HomeMy WebLinkAboutRound 6 kipnuk copyRenewable Energy Fund Round 6
Grant Application
AEA 13-006 Application Page 1 of 42 7/3/2011
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round 6 of the Renewable Energy Fund. An electronic version of the Request for
Applications (RFA) and this form are available online at:
http://www.akenergyauthority.org/RE_Fund-6.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 satisfied 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.
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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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Kipnuk Light Plant
Type of Entity: Fiscal Year End
Electric Utility
Tax ID #
Tax Status: For-profit or X non-profit ( check one)
Mailing Address
P.O. Box 071
Kipnuk, Alaska 99614
Physical Address
Kipnuk Alaska
Telephone
907-896-
5427
Fax
907-896-5022
Email
scarl@yahoo.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
c/o Sam Carl
General Manager
Kipnuk Light Plant
Title
General Manager
Mailing Address
P.O. Box 71
Kipnuk, Alaska
Telephone
same
Fax
same
Email
same
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 its project by
its board of directors, executive management, or other governing authority. If the
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or
No
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
or
No
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.
Yes
or
No
1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
or
No
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 is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Kipnuk Wind Diesel Power Generation and Heating
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.
The proposed project is a wind diesel system for the community of Kipnuk.
The traditional council has selected and allocated land for the wind project. This property is
west of the present and proposed power plant.
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.
Kipnuk is a Yup”ik Eskimo community with a population of 680, located on the west bank of the
Kugkaktlik River in the Yukon-Kuskokwim Delta,. Kipnuk is 85 air miles southwest of Bethel. It
lies four miles inland from the Bering Sea coast. The community lies approximately 59.938890
degrees North Latitude and -164.041390 degrees West Longitude. ( Section 10, T003S,
R086W, Seward Meridian.) Kipnuk is located in the Bethel Recording District.
The community is located in a northerly marine climate. Annual precipitation averages 22
inches, with 43 inches of snow fall annually. Summer temperatures range from 41 to 57 F, and
winter temperatures average 6 to 24 F.
According to early BIA records, the village was established around 1922.
A federally-recognized tribe is located in the community -- the Native Village of Kipnuk. Kipnuk
is a traditional Yup'ik Eskimo community, maintaining a subsistence lifestyle. Commercial fishing
is an important income source.
The sale and importation of alcohol is banned in the village.
According to Census 2010, there were 176 housing units in the community and 153 were
occupied. Its population was 97.7 percent American Indian or Alaska Native; 2 percent white;
0.3 percent of the local residents had multi-racial backgrounds.
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Population data for Kipnuk shows a constant population growth since 1990. The current
population is 680. Data for the last 5 years shows a growth of 7% that has slowed to 1.5% in
the last year.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The primary beneficiary of this project is the community of Kipnuk ( pop 680). The secondary
beneficiaries of this project will be the villages of Konginganak, Kwigillingok and Tuntutuliak,
which are members of the Chaninik Wind Group (CWG). The CWG is an affiliation of village
utilities which have formed a non profit group dedicated to working together to lower energy
costs, decrease dependency on fossil fuels and foster economic development in their member
villages. The CWG is working to develop wind based power systems in the region. The
addition of wind turbines in Kipnuk will strengthen the Chaninik Wind Group as part of a regional
support network. CWG provides training and many forms of technical support and assistance to
its member villages.
The shared activities are built around wind-diesel systems, and include collaboration on part
and equipment, inventories, information services, metering, monitoring, and regional skills
development and technology implementation. The wind equipment, training and operational
system components will be common across the Chaninik Communities. This level of
cooperation among villages has improved the reliability, performance and cost effectiveness of
the wind systems.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
X Wind Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar X Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
Reconnaissance x Design and Permitting
Feasibility x Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Kipnuk Light Plant is proposing to complete the final design, permitting and construction of a
community wind diesel system for the community of Kipnuk, Alaska. The project will be owned
and operated by the Kipnuk Light Plant and the community of Kipnuk. Construction of the wind
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plant will be conducted in conjunction with the construction of a new school, powerplant and
bulk fuel facility in the community. The new school is currently under construction and is
anticipated to completed in late 2013, early 2014. Funding has been received for a new diesel
powerplant and bulk fuel storage facility. The new powerplant construction will take place in the
winter of 2014. The wind project would be completed at the same time.
The design of the wind system has been completed and is straightforward, in that is similar to
the systems which have been installed in Kongiganak, Kwigillingok and Tuntutuliak. The only
design elements remaining to be completed, are: the installation and wiring diagrams for the
specific installation of the load balancing boiler, system master control, communications
gateways and static var compensation in the new powerplant. These design elements will be
conducted concurrently with the design and construction of the new diesel powerhouse.
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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, etc.)
The primary financial benefit from this project will be reduced fuel costs for the residents of
Kipnuk. This in turn will result in lower stable, long term electrical generation and heating fuel
costs.
Simulations of wind resource versus load demand result in an estimated annual gross fuel
savings of 71,385 gallons of diesel fuel used for power generation, and 7766 gallons in home
heating fuel in 30 residences. These savings take into account the diesel generated electricity
and heat displaced by the wind, and as well as the anticipated efficiency improvements due to
new automated switchgear and improved diesel generation efficiency to be incorporated into the
new powerplant. This estimate also recognizes a growth in the load, due to improvements in
system reliability, and the end of power rationing measures which were the result of insufficient
generation capacity. The wind system will also provide supplemental heat to the waste heat
recovery loop from the power plant to community buildings, by plumbing a load balancing boiler
with excess electrical energy from the wind turbines into this loop.
Regional and local wind turbine operating experience, is rapidly growing throughout the
Chaninik communities, and coupled with shared local experience, continued training and
support, along with remote monitoring of the 17s wind turbines, CWG’s experience and is
demonstrating good, reliable and high availability performance from the wind machines.
The addition of wind will reduce fuel used for power production by 40%. with anticipated annual
fuel displacements of 71,385 gallons for power generation and 7700 gallons of heating fuel.
Kipnuk’s average price of fuel is in excess of $4.43/gallon. This equates to annual utility fuel
savings exceeding $316,000 per year (over an average course of 20 years assuming a 4%
escalation).
Addition benefits accrue to the community in three ways. First lower heating costs to residential
customers with electric thermal storage devices, secondly, increased revenues to the utility
through increased electrical sales, and finally reduced electrical costs to consumers.
Lower heating costs: Home owners who have the electric thermal storage devices can expect
to have saving of 220 gallons of diesel fuel per year, displaced with excess wind energy.
Excess wind energy is sold into electric thermal storage devices at around $.10 per kilowatt
hour, which is equivalent to approximately $2.50/gallon heating fuel. Residential customers are
currently purchasing in excess of 770 gallons of fuel for nearly $8.00 per gallon. (Savings (8.00-
2.50)x 220 = $1210 annual savings. 30 residential units x $1210 = $36,300
Increase revenues to the utility, result from an estimated sales of 250,000 kWhrs of excess
electricity as heat, for $25,000.
A business plan for the Kipnuk Wind project was developed. Under this plan, residential
customers exceeding the 500 kWhrs per month of 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 customer, this would
represent a saving of from $5 to $25.00 per month, or $60 to $300 annually.
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Two system economic models were run. One was a spreadsheet model developed for the
Chaninik Wind Group business planning purposes. The other model was the Homer model
which indicated a 5-turbine system could be expected to annually displace 71385 gallons of
diesel fuel used for power generation and 7700 gallons of heating fuel.
The community would decide the most beneficial allocation of excess electrical energy. Electric
boilers will reduce fuel consumption in the community building that houses city offices and the
community water plant/washeteria. The system will provide a control and integration backbone
that enables the easy addition of wind turbines and thermal storage devices.
Beyond a reduction in fuel use, reduce fuel purchases, stable power and lower heating costs,
additional benefits of the project include:
- Increased local employment and training opportunities
- Reduced reliance on the volatility of fuel prices
- Reduced risk of fuel spills
- Reduced local air pollution and contribution to climate change
- Increased revenue to the utility company
- Reduced impact on PCE program
- Improved efficiency of utility management and operations
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 total project cost is $3,886,450. The Kipnuk Light Plant will contribute $1,200,000 in
matching funds. Total request from the renewable energy fund is $2,686,450.
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. $2,567,778
2.7.2 Cash match to be provided $1,500,000
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2.7.3 In-kind match to be provided
2.7.4 Other grant applications not yet approved $
2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $ 4,067,778
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.6 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$ 4,067,778
2.7.7 Estimated Direct Financial Benefit (Savings) $ 360,000 plus annually
for 20 years
2.7.8 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 your
application (Section 5.)
$ Local jobs, $45,000
annually, reduced power
costs,
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). 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.
Project supervision:
Sam Carl Kipnuk Light and Power Utility Board, and Dennis Meiners of IES.
Sam Carl is the utility manager. Dennis Meiners, Ben May and Ona Brause of Intelligent Energy
Systems (IES), will provide technical assistance, design, construction and operational support
required to build, operate and manage this project. IES will coordinate, engineering and
construction activities, drawing on experience in similar project experience and the abilities of a
number of experts in the field of wind, wind diesel and wind heating systems. Construction
assistance by the Chaninik Wind group technicians, and construction crews mobilized for the
construction of the new school. The project management oversight will consist of the Kipnuk
local utility board and the Board of Directors of the Chaninik Wind Group. The project will
benefit greatly from the construction of previous wind projects using local personnel and the
close coordination of shipping and equipment mobilization in conjunction with the construction of
the new school.
The project engineers are Albert Sakata, P.E. and Carl Brothers, P.E.
The chief electrical engineer is: Albert Sakata, P.E.
System Control and Integration: Carl Brothers, P.E.
On site supervisor: Ben May, IES
Local project manager: Sam Carl
Local power system operators have received wind tech and climbing certifications for wind
turbine construction and maintenance. Assistance for wind turbine and diesel maintenance is to
be provided by surrounding village operators from the Chaninik Wind Group villages of
Kongiganak, Kwigillingok and Tuntutuliak.
Web based monitoring and SCADA support tools.
System components, control and integration; power system stability components are well
proven and readily available. The wind turbines and hybrid power system have advanced
remote diagnostics capability. These components can be monitored and controlled via phone
modem or Ethernet connection without the need for special software, through the use of
visualization software. Full product warranties for controls, power conditioning, battery systems,
wind turbines, metering systems and electric thermal storage devices are available from the
suppliers, as well as application support, training, installation, commissioning and emergency
assistance. Kipnuk has several residents who are certified welders, and an experienced crane
operator.
Construction: The project will benefit from the coordination of wind turbine installation with the
construction of the new school. The specific crane/foundation and erection subcontractor is
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likely to be STG Inc. STG is currently in Kipnuk installing the foundations for the new school. A
cost savings is expected for the installation of the wind turbines through close coordination with
the construction of the new diesel powerplant and bulk fuel storage system.
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.
Final design and engineering, completed for wind project, some components ordered and
installed.
Complete final engineering coordination with new power system, final January 2013
Procurement of Turbines and long lead time items – January through July 2013
Delivery to barge for shipment - August 2013
Delivery unloading - Fall 2013
Construction of control and integration systems winter 2013 for shipment - July 2014
Installation of Power module, and wind turbines, and power pole foundations March – May 2014
Installation of heat recovery boiler and storage - Summer 2014
Commissioning - Summer 2014
Project support – January thru December 2014
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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.
This project benefits greatly from the experience gained in the three similar wind diesel projects
in the nearby Chaninik Wind Group Communities. The project team will also benefitting from
piggyback the mobilization and availability of construction equipment in the region that is
mobilized for the construction of the new school in Kipnuk, as well as the work and training that
has occurred on wind projects in nearby communities.
Project supervision: Chaninik Wind Group Board of Directors, Kipnuk Light Plant Utility Board,
Dennis Meiners and Ben May of Intelligent Energy Systems will manage this project. The
Chaninik Wind Group has benefited from the assistance of STG Inc. to provide pile driving, and
crane services to install turbine towers and nacelles. However, CWG utility crews, will perform
the majority of the wind turbine installation, electrical distribution, communications, construction
of support structures, installation of metering and electric thermal storage devices. IES has
successfully in the past assisted the CWG communities with design assistance, construction
management and project assistance.
The primary contact for the project in Kipnuk is Sam Carl. He is the manager of Kipnuk Light
plant and is responsible for the overall operation of the power system and will provide on-site
coordination.
The chief electrical engineer is: Albert Sakata, P.E.
The project engineers are Albert Sakata, P.E.
The geotechnical consultant: Richard Mitchells of Golder and Associates.
Mechanical Engineering is provided by Coffman Engineers
The control and integration of the wind diesel systems is provided by: IES, Sakata Engineering
and Frontier Power Systems.
Metering and meter data management systems are supported by SAIC corporation.
The CWG utility managers and power system operators continue to provide technical and
construction assistance with the wind, wind diesel and utility management issues. The power
system operators from the CWG villages are familiar with the construction methods, operation of
the wind diesel systems, and will provide primary installation and operation not only of the wind
turbines, but other system components. Regional crews have many hours of direct experience
with the machines, ETS units, metering, and system control. The CWG has trained 14 wind
turbine technicians for these wind turbines in the region. Two technicians reside in Kipnuk.
Construction management and on site project supervision will be provided by Ben May, Ona
Brause and other project managers at IES.
Specialized control and load integration hardware and software has been developed and
deployed in the CWG communities. These components will be utilized in this project. The
power system control has built in monitoring and web based support tools. These include
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remote diagnostics, remote visualization, historical data capture and trending.
Recently high speed broadband internet service is provided to the village of Kipnuk. This
improves monitored and remote assistance.
Construction: As with other CWG projects, the project will draw primarily from the local Kipnuk
workforce, but multi village crews, made up of operators and others who have worked on the
Chaninik Wind Group projects will complete the majority of the installation.
The majority of the work will require supervision and technical assistance from more qualified
personnel, such as heavy equipment, electric and diesel specialists, and controls and
communications specialists. This work will be coordinated by IES.
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.
Project communications, include: project status reports, project communications and project
accounting. The project point of contact for project communications would be Ona Brause, of
IES. Ms. Brause has provided this assistance with other Chaninik Wind Group wind heat
projects. Ms. Brause will coordinate all reports, meetings, audits, accounting requirements, as
well as maintain project records maintenance and insure that project management, progress
and accounting reports are completed and provided to the agencies in an appropriate and timely
manner.
3.5 Project Risk
Discuss potential problems and how you would address them.
Similar wind diesel heat projects to the one proposed by Kipnuk have been build by the
Chaninik Wind Group, in the communities of Kongiganak, Kwigillingok and Tuntutuliak. The
Kipnuk project will benefit from the experiences gained in the surrounding villages. Primary
risks related to logistics, remote community operations, unpredictable weather are well
understood, and have been taken into consideration. The technical risks related to the
project have been dealt with in other communities. The integration of the wind system is
well understood, and a base of experience has been built to insure the projects will perform
as expected.
The greatest area of risk has been insuring that the wind turbines will provide the long term
fuel savings they are expected to produce in a harsh environment. The Chaninik Wind
group management, recognized the importance of being able to rely on the turbines year
after year, and as such set out three primary requirements for wind turbine selection.
1. The turbines should be of a robust mechanical design which can be maintained by local
crews. The managers selected the Windmatic 17s. This is a mechanical based turbine
design. Component parts are readily available. This turbine, is of similar design to the
Vestas V15/17. This design is one of the most proven wind turbine designs, with many
years of reliable performance throughout the world, and has provided the design basis
for the growth of the wind industry.
2. Community wind systems should be made up of greatest number of reasonable sized
turbines for the available funds. The managers recognize that the communities will be
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relying on wind machines to provide many years of fuel displacement. As reliance on
the wind turbines increases, the host communities will reduce diesel fuel purchases and
diesel fuel storage inventories. The loss of a single large turbine due to maintenance or
some other unforeseen problem, could risk a wintertime fuel emergency. System
redundancy, in this instance the installation of 5 turbines, insures high fuel
displacements and that the fuel savings still materialize through the remaining machines.
3. The Chaninik Wind Group managers have made an effort to standardize their operations
the greatest extent possible across villages. Kipnuk is a participating member of this
Chaninik Wind Group, and working together these managers have created a strong and
supportive mutual assistance network in the region. This cooperation and assistance
includes expanded access to tools, equipment training, spare parts, and transportation
and service options. The collaborative will be able to insure a high level of wind turbine
performance.
Many questions involved in the installation of wind turbine in villages have been answered
and integration problems have been solved over the last few years. Progress has resulted
in increasing the cost effectiveness of the projects and simplifying operations and reducing
maintenance.
The project integration is built around a fully tested, power control and conditioning system.
The project will integrate this system into the new proposed Kipnuk power plant. The new
power plant will have an expanded waste heat recovery system, which will be integrated
with the wind production.
This project will benefit greatly from the lessons learned on similar CWG projects. The
primary risk will be insuring high wind turbine availability. This can and will be monitored on
a daily basis.
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
• The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
• If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project. For pre-construction applications, describe
the resource to the extent known. For design and permitting or construction projects, please
provide feasibility documents, design documents, and permitting documents (if applicable) as
attachments to this application.
The Alaska Energy Authority established a regional wind-monitoring program in 2003-4. This
program was directed by Rueben Lowen, and was planned with the assistance of John Wade
under contract to the National Renewable Energy Laboratory. At the time it was determined that
due to the geography of the region, and proximity of the communities, that sufficient wind
resource was available that a regional wind monitoring system in Kongiganak would provide
sufficient wind resource data, which when correlated to long term weather data, would be
sufficient to meet wind feasibility and economic performance thresholds.
Rregional wind monitoring was placed in Kongiganak by the Alaska Energy Authority to collect
data representative for the region. Kipnuk is 30 miles away and not a tree or hill in sight. This
data was correlated with long term airport data by meteorologist, Ed McCarthy of WECTEC, and
J.P Pinard, P.E, PhD of JP Pinard Engineering to confirm the suitability of the resource. The
results of the wind resource evaluation indicate an outstanding wind resource with an average
wind speed of 7.78 m/s and with a wind power distribution well suited for the capture of wind
energy.
Additional wind monitoring equipment is on site and will be installed, in October to provide
additional wind resource collaborative data. This equipment will be placed at both the current
and a proposed future site where the wind project may be expanded in the future.
The data was analyzed in the HOMER and Windographer software models and compared with
the power curves of various candidate wind turbines. The two primary wind turbines considered
were the Northwind 100 B model with a 22 meter rotor diameter on a 37 meter tower, and the
Windmatic 17s meter wind turbine on a 24 meter tower. Cost estimates for the installation and
operation of the turbines was based on previous installation costs and known foundation
conditions. The HOMER modeling indicated the installation of the five windmatic turbines.
These turbines are expected to produce 2/3 of the energy of the Northwind 100 at ½ the cost.
Larger turbines were not proposed for this project because the estimated installation cost
exceeded the available budget and did not meet the design approach of the community for
system redundancy. The installation of a single turbine does not offer sufficient redundancy,
should the turbine incur problems. However, the EWT 900 was considered. It has the ability to
provide sufficient additional excess wind capacity to displace 54,000 gallons of home heating
fuel and 66,000 gallons of diesel fuel used for power generation, which is sufficient to heat most
of the homes in the community. It is estimated that the installation of the EWT 900 would
require a budget of $6,000,000, which is beyond the limits of this program. Additionally, the
community, flight services and the FAA had concerns about the height of the turbine with
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respected to the proximity and height of the turbine to the location of the airport.
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.
Kipnuk’s electrical load has grown by nearly 30% since the commissioning of the new water
system in December of 2010.
A new school is being constructed in Kipnuk during the winter of 2012/2013. This new school
will increase the average electrical load from 50 to 75 kW with a commensurate increase in
heating fuel usage estimated at over 20,000 gallons.
Construction of the school in Kipnuk is scheduled to begin the Fall 2012 and continue through
2013. Coordination with the school construction could result in cost savings sufficient to install a
4th wind turbine. Significant savings would result from the day rental of heavy equipment such as
cranes, loaders and pile drivers, and specialized personnel that will be mobilized for the school
construction. The control and integration capacity in the proposed design can accommodate up
to 5 wind turbines. Power produced from a possible fourth wind turbine would result in additional
fuel savings of up to 18,000 gallons.
Cost savings would result from unburdening the wind project from carrying the full cost of heavy
equipment mobilization, rental, and overwintering from the Fall of 2012 to the Spring of 2013.
This wind diesel system architecture is scalable through the addition of wind turbines, new diesel
gensets, and energy storage. Kipnuk is a productive wind site in which each Windmatic 17S
wind turbine has the potential to annually produce 225,000 kWhrs of electricity. This equates to
annual per turbine potential fuel displacements of 14,000 to gallon of diesel fuel and a total
displacement for 5 turbines of upwards of 70,000 gallons.
The community of Kipnuk has received funds to rebuild their diesel powerplant and bulk fuel
system. The Chaninik Wind Group, received $1.5 million toward the construction of a wind
system.
This project is currently in the design phase of the diesel power plant and bulk fuel system will be
completed by Spring of 2013. Construction is scheduled for winter 2014. The installation of the
wind system would be scheduled for the same period.
The wind system has been design. Final designs for the incorporation of the power system
master controls, load balancing boiler and static var compensation into the new power plant.
The hardware and software components of these systems have been designed and finals
designs would include concurrent incorporation of these components, with the physical
placement, monitoring and control optimization in the new diesel powerplant. Concurrent
construction of the wind system, heat recovery, diesel powerplant and wind system distribution
and communications could result in significant cost savings and performance improvements.
Any savings realized could be directed to much needed upgrades, repairs and reliability
improvements needed in the community electrical distribution network.
Kipnuk’s diesel plant has been increasing unreliable. The past 3 winters have experienced
numerous outages, and extended ( November to March) periods of electricity rationing, and the
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use of onsite generation at the School and water plants.
Recent improvements to the existing diesel plant include the rebuilding of a Cummins 350 kW
genset and the installation of a rebuilt Cat 3456 electronically fuel injected generator. The
Cummins generator, as well as an existing Cat 3406 generator have limited operating capacity.
The community primarily relies on the Caterpillar 3456, which has a rated capacity of 410 kW
and a peaking capacity of 457 kW. The Cat 3456 is designed for efficient load following and will
work efficiently in parallel with the wind system as it is able to maintain its fuel efficiency even at
very low loads. The installation of the Cat 3456 generator has been responsible for improving
fuel efficiency from 10.5 kWh/gal to the 13 kWh/gal range.
System load and fuel usage:
The average community electrical load is 200 kW during the summer and under a rationing
scheme, 250 kW during the winter. Once the new power plant is in place, average loads are
expected to exceed 250 kW year round and peak loads could approach 400 kW during the
winter.
Completion of the new school will increase the average summer load by 25 kW to 275 kW and
by as much as 75 kW in the winter to peak loads to 425 kW.
The existing power generation facility has a heat recovery system providing heat to the
Kugkaktlik Limited Traditional Council, Kipnuk Light Plant offices, and community hall. The wind
system installation will include the installation of a 300 kW load balancing boiler. This boiler will
serve a number of purposes, the first is to act as a shock absorber to smooth out fluctuations in
wind power. The boiler will also protect the diesel generator sets from reverse power outages,
and provide energy to heat the power plant and the waste heat recovery system.
All other excess wind energy will be diverted to 30, electric thermal storage devices in homes
throughout the community. These devices will have a combined peak capacity of 300 kW, and
can be modulated to accept both small and large amounts of wind energy as it is made available.
The control and integration capabilities of the wind project would enable expansion of the wind
project, through the addition of wind turbine capacity and additional energy capture and storage
devices.
Annual electrical load growth and step increases in demand were projected through 2017.
Demand grows from a peak of 359 kW now to a projected potential peak of 709 kW.
The new washeteria/water system uses diesel fuel to heat and treat potable water and provide
heat for the facility and clothes dryers. A location has been provided in the waterplant to plumb
in an electric boiler, which would use wind to reduce heating fuel usage (currently projected fuel
use at the washetria water treatment plant is 20,000 gallons annually).
The following new facilities have been or are scheduled to be added in the near future:
Average load Peak increase
AVCP housing, 25
units
2012-2014 12.5 kW 30 kW
ANTHC clinic 2012 5 kW 15 kW
CVRF fisheries 2013
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support
improvements
Water and Sewer 2011-2014 10 kW 20 kW
New School 2013-2014 50 kW 75kW
Airport lighting 2012-2013 3 kW 20 kW
Church
improvements
2012 5 kW 10 kW
The electric load in Kipnuk has varied from 1,657,658 kWhrs in 2008 to 1,588,874 kWhrs in
2010. This is primarily due to inadequate generation capacity. Residential customers have
been on power rationing, and the school and washeteria have been operating their own
generators for many months each year.
Load data at each meter began being collected in July 2012, through the advanced metering
system. Hourly electrical usage averages are being collected from each single phase customer,
and each three phase customer’s usage is measured in 15 minute intervals.
Load growth is estimated to be near 2,000,000 kWhrs in 2012, when onsite/not utility generation
is taken into account. The electrical load is expected to exceed 2,300,000 kWhrs by 2014.
It should be noted that Kipnuk light plant has been unable to service the entire community
electrical load for at least the last 3 years, due to lack of generation capacity. In 2012, Kipnuk
Light Plant purchased 124,000 gallons of diesel fuel for power generation at a price of $4.486
per gallon. Home heating fuel is currently being sold at the village store for $7.26 per gallon.
This price is anticipated to rise $.25 per gallon this winter.
The Kipnuk power system can benefit greatly from automated control system and improvements
to metering of existing power. Other funding for a new diesel plant is uncertain. The wind
project will improve the efficiency and reduce demands on the existing diesel system and
interface directly with any future power plant. Immediate benefits of installation of an integrated
control module include: voltage and frequency regulation for improved power quality, automation
of diesel power plant operation, capacity to receive energy storage for peak shaving, fault ride
through and frequency and voltage regulation in diesel off operations. These will reduce diesel-
operating costs and result in immediate and long term savings to the utility.
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.
The viability of various sources of energy was assessed in the Kipnuk, Alaska Rural Power
System Upgrade Conceptual Design Report 2007. “The report on page 11 states: It is assumed
that upgrades to the community electrical power system incorporating supplemental wind energy
is a priority and will be conducted within the next ten years.”
This report was conducted when fuel prices were below $2.00 per gallon delivered in bulk to the
utility. Last year bulk fuel wholesale purchases were $4.38 per gallon. This translated to home
heating fuel costs of $7.50 per gallon, at the local village store.
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Fuel is delivered to Kipnuk via barge twice a year, once in the Spring and again in the Fall. Due
to limited bulk fuel storage capacity, Kipnuk Light Plant has nearly run out of fuel for the past two
years.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Kipnuk is located on the west bank of the Kugkaktlik River in the Yukon-Kuskokwim Delta, 85 air
miles southwest of Bethel. It is four miles inland from the Bering Sea coast. The community is
located in a marine climate. Precipitation averages 22 inches, with 43 inches of snowfall
annually. Summer temperatures range from 41 to 57, winter temperatures typically range from 6
to 24. F.
Kipnuk is accessible only by air or by snow machine in winter, and boat in summer.
In a recent RUBA report, it was indicated that Kipnuk meets all Essential indicators and most all
Sustainability indicators.
Kipnuk relies on electricity to maintain home lighting, street lighting, telephone service, school
service, clinic hours, and freezers to maintain a subsistence lifestyle. Reliable electricity is
crucial to the residents of Kipnuk.
A survey was conducted of heating fuel usage of each residence. These results have being
correlated with other record and this information indicates that on average, a typical residence in
Kipnuk uses 766 gallons of heating fuel annually, leaving an estimated 136,000 gallons of
residential heating fuel, and another 100,000 gallons of public and commercial facility heating
fuel available for displacement with wind.
Heating fuel represents the single highest expense in operation of residential and public facilities.
The community center receives most of its heat from the recovered waste heat from the diesel
generators. This will continue and be supplemented by the load controller boiler. The excess
wind will be diverted to the electric boiler at the washeteria that now uses 20,000 gallons of
heating fuel. The washeteria and water plant are directly related to the health and well being of
the local residents and the high cost of heating fuel has resulted in a cost of $15.00 to wash and
dry a load of laundry. The city will determine the value of this heating energy and the wind
energy will lower the cost of operations of the water plant to the community.
Kipnuk light plant purchase 124,000 gallons of fuel this year for power generation. It is
anticipated that the electric load will increase by as much as 30% in the next 2 years. Even
with efficiency improvements in the design of the diesel power plant, fuel usage can be projected
to exceed 160,000 gallons by 2014.
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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
Funding is being requested for concurrent construction of the wind system with the new diesel
power plant, and bulk fuel storage. Concurrent construction is anticipated to result in
considerable saving. These savings if realized could be used for much needed repairs to the
community electrical distribution system.
The wind project will be similar to the wind diesel system which have been installed in
Tuntutuliak, Kwigillingok and Kongiganak.
The project consists of the following components:
• Five Windmatic 17S wind turbines, ( 95 kW nominal rating/total 495 kW)
• Wind Diesel Supervisory Control and Data Acquisition System, with multiple remote unit
control for distributed device control,
• 300 kWe load balancing boiler plumbed into the waste heat recovery system of the new
diesel powerplant,
• 30 Electric thermal storage (ETS) devices, distributed in community buildings and
residences,
• Advanced metering system to track diesel and wind sales, and provide financial
management tools for the utility,
• Static Var compensation device, to improve grid stability and diesel efficiency during wind
diesel operations,
• Underground 12470 Volt 3 phase power line with fiber optic communications to wind
turbines
This wind diesel system architecture is proven, and is being utilized in Kongiganak, Kwigillingok,
and Tuntutuliak. The system is scalable through the addition of wind turbines, diesel gensets,
addition of residential electric thermal storage devices, thermal storage devices for commercial
building, and real energy storage. The system being provided is ready for expansion when
additional wind energy capacity becomes available.
The wind diesel system master control, voltage support cabinet and boiler would be the main
components in the new powerhouse. The new powerhouse would house all communication
hubs, metering data collection gateways, and internet service connections. The voltage support
module would be located in the power plant and connected to the generation bus. The load
controlled boiler would be connected to the power plant electrical system, plumbed into the heat
recovery loop and connected into the system master supervisory control system.
The switchgear bus, breakers, conductors and cabinets as well as the floor plan and heat
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recovery plumbing would be configured to accept the wind energy, as well as be expandable to
meet expected load growth, and future energy storage options.
The wind diesel power control and conditioning system will incorporate directly into diesel
controls and switchgear, and into the power plant heat recovery system. The 30 electric thermal
storage devices will be dispatched and managed through the system supervisory control and
enable the capture and storage of excess wind for residential heating. The proposed wind
system is a duplication of systems in other Chaninik villages. Improvements have been
incorporated into the system design, and these include: a wind turbine central control building for
on site service, additional static var compensation and improved metering and data collection
systems.
The wind turbines are well proven in Alaska and the control and integration method is well
understood. Geotechnical investigations have already been conducted and the wind turbines,
power poles and power/control module will be placed on driven piles.
Property has been provided by the community for the installation of 5 or more wind turbines.
Turbine foundation designs have been completed, and foundation materials have been
purchased and shipped to the site. The power line, power conditioning, communications, and
control designs have been completed. Some of the construction materials such as power
conductors and transformers have been purchased.
Similar design have been implemented in the other Chaninik Wind group projects. The power
system is designed for expansion through the addition of increased numbers of wind turbines,
use of thermal storage devices and increased power conditioning and energy storage capacity
The five wind turbines have a rated output of 495 kilowatts. The installation of excess capacity
enables high penetration of wind energy into the power grid, at low wind speeds, and excess
wind energy production for heating at moderate to high wind speeds.
Grid stability will be provide by keeping at least one diesel engine generator on line running at
low load, and the static var compensation to provide additional voltage support.
The voltage support system will enable smaller generators to be operated at high wind
penetration, in order to increase fuel saving.
The electric load balancing boiler is configured to rapidly adjust the system load balance by
absorbing and releasing excess power in the system to regulate power system frequency as the
wind power fluctuates. Excess wind energy will be injected into the heat recovery system of the
power plant, until it reaches a sufficient level that it may be dispatched to electric thermal storage
devices located in homes.
The supervisory control system monitors the electrical load demand and configures the various
system components - wind turbines, diesel gensets and controllable loads - to an optimize fuel
savings and maximize wind capture.
Below is a diagram of the complete proposed future system, which integrates the wind with
distributed energy managed devices and the metering system. This diagram depicts some
advanced capabilities of the smart metering system, such as electric vehicle charging, interactive
two way user interfaces, and control of multiple appliances in the home through the meter. The
metering system is installed with the hardware and communications backbone. The
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implementation of all of these advanced features will dependent on the use of high speed
internet access to the community. The electric thermal storage devices are proxies for the
various types of distributed residential energy storage, such as plug in vehicles for local
transportation, which can easily be incorporated in this system. The advanced metering system
will enable separate accounting of diesel generated and excess wind generated electricity. This
drawing is provided to indicate the extent of the metering systems potential.
The proposed wind diesel system is capable of high wind penetration at all times with the
existing power system. The controls, boilers and diesel gensets work together to stabilize the
integration of wind and support any changes to the power system components that are needed
to accommodate increased village power requirements, and large variations in wind power
output, with the goal of decreasing overall community diesel fuel usage.
The wind turbines are provided with a user interface to the wind turbine controller (WTC), as well
as a remote operator interface built into the power system supervisory control.
The wind turbines and wind diesel supervisory control send and receive information such as the
state of the machine (running, stopped, on-line and off-line, power generated, alarms, nacelle
position, etc.), and provide instructions to start and stop machines, and control power set points.
The WTC would communicate via fiber optic cable.
The majority of the wind energy produced will be used to reduce fuel used for power generation.
The remainder of the wind energy will be directed to the boiler in the heat recovery system and
the remote ETS units. In low winds, the diesel power system will operate with the least amount of
diesel generation required for stable operation. As wind speeds increase, greater proportions of
wind energy are captured as heat.
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Wind Turbines
Cost estimates for turbine installation were developed after geotechnical investigations, and
foundation designs were completed. Cost estimates compare to actual project experience in the
region. Installation costs estimates were developed for several types of turbines. Gross annual
estimated energy production for each turbine was arrived at through comparison of power curves
and wind resource information using HOMER. The results are summarized in Table 3. A 20-year
investment horizon and a 5% nominal interest rate were used for economic analysis. These are
the same investment guidelines as proposed in the Alaska Rural Energy Plan, April 2004.
Table 3 – Wind Turbine Assumptions
Turbine
Model
Rated
Power
(kW)
Hub
Height
(m)
Lifetime
(Yr.)
Per-Turbine Costs Fuel Saving gallons
Capital
Replacement O&M Generation* equivalent
gallons
5 17s 495 24 20 $2,348,000 $ 1,425,660 $45,000 1,125,000 79,151
These turbines will be placed approximately 250 feet apart and located 1000 feet from the
existing 12.47 kV transmission line. The community has set aside property for the wind system.
The sub-second response of the power conditioning frequency controlled boiler is supplemented
by the multi-second response of the diesel generators. Other system changes can occur on the
minute-to-minute time frames in which diesel generators and wind turbines can be reconfigured
and loads in the community can be turned on and off. The integration of the power system
increases the value of the available wind. Properly integrated advanced control capability
decreases the contribution of the diesel generators and optimizes the use of wind power.
The community has reported a number of problems with the electrical metering systems. This
shows up as either line losses or poor generation efficiency. The management of the power
system requires accurate, timely and convenient manner of managing its energy sales and to
understand the effect of wind on the system in relation to the sales. A new automated meter
reading system will be installed. This system is needed for the Kipnuk Light plant to better
manage their utility and is essential to their sustainability.
Metering system:
The need for low cost residential heating represents the largest potential load for the Utility. This
will require precise metering of wind generated versus diesel generated electricity.
The metering system will consist of 3 collector meters, one at the school, one at the
washeteria/water plant, and the last at the powerhouse. Residential customers will have a single-
phase meter at their home. These meters will communicate with the data collecting 3 phase
meters to create a mesh network. The meters are designed for plug and go capability, which
eliminates programming and simplifies installation. This same metering system has been
selected for use as it has proven to be a best practice management tool for the Alaska Village
Electric Cooperative.
The community has reported a number of problems with the older electrical metering systems.
This shows up as either line losses or poor generation efficiency. The management of the power
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system requires accurate, timely and convenient manner of managing its energy sales and to
understand the effect of wind on the system in relation to the sales. A new automated meter
reading system will be installed. This system is needed for the Kipnuk Light plant to better
manage their utility and is essential to their sustainability. More importantly the metering system
is needed to account for wind generated electricity at a different rate than diesel generated
electricity.
Electric Thermal Storage
An average home in Kipnuk uses over 766 gallons of heating fuel annually. During a windy
week in the winter a single home can consume and entire 55 gallon drum of heating fuel. This
project proposes to capture the wind and use it to heat homes, throughout the year 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, which lie within special, high-
density ceramic bricks. These bricks are capable of storing vast amounts of heat for extended
periods of time. During periods of excess wind energy, a signal from the power plant supervisory
controller is sent to the metering system. The ETS controllers then enable the relays, which turn
on elements, which heat the bricks. Operation of the system is completely automatic. A sensor
monitors the outdoor temperature to regulate the amount of heat the systems stores in the
bricks. A thermostat regulates the delivery of the heat to the room. Each unit has a built in
microprocessor that allows the owner to configure the operation for their needs. There are over
100,000 of these units in operation in the mid-west states and off-peak heating is common in
Europe. The system provides a lower cost low maintenance method of home heating using
wind. The control of multiple ETS units across the grid is accomplished by the wind diesel
supervisory control system.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The land needed for the project has been given to Kipnuk Light Plant by the village corporation
and site control has been obtained.
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
Permit review will be for a 5 turbine project. The construction of the wind and power project will
require some of the following review and/or permitting, no potential barriers have been identified.
1. Coastal Project Questionnaire
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Since Kipnuk is located in a coastal zone, the project requires submittal of a
Coastal Project Questionnaire to the State of Alaska, Department of Natural
Resources (DNR). The DNR coordinates review of the questionnaire by various
state agencies and assists in identifying required permits pertinent to the project.
The standard review spans about a 30-day period.
2. Fire Marshall Plan Review
The construction of the new power control module will require submittal of a set of
construction documents to the State of Alaska, Department of Public Safety,
Division of Fire Protection (Fire Marshal) for plan review and approval. The State
Fire Marshal then issues a Plan Review Certificate to verify compliance with
adopted Building, Fire, and Life Safety codes. Final stamped drawings will be
submitted along with the application fee for project review. Anticipate a minimum
of one month before comments may be received from Fire Marshal.
3. Alaska Department of Transportation
The construction does not effect existing Department of Transportation (DOT)
right-of-ways. None exist.
4. Regulatory Commission of Alaska Certification
The Regulatory Commission of Alaska (RCA) regulates public utilities by certifying
qualified providers of public utility and pipeline services and facilities at just and
reasonable rates, terms, and conditions. The commission also determines the
eligibility and the per kilowatt-hour support for electric utilities under the Power
Cost Equalization program. The Kipnuk Light Plant is conducting a review of rates
with respect to a future wind project.
5. State Historic Preservation Office
The State Historic Preservation Office (SHPO) is required, under Section 106 of
the National Historic Preservation Act, to review any state of federally funded
project for potential of disturbing cultural resources. The wind site has already
been reviewed for compliance.
7. Federal Requirements
• U.S. Fish and Wildlife Service
The U.S. Department of the Interior Fish and Wildlife Service has been consulted
based on a 5 wind turbine project and consultation occurred with respect for
impact to endangered species. The Fish and Wildlife Service has noted that this
project is near known designated critical habitat in the action area, but not in an
action area of the suspected presence of listed species. Because of the absence
of federal funds no formal consultation is required.
• U.S. Army Wetlands Permit
This projects will not significantly disturb or place fill material on existing soil in a
wetlands determination from the U.S. Army Corps of Engineers as this project for
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the placement of piling falls under the general nationwide permits.
• Federal Aviation Administration Review
The FAA has been contacted and the site reviewed. Due primarily to the lower
height of the tower and rotors, the project complies with of all FAA regulations.
The FAA has been very responsive and typically provided project determinations
within one week of the completed submittals.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
• Threatened or Endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
The land for the project has been provided by the local village corporation, and there no Federal
monies involved, no significant filling of wetlands is to take place, there are no endangered
species present, there are no anticipated conflicts or threats to migratory birds, the sites selected
do not represent hazards to flight operations, and are not located in archeological sensitive
areas.
After contacting the USFWS, the FAA and the Corp of Engineers, it is determined that no permits
to construct this project are needed. In each location, the power lines to the wind turbines will
extend underground from nearby 3-phase power. No power poles will be installed and no aerial
transmission lines, that could present a hazard to migrating birds, are being constructed. The
wind turbines are being constructed on pile foundations that will not require any filling of
wetlands, and do not require a Section 404 permit. It is not anticipated that any of the Chaninik
projects will interfere with or result in the mortalities of any endangered species or migratory
birds. The USFWS, Corp of Engineers, FAA and State permitting agencies have been
contacted. USFWS concerns have requested that power lines be buried if possible, to refrain
from using guyed towers, and to maintain lattice towers by keeping them free of raven nests.
Preliminary locations were presented to the FAA, and they have requested a final review of the
selected sites and that the wind turbines be surveyed in within one month of installation. We will
be providing the USFWS, the Corp of Engineers, the FAA and the Alaska State Division of
Governmental Coordination. Andrew Grossman serves as an environmental consultant for the
Chaninik Wind Group projects. He is retired USFWS and NMFS biologist experienced in
permitting of construction projects in Alaska.
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
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any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
• Total anticipated project cost, and cost for this phase
• Requested grant funding
• Applicant matching funds – loans, capital contributions, in-kind
• Identification of other funding sources
• Projected capital cost of proposed renewable energy system
• Projected development cost of proposed renewable energy system
The total project cost is $4,067,776. The Kipnuk Light Plant will contribute $1,500,000 in
matching funds. Total request from the renewable energy fund is $2,567,778.
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.)
Operations and Maintenance Summary:
Annual
Control and Integration Support $ 2,000
Wind Turbines $ 45,000
Repair/Replace/Insurance $ 15,000
Total Estimated O&M Costs Increase $ 62,000
Explanation:
Control System:
The control, monitoring and integration system is provided with a two-year warranty. A reserve is
set aside for changes and/repairs of $1000 per month. The local operators will be trained to use
the control and integration system. Typically automated operation reduces the local labor
burden.
Wind Turbines:
The wind system is estimated to operate 350 days or 50 weeks per year with 2 weeks of
scheduled maintenance. Service and maintenance agreements as well as loss or damage
insurance is available from the manufacturer, and the cost of the turbine includes a 24 month
service agreement.
A budget of $9000 per year turbine, or $.04/kWhr per year is set aside. This budget is divided
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into parts ($0.01/kWhr) and labor ($.03/Kwhr) This includes daily attention, as well as on going
quarterly maintenance by local wind technicians. The turbines have advanced diagnostic
package with remote diagnostics that enable full time monitoring, remote programming and
remote technical assistance.
Maintenance can be divided into three categories, routine, unscheduled and scheduled.
Routine maintenance is required to maximize performance, maintain safety, and ensure a full
operating life of each turbine. An estimate of the cost of annual and 10 year maintenance is
provided below.
This estimate includes setting aside an amount annually for extended and unscheduled
maintenance. Excluding major component inspections and replacements, the following
maintenance schedules generally apply to each turbine type.
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
Energy Purchases:
Kipnuk Light Plant provides electricity to the community and holds the certificate of public
convenience. The water system is sufficiently large to accept wind energy any time, 24 hours per
day, year round. This will be provided based on the final design of the heat recovery system of
the new powerplant. The community owns and operates both facilities that will be recipients of
excess wind energy. The rate at which this energy will be sold to residential customers, through
the metering and ETS system, will typically be offered at a rate equivalent to 50 or 60% of the
equivalent cost of heating fuel. Approximately, $.10/kWhr will be charged for wind electricity into
the ETS units.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
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in evaluating the project.
Please fill out the form provided below See attached cost worksheet.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 7.78m/s
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 3 diesel gensets, in current powerplant 4
ii. Rated capacity of
generators/boilers/other
Currently, Cat 3246 ( 425 kW), Cummins 250
kW limited 2 each
iii. Generator/boilers/other type
iv. Age of generators/boilers/other Condition of existing generators is poor, new
diesel powerplant is in design phase
v. Efficiency of generators/boilers/other Cat 3246, approx. 13.0 kWjh/gal
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $494,000
ii. Annual O&M cost for non-
labor
$900,000
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 1,600,000 kWhrs/ in restricted mode, rationing of electricity,
2,000,0000 plus
ii. Fuel usage
Diesel
[gal]
269,532
Other
iii. Peak Load 385
iv. Average Load 250
v. Minimum Load 200
vi. Efficiency 13.0 kWhr/gal
vii. Future trends 75 kW average increase, new school/airport improvements/housing
d) Annual heating fuel usage (fill in as applicable)
1
The
Railbelt
grid
connects
all
customers
of
Chugach
Electric
Association,
Homer
Electric
Association,
Golden
Valley
Electric
Association,
the
City
of
Seward
Electric
Department,
Matanuska
Electric
Association
and
Anchorage
Municipal
Light
and
Power.
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i. Diesel [gal or MMBtu] Estimated 300,000 gal heating fuel
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry
tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
495 kW wind, 5 ea, 95 kW rated
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 1,125,000 kWhr
ii. Heat [MMBtu] 931 MMbtu
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry
tons]
iv. Other
Project Cost
a) Total capital cost of new system $ 4.067,776
b) Development cost
c) Annual O&M cost of new system $62,000
d) Annual fuel cost $ 800,000 (fuel savings estimated,$370,000)
Project Benefits
a) Amount of fuel displaced for
i. Electricity 70,000
ii. Heat 7766
iii. Transportation
b) Current price of displaced fuel $4.38/gallon utility, heating fuel $7.23/gal
c) Other economic benefits Local jobs, keep dollars in community, $45,000
d) Alaska public benefits Improve local economy, lower energy costs
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Power Purchase/Sales Price
a) Price for power purchase/sale $.57
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio (annual benefit $377,000 less $17,000 maintenance = $353,000
annual) = 1.19 @ 4% 20 years
Payback (years) 11.5 years
4.4.5 Proposed Biomass System Information
Please address the following items, if know. (For Biomass Projects Only)
• What woody biomass technology will be installed (cord wood, pellets, chips, briquettes,
pucks).
• Efficiency of the biomass technology.
• Thermal or electric application.
• Boiler efficiency.
• Displaced fuel type and amount.
• Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture
percentage.
• Estimated cords of wood to be used per year, specify whether dry or green and the moisture
percentage.
• 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?
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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 primary project benefits include:
• This project will use wind to displace in excess of 71,385 gallons of fuel annually, @ $5
per gallon,
• With additional 7766 gallons of displaced home heating fuel
• Fewer local and state dollars spent on diesel fuel, thus improving the local economy
• Job opportunities during construction and increased local operations
• Advanced training opportunities
• Energy price stability
• Reduction in bulk fuel storage requirements
• Power cost equalization savings
• Fewer greenhouse emissions
Diesel fuel used to generate electricity in Kipnuk was reported as 158,794 gallons in 2010. The
power system has experienced a number of extended outages which has resulted in rationing of
electricity. While generation efficiency has improved significantly from 6 to 10 kWhrs/gallon with
the installation of a new Caterpillar 3456 diesel generator improvements to the powerplant
switchgear bus and automated controls which will be provided by this proposed project are
expected to lead to further increases in fuel efficiency. Efficiency gains will result from automated
controls and updated switchgear will improve operational safety and reliability of the power
system. New monitoring and metering will aid in the diagnosis and correction of line and revenue
loss and revenue losses. It has shown that monitoring and meter alone can result in increasing up
to 10% fuel saving. According to the plant operators undetected electrical metering is suspected
to be inaccurately recording and account for customer usage. The installation of new monitoring
meter and switchgear will enable the identification and implementation of conservation and
efficiency programs, resulting in additional fuel savings of 15,000 gallons.
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
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• 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
Kipnuk is a member of the Chaninik Wind Group. This is a regional alliance of village utilities
which includes the communities of Kwigillingok (20 miles), Kongignanak ( 30 miles) and
Tuntutuliak (40 miles). These utilities formed a collabora communities formed to collaborate on
the development, maintenance operations and management of wind diesel power systems in this
region. The group is formally organized and actively working on all aspects of sustainable power
system operations and management in this region. Between Kipnuk, Kongiganak and
Kwigillingok there are 8 certified Level 1 wind turbine technicians and a closely working group of
utility managers. This group has created and is working toward strengthening a regional utility
collaborative. Most importantly, a wind management plan has been developed to allocate the
costs of operating a profitable utility to insure that sufficient funding is available to pay for system
maintenance and overall administration. The greater the number of wind turbines, the more fuel
displaced, the more viable the financial strength of the group.
One of the principles of successful operation will be to create a well-paid job in each community
to support the wind system operation and to create a network of trained operators - one in each
village who can support each other.
The Chaninik Wind Group managers and electric boards are actively engaged in creating
sustainable systems. They are assisted by IES, and funding from the Denali Commission and
Tribal Energy program of the National Renewable Energy Laboratory. The administration of the
local utility will be improved with the assistance of the automated meter reading and information
technology systems. In each village the system would be administered through the use of
prepaid meters. The collaborative business plan in development will provide a detailed
management and financial plan and outline utility performance standards.
A business plan spreadsheet is available.
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
Most employment in Kipnuk is in seasonal activities such as commercial fishing and construction.
Subsistence activities are a major component of the Kipnuk lifestyle. In 2010, 42 residents held
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commercial fishing permits. Coastal Villages Seafood, Inc., processes halibut and salmon in
Kipnuk. Income is also obtained by trapping.
The 2006-2010 American Community Survey (ACS) estimated 1811 residents as employed. The
public sector employed 32.6%1 of all workers. The local unemployment rate was 21.6%1. The
percentage of workers not in labor force was 40.3%1. The ACS surveys established that average
median household income (in 2010 inflation-adjusted dollars) was $34,792 (MOE +/-$13,705)1.
The per capita income (in 2010 inflation-adjusted dollars) was $11,123 (MOE +/-$1,800)1. About
23.7%1 of all residents had incomes below the poverty level.
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 Chaninik Wind Group has been given a wind development grant which includes $1.5 milion
dollars for Kipnuk Light plant. Funds have been spent to develop project designs, and purchase
metering systems, engineering and construction management services, windturbine foundation
piling, and electrical materials, and ship those to the project site. Approximately $850,000 of
these funds are remaining to be expended. The remainder have been expended on project
construction related expenses. The remainder of these funds will be allocated to long lead items
so that the wind construction can proceed in an efficient manner concurrent to the new
powerplant construction with completion in Spring 2014.
The Chaninik Wind Group assisted Kipnuk in obtaining funds to build a new powerplant and bulk
fuel system. This $4.5 million has been approved, and construction design will begin this winter
with construction planned for 2014.
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SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
The Council and residents of Kipnuk have been entirely supportive of this project and the
anticipated savings it will bring to their community along with the reduced carbon footprint, job
opportunities, and increased self-sufficiency and sustainability.
SECTION 9 – GRANT BUDGET
Tell us how much you want 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 sources and your financial commitment to the
project.
The System costs are arrived at based on construction experience and supplier quotations.
Furnish and Install Wind Turbines $ 2,185,650
Integration, Control and Stabilization $ 785,118
Heat recovery/storage, metering and management $ 535,000
Project Engineering and Management $ 562,000
Total Project Cost $ 4,067,778
Cash Match From Utility/CWG $ 1,500,000
Grant Funds Requested $ 2,567,778
Note: This project cost estimate was developed on the basis of a stand alone project. Beneficts
and cost savings are possible with close coordination with other projects, such as the school
and powerplant and bulk fuel system construction.
Some of the project funds have been expended toward the project.
Applications should include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and
Permitting, and Construction). Please use the tables provided below to detail your proposed
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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
Anticipat
ed
Completi
on Date
RE- Fund
Grant
Funds
Grantee
Matchin
g
Funds
Source of
Matching
Funds:
Cash/In-
kind/Feder
al
Grants/Ot
her State
Grants/Ot
her
TOTALS
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
Design/confirmation and
coordination Jan 2013 $ $ 250,000 CWG/DCRA $ 250,000
Construction planning completed $ $ 256,000 CWG/DCRA $ 256,000
Purchasing long lead items Jan 2013 $ $ 543,600 CWG/DCRA $ 543,600
Purchase bulk materials July 2013 $ 1,281,230 $ $ 1,282,230
Shipping and misc
materials
August
2013 $406,246 $ $ 406,246
Install wind turbine
foundations
March
2014 $ 643,600 $ 456,400 CWG/DCRA $ 1,100,000
Install ETS Oct 2013 $ 45000 $ $ 45,000
Install distribution/coms Oct 2013 $ 60,000 $ $ 60,000
Install integration
components May 2014 $ 76,000 $ $ 76,000
Commissioning May/June
2014 $ 50,902 $ $ 50,902
TOTALS $ 2,567,778 $
1,500,000 $ 4,062,778
Budget Categories:
Direct Labor & Benefits $ 169,100 $50,000 $ 219,100
Travel & Per Diem $ 49,200 $ 30,000 $ 79,200
Equipment $ 70,000 $ 10,000 $ 80,000
Materials & Supplies $ 1,687,478 $ 750,000 $ 2,437,478
Contractual Services $152,000 $ 410,000 $ 562,000
Construction Services $ 690,000 $ 440,000 $ 690,000
Other $ $ $
TOTALS $2,567,778 $1,500,00
0 $4,067,778
Milestone or Task
Anticipat
ed
Completi
on Date
RE- Fund
Grant
Funds
Grantee
Matchin
g
Funds
Source of
Matching
Funds:
Cash/In-
kind/Feder
TOTALS
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al
Grants/Ot
her State
Grants/Ot
her
(List milestones based
on phase and type of
project. See Milestone
list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
Milestone or Task
Anticipat
ed
Completi
on Date
RE- Fund
Grant
Funds
Grantee
Matchin
g
Funds
Source of
Matching
Funds:
Cash/In-
kind/Feder
al
Grants/Ot
her State
Grants/Ot
her
TOTALS
(List milestones based
on phase and type of
project. See Milestone
list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
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$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
Milestone or Task
Anticipat
ed
Completi
on Date
RE- Fund
Grant
Funds
Grantee
Matchin
g
Funds
Source of
Matching
Funds:
Cash/In-
kind/Feder
al
Grants/Ot
her State
Grants/Ot
her
TOTALS
(List milestones based
on phase and type of
project. See Milestone
list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
Milestone or Task
Anticipat
ed
Completi
on Date
RE- Fund
Grant
Funds
Grantee
Matchin
g
Funds
Source of
Matching
Funds:
Cash/In-
kind/Feder
TOTALS
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al
Grants/Ot
her State
Grants/Ot
her
(List milestones based
on phase and type of
project. See Milestone
list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and
Permitting Construction
1. Project scoping
and contractor
solicitation.
2. Resource
identification and
analysis
3. Land use,
permitting, and
environmental
analysis
4. Preliminary
design analysis
and cost
5. Cost of energy
and market
analysis
6. Simple economic
analysis
1. Project scoping
and contractor
solicitation.
2. Detailed energy
resource
analysis
3. Identification of
land and
regulatory
issues,
4. Permitting and
environmental
analysis
5. Detailed
analysis of
existing and
future energy
costs and
markets
1. Project
scoping and
contractor
solicitation for
planning and
design
2. Permit
applications
(as needed)
3. Final
environmental
assessment
and mitigation
plans (as
needed)
4. Resolution of
land use, right
of way issues
5. Permit
1. Confirmation that
all design and
feasibility
requirements are
complete.
2. Completion of bid
documents
3.
Contractor/vend
or selection and
award
4. Construction
Phases –
Each project will
have unique
construction
phases,
limitations, and
schedule
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7. Final report and
recommendations
6. Assessment of
alternatives
7. Conceptual
design analysis
and cost
estimate
8. Detailed
economic and
financial
analysis
9, Conceptual
business and
operations
plans
10. Final report and
recommendatio
ns
approvals
6. Final system
design
7. Engineers
cost estimate
8. Updated
economic and
financial
analysis
9. Negotiated
power sales
agreements
with approved
rates
10. Final
business and
operational
plan
constraints which
should be
identified by the
grantee
5. Integration and
testing
6. Decommissioning
old systems
7. Final
Acceptance,
Commissioning
and Start-up
8. Operations
Reporting
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SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address:
Phone Number:
Fax Number:
E-mail Address:
Federal Tax ID #:
Please submit an updated form whenever there is a change to the above information.
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SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Letters demonstrating local support per application form Section 8.
C. An electronic version of the entire application on CD per RFA Section 1.7.
D. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
E. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print
Name
Signature
Title
Date