HomeMy WebLinkAboutGrantApplication7 - Sand Point Energy StorageRenewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Application Page 1 of 27 7/2/2013
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. 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/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.
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Grant Application - Standard Form
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
TDX Sand Point Generating, LLC
Type of Entity: Certificated Utility Fiscal Year End September 30
Tax ID #26-3434790 Tax Status: X For-profit Non-profit Government ( check one)
Date of last financial statement audit: 18 Feb 2013
Mailing Address
615 E 82nd Ave, Ste 200
Anchorage, AK 99518
Physical Address
615 E 82nd Ave, Ste 200
Anchorage, AK 99518
Telephone
907-762-8450
Fax
Email
swilbur@tdxpower.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Sabrina Wilbur
Title
Project Manager
Mailing Address
615 E 82nd Ave, Ste 200
Anchorage, AK 99518
Telephone
907-762-8450
Fax
907-278-2316
Email
swilbur@tdxpower.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 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.
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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.
Sand Point Energy Storage 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.
Sand Point Generating power plant, Sand Point, Alaska. (55deg 20’ 43” N, 160deg 29’ 21”W)
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Sand Point, Alaska
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 X Storage of Renewable
Other (Describe) Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
Reconnaissance X Final Design and Permitting
Feasibility and Conceptual Design X Construction and Commissioning
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
TDX Power intends to build on a successful wind‐diesel power system at Sand Point, Alaska, by adding
an energy storage component to its Sand Point Generating power plant. The additional hardware –
inverter and battery bank – will allow the utility to purchase more wind power from the existing turbines
and shut off the diesel engines for approximately 30% of the year. The project includes the final design,
procurement, installation and commissioning of an inverter and battery bank and integration with the
existing wind‐diesel power system in Sand Point, Alaska.
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.)
An analysis of 2012 operational data shows that only 15 minutes of energy storage at full load would
result in over 2000 hours of “wind only” operation annually, resulting in fuel savings in excess of 22,000
gallons and over $100,000 per year.
Approximately 60% of the benefit of this project (reduced fuel expenditures) will go directly to the local
ratepayers, primarily to non‐PCE eligible customers. The remaining savings (approximately 40% of the
total) will benefit residents statewide through reduced PCE funding requirements.
The Sand Point Generating system is representative in size and technology common to many diesel
systems throughout Alaska. Successful implementation of this project would be widely transferrable
throughout the state.
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 current project would be funded by $1,256,403 from the State of Alaska, through the REF grant
program, with a cash match of $141,000 from TDX Power.
TDX Power also applied for grant funding for a scaled‐down version of this project through AEA’s
Emerging Energy Technology Fund, Round 2. Results are not yet available.
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 $1256403
2.7.2 Cash match to be provided $141000
2.7.3 In-kind match to be provided $0
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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) $1397403
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.
$1397403
2.7.8 Additional Performance Monitoring Equipment not covered
by the project but required for the Grant Only applicable to
construction phase projects.
$0
2.7.9 Estimated Direct Financial Benefit (Savings) $ 102,000 annually
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.
$ 0
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.
Sabrina Wilbur, TDX Power’s director of utilities, will manage the project finance. Ms. Wilbur has a
master’s degree in project management, 9 years of experience managing capital projects and utility
operations. In her current role, Ms. Wilbur manages all of TDX Power’s electric utilities throughout rural
Alaska, including the two electric utilities located in Sand Point: TDX Sand Point Generating and Aleutian
Wind Energy, LLC.
Ms. Wilbur has worked closely with TDX Power’s capital projects team on previous AEA grant projects
and oversees O&M of the existing Sand Point wind‐diesel system.
Jan Tierson, Senior Applications Engineer, TDX Power Engineering Group, will serve as the engineering
manager for this project. Jan’s prior experience includes system commissioning on an early NREL 250KW
demonstration wind only capable wind/diesel/battery/rotary converter project. Jan was also the project
engineer on a 1.8MW custom AC‐DC‐AC power converter designed and commissioned for Con Edison
for use in connecting emergency generation without adding fault current. Jan also was the utility scale
electrical team leader at Northern Power Systems, responsible for electrical design, fabrication and
installation of their 2.3MW, class IV (full power converter coupled) wind turbine prototypes.
Steve Hoskins will serve as the Senior Electrical and Controls Engineer for the project.
Steve has more than 14 years of experience with power system and controls design, testing,
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commissioning, and R&D activities. Steve brings significant experience in developing power electronic
converters for power systems applications up to 1MW. He has created state of the art simulations of
nonlinear electro‐mechanical systems that have enhanced TDX’s wind‐diesel designs. Steve possesses
vast experience working on multi‐discipline teams and collaborating with clients. He is proficient with
many design and programming software applications including MATLAB/Simulink, PSCAD, SKM Power
Tools, AutoCAD, Proficy, OPC Systems, InteractX, and others.
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
At
NTP
NTP +
14
Weeks
Battery type and size selection to determine
lowest life cycle cost
Determine optimum control method
Determine battery and inverter packaging and
integration requirements
Determine requirements for factory
testing/validation and onsite testing/validation
Proposals compared and vendors selected
Battery type and size selection to determine
lowest life cycle cost
Long Lead Equipment purchase
orders issued (Inverter and Battery
System) (Milestone Only)
NTP +
14
Weeks
NTP +
14
Weeks
Permit applications completed
NTP +
14
Weeks
NTP +
18
Weeks
Final environmental assessment and
mitigation plans completed Not Required
Resolution of land use, right of way
issues Not Required
Permitting, rights-of-way, site control
completed Not Required
TDX engineering support to Inverter
and Battery Suppliers
NTP +
14
Weeks
NTP +
36
Weeks
TDX specification and requirements review with
manufacturer
Submittal and design reviews
TDX pre commissioning at factory
Factory acceptance
Final system design
NTP +
14
Weeks
NTP +
28
Weeks
Develop system control logic diagram
Determine interface function and components to
interface with existing system
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Review present distribution feeder coordination
and adjust as necessary considering inverter
source.
Electrical protection and feeder specification
3 line schematic detail (power and controls)
Equipment plan view
Determine optimum operation points for battery
state of charge, diesel on/off transition,
load/source averaging intervals, etc.
Develop master controller algorithms which
manage battery state of charge level via
adjustment of inverter, genset and dump load
power level.
Develop detailed installation and commissioning
test sequence
Electrical construction and transport/rigging
specification
Proposals compared and contractor(s) selected
Determine interface function and components to
interface with existing system
Review present distribution feeder coordination
and adjust as necessary considering inverter
source.
Electrical protection and feeder specification
Equipment plan view
Final cost estimate completed
NTP +
28
Weeks
NTP +
30
Weeks
Updated economic and financial
analyses completed
NTP +
30
Weeks
NTP +
32
Weeks
Construction Design and feasibility
requirements
NTP +
30
weeks
NTP +
36
Weeks
Construction plan and schedule
Commissioning plan and schedule
Proposals compared and contractors selected
Construction plan and schedule
Complete Bid Documents
Power or heat sale agreements in
place (Milestone)
NTP +
40
Weeks
NTP +
40
Weeks
Final business and operational plan
completed (Milestone)
NTP +
40
Weeks
NTP +
40
Weeks
Inverter and Battery arrive on-site
(Milestone)
NTP +
40
Weeks
NTP +
40
Weeks
Vendor selected and award in place
(Milestone)
NTP +
40
Weeks
NTP +
40
Weeks
Construction: Civil
NTP +
44
Weeks
NTP +
46
Weeks
Construction: Electrical/Controls
NTP +
46
Weeks
NTP +
48
Weeks
Integration and testing NTP + NTP +
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48
Weeks
54
Weeks
Basic Power up checks
Test Equipment rental/purchase
Add dump load SOC management function and
re-commission for wind/diesel load control
Revise existing diesel EGCP controllers
Test inverter load share with diesels
Test inverter stand alone mode
Inverter Factory technician on site costs
Test all inverter/ diesel transitions
Test/Optimize battery State of Charge
management
Implement/Test Master Controller dispatch
Final acceptance, commissioning and
start-up complete (Milestone)
NTP +
54
Weeks
NTP +
54
Weeks
Operations Reporting: Setup and test
new performance reporting templates
specific to new operating modes
NTP +
54
Weeks
NTP +
56
Weeks
Operations Reporting and first year
tech support
NTP +
56
Weeks
NTP +
108
Weeks
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.
Project management, engineering, procurement, and all administrative functions will be performed in‐
house by TDX Power employees. TDX Power has successfully studied, designed and constructed
integrated power systems throughout the state of Alaska. TDX engineering staff members have
extensive experience with design, application, and commissioning of diesel (synchronous), wind
(asynchronous), and inverter‐based power systems. TDX has the expertise on staff to successfully
implement the proposed system.
Key suppliers include battery and inverter manufacturers. TDX Power has been working closely with
multiple manufacturers and has already received multiple quotes for this equipment. We have not
settled on a supplier, pending final design. We can share copies of the quotes upon execution of a non‐
disclosure agreement with the suppliers.
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.
TDX Power’s project manager will closely monitor project performance. Technical and budgetary
progress will be reported to AEA monthly throughout the project, or as directed by AEA.
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Once commissioning is completed, we plan to operate and closely monitor the wind‐battery‐diesel
system, including “diesel off” mode for the life of the project. TDX will provide monthly reports to AEA
as required.
3.5 Project Risk
Discuss potential problems and how you would address them.
Project Concept Risk
The purpose of this project is to increase the utilization of existing wind turbine capacity and reducing
fuel consumption by turning diesel gensets off when there is sufficient wind resource.
This project proposes only enough energy storage to support the system during short term wind lulls,
and to support the power system for the short time it takes to start diesel generation when the City load
exceeds the wind resource.
Since the existing wind diesel power plant has a comprehensive data set available from the last two
years, it was a straightforward task to set up an Excel spreadsheet to filter 1 hour average load and wind
resource data over an entire season, and extract the time periods where wind resource, on average,
exceeds City load. Those are the periods for which we presently would run our most efficient diesel
genset (455kw rated, 180kw minimum setpoint) at minimum load. The fuel consumption rate of this unit
multiplied by the diesel‐off time period determines the fuel saved. In the energy model, two factors
contributed to determine if the conditions would allow “diesel off” operation: suitable battery State of
Charge, and wind generation in excess of City load.
To ensure that we were not overly optimistic in our projections, we did the following:
1) Verified using 1 second data for various sample intervals
2) Applied a 0.8 multiplier on final fuel savings estimate.
3) Fuel consumption rate assumed at average plant efficiency, despite the actual savings being
achieved at low genset power levels, which correspond to lower than average efficiencies.
Note: Homer modeling results and Excel spreadsheet analyses are available upon request.
Construction Risk
Risk associated with construction is minimal. There are only 2 components that require installation; an
inverter and battery container. There are no space constraints and power and control connections are
minimal. Interconnections to existing control equipment are minimal. Site construction is expected to
be less than one week. Tie in to the plant bus will require one scheduled outage for approximately 4
hours. Civil work required for container pad/support is minimal. No onsite concrete mixing/forming is
required.
Inverter and Battery assemblies are pre‐commissioned prior to shipment, reducing Construction and
Commissioning risk
Site Specific Risk
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Sand Point has good transportation access and a moderate climate. Construction and commissioning
can be performed at any season.
We believe Sand Point is an excellent site for this energy storage project, as it builds upon an existing
fully commissioned wind/diesel system which includes wind turbines, a low‐load diesel generator,
automatic switchgear, PLC‐based master controller and dispatch‐able loads.
The addition of an inverter and battery component to a proven medium to high penetration wind diesel
system is expected to be of significantly less risk than developing a wind only capable system starting
from an existing diesel only plant.
Also, the electric loads at the City of Sand Point are significant enough to get reasonable economies of
scale, yet are easily covered by a reasonably small inverter system.
Technical/Functional Risk
Bi‐directional grid‐forming inverters are commercially available from multiple vendors. The technology is
mature and well proven.
The system architecture employs a bi‐directional inverter between the battery bank and the power
plant bus. The inverter operating in voltage and frequency source mode will accurately regulate the
power plant bus.
Provided there is sufficient battery capacity to maintain DC bus voltage, and provided there is sufficient
current capacity in the inverter, the inverter will accurately regulate the island power system, as has
been routinely done in thousands of applications for years. Providing adequate capacity is
straightforward.
With the inverter’s only job being to accurately regulate the AC power system, the critical governing
component of the system is the battery bank. All system load variations, wind lulls and gusts,
generation source additions/subtractions/faults, are covered by immediate and unrestrained
withdrawals from and deposits to the battery. There is no control involved; system function is provided
by the physical and chemical properties of the battery. It is anticipated that the dump load will be
dispatched in a slow manner to maintain battery state of charge at “normal” level.
Sand Point will differ from typical grid forming inverter applications (UPS, PV, Cycle charge, etc) in that
the power demands of the system are much more dynamic. This application as it relates to battery
demands is similar to application in the transportation sector, including electric and hybrid cars and
busses, which deal with frequent acceleration and deceleration demands.
The system proposed includes a battery with a design life of 10 years. TDX believes that there is no
significant risk of the inverter/battery system proposed not meeting predicted performance. We feel
that the pertinent risk is in the accurate prediction of operational costs in terms of battery replacement
intervals over a 20+ year project life. The projected operational costs for this new project include for
replacement of battery cells at year 11 of operation. The project budget includes more detail analysis of
battery life. Conservative assumptions were used in definition of storage requirements.
Operational Risk
Operational cost, as described in the previous section, is tied primarily to cost and life expectancy of the
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battery. Recent trends show that battery technology is improving with cost decreasing.
The design phase of this project includes selection of equipment. TDX will focus on manufacturers who
not only meet function and cost constraints, but those who can demonstrate ability to provide long term
support to minimize downtime. This is a primary concern for TDX, who will own and operate the
equipment over the project lifetime.
Our conceptual design indicates that there are numerous examples of systems (especially prevalent in
the transportation sector) which place high demands on batteries. These systems employ battery
technologies which have been proven to be cost effective over the long term.
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.
Installing an inverter‐battery component in Sand Point will allow the utility to import more wind power
than it currently does, thus offsetting diesel generation. The value of this project is based primarily on the
fuel savings potential. Fuel savings are achieved by allowing the diesel generator set to reduce its output
from its minimum load setpoint (currently 30% of rated) to zero whenever the wind and battery conditions
are suitable for “diesels off” operation. An analysis of 2012 operational data shows that only 15 minutes of
energy storage at full load would result in over 2000 hours of “wind only” operation annually. Based on
energy modeling results, available upon request, we estimate fuel savings in excess of 22,000 gallons and
over $102,000 per year, based on 80% availability.
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.
The existing Sand Point power system architecture includes a single 480V bus with the following
components:
(1) CAT 3456 generator set, 455kw, installed 2011
(2) CAT 3512 generator set, 650kw, installed 1986, 1994
(1) CAT 3516 generator set, 900kw, installed 2000
(2) Vestas V‐39 wind turbines, 500kw each, installed 2011
(1) 395kw dispatchable resistance load bank with SSR control, installed 2011
(1) 126kw dispatchable resistance boiler, installed 2011
(1) PLC ‘master controller’, including dispatchable load control, installed 2011
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Fuel metering is not installed on each genset. Therefore average generation efficiency is used in our
calculations.
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.
Operational data confirms that Sand Point has a very strong wind resource. Based on streaming data from
the wind turbine anemometer, the average wind speed in 2012 was 8.3 meters per second. While turbine
mounted anemometry is not directly comparable to independent tower measurement systems, it is clear
that Sand Point has at least a Class 5 wind regime.
Operational data further points to a significant amount of excess wind capacity, especially when town
loads are light and diesel engines are at their minimum setpoints.
The existing wind‐diesel system is fully functional, including wind turbines, master controller,
secondary load, automatic diesel dispatch. The addition of an inverter and battery would be a significant
but incremental step that would allow significantly improved utilization of and energy yield from the
existing wind turbines.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Sand Point Generating is a regulated utility serving the electricity needs of the Sand Point community. It is
expected that decreased reliance on diesel‐fueled electricity generation in favor of wind power will result
in cost savings to the rate‐payers. Please refer to sections 4.4.4 and 4.4.5 for additional discussion
regarding the financial benefits to the rate‐payers.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
The project includes the design and demonstration of an inverter‐battery based wind‐only system in
Sand Point, Alaska.
The proposed system upgrade includes the addition of a 1MVA, 3‐phase, bi‐directional, grid‐forming DC‐
AC power converter (inverter), and containerized battery storage system, sufficiently sized to handle
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maximum peak loading of the town for approximately fifteen minutes (long enough to start a diesel
following an extended lull in wind output). The inverter and battery system will be specified to include
fully developed, factory‐tested controls equipment and interfaces suitable for this application.
An electrical one‐line, sequence of operation, and state diagram is attached in the appendix for review.
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.
All new equipment will be installed either within TDX Power’s existing power plant, or within a permanent
container to be located outside and directly neighboring the existing power plant. All new equipment will
be located on TDX property. TDX Power has unfettered access to this land. No land ownership or land use
issues are anticipated.
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 barriers to permitting the activities of this project. Two permits are anticipated, neither of
which is a risk to the project in any way.
Plans will need to be submitted to the State of Alaska Fire Marshal for review of life safety issues.
The approval process typically takes 2‐3 weeks.
A City of Sand Point permit is required to ensure compliance with local zoning codes. Based on
past experience, the approval process takes approximately 4 weeks.
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
No environmental or land use issues are expected. All new equipment will be containerized and located on
TDX Sand Point Generating property, either within existing facilities or on existing gravel pads.
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
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source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
Phase RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
Phase I
Reconnaissance: $0 $0 NA $0
Phase II Feasibility
Analysis $0 $0 NA $0
Phase III Final Design $134,649 $15,111 Cash $149,760
Phase IV Project
Requirements -
Construction
$1,121,754 $125,889 Cash $1,247,643
Total Project $1,256,403 $141,000 Cash $1,397,403
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.)
O&M costs will be built into the rate for electricity sales resulting from this project. As a regulated utility
company, the rate will need to be approved by the RCA. AEA will also have the opportunity to evaluate and
approve the rate as a condition of releasing grant funding.
TDX will recover these costs through the sale of electricity over the life of the project, exactly as it
currently recovers O&M costs for its existing assets.
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
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The project owner, TDX Sand Point Generating, is the local certificated utility in Sand Point, Alaska. No
power purchase agreement is required for this project. The utility expects to work with AEA under RCA
guidelines to develop a cost based rate for the project. The cost based rate will be approved by the RCA
before taking effect. We expect that the rate will only be approved by the RCA if it falls well below the fuel
price, which is currently around $0.30/kwh. Although final analysis cannot be completed at this stage, TDX
expects the rate for power sales from this project to be between $0.10 and $0.20 per kilowatt‐hour.
As an economically regulated utility, TDX proposes to base the rate of return on RCA standards.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Please fill out the form provided below.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 6.7m/s @ 20 meters
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other (4) diesel generator sets, (2) wind turbines
ii. Rated capacity of generators/boilers/other Gensets(kw): 455,650,650,900. Wind Turbines:
500kw
iii. Generator/boilers/other type Diesel, wind
iv. Age of generators/boilers/other Gensets: 7-29 years. Wind turbines: 2011
(refurbished)
v. Efficiency of generators/boilers/other 13.78 kwh/gallon (average)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor 230,000 (FY12)
ii. Annual O&M cost for non-labor 107,786 (FY12)
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] 4,209,139 (2012)
ii. Fuel usage
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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Diesel [gal] 274,795 (2012)
Other
iii. Peak Load 792 kw (Jan 2012)
iv. Average Load 490 kw (2012)
v. Minimum Load 287 kw (June 2012)
vi. Efficiency 13.78 kwh/gallon
vii. Future trends Flat
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] N/A
ii. Electricity [kWh] N/A
iii. Propane [gal or MMBtu] N/A
iv. Coal [tons or MMBtu] N/A
v. Wood [cords, green tons, dry tons] N/A
vi. Other N/A
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]
1000kw (wind), 1000kw (energy storage)
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 304,122kw @ 80% availability
ii. Heat [MMBtu] 0
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] N/A
ii. Coal [tons or MMBtu] N/A
iii. Wood or pellets [cords, green tons,
dry tons]
N/A
iv. Other N/A
Project Cost
a) Total capital cost of new system $1,397,403
b) Development cost N/A
c) Annual O&M cost of new system $40,000 including battery replacement at year 11
d) Annual fuel cost N/A
Project Benefits
a) Amount of fuel displaced for
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i. Electricity 22,070 gallons of diesel annually
ii. Heat 0
iii. Transportation 0
b) Current price of displaced fuel $4.64 (current COPA)
c) Other economic benefits Reduced pollution, improved health, improved local
economic activity
d) Alaska public benefits Reduced PCE expenditures
Power Purchase/Sales Price
a) Price for power purchase/sale Current AWE PPA rate: $0.1624/kwh
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.01
Payback (years) 13.7 years
4.4.5 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area. If the is for a PCE eligible utility please discus what the expected impact would be for both
pre and post PCE.
Electrical rates in Sand Point are regulated with the cost of fuel shared by all customers. Reductions in
fuel use – such as savings resulting from this project – directly benefit the rate payers. Based on the
project cost and benefit projections, we anticipate saving customers approximately $0.15 per kilowatt‐
hour generated by this project. Further, we anticipate the project cost will be recovered at a fixed rate,
with or without escalation, over the life of the project. Therefore rate payers will not only receive the
direct financial benefit of lower rates, but they will be somewhat insulated from fluctuating fuel prices
over the next 20 years.
TDX Sand Point Generating qualifies for the PCE program. Approximately 40% of the sales in 2012 were
PCE eligible. Approximately 60% of the cost (fuel) savings achieved through this project will benefit the
local community through reduced electricity bills. 40% of the savings will benefit residents statewide
through reduced PCE expenditures.
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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
The Sand Point Energy Storage Project is expected to displace over 440,000 gallons of diesel fuel over its
20 year life. Savings are based on conservative projections including a factor for availability (80%).
Assuming flat fuel prices and a 3% discount rate, the net present value of these fuel savings are $1.43M.
Annual revenue will be determined by RCA rate approval process, in coordination with AEA. The rate will
be based on actual costs, not avoided costs. Anticipated annual revenue is approximately $45,000.
Applicability of federal incentives will be evaluated during the project. We do not anticipate qualifying
for federal tax credits. We are aware of no other federal, state, or local incentive programs that may
help support this project. The sale of green tags could help augment revenue for this project. Green tag
sales can be highly volatile and are not seen as a reliable source of income at this stage of development.
Alaska residents, Sand Point residents and Sand Point businesses are the primary direct beneficiaries of
this project. Reducing fuel use helps rural communities maintain economic activity and attract residents.
5.1.1 Public Benefit for Projects with Private Sector Sales
Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in
the Request for Applications for more information.
Renewable energy resource availability (kWh per month) N/A
Estimated sales (kWh) N/A
Revenue for displacing diesel generation for use at privet
sector businesses ($)
N/A
Estimated sales (kWh) N/A
Revenue for displacing diesel generation for use by the
Alaskan public ($)
N/A
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
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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
TDX Sand Point Generating will assume ownership of all assets associated with this project. All matching
funds will be included in the utility’s rate structure, in accordance with AEA and RCA requirements.
TDX has full‐time onsite operators, supported by in‐house engineering and maintenance personnel who
travel to the site as needed. Operations and maintenance costs will be included in the tariff filing that will
be reviewed by the regulatory authorities.
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 Sand Point wind‐diesel system consisted of installation of two wind turbines and integration with the
power plant. The project was commissioned in April 2012 and has been operating successfully for the
past 17 months. The project has resulted in over 68,000 gallons of fuel savings through June 2013.
The initial project, described above, was funded through AEA grants 2195264 and 2195446. Grant
funding totaled roughly $2 million. TDX has contributed roughly $1 million to date. TDX met all grant
obligations, and both grants were closed out. TDX continues to provide quarterly reporting to AEA.
Based on our initial analysis of wind‐diesel operational data, TDX determined that ‘diesels off’ operation
is a viable option for Sand Point. The equipment sizing and wind regime are appropriate to take
advantage of “wind only” operation for approximately 30% of the year, with only short term (15 minutes)
energy storage.
TDX’s engineering team has evaluated the technical requirements, including close coordination with
equipment vendors. We are ready to proceed immediately with final design and equipment procurement
upon award of a grant.
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.
TDX owns and operates all equipment, real estate, and certificates that would be affected by this project.
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As such, we are able to complete the project in‐house, without requiring agreements with any 3rd
parties except vendors and subcontractors. Disruption of service will be minimal and TDX will coordinate
with the community to minimize the impact of any outage to utility customers.
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.
Provide a narrative summary regarding funding source and your financial commitment to the
project
Upon execution of an AEA grant agreement in accordance with this application, all funding will be in
place to implement the project. TDX’s match will be cash or in‐kind. No further funding will be required
and we can begin work on the project without delay.
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.
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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.
Phase I Reconnaissance:
Phase I Reconnaissance requires a preliminary feasibility study designed to ascertain whether a
feasibility study is warranted.
Funding is not requested for this phase. TDX has determined project feasibility based on
straightforward analysis of a comprehensive set of existing load, generation, and wind data gathered by
the SCADA system on the existing power plant. Proposed system is based on readily available
equipment and technology allowing costs and performance to be determined with sufficient confidence
to proceed with detailed design and construction.
Phase II Feasibility Analysis, Conceptual Design Requirements:
Phase II Feasibility Analysis requires a detailed evaluation intended to further assess technical,
economic, financial, and operational viability of a project and to narrow the focus of final design and
construction.
Funding is not requested for this phase. The concept of increasing fuel savings in a wind diesel system
by enabling wind only operation is well understood and readily quantified using power plant data. The
basic performance requirements for the equipment are defined by power plant load, generation, and
resource data, for which we have sufficient history.
Phase III Final Design and Permitting Requirements
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
Project scoping and contractor
solicitation
NTP + 14
Weeks $49824 $5536 Cash $55360
Long Lead Equipment
purchase orders issued
(Inverter and Battery System)
(Milestone Only)
NTP + 14
Weeks $0 $0 NA $0
Permit applications completed NTP + 14
Weeks $0 $0 NA $0
Final environmental
assessment and mitigation
plans completed
NTP + 14
Weeks $0 $0 NA $0
Resolution of land use, right of
way issues
NTP + 14
Weeks $0 $0 NA $0
Permitting, rights-of-way, site NTP + 14 $0 $0 NA $0
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control completed Weeks
Final system design completed NTP + 28
Weeks $67680 $7520 Cash $75200
Final cost estimate completed NTP + 30
Weeks $2880 $320 Cash $3200
Updated economic and
financial analyses completed
NTP + 32
Weeks $7200 $800 Cash $8000
Power or heat sale
agreements in place
NTP + 40
Weeks $2880 $320 Cash $3200
Final business and operational
plan completed
NTP + 40
Weeks $4320 $480 Cash $4800
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $116784 $12976 Cash $129760
Travel & Per Diem $18000 $2000 Cash $20000
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $134784 $14976 $149760
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Phase IV Construction
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
Long Lead Equipment
purchase orders issued:
Inverter (Milestone – From
Phase III)
NTP + 14
Weeks $337500 $37500 Cash $375000
Long Lead Equipment
purchase orders issued:
Battery System (Milestone –
From Phase III)
NTP + 14
Weeks $450000 $50000 Cash $500000
TDX design/fab interface with
equipment suppliers and pre-
commissioning
NTP + 34
Weeks $39924 $4436 Cash $44360
Construction Design and
feasibility requirements
NTP + 36
Weeks $7560 $840 Cash $8400
Bid documents completed
(Milestone - Costs rolled up in
tasks above)
NTP + 36
Weeks $0 $0 NA $0
Inverter and Battery arrive on-
site (Milestone)
NTP + 40
Weeks $0 $0 NA $0
Vendor selected and award in
place (Milestone)
NTP + 40
Weeks $0 $0 NA $0
Construction:
Shipping/Transport
NTP + 48
Weeks $47700 $5300 Cash $53000
Construction: Civil NTP + 46
Weeks $20700 $2300 Cash $23000
Construction:
Electrical/Controls
NTP + 48
Weeks $74700 $8300 Cash $83000
Construction Support NTP + 48
Weeks $35892 $3988 Cash $39880
Integration and testing NTP + 54
Weeks $81702 $9078 Cash $90780
Decommissioning of old
system complete NA $0 $0 NA $0
Final acceptance,
commissioning and start-up
complete (Milestone)
NTP + 54
Weeks $0 $0 NA $0
Operations Reporting: Setup
and test new performance
reporting templates specific to
new operating modes
NTP + 56
Weeks $5760 $640 Cash $6400
Operations Reporting and first
year tech support
NTP + 108
Weeks $18900 $2100 Cash $21000
TOTALS $1120338 $124482 $1244820
Budget Categories:
Direct Labor & Benefits $119448 $13272 $132720
Travel & Per Diem $50490 $5610 $56100
Equipment $787500 $87500 $875000
Materials & Supplies $31500 $3500 $35000
Contractual Services $18000 $2000 $20000
Construction Services $65700 $7300 $73000
Other: Shipping $47700 $5300 $53000
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TOTALS $1120338 $124482 $1244820
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