HomeMy WebLinkAboutREF 7 GrantApplication7_HeatPBDM KONG C[1a]FINALRenewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Application Page 1 of 28 7/2/2011
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII 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 is available online at: www.akenergyauthority.org/REFund7.html.
• If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant 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 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 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 VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 2 of 28 7/2/2013
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Puvurnaq Power Company
Type of Entity: Village Utility Fiscal Year End December 31
Tax ID #92-0091186 Tax Status: For-profit X Non-profit Government ( check one)
Date of last financial statement audit: 2012
Mailing Address
PO Box 5009, Kongiganak, AK 99509
Physical Address
Airport Road, Kongiganak, AK 99509
Telephone
907-557-5616
Fax
907-557-5614
Email
tanqikp@yahoo.com, kongppc@unicom-alaska.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Roderick Phillip
Title
Puvurnaq Power Company, Board Chairman
Mailing Address
PO Box 5009, Kongiganak, AK 99509
Telephone
907-557-5616
Fax
907-557-5614
Email
tanqikp@yahoo.com
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);
YES
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 Yes or No in the box )
YES
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).
YES
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/veep/Grant-Template.pdf. (Any exceptions
should be clearly noted and submitted with the application.)
YES
1.2.5 We intend to own and operate any project that may be constructed with grantfunds
for the benefit of the general public. If no please describe the nature of the
project and who will be the primary beneficiaries.
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 3 of 28 7/2/2013
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.
Kongiganak Wind Heat - Electrical 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.
GPS Coordinates for Kongiganak, Alaska: 59.8800, -163.0540
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 Kongiganak, Alaska.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
X 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
I. Reconnaissance III. Final Design and Permitting
II. Feasibility and Conceptual Design X IV. Construction and Commissioning
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
This project expands existing Kongiganak Wind Heat Smart Grid System by adding additional
electric thermal storage (ETS) devices. The units themselves have been in production since the
mid-1980’s as electric heat sources, but have only recently been advanced to include Grid
Interactive Controls for renewable energy sources. Currently, the units and their controls are
considered “off the shelf” technology and are readily available.
The ETS units proposed for installation in this project are already in use in 20 homes in
Kongiganak (Kong) and have realized those homes 30-50% fuel decreases (in home heating
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 4 of 28 7/2/2013
fuel) in the 10 months they have been in use. Kong has operational, utility scale, wind turbine
project that produces excess wind capacity. This capacity needs to be used or the turbine
production must be governed in a way that energy is wasted. Additional ETS units will
provide an outlet to maximize the use of wind power to displace diesel fuel for both power
generation and heating.
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 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
Tunt.
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
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 = $320,456.00
Local Cash Match (Puvurnaq Power Company) = $9,000.00
REF Funding Request = $311,456.00
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application $ 311,456.00
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2.7.2 Cash match to be provided $ 9,000.00
2.7.3 Total In-kind match to be provided (sum of lines below) $ 0
Biomass or Biofuel inventory on hand $ 0
Energy efficiency improvements to buildings to be
heated (within past 5 years or committed prior to
proposed project completion)
$ 0
Other In-Kind match to be provided $ 0
2.7.4 Other grant funds to be provided $ 0
2.7.5 Other grant applications not yet approved $ 0
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $ 320,456.00
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.
$ 320,456.00
2.7.8 Additional Performance Monitoring Equipment not covered
by the project but required for the Grant Only applicable to
construction phase projects.
$ 0 (existing)
2.7.9 Estimated Direct Financial Benefit (Savings) $ 688,800.00
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.
$
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 6 of 28 7/2/2013
SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). In the electronic submittal, please submit resumes
as separate PDFs if the applicant would like those excluded from the web posting of this
application. If the applicant does not have a project manager indicate how you intend to solicit
project management support. If the applicant expects project management assistance from
AEA or another government entity, state that in this section.
The project manager for Puvurnaq Power Company will be Roderick Phillip, the president of the
Puvurnaq Power utility board. Mr. Phillip 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 Kongiganak for over 5 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. This project is an expansion of the existing wind
heat system, from 20 to 50 residential electric thermal storage units.
Dennis Meiners, CEO of IES, as well as Patrick Boonstra, Project Manager, will be managing
and coordinating this project to completion.
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.
Project tasks, timelines, and budgets have been approved by PPC with acknowledgement of the
supporting match fund commitments from PPC.
Other key participants and resources for this project include: Tom Steffes of Steffes
Corporation, and Carl Brothers of Frontier Power Systems. Steffes corporation is the supplier of
the electric thermal storage units, and Frontier Power Systems are control system experts.
Each of these participants has previous experience in the community of Kongiganak, with
installation of ETS units and controls on Wind Heat Smart Grids. See attached resumes and
bios from project team participants.
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 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 Finalize installation details with home owners
for install (community designation) 7/14 8/14
2 Purchase ETS units, hardware and controls
for install 7/14 8/14
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 7 of 28 7/2/2013
3 Freight all items to site 8/14 9/14
4 Install hardware and ETS units 9/14 10/14
5 Commission additional controls unit 10/14 12/14
6 Monitor and Reporting 12/14 6/15
Project Tasks/Milestones:
Task #1 – Finalize ETS installation details. (Kong Council members, PPC staff, local
technicians and project team)
Task #2 - Purchase ETS devices, connection hardware, and electrical components (Project
team)
Task #3 - Freight and deliver all ETS and electrical components (Project team)
Task #4 - Installation of ETS units, and upgrade of multiple unit controller at the power plant
(Local technicians and project team)
Task #5 - Commissioning of additional ETS units on the existing Wind Heat Smart Grid
(Project team)
Task #6 – System support and data collection of ongoing ETS use and fuel offset at the
residential and utility level (PPC staff and project team)
3.3 Project Resources
Describe the personnel, contractors, accounting or bookkeeping 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.
As a member of the Chaninik Wind Group, Puvurnaq Power Company has numerous
resources, not only within the community, but also throughout the region to assist with the
completion of this project. The previously developed relationships with all project partners,
commercial service providers and all necessary accounts will allow PPC to complete the
proposed project.
The local utility crews have experience with the installation of ETS units.
The only major equipment for this project, being ETS units from Steffes Corporation, will be
purchased through project management firm IES, as a Steffes supplier. All other project
activities and purchases will be coordinated between PPC and IES as agreed. 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 project reporting plan includes project status reports, project communications and project
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 8 of 28 7/2/2013
accounting. The project reporting point of contact would be Ona Brause, of IES. As the Director
of Finance & Operations, Ms. Brause has provided assistance and reporting on other grants for
PPC and other 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; 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. 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.
Project risks include the general logistical challenges of working in rural Alaska. Many times the
fall barges are unable to deliver freight and fuel to Kong. If this occurs, overland winter
transport will be required. As these are heavy items, shipping disruptions may affect the budget
and the schedule.
The technical risks are very low. This ETS infrastructure has been operating in 20 homes in
Kongiganak for almost one full year. The systems are working well and there is a large demand
by the community for expansion of the system. 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.
The amount of fuel capable of displacement depends on the variable nature of the wind
resource, and heating requirements. While the annual amount of fuel displacement will change,
the cost of wind heat will remain stable while the cost of the displace fuel rises.
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.
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 9 of 28 7/2/2013
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.
There are very limited opportunities for renewable energy in Kong; Solar and Biomass resources
have virtually no opportunity in this region of Alaska. Outside of the wind, fossil fuels are the
predominant source of energy for heating and electric power generation. It is anticipated that
with potential improvements in conservation along with increased productivity from the wind
plant, the existing Wind Heat Smart Grid Systems, is capable of displacing 35% of the
community wide diesel requirement for both heat and power.
Kong was selected by wind resource experts from the National Renewable Energy laboratory, as
a regionally relevant monitoring location and the AEA website provides a complete wind
resource assessment report. Wind resource evaluation indicates an outstanding wind resource
with an average wind speed is 7.78 m/s, with the power distribution well suited for the capture of
wind energy. The wind resource report includes a10 minute average of temperatures for 2004 to
2005. The annual average temperature of 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
use of wind for charging of ETS units.
The temperature data for the period was compared with the 20 year historical average of heating
degree days. The data was used to estimate average residential heat loss and thus a fuel
displacement estimate for houses equipped with ETS units. 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. Raw wind speed data was converted
into an electrical output using the power curves for the Windmatic turbines and compared with
correlations with HOMER.
Fuel consumption estimates for power generation were derived from efficiency curves developed
for the John Deere 6090 generator sets, and wind diesel operations were modeled assuming
that the diesel generator remains on at all times, with a minimum load of 40 kW. The village load
profiles are still being developed based on available data, and was consistent with “kilowatt-watt
hours generated as reported PCE for 2011 and 2012.
Each ETS stove has a maximum charge capacity 7.2 kW, with a heat storage capacity of 34.5
kW-hrs. A survey was conducted among the Chaninik Wind Group Villages (Tuntutuliak,
Kongiganak, Kwigillingok and Kipnuk) and the average household size was determined to be
1000 square feet.
Residential heat loss was based on a loss rate of 5.5 watts per square foot when outdoor
ambient temperatures are 0F, which was scaled to a maximum average heat loss of 7 watts per
square foot at -25F.
No correlation was developed to show the affect of wind speed on heat loss, however it is
assumed that there will be a strong correlation between increased heating requirements due to
wind chill. However the conditions of individual houses varied quite widely across the
communities.
Previous interviews, surveys and data collection efforts indicated that an average Chaninik
residence used 766 gallons of heating fuel annually. Modeling indicates that during the coldest
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 10 of 28 7/2/2013
days of the year hourly heat loss from the residence is equivalent to the heating capacity of the
7.2 kW ETS units. While at warmer temperatures, residential heat loss is less and energy
accumulates in the stoves. The stored energy can be used to bridge lulls in the wind and extend
the heating periods for some hours after the wind has stopped.
4.1.2 For Biomass Projects 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?
Not applicable for this project.
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 130 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
• 20 each Steffes 2105, residential electric thermal storage units. 7.2 kW peak charge rate,
34.5 kWhrs of energy storage
• Wind-diesel supervisory control system
*Note: this project proposes to increase the number of Steffes ETS units from 20 to 50. This
increases the capability of the power system to absorb peak wind power of 360 kW, up from 144
kW, with a commensurate increase in storage capacity up from 690 kW to 1725 kWh. *
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.
2006 2007 2008 2009 2010 2011 2012
Residential
Customers 88 92 95 96 101 105 100
Population 411 427 411 436 445 465 439
kWh
Generated 970,017 951,274 1,019,419 1105555 1,273,367 970,546 1,089,947
Fuel 78,096 77,820 81,658 90,100 91,833 91,647 89,811
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Purchased
(consumed)
Cost of
Fuel (total) 188,880 229,133 286,416 392,367 329,290 304,302 400,044
Cost of
fuel/Gallon 2.42 2.94 3.51 4.36 3.59 3.32 4.45
Total
generated
non Diesel 0 0 0 0 0 0 93,337
Puvurnaq Power Company generated 1,089,900 kWhrs in 2012. The wind heat project was
commissioned in October of 2012, with three wind turbines and 20 thermal storage devices. In
July of 2013, the remaining two wind turbines were commissioned. Experience with the system
over the winter demonstrated the ability of the system to absorb and store wind energy in
complementary manner to the way it is produced. Operational experience also indicated the
ability to expand the system from 20 to 50 ETS units.
Currently, during a wind event, the 20 ETS units become fully charged within 5 hours and wind
energy must be curtailed, because there is insufficient load. Based on modeling studies, which
use 80% of the estimated annual energy production, (as per AEA economic evaluation) the wind
system is expected to produce on average 1,016,000 kW-hours of electrical energy annually.
With the proposed upgrade of the system from 20 ETS units to 50 ETS units. There is up to
480,000 kWhrs of the wind power available to be applied to the village electrical load displacing
electrical generation at the diesel plant. Operation of a wind diesel system requires maintaining a
constant balance between power generated and load. This balance is maintained through fast
activation of a combination of ETS units and control of the load to an electric boiler plumbed into
the heat recovery loop at the powerplant. Of the 536,000 kWh of available wind energy, in the 50
ETS scenario, 482,000 kWhrs would be sent to residential ETS units to displace home heating
fuel, and the remaining 54,000 kWhrs of wind energy would be use to serve the dual purposes of
heating the washeteria/powerplant heat recovery loop while buffering the power system load
balance. This system configuration is intended to minimize the current need to curtail wind
energy output, over the existing 20 ETS unit system, in which approximately 260,000 kWhrs of
wind energy is currently curtailed.
The control system for the electric thermal storage devices is able to manage the charging of
ETS units in a number of ways, such as filling the emptiest ETS units first, or dividing the
available surplus energy equally among the available active units. It is assumed the 536,000
wind generated kWhrs will be evenly distributed between 50 ETS over the course of the year.
Using an estimate of 33 kWhrs of electrical energy as the equivalent to one gallon of heating
fuel, modeling studies indicate the potential to provide each residence with 9,638 kWhrs of
electricity or a displacement of 292 gallons of home heating fuel. 292 gallons is 38% of the
average annual residential heating fuel usage of 760 gallons. At $ 6.93 per gallon, 292 gallons
of stove oil would cost $2023. Surplus wind energy sold at $0.10 per kWhr as electric heat using
the ETS devices would result in an annual household savings of $1059.
This level of savings with 50 ETS units provides an annual benefit of $ 52,950 to residential
customers.
*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 home owner would experience. Electrical heating is nearly 100% efficient. Since
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AEA 2014-006 Grant Application Page 12 of 28 7/2/2013
efficiencies vary, an equivalent electrical energy of 33 kWhr/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 Cost
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 $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 Kongignanak (without social cost of carbon) reported to
Regulatory Commission of Alaska for the 2012 PCE report is $4.33/gallon ($1.02/Liter), without
inclusion of SCC. Assuming an SCC of $0.40/gallon (ISER Prototype spreadsheet, 2013 value),
the 2012 Kongignanak fuel price was $4.73/gallon ($1.25/Liter).
Heating fuel displacement by excess energy diverted to thermal loads is valued at $6.93/gallon
($1.83/Liter) as an average price for the 20 year project period. This price was determined by
reference to the 2013_06_R7Prototype_final_07012013 Excel spreadsheet where heating oil is
valued at the cost of diesel fuel (with SCC) plus $1.05/gallon.
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
$5.96 $8.09 $6.93
$1.83
Home heating –
The community of Kongiganak has 100 homes. One third of these homes have been
constructed within the last 10 years, the other homes were constructed at various times over the
last 40 years. Surveys results indicate that residential customers are desperate for lower cost
heating options, as heating fuel costs exceed $6.50/gallon currently, and prices have spiked to
as high as $9.00 per gallon in 2007.
Electric Thermal Storage is a method by which excess 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 $.08 to $.15/kWh, which is equivalent to heating oil equivalent of $2.60 to $5.00 per
gallon. Since there is no local wood, peat or coal, wind heat in this application will be the lowest
cost heating source and highly desirable.
The availability of wind correlates well with heating needs. The ability to store this wind energy at
night and when the loads are low, sell this wind energy for half the cost of heating fuel, and use
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the stored energy when needed can reduce average residential fuel use by half. This would
result in an annual direct diesel fuel reduction of 11,400 gallons for these additional 30 homes.
Heating fuel represents the single greatest cost of maintaining a residence. Typical costs exceed
$6,000 per household. This project is expected to reduce annual household heating costs by up
to $2,000 per household.
Based on the energy surveys of each home in the community, the average household uses 766
gallons of heating fuel annually. Expansion of the use of number of ETS devices from 20 to 50
units will result in an average reduction of heating fuel usage of 290 gallons across 50 homes,
with a resulting net individual usage of 474 gallons of home heating fuel. This represents a 38%
decrease in fuel purchases. Homes with ETS units have already seen 30 to 50% decreases in
fuel usage during the winter months. However, because the storage capacity of each ETS unit is
35.4 kWhrs, during wind events the 20 existing units become saturated after about 5 hours and
wind turbine output must be curtailed. Curtailment requires either reducing the output of the
wind turbines, or shutting them off. The addition of 30 more ETS will reduce the need to curtail
wind turbine production. Additional ETS units will increase the instantaneous ability of the
energy system to absorb energy from 144 kW to 360 kW, and the ability to store wind energy
from 708 kWhrs, to 1770 kWhrs. This additional ability to absorb and store available wind
energy, will enable more efficient use of the wind turbines and increase the overall operating
hours of the diesel generators at a minimum loading.
It is anticipated that the benefits of the ETS program can be improved upon, through
weatherization and conservation programs, which will reduce heat loss in existing homes,
enabling the further expansion of the ETS method of wind heating.
Improvements in operations and maintenance, and the application of advanced airfoils are
anticipated to improve the future 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 increase energy production from the existing wind plant by 15%.
As experienced is gained with the system, it is anticipated that a smaller diesel generator set
with lower fuel consumption may be substituted for the larger units.
Most importantly, community members with ETS devices are beginning to rely on the wind heat
system to lower home heating costs. This reliance has resulted in heightened awareness of and
attention to the importance of reliable wind turbine operation. This interest provides additional
impetus to keep the wind systems operating.
Electric power generation - The operations of the Wind Heat Smart Grid Systems will benefit
from additional ETS units in the communities. With more available storage capacity, the wind
turbines can operate at full capacity and have dump load options for excess wind when the load
is low. With more ETS units to stabilize the peaks and valleys of the wind resource, higher fuel
displacement at the electric utility becomes possible and an added benefit on top of the
residential fuel savings.
Wind heat grids exist in three communities of Kongiganak, Tuntutuliak and Kwigillingok,
(Chaninik Wind Group communities). The system in Kongiganak has been operating for 11
months. Some of the home owners with ETS units have experienced reductions in heating fuel
usage of 50%.
The ETS method of capturing wind energy for heat was selected because the ease of
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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
addition weight (650 lbs) 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 20 to 50.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, energy efficiency 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
• Energy efficiency measures (building envelope)
Wind Electric Thermal Storage
An average home in Kongiganak uses over 760 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 the 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.
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 5 each, 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. ETS units are
activated through a signal from the power plant supervisory controller.
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
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that provides local jobs.
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 Kongiganak 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 690 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.
A fan inside the unit circulates stored heat evenly and quietly as the room thermostat calls for
heat. 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.
This project expands the use of residential ETS in the Kongiganak Wind Heat Smart Grid
Systems from 20 to 50 homes. Funding is being requested to install 30 new ETS electric
devices and commission the supervisory control system to include the control and reporting of
the additional units.
ETS devices are manufactured in Dickinson, North Dakota by Steffes Corporation. The multiple
unit control technology that 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 Kongiganak. There is widespread support for the expansion of this project in Kong.
The useful-life of the ETS system is twenty years. ETS units are simple, require very little
maintenance cost to maintain and are simple to repair.
The 20 homes in Kongiganak with ETS units have experienced 30-50% reductions in heating
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fuel usage over the last 10 months. Additional ETS storage capacity is needed in Kong in
order to prevent the curtailment of wind production, and make use of the available wind
energy.
This project involves the installation of 30 Electric Thermal Storage units, each rated at 36 kWhrs
of storage and a peak power of 7.2 kW each. It is estimated that these units will be used 10 to 11
months per year. 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
windpower. 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.
Village surveys indicate the average village household is 1000 sq ft, and average heating fuel
usage of 766 gallons annual. An average heat loss of 6.5 W/sq.ft. was used to estimate heat
loss from each building. Designers of electric heating system use a range of 5 W/sq. ft. for well
insulated homes in moderate climates, and 10.5 W/sq. ft. for sizing residential electric heating
systems, and serves as a conservative estimate of heat energy usage.
Existing data was used to compare heat loss and wind production using ten year averages of
“degree day” estimates for the community of Konginganak developed from historical weather
data. As the ETS units are a subordinate power use to the community electrical load and are
only charged using surplus wind, a model was developed to compare wind power production
with community heat and power needs to estimate ETS usage.
Assumptions for the model: an average heat loss of 7.5 watts per square foot which is based on
a temperate zone - where the minimum temperature is around 0 F. Estimated ETS use factor
assumed a maximum output at 0F and at its minimum output 60 F, which is equivalent to 60
degree days. The average number of heating degree days was used to describe the duty cycle
of the ETS unit between heating and energy storage. The table below provides an indication of
kW-hrs of heat use per day per household by month. When extended to the total number of
households in the community, it is estimated that sufficient surplus wind power is currently
available to meet a residential heat load equivalent for 50 homes. The total of 600,000 kW-hrs
that could be sold for residential heat - at 10 cents is $60,000 per year.
As the community’s experience with wind heat increases, the interest in and demand for ETS
units has grown. Kongiganak has 100 residences. Almost every home owner has requested the
installation of an ETS unit. It is anticipated the efficiency of the ETS and the available wind
energy can be maximized through increased insulation and weatherization of homes.
Even though there winds are strong in December and January and the wind heat will need to be
supplemented with existing heating systems such as boilers or wood heat, as it would require 10
turbines to keep up with the residential heating loads. During the months of July and August,
about 20,000 kWhrs of surplus wind may not be needed. However, current estimates indicate
that with 50 ETS devices in the existing system, each household on average will save 285
gallons of fuel annually. The cost savings to the home owners at $.10 per kilowatt ($2.90 heating
fuel = (285 x ($ 6.93 - $2.90) = $1148/household. 50 households = $57,427 is the full community
benefit to the residential customer annually. For the 30 new stoves to be installed, it equates to
$688,800.00 for the life of the project.
The benefits to the utility include:
Additional energy sales (413,250 kWhrs @ $.10 = $41,325)
The cost of installation for 30 additional ETS units is: $320,456.00
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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 obtain harvest contracts and access
issues.
There are no land ownership issues for this project. Installation of project materials will occur at
the Puvurnaq 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 discussion of potential barriers
There are no permitting requirements for this project. Community members will participate based
on an opt-in process with final selection occurring based on determination by the Puvurnaq
Power Company, Kongiganak Traditional Council and in accordance with limitations due to the
existing distribution system.
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: 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:
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• 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 this phase is $320,456.00
Requested grant funding is $311,456.00
Applicant matching funds are $9,000.00 in cash
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 Kong. 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 Puvurnaq Power Company as a cash match towards payroll for local technicians
to perform the ETS installation. This provides a total of $9,000.00 to the project in labor payroll
and decreases the AEA REF fund request to $311,456.00.
The summary cost items below include freight, all materials for commissioning, and contingency
costs.
1 Final determination and survey of homes for
install (community designation)
$ 18,250
2 Purchase ETS units, hardware and controls for
install
$ 151,922
3 Freight all items to site $ 47,775
4 Install hardware and ETS units $ 48,759
5 Commission additional controls unit $ 43,300
6 Monitor and Reporting $ 10,450
Total Project Cost $ 320,456
Match Funds From Puvurnaq Power
Company (payroll)
$ 9,000
REF Grant Funds Requested $ 311,456
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.)
Local utility operators and installation technicians will incorporate the additional units’ O and M
needs into their existing operations plan. System SCADA outputs are analyzed on a daily basis
to ensure functionality of existing wind system components and ETS units. Remote access
through broadband connection allows engineers and technicians from all over the country to
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access components for assisted troubleshooting and repair. The increased revenue brought to
the local utilities from sales of excess wind capacity allows them to set budgets for maintenance
and additional equipment costs due to the installation of new components and additional ETS
devices. The ETS units require little to no maintenance and have components that are easily
replaceable and very cost effective, if they should fail. Initial spare parts kits are included in the
total project cost.
4.4.3 Heat 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
• Utility savings for displaced diesel generation – the proposed system would displace
approximately 71,338 gallons of diesel at the utility. At a current bulk fuel purchase price
of $3.95 a gallon1, annual saving of $281,785 are expected. For an expected project life of
20 years, that totals $5,635,702.00 in benefits. However, $3.95 is the lowest wholesale
price in the last 6 years. Experience indicates that the wholesale cost of diesel fuel is
unstable, and is unlikely to trend down over the long term. The Institute for Social and
Economic Research for the State of Alaska uses a long term average fuel cost in the $5.00
per gallon range with annual escalation of 2% per year for estimating future investments.
Should these prices materialize, the benefits of the investments would be closer to
$8,000,000.
• Lower heating costs - homeowners who have the ETS devices can expect to have savings
of 220 gallons of diesel fuel per year displaced with excess wind energy. Excess wind
energy is sold into ETS devices at around $.10 per kilowatt hour, equivalent to
approximately $2.90/gallon heating fuel. Residential customers are currently purchasing
in excess of 770 gallons of fuel for nearly $7.33 per gallon. (7.33-2.90) x 220 = $975
annual savings. 40 residential units x $975 = $39,000.00 savings annually, with expected
project benefit of over $780,000 over the 20 year life of the project.
• Increased revenues to the utility - result from heat sales of more than 250,000 kWhrs of
wind heat electricity as heat for $25,000.00.
• A business plan for the Wind Heat project was developed. Under this plan, residential
customers exceeding the 500 kWhrs per month of Power Cost Equalization (PCE)
subsidized electricity would see a reduction in their effective residential rate of $.05 per
kilowatt/hour or more, depending on the additional rate requirements of the utility. For
about 1/3 of residential customers, this would represent a savings of $5.00 to $25.00 per
month, or $60 to $300 annually.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
1 Source: State of Alaska, Alaska Energy Authority Power Cost Equalization 2012 Annual Report
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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, excellent wind resource
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Heating Energy Generation and Usage
a) Basic configuration
i. Number of generators/boilers/other Distributed residential heating, 100 homes
ii. Rated capacity of generators/boilers/other To provide 30 additional 216 kW, 1,038 kWhrs of
electric thermal storage
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
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 $1,500.00
ii. Annual O&M cost for non-labor $3,000.00
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]
ii. Fuel usage
Diesel [gal]
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
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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
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [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
b) Development cost $0
c) Annual O&M cost of new system $4,500.00
d) Annual fuel cost
Project Benefits
a) Amount of fuel displaced for
i. Electricity Varies based on wind availability and increased efficiency of wind system
ii. Heat 22,980 gallons annually
iii. Transportation 0
b) Current price of displaced fuel $6.21 stove oil purchase price
c) Other economic benefits
d) Alaska public benefits
Heat Purchase/Sales Price
a) Price for heat purchase/sale Currently $0.10 per kWhr
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
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Payback (years) 6 years
4.4.5 Building Efficiency
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.
The proposed project will be installed in residential homes within the community. Building
information will vary based on individual residence, so averages are supplied from home energy
information collected in Kongiganak.
• Building name – Homeowner residence
• Type or primary usage of the building - residential
• Location – Varies (all in Kongiganak)
• Hours of operation – N/A
• Single structure or multiple units – single structure
• Total square footage – approx. 1000 sq.ft.
• Electrical consumption per year -
• Heating oil/fuel consumption per year -
• Average number of occupants – 4-5 family members
• 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? - No, but
preference will be given to houses that have been weatherized.
• 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 ting 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
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The Yup’ik village of Kongiganak is located on the west shore of Kuskokwim Bay, west of the
mouth of the Kuskokwim River. It lies 70 miles southwest of Bethel and 451 miles west of
Anchorage at 59.88000N and -163.0540W. Kong is a Census Designated Place in the Bethel
Region. Kongiganak is located in a marine climate. Annual precipitation averages 22 inches,
with 43 inches of snowfall annually. Summer temperatures range from 41 to 57 °F, and winter
temperatures average 6 to 24 °F.
There are, currently, almost 500 individuals living in Kongiganak. There has been slow but
consistent growth over the past decade. There are 102 housing units although eight of these are
vacant. The median family income in Kong is approximately 35,536, however 24.35% of the
population lives at or below the poverty line, and 46% make $5,000 or less every year
compared to 20% statewide who make $5,000 or less annually. The unemployment rate is
around 23%.
As is the case in other Alaskan villages, the residents of Kong still rely on subsistence hunting,
fishing and gathering as a lifestyle.
Kongiginak produces power at the Puvurnaq Power Company power plant using diesel fuel.
They also utilize five Windmatic 17s wind turbines. The base rate for electricity is $.65 kWh.
Residents heat their homes using heating fuel #1. This fuel, like diesel and gasoline is barged
into the community between spring thaw and winter freeze. The residential rate for heating fuel
varies and is currently $6.21 gallon.
Economic and Environmental Benefits to the Tribal Communities
Alaskan villages are being impacted by global warming, resulting in profound impacts on
subsistence and cultural activities, erosion, land use, and endangered species. Any reduction
of fossil fuel use has a positive impact on quality of life in rural Alaska. This project further
benefits the communities through:
1) Supporting the long term energy sufficiency goals of community of Kongiganak by:
• Reducing heating costs to 30 additional homes
• Increasing revenues to the local utility for thermal electric sales for residential heat
• Making benefits of wind and other potential renewables available to residential home
owner
• Increasing the ability to store wind energy as heat for later use
• Retaining more money within the community instead of exporting to outside fuel
providers
2) Social and Cultural Benefits: This project will create social and cultural value to the
communities above and beyond the direct benefits to tribal members in the villages:
• Increased local employment
• Education on energy use and conservation
• Prior to installation of renewable energy systems, a large percentage of individual tribal
member income was spent to purchase diesel fuel. In the future, more funds will stay in
the community for two reasons:
+ 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)
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+ Revenues to the local utility will increase with additional purchases of local
electricity
• 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 for tribal members
to start new businesses in their communities.
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
The continued O&M for ETS units will be supported by the additional revenue that they generate
for the PPC 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.
In conjunction with previously gathered baseline data, additional up-to-date baseline data will be
gathered from each participating ETS unit home as to their current “pre ETS” household fuel
consumption and this information will be entered into a database. Existing Wind Heat Smart
Grid system SCADA collects ETS unit energy consumption on a sub second basis and
produces daily, weekly and monthly reports. This information will be analyzed, aggregated and
averaged for total project data with outliers for high and low production also being made
available. Any anomalies found during the required year of verification will also be determined
and outlined. Fossil fuel reduction will be available on a monthly, quarterly and annual basis for
all ETS units installed on the Wind Heat Smart Grid.
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 2014 season.
Installation and commissioning of ETS units would be completed before the end of 2014 with
monitoring and data collection occurring into 2015.
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Kongiganak has worked through numerous grant opportunities, including DCCED, AEA REF,
EECGB and others. 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,
2013.
The community of Kongiganak is supportive of this project and the installation of additional ETS
units. During strategic energy planning meetings, the community identified installation of ETS
units as one of their top energy priorities for the community. Since the commissioning of the
existing ETS units, additional residents have been appealing to the Tribal Council and PPC utility
for additional units. See attached Council Resolution. There is no known or anticipated
opposition to the project.
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.
The budget for this project will come from REF funding and a local match from PPC for laborer
and technician payroll during the install of the ETS units. PPC 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.
The metering and monitoring equipment necessary for operations reporting is already installed
in the PPC power plant with the existing ETS units.
Total anticipated project cost and cost for this phase is $320,456.00
Requested grant funding is $311,456.00
Applicant matching funds are $9,000.00 in cash
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 Kong. 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 Puvurnaq Power Company as a cash match towards payroll for local technicians
to perform the ETS installation. This provides a total of $9,000.00 to the project in labor payroll
and decreases the AEA REF fund request to $311,456.00.
The Milestone summary cost items below include freight, all materials for installation and
commissioning, and contingency costs.
1 Final determination and survey of homes for
install (community designation)
$ 18,250
2 Purchase ETS units, hardware and controls for
install
$ 151,922
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 26 of 28 7/2/2013
3 Freight all items to site $ 47,775
4 Install hardware and ETS units $ 48,759
5 Commission additional controls unit $ 43,300
6 Monitor and Reporting $ 10,450
Total Project Cost $ 320,456
Match Funds From Puvurnaq Power
Company (payroll)
$ 9,000
REF Grant Funds Requested $ 311,456
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
Matchin
g
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
Final determination and survey of
homes for install (community
designation) 8/14
$ 18,250
$ $18,250
Purchase ETS units, hardware
and controls for install 8/14
$ 151,922 $ $151,922
Freight all items to site 9/14 $ 47,775 $ $47,775
Install hardware and ETS units 10/14 $ 39,759 $9,000 $48,759
Commission additional controls
unit 12/14
$ 43,300 $ $43,300
Monitor and Reporting 6/15 $ 10,450 $ $10,450
TOTALS $311,456 $9,000 $320,456
Budget Categories:
Direct Labor & Benefits $20,375 $9,000 $29,375
Travel & Per Diem $10,100 $0 $10,100
Equipment $0 $0 $0
Materials & Supplies $202,481 $0 $202,481
Contractual Services $78,500 $0 $78,500
Construction Services $0 $0 $0
Other $0 $0 $0
TOTALS $311,456 $9,000 $320,456
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 27 of 28 7/2/2013
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 28 of 28 7/2/2013