 907.289.2041 907.289.2042
Renewable Energy Fund Round VIII
Grant Application - Standard Form
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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)
☒ 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/REFund8.html. (Any exceptions should be clearly noted and
submitted with the application.) (Indicate by checking the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
Renewable Energy Fund Round VIII
Grant Application - Standard Form
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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.
Manokotak Renewable Energy Feasibility Project
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.
Coordinates: 58.9956695,-159.0028094
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Manokotak, Alaska and immediate vicinity
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
☒ Wind ☐ Biomass or Biofuels (excluding heat-only)
☐ Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
☐ Solar Photovoltaic ☐ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☒ Reconnaissance ☐ Final Design and Permitting
☒ Feasibility and Conceptual Design ☐ Construction
Renewable Energy Fund Round VIII
Grant Application - Standard Form
AEA 15003 Page 5 of 27 7/2/14
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
Manokotak Power Company (MPC) is proposing to install up to 4 small meteorological towers to
determine a location with the following criteria: (1) a location with class 5 or better wind resource,
(2) a location nearest to the road system and (3) location suitable for the installation of a wind
turbine.
The project would complete a conceptual design to establish and further the development of the
project at a suitable wind turbine site and offer viable design configurations from available wind
resource turbines and equipment.
The Conceptual Design Report (CDR) will be completed in compliance with the Alaska Wind
Program Guidelines for Conceptual Design Reports; including a wind resource analysis, electrical
system overview, and heat load overview.
The conceptual design will offer a determination of the optimal capacity of any wind turbine system
to be incorporated into the community’s existing power plant (260 kW diesel powered generators).
Based on similar configured systems, a system with two (2) 100 KW wind generators would be
optimal in a class 5 wind environment.
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.)
Lessons learned about renewable energy sources in Manokotak will contribute to a better
understanding of wind resources in rural communities around the state similar to Manokotak; the
village size and population and power configurations are similar to a significant number of rural
Alaska villages.
The project would also lend itself to improving the accuracy of the State High Resolution Wind Map
for the immediate area and Dillingham region. A study of the wind resource will add to the
database of information available to the Alaska Agency Authority and this will prove useful as more
and more pieces of the wind resource map become documented across rural Alaska.
The proposed turbine(s) would augment power generation already in place in the community;
Stabilizing energy costs and reduce Manokotak resident’s exposure to fuel price fluctuations. A
significant reduction in cost fluctuations would facilitate improvements for budgeting of other
important infrastructure projects and help reduce or prevent rural to urban migration. In many
instances energy and heating costs are cited as major factors for families relocating from
expensive rural towns and villages to urban areas.
Reducing the reliance on diesel fuel power generation could provide long‐term socioeconomic
benefits to village households; improved cash flow, better financial health for the residents.
The project has inherent environmental benefits such as improved air quality due to reduced fossil
fuel use and reduced potential of contamination from fuel spills.
Renewable Energy Fund Round VIII
Grant Application - Standard Form
AEA 15003 Page 6 of 27 7/2/14
Summary of Benefits: @ 466,000 kWh:
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 budget is: $200,000. This early study is 25% to 30% higher than comparable wind
project studies for completed projects around the State. The reason for this higher request is to
gather wind resource data from four (4) immediate probable locations and determine the available
resource for each location and to develop the best location; a location with a class 5 or better wind
resource would be the ideal outcome for the project.
The local area is well known for wind, however to determine the best location with the greatest
wind resource, wind resource data will be gathered from four (4) locations. This early higher
expense will guide the deployment of our turbines and offer the greatest utilization of the resource.
MPC is requesting $185,000 from Alaska Energy Authority to complete this phase of the project.
An additional in‐kind project match of $15,000 (8.11%) would be provided by MPC.
MPC estimates the final design, construction, and commissioning phase costs will be $2.10 million.
MPC will be actively pursuing additional funding and financing opportunities from other local and
regional funding sources supporting renewable energy and economic development projects.
Performance Unit Value
Displaced Electricity kWh per year 466,000
Displaced Electricity total lifetime kWh 10,718,000
Displaced Petroleum Fuel gallons per year 37,280
Displaced Petroleum Fuel total lifetime gallons 857,440
Displaced Natural Gas mmBtu per year -
Displaced Natural Gas total lifetime mmBtu -
Avoided CO2 tonnes per year 378
Avoided CO2 total lifetime tonnes 8,703
Project Detail Project
Cost:
For: project scoping and contractor solicitation, identification of land and regulatory
issues, permitting and environmental analysis, and detailed analysis of existing and
future energy costs and markets.
22,000$
Conceptual design, and 22,000
Detailed energy resource analysis, 36,000
Conceptual business and operations plans and economic and financial analysis,50,000
Final report and recommendations,70,000
Total Project Budget:200,000$
Project Budget
Renewable Energy Fund Round VIII
Grant Application - Standard Form
AEA 15003 Page 7 of 27 7/2/14
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 $ 185,000
2.7.2 Cash match to be provided $ 10,000
2.7.3 In-kind match to be provided $ 5,000
2.7.4 Other grant funds to be provided
2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 200,000
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
estimates through construction.
$ 2,100,000
2.7.8 Additional Performance Monitoring Equipment not
covered by the project but required for the Grant
Only applicable to construction phase projects
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.
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.
undetermined
$3,700,000
Renewable Energy Fund Round VIII
Grant Application - Standard Form
AEA 15003 Page 8 of 27 7/2/14
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.
Michael Alakayak, as the President of Manokotak Natives Limited will have oversight of the project.
The MNL administration will be the grants manager for the project, working closely with an
engineering firm to ensure the objectives are achieved and milestones are met for the Project.
Early stages of this project will be assigned through: Three requests (3) for services to engineering
firms with design and engineering of wind turbine installations.
Contact information is:
Michael Alakayak
P.O. Box 149
Manokotak, Alaska 99628
Cell: 907-289-6825
Office: 907-289-2041
Fax: 907-289-2042
Renewable Energy Fund Round VIII
Grant Application - Standard Form
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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.
Please fill out form provided below. You may add additional rows as needed.
Milestones Tasks Start Date End Date
Project Scoping and
Contractor
solicitation.
Project Scope and Contractor selection; work with an
engineering firm with proven wind study experience
to: (1) write up the project scope and (2) select a
contractor to erect and maintain the met towers.
07/01/15
08/15/15
Acquire four (4) met
towers and initiate the
detailed energy
resource analysis and
feasibility study.
Working with local knowledge, Michael Alakayak
and the selected engineer will: identify four (4)
potential class 5 or better met tower locations, resolve
placement, monitoring and collection of wind data
issues. Work with the engineering firm to identify any
major geotechnical and permitting issues which may
present a threat to the success of the project for the
prospective sites. Install met towers.
07/15/15
10/01/15
Begin Met tower data
collection
Begin the acquisition of wind data at the (4) four
perspective sites; 12 month data collection for each
site will be ideal.
10/01/15
09/30/16
Conceptual Design
Report (CDR) and
Wind Feasibility
Study Results.
Based on preliminary data, the project will begin the
Manokotak Wind-Diesel Conceptual Design and
Feasibility Study. Ongoing wind data collection and
based on preliminary
03/01/2016
12/31/2016
Complete Wind
Resource Reports
Complete the Manokotak Wind Resource report for
the selected turbine site. 09/01/2016
12/31/2016
Complete Manokotak
Wind Feasibility
Report
Complete the Manokotak Wind Feasibility report for
the selected turbine site. Present the results and
finding to the MPC board for further development and
direction.
09/01/2016
12/31/2016
Renewable Energy Fund Round VIII
Grant Application - Standard Form
AEA 15003 Page 10 of 27 7/2/14
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.
Personnel: Michael Alakayak, Manokotak Natives Limited president will have oversight of this
project. With assistance from the office administrator and office staff support, MNL's bookkeeper
and the power plant clerk. The Power plant operator lead is, Moses “Moody Moses Toyukuk and
his operators will provide direct support and be available for tasks related to this project.
Consultant: MPC will a design engineering and project management company with proven
experience completing rural Alaska design and engineering projects. The candidates will have
successfully completed feasibility and conceptual design work for the initial stages of numerous
wind projects in rural Alaska and may be actively engaged with the community for other
infrastructure projects.
Vendor/Equipment: The 100kW "North Wind" 100B wind turbine from Northern Power (vendor) will
be utilized in the design of this project. This turbine has proven results all over the Y-K delta, and
utilizing and maintaining the same type of generator will ultimately result in lower operating and
maintenance expense in the future. The generator incorporated into this design project will be the
permanent magnet, direct-drive "NW100/21" -- the latest model recommended by Northern Power.
The turbines from Northern Power are proven and by installing them at our community we will be
able to add to the knowledge base for technical and maintenance support.
Construction Contractors: MPC will complete the RFP/Bid process for this phase of the project.
There are several qualified companies experienced with turbine installations in the region. It’s
expected the hired engineering contractor will manage this task and continue with project oversight
during the construction and installation phase of the project.
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.
MPC will have reporting responsibility for the project. The hired project manager will compile and
complete progress reports sufficient to complete adequate oversight and grant reporting to AEA.
Monthly teleconferences will be held with the project team: Michael Alaykayak, the hired project
manager and engineering staff as necessary to track the project milestone and identify any issues
related to the viability of this project. This includes any additional process and cooperation
opportunities to reduce and contain the cost of final installation of the turbines.
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Grant Application - Standard Form
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3.5 Project Risk
Discuss potential problems and how you would address them.
Inadequate Wind Resources: The major risk is not locating adequate class 5 or better resources in
the immediate area. This result would end the effort for wind turbines in Manokotak, however there
is a strong indications from local residents adequate wind resources exists nearby this community.
The terrain is hilly and close to Bristol Bay with off and onshore winds prevalent in the area. The
challenge is to locate the best resource in an area where wind turbines can installed realizing the
greatest economic benefit at the lowest financial cost for the project.
Geotechnical: Geotechnical issues may arise from the study that can either increase or decrease
the projected costs for wind turbine installations. Early geotechnical investigations in potential sites
will be done to mitigate any challenge or exploit any advantage from a potential site. The project
engineer will keep MNL informed of any issues threatening the schedule or viability of the project.
Site Control: The land being investigated for wind turbine installations is owned by Manokotak
Natives Limited. (Site control is often cited as an issue and project risk and none are expected.)
Permitting: The project may be not be able to secure the necessary permits to move the project
forward. Fish and game permits may require additional costs that would make any project
uneconomical. Our project engineer will inform MNL if there are any issues and the course of
action or permits required to maintain the schedule for this project.
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 electr onic 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.
Valda Borbridge; Office Manager is the accountant for MPC with assistance from a Clerk
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.
MNL/MPC has a history of unqualified audits. James Doughty CPA; BDO Accounting Consultants,
Anchorage, AK.
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.
MPC has an accounting manager and accounting clerk. All disbursements require signatory and the
company accounting records are subject to an annual audit.
Renewable Energy Fund Round VIII
Grant Application - Standard Form
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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.
The "Manokotak Power Wind-Diesel Conceptual Design/Feasibility Study" will provide a summary of
wind resource data collected from October 2014 through September 2015 in Manokotak, Alaska,
and this will be provided as an appendix to the attached feasibility report. Both the raw data and the
processed data will be available for the Alaska Energy Authority website.
We believe there are long-term annual average wind speeds at several sites with 7.2 m/s at a height
of 30 meters above ground; taking the local air density and wind speed distribution into account, the
terrain and proximity to the ocean are favorable for the development of this wind resource.
A favorable outcome for the project would be to document an average wind power density for a site
at 451 W/m2.
This would result in an estimated Class 5 wind resource, “excellent” for wind power development.
The met tower wind data set will be used to make predictions as to the potential energy production
from wind turbines at each site.
The net capacity factor for utility-scale wind turbines would range from 24 – 38%.
A significant amount of fuel will be displaced with a wind-diesel system installed.
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.
MPC currently utilizes: tandem 260 kWh Diesel fired 6 cylinder John Deere Generators. The sets
were upgraded in 2006. MPC recently purchased a CAT 3400 series set and is in the process
of maintenance its power plant.
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Grant Application - Standard Form
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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.
MPC uses diesel fuel exclusively to generate electricity for all of MPC customers. (Tandem 260 KW
Generators) Fuel consumption for 2012-13 energy production was 109,353 gallons. The cost of fuel
is volatile and is expected to rise in the next several years; major economies once in recession are
making economic recoveries and pushing oil and fuel prices higher for a sustained time period into
the future. The economic cost of political unrest across to globe is felt, severely at times, by higher
fuel and energy prices by rural Alaska villages, including Manokotak.
Communities should no longer rely on diesel fuel as the single source of energy, especially when
the wind resources near Manokotak may been determined to be "excellent" for power production.
According to similar project planning estimates, a 100 kW wind-diesel system in Manokotak (with
one NW100 turbine) would have a lower overall electricity generation cost than the present diesel-
only system at diesel fuel prices of $4/gallon and higher.
A 200 kW wind-diesel system (with two NW100 turbines) is expected to have a lower overall
electricity generation cost at diesel fuel prices of $4/gallon and higher. The operational impacts of
new wind generation capacity on the existing Manokotak Power system will be determined during
the final design study phase of the project.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The MPC market is:
There are 450 residents in Manokotak with: 141 Residential, 5 community facilities and 3 Non PCE
users. The MPC power plant generated 1,323,147 kWh and sold 1,256,315 kW h of electrical
power. MPC utilized 109,353 gallons of diesel fuel at a cost of $4.02 per gallon. The fuel cost per
kWh was .35.
A successful wind turbine installation, with class 5 or better wind resources will:
(1) Displace a significant amount of diesel fuel. In our best case 450-475 kW h may be produced
from wind displacing 34-38,000 gallons of fuel per year. The annual savings based on 2012-13
fuel prices will be: $136,000 - $152,000.
(2) Reduced exhaust emissions, less exposure to volatile prices and reduced cost for power
production.
(3) Budgeting for other infrastructure projects can be done with less exposure to volatile fuel prices
meaning more jobs and economic opportunity for Manokotak.
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Grant Application - Standard Form
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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
Renewable energy technology description; components of the conceptual Manokotak wind-diesel
system:
(1) One or two NW100 wind turbines (200 kW)
(2) Transformers will be installed at either end of the line. The poles would also carry a
communication line between the wind turbine site and the power plant area.
(3) A new modular building/exterior module, possibly the size of a 40’ shipping container, to be
installed adjacent to the existing diesel power plant building.
(4) The power line from the wind turbine site would connect directly to this building, which would
house the synchronous condenser, electric boiler/boiler grid interface, power control equipment,
and a hot water tank that could be connected to a new heat recovery system on the existing diesel
power plant. Some new electronic control systems and panels in the existing power plant building
There are no other economically feasible renewable energy alternatives or options currently
available to the community of Manokotak to economically harness except the wind.
The standard for the region to convert wind into usable energy is Northern Power’s "Northwind"
100kW B model turbine with a 21 meter rotor (NW100/21). The NW100/21 is the latest generation
of wind turbines. The unit is a permanent-magnet, direct-drive design and is the current state of the
art for advanced wind turbine design in cold climate installations.
The upgrade overcomes many of the challenges of connecting old-style induction generators to
electrical distribution grids; the permanent-magnet generator is connected to a full power converter
changing the power output from variable, low-frequency, alternating-current into direct current and
back to tightly regulated alternating current for final output to the grid.
The permanent-magnets eliminate reactive power requirement to energize create a magnetic field.
Since this energizing requirement is removed from the influence of the grid, the power output is
stabilized and more efficient; the power converter allows a broad degree of control over the form
and quality of the power output to the grid.
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Grant Application - Standard Form
AEA 15003 Page 15 of 27 7/2/14
The capacitance and active controls in the power converter allow reactive power to be either
consumed or produced by the Northern 100 regardless of its real power output, even in the
complete absence of wind. The turbine controls allow power output to be controlled by dynamic
grid conditions, including automatic output reduction or complete shutdown regardless of the
current wind conditions. The combination of these advanced controls and an integrated disk brake
allows gradual ramping up or down of turbine output minimizing fluctuations and maximizing the
usable output of generated power.
Optimum installed capacity
The system we plan consists of up to (2) NW100/21 turbines to operate with the existing diesel
plant as a wind-diesel hybrid power system. Installed wind power capacity will be 200 kW.
Anticipated capacity factor
HOMER software will be used to simulate conditions at Manokotak with one or two Northwind
100 wind turbines running in conjunction with the existing power plant. HOMER calculates gross
energy production with no allowance for power plant downtime, turbine or generator maintenance,
equipment curtailment or any other reason.
Anticipated annual generation
Our optimal wind production target will be 400-475kWh annually. This will result in 34-38,000 of
displaced fuel oil.
Anticipated barriers
If Class 5 wind resources are identified, then no barriers to successful installation and integration of
a wind turbine in Manokotak are expected for the installation of turbines. If, however less than
class 5 are not located. The projects goals and objectives will not be met and consultation and
direction should be done with AEA to determine if the project would be economical with a complete
data set and study completed for the four sites. The project design is modeled on recent
successful projects of similar designs.
Basic integration concept
The integration design concept may be comprised of five (5) major components: (1) two (2)
Northern Power NW100 turbines, (2) a secondary (or “discretionary”) load electric boiler (3) a
secondary load controller to manage the “dumping” of excess electricity (if necessary), (4) a wind-
diesel supervisory control system to manage the combined operation of the diesel generators and
wind turbines, and to enable remote monitoring and control..
Delivery methods
The existing Manokotak Power Company electrical distribution grid system will be the method of
energy delivery.
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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.
The land is owned by the Manokotak Natives Limited, no site control issues are anticipated for this
project.
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
The typical permits for a met tower will be from the FAA and the US Fish and Game. The permitting
issues will be investigated and the necessary permits will be secured during the first weeks of the
project.
This is Conceptual Design project with Met towers. The permitting for these will be the FAA, US Fish
and Game and State of Alaska Fish and Game. The acquisition of the permits and any issues with
permitting will be the responsibility of the hired project engineer.
The following permits and/or authorizations which may be necessary for installation of a Wind
turbine.
USACE Section 404/401 Wetlands permit and Water Quality Assurance
ADNR, OC&OM Coastal Zone Consistency Determination
Title 16 Fish Habitat Permit
SHPO “No Historic Properties Affected”
Storm Water Pollution Prevention Plan
Alaska Pollutant Discharge Elimination System
FAA 7460-1 Notice of Proposed Construction or Alteration
Necessary permits will be investigated in the final design phase of the project and will be the
responsibility of the hired project engineer.
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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
The project manager will be responsible for correspondence and coordination for all the permits.
The environmental permitting steps for this project will be based on the publication Alaska Wind
Energy Development: Best Practices Guide to Environmental Permitting and Consultations, a
study done by the URS Corporation for the Alaska Energy Authority in 2009.
Agencies identified with permitting issues for this early stage are:
FAA: The project is located over 5 miles from the Manokotak airport the Federal Aviation
Administration (FAA) must make a determination that the proposed project does not pose a hazard
to navigable airspace or communications/navigation technology of aviation or Department of
defense operations.
The US Fish and Wildlife will be consulted due to concerns with migratory birds and bats with
turbines and the associated structures.
Alaska Department of Fish and Game may be consulted since this project is located in the Bristol
Bay drainage; a recognized fish habitat area of the State.
The complete permitting process will be reviewed at the onset and any major issues in the project
schedule will be brought to the attention of MPC for review.
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
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Projected development cost of proposed renewable energy system
The total cost for the installations will be $1,95 – 2.10m The cost for this phase is $200,000. This is
relatively high in compare to other feasibility studies due to 4 proposes locations. The corridor along
the Manokotak road system is 5 miles near hilly, windy and accessible terrain.
The Bristol bay region is similar in terrain and the data collected from this study will be a good
resource for any future wind projects in the Bristol Bay drainage.
MPC is contributing $15,000 towards the completion of this project and will continue to search for
additional funds supporting economical wind projects.
The B/C of 1.0 is calculated with the following factors and assumptions: 22.5 year life span, 466,000
kWh annual displacement, 37,280 gallons of fuel displacement from electrical generation and 6,000
from residual heat.
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.)
Preliminary Feasibility Study. No O&M for this phase.
(The 2010 O&M on the AEA benefit spreadsheet for wind projects is .0469 and this factor is used for
the B/C calculation.)
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
No Purchase or Sale Agreements outside of the legacy MPC Residents and community buyers of
MPC power.
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 Wind
The Applicant should demonstrate that the renewable energy resource is available on a sustainable
basis.
Annual average resource availability. Class 5 Wind resources or better
Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel)
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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 2
ii. Rated capacity of generators/boilers/other 260 kWh John Deere
iii. Generator/boilers/other type
iv. Age of generators/boilers/other 8 years
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor $27,431
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] 1,323,147 kWh
ii. Fuel usage
Diesel [gal] 109,352
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
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]
b) Proposed annual electricity or heat production (fill in as applicable)
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.
Tandem 100 KW Northpower Turbines
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i. Electricity [kWh] 466,000 kWh
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other
Project Cost
a) Total capital cost of new system $2.01m
b) Development cost
c) Annual O&M cost of new system .0469/kWh
d) Annual fuel cost
Project Benefits
a) Amount of fuel displaced for
i. Electricity 36 – 38,000 Gallons
ii. Heat 5,000 (similar to other analysis for wind turbine) use of residual heat.
iii. Transportation
b) Current price of displaced fuel 4.02
c) Other economic benefits
d) Alaska public benefits
Power Purchase/Sales Price
a) Price for power purchase/sale
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.0
Payback (years) 22.5
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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.
The project reduces the cost of producing electricity through the displacement of diesel fuel. The
PCE program subsidizes the cost of electricity and the PCE may elect to absorb the savings.
In an unsubsidized environment the impact to the consumers would be substantial, however the
savings would approach the existing PCE subsidized rate.
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
In a dual 100kWh configuration the project has the potential of displacing 38-40,000 gallons per year
with an annual savings at $4.00/gal of $148-152,000.
With less dependence on volatile fuel prices, MNL will increase their capacity to budget accurately
for other community projects with positive economic and financial opportunities for the residents and
region at large.
Lower emission locally will also be an advantage, as well as reducing the storage of fuel over the
winter months.
5.1 Public Benefit for Projects with Private Sector Sales
Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.),
please provide a brief description of the direct and indirect public benefits derived from the project
as well as the private sector benefits and complete the table below. See section 1.6 in the Request
for Applications for more information.
Renewable energy resource availability (kWh per month) N/A
Estimated sales (kWh)
Revenue for displacing diesel generation for use at
private sector businesses ($)
Estimated sales (kWh)
Revenue for displacing diesel generation for use by the
Alaskan public ($)
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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
Any issues related to sustainability specific to this project will be documented and addressed to
Michael Alakayak for resolution.
When this project is completed through construction and installation of the wind turbines, the power
generated will be supplied through the existing distribution system as before the upgrade.
Sales will be billed out as before to the customers of the system, however at a lower rate and not
subject to as much change from year to year.
The plant operators will be trained on the new operations and maintenance procedures and
processes for a Wind-Diesel power plant. The training and procedures should be will be very
similar the wind-diesel installations in the region such as Hooper Bay, Toksook Bay and Kasigluk,
Alaska.
Adopting the region "standard", the Northern Power 100Kw generator, will result in benefits in
regards to long-term sustainability of the entire regional system of turbines, including the
installation at Manokotak.
Specific areas regarding sustainability for the new turbines will be addressed and reported at the
completion of this design and planning stage.
No change is expected with the administrative staff in regards to sustainability and little is any
change is expected in the administrative or clerical support of when this installation is completed.
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 following prior work has been done to determine adequate wind resources in our area:
An investigation of resources was done near the Manokotak Housing complex 5 miles from our
proposed study site. Attached is the report: “Manokotak, Alaska; Wind Resource Report rev.1”
The Study documented Class 2 wind resources, insufficient to develop. It is widely accepted by
local residents, the resources for wind and turbines are near the main village in the corridor of hilly
terrain. There are 4 sites, along this 5 mile corridor this project will gather wind data to complete
the Manokotak Wind-Diesel Conceptual Design/Feasibility Study
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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
Letter of Support are attached from:
Manokotak Village Council
Bristol Bay Native Corporation.
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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 total cost through construction depends on the outcome of the wind resource study and
feasibility report. If the project progresses into the Final Design Stage costs can be determined
more accurately.
The following is an estimate from other projects and an analysis of similar projects funded through
AEA, Denali Commission and the USDA adjusted for 2% cost increase:
Final Design and Permitting: $220,000
Construction Costs: $1,950,000
We are requesting $200,000 to complete a wind resource and feasibility study as follows:
Obtain Site Control/Right of Entry/Permits $22,000
Erect and Dismantle Met Tower Monitor 36,000
Complete Feasibility & Geotechnical Work 75,000
Complete Wind Resource Reports 32,000
Complete Conceptual Design 35,000
TOTAL: $200,000
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.
N/A
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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 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
(List milestones based on
phase and type of project.
See Milestone list below. )
Obtain Site Control/Right of
Entry/Permits $22,000 $22,000
Erect and Dismantle Met
Tower Monitor $36,000 $36,000
Complete Feasibility
Geotechnical Work $75,000 $75,000
Complete Wind Resource
Reports $22,000 $10,000 $32,000
Complete Conceptual Design $30,000 $5,000 $35,000
TOTALS $200,000
Budget Categories:
Direct Labor & Benefits
Travel & Per Diem
Equipment
Materials & Supplies
Contractual Services $200,000
Construction Services
Other
TOTALS $200,000
Contents
Manokotak Renewable Energy Project
Alaska Energy Authority Application
2014
Support Letters