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HomeMy WebLinkAboutAleutian Wind Energy Newsletter 7 8 13 Sand Point Generating, LLC•615 E 82nd Ave Suite 200•Anchorage, AK 99518•(907) 762-8473•serviceSPG@tdxpower.com Facts and Figures  Project size: 1000-kilowatts  Total Cost: $3.1 Million Initial Results (13 months)  Wind Sales: 953,825 kilowatt-hours  Diesel fuel savings: 68,000 gallons  Community-wide savings (net): $151,000 Note: All figures are approximate ALEUTIAN WIND ENERGY WIND UPDATE JULY 2013 Sand Point Wind Project One Complete Year of Operations Aleutian Wind Energy’s Sand Point Wind Project was commissioned and handed over to operations in April 2012. Since that time, the project has been operating continuously, reducing the cost of electricity for Sand Point Generating’s residents and commercial customers. From April 2012 – June 2013, the wind turbines supplied over 953,825 kWh to Sand Point customers, resulting in approximately 68,000 gallons of diesel fuel savings! Aleutian Wind Energy is pleased with the results from this first year of operation. However, we had to overcome several equipment related setbacks during the year that resulted in wind turbine curtailment beyond anticipated levels. We expect to generate higher levels of wind power in years to come, which is good news for everyone involved. We are continuously looking for ways to increase output from the turbines and increase the use of our smaller, more efficient diesel generator. Over the course of the next year, we will continue to make adjustments to the equipment that will allow us to operate the wind turbines at a higher capacity, and operate our smallest diesel generator more frequently, which will continue to reduce fuel consumption. Q&A Q: Do the turbines save me money? Yes, over the course of a year, the wind project has provided over $151,000 in net savings of fuel expense to Sand Point Generating customers! Q: Don’t reduced PCE payments essentially strip the savings from the community? Only ~39% of electricity sales in Sand Point are PCE eligible. Of $151,000 in savings, approximately $59,000 went to the state treasury by virtue of reduced PCE payments. Sand Point Generating customers saw an estimated $92,000 in reduced electricity bills! Q: How was the project paid for? Total project cost was over $3 Million, with US Department of Energy, and the Alaska Energy Authority grand funding providing roughly two-thirds of the project cost. The remaining cost was financed as a loan through AEA to Aleutian Wind Energy, to cover the required grant funds match. Q: Why don’t both turbines spin every day? The goal of this project is to generate and sell as much energy as possible, reducing the SPG’s diesel fuel expense. There are a number of reasons only one turbine (or no turbines) could be spinning at any given time. Factors include: • Automatic control settings that enable/disable turbines based on wind availability and energy needs in the community; • Turbines disabled for regular maintenance; • Equipment alarms, pre-alarms, and/or failures; • Extreme wind speeds (app. 50mph and above) Q: Is there a benefit to the utility to reduce wind energy production? No! The utility does not benefit if the turbines aren’t spinning. Wind energy reduces the cost of fuel and maintenance on existing diesel power generation equipment.