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HomeMy WebLinkAboutShungnak Solar Application FinalRenewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA 13-006 Application Page 1 of 26 September 2012 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Village Electric Cooperative, Inc. Type of Entity: Not-for-profit corporation Fiscal Year End: December 31 Tax ID # 92-0035763 Tax Status: For-profit or X non-profit ( check one) Mailing Address 4831 Eagle Street Anchorage, AK 99503 Physical Address 4831 Eagle Street Anchorage, AK 99503 Telephone 800.478.1818 Fax 800.478.4086 Email 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Brent Petrie Title Manager, Community Development and Key Accounts Mailing Address 4831 Eagle Street Anchorage, AK 99503 Telephone 907.565. 5358 Fax 907. 561.2388 Email BPetrie@avec.org 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 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. Yes 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 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. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 2 of 26 September 2012 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) Shungnak Solar Energy Construction 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. This project will be constructed in Shungnak, Alaska (population: 261) and will benefit Shungnak and its neighbor, Kobuk (population: 148). 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. This project will be located within the village of Shungnak on a lot just northwest of the existing power plant. Shungnak is 150 miles east of Kotzebue. The community coordinates are 66.888060”North Latitude and -157.136390 West Longitude. Kobuk is approximately seven miles from Shungnak; its coordinates are 66.908570 North and -156.881020 West. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. This project will benefit Shungnak and Kobuk, which are seven miles apart but connected by an electrical intertie. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type 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 X Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction Reconnaissance Design and Permitting Feasibility X Construction and Commissioning Conceptual Design Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 3 of 26 September 2012 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. Alaska Village Electric Cooperative, Inc. (AVEC) is seeking $585,000 from this Grant Program to add a solar energy component to the existing diesel power generation system that serves two communities. It will construct a new 50kW array of 288 Photovoltaic (PV) modules in Shungnak, Alaska. The array will be inclined at 34 degrees from May through September, and 90 degrees the remainder of the year to take advantage of the solar angle at this northerly location , and would serve Shungnak and Kobuk via an existing electrical intertie. The annual power production of the array is estimated to be approximately 44,623 kWh (with shading). The solar array will be located on a lot just northwest of the existing Shungnak power plant which has been committed to AVEC for this use. Total project cost is $650,000 and AVEC is prepared to match grant funds with $65,000. 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.) This project will lower energy costs in Shungnak and Kobuk and will provide a fuel savings of between 3,300 - 3,500 gallons/year. Using AVEC’s 2011 fuel price of $6.94/gallon, this project will save approximately $24,000 per year. Based on the Institute for Social and Economic Research (ISER) estimate for average delivered fuel price in Shungnak in 2013 at $5.30, the total cost savings in the first year could be $18,000. Note that AVEC believes that this project will result in much greater financial savings than estimated by the ISER cost/benefit analysis because the known cost of delivered fuel in 2011 is more than $2.40 higher than the ISER’s 2011 cost ($4.54). Currently, diesel-fuel power generation is the only source of electricity in Shungnak and Kobuk. In general, the cost of fuel is affected by two variables: the price of oil and the cost of delivery. The high cost of fuel transportation is the primary factor behind high fuel costs in this remote community. In 2009, when a study of solar power potential was completed, Shungnak had the second highest cost of delivered fuel of all AVEC communities. In 2011, at $6.94/gal, Shungnak had the highest delivered fuel cost for power generation of all 55 AVEC villages. Much of the fuel for Shungnak must be flown in because the Kobuk River is often too low to accommodate fuel barges. Air deliveries are complicated by a periodic shortage of aircraft that are equipped to deliver fuel. As a result, fuel delivery costs are high. In 2011, all 24 fuel deliveries to Shungnak were made by air. Although the cost of energy is high, Shungnak residents use more energy per meter than most AVEC villages. Shungnak’s average residential energy consumption has been above the average consumption of all AVEC villages since 1992. It is unknown why Shungnak (along with the Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 4 of 26 September 2012 nearby community of Ambler) consume more power than other communities, but it is suspected that their high latitude position, and darker, colder winters contribute to this elevated electric usage for lighting. 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. AVEC is proposing to construct a new 50kW array of solar panels in Shungnak, Alaska. The project will cost $ 650,000. AVEC requests $ 585,000 from the State of Alaska through a Renewable Energy Fund award. AVEC will provide $65,000 as a match contribution. 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. $585,000 2.7.2 Cash match to be provided $65,000 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) $650,000 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) $650,000 2.7.7 Estimated Direct Financial Benefit (Savings) $24,000 per year 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.) $ Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 5 of 26 September 2012 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. AVEC, as the electric utility serving Shungnak and Kobuk, will provide overall project management and oversight. Brent Petrie, Manager, Community Development and Key Accounts, will lead the project management team consisting of AVEC staff, consultants, and contractors. He has worked for Alaska Village Electric Cooperative since 1998, where he manages the development of alternatives to diesel generation for AVEC such as using wind, hydropower, solar and heat recovery. He also is the project manager for AVEC’s construction projects. Mr. Petrie has worked in the energy and resource field for more than thirty years, having worked for the federal and state governments as consultant, planner, and project manager. He has been a utility manager or management consultant since 1993. As General Manager of Iliamna- Newhalen-Nondalton Electric Cooperative from 1994 to 1998, he reported to a seven-member, elected board of directors, and served as project manager on its hydroelectric project development. He is an elected member of the Board of Directors of the Utility Wind Interest Group representing rural electric cooperatives and serves on the Power Supply Task force of the National Rural Electric Cooperative Association. Mr. Petrie has a Master’s Degree in Water Resource Management and a Bachelor's Degree in Geography. His resume is attached. Also involved with the project management and grant administration is Meera Kohler as the President and CEO of AVEC. Ms. Kohler has more than 30 years of experience in the Alaska electric utility industry. She was appointed Manager of Administration and Finance at Cordova Electric Cooperative in 1983, General Manager of Naknek Electric Association in 1990, and General Manager of Municipal Light & Power in Anchorage in 1997. Since May 2000, Ms. Kohler has been the President and CEO of AVEC and in this position has the ultimate grant and project responsibilities. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 6 of 26 September 2012 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. The schedule and organized by AEA milestones is as follows: Milestones Tasks Start Date End Date Final Design Complete 12/31/12 All Permits Received 12/31/12 Bid Documents Complete 12/31/12 Contractor and Vendors Selection and Award Complete Vender Request for Quotes Prepared and Sent. Bid Docs Sent to Interested Contractors. 7/1/2013 7/31/2013 Vender and Contractor Bids Received and Reviewed 8/1/2013 8/31/2013 Equipment and Materials Ordered Orders Written, Reviewed, Placed 9/1/2013 9/30/2013 Equipment and Materials Received Shipping 4/1/2014 4/30/2013 Construction/Installation Hire Locals 5/1/2014 5/15/2014 Training Concurrent with Installation 5/1/2014 Surveying/subdivide Lot 5/1/2014 5/31/2014 Site Work 6/1/2014 6/30/2014 Construction 7/1/2014 7/31/2014 Installation of Panels 8/1/2014 8/31/2014 Integration and Testing 9/1/2014 9/30/2014 Final Acceptance, Commissioning and Start Up 10/1/2014 All Final Reporting 11/1/2014 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. AVEC will use a project management approach that has been used to successfully design an d construct wind turbines throughout rural Alaska: a team of AVEC staff and external consultants. AVEC staff and their role on this project includes:  Meera Kohler, President and Chief Executive Officer, would act as Project Executive and would maintain ultimate authority programmatically and financially. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 7 of 26 September 2012  Brent Petrie, Manager, Manager of Community Development and Key Accounts, would lead the project management team consisting of AVEC staff, consultants, and contractors. Together with his group, Brent would provide coordination of the installation of the solar array. The group’s resources include a project coordinator, accountant, project/construction manager (PM/CM), and a community liaison. Mr. Petrie will be the program manager for this project and will assign project manager resources to implement the project.  Debbie Bullock, Manager of Administrative Services, would provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines.  Bill Stamm, Manager of Engineering, leads AVEC’s Engineering Department which is responsible for the in-house design of power plants, distribution lines, controls, and other AVEC facilities. Mr. Stamm has worked at AVEC since 1994. Mr. Stamm was an AVEC line superintendent before he was appointed to Manager of Engineering in 2012. Mr. Stamm’s unit will provide engineering design and supervision.  Mark Bryan, the Manager of Operations, is a Certified Journeyman Electrician and supervises the AVEC’s line operations, generation operations and all field construction programs. He has worked at AVEC since 1980, was appointed Manager of Construction in May 1998 and was promoted to Manager of Operations in June 2003. Mr. Bryan’s unit will oversee operation of this project as part of the AVEC utility system.  Anna Sattler, Community Liaison, will communicate directly with Shungnak residents to ensure that the community is informed. Material and equipment procurement packages will be formulated by the PM/CM in collaboration with AVEC’s purchasing manager. Each package will be procured from vendors or issued from the Cooperative’s materials. Purchase orders will be formulated with delivery dates consistent with dates required for barge or air transport consolidation. Multip le materials and/or equipment will be detailed for consolidated shipments to rural staging points, where secondary transport to the village destination is provided. The PM/CM will track the shipments and arrange handling services to and around the destination project sites. The CM will be responsible for the construction activities for all project components of the facility upgrade. Local labor forces will be utilized to the maximum extent possible to construct the projects. Local job training will be provided as a concurrent operation under the management and direction of the PM/CM. All construction costs, direct and indirect, will be reimbursed on a cost-only basis to the PM/CM, or paid directly by AVEC. For the proposed facilities, AVEC is responsible for managing the commissioning process in concert with the PM/CM, designers and vendors. That entails testing and training of operational personnel, as well as providing for all contract closeout documents. Selection Process for Contractors/Vendors: The construction contractor/vendor selection will be made from a pre-qualified list of contractors/vendors with a successful track record with AVEC. Pre-qualified contractors/vendors have been selected based upon technical Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 8 of 26 September 2012 competencies, past performance, written proposal, quality, cost, and general consensus from an internal AVEC technical steering committee. The selection of contractors/vendors would occur in strict conformity with AVEC’s procurement policies, and conformance with OMB circulars. 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. AVEC has systems in place to accomplish reporting requirements succ essfully. In 2011, AVEC successfully met reporting requirements for 16 state and 19 federal grants. An independent financial audit and an independent auditor’s management letter completed for AVEC for 2011 did not identify any deficiencies in internal control over financial reporting that were considered to be material weaknesses. In addition, the letter stated that AVEC complied with specific loan and security instrument provisions. The project will be managed out of AVEC’s Community Development Depart ment. For financial reporting, the Community Development Department’s accountant, supported by the Administrative Services Department, will prepare financial reports. The accountant will be responsible for ensuring that vendor invoices and internal labor charges are documented in accordance with AEA guidelines and are included with financial reports. AVEC has up-to-date systems in place for accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. AVEC will require that monthly written progress reports be provided with each invoice submitted from contractor(s). The progress reports would include a summary of tasks completed, issues or problems experienced, upcoming tasks, and contractor’s needs from AVEC. Project progress reports would be collected, combined, and supplemented as necessary and forwarded as one report to the AEA project manager each quarter. Quarterly face-to-face meetings would occur between AVEC and AEA to discuss the status of all projects funded through the AEA Renewable Energy Grants program. Individual project meetings would be held, as required or requested by AEA. Meera Kohler, AVEC’s President and CEO, may be contacted as an alternative manager. 3.5 Project Risk Discuss potential problems and how you would address them. AVEC recognizes and makes plans to avoid major consequences for falling behind schedule on this project. Since -- for the most part-- installation cannot occur in the winter, missing upfront tasks like ordering parts and assigning labor could result in missing the summer window. The project could be delayed an entire year if the tasks are not completed on schedule. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 9 of 26 September 2012 Weather could delay shipping materials into the community; weather can impact the construction schedule. However, experienced Alaskan contractors, expecting bad weather, will be selected and will be prepared for weather-related problems. AVEC is responsible to its member communities and a board of directors and provides a cash match towards the project, therefore staying on schedule and within budget is essential. This project will result in decreasing electricity costs, and AVEC’s member communities are very interested in this project because energy costs can be a large portion of disposable income. AVEC member communities expect status updates on village projects including when and what work will occur, who will be involved, and when it will be completed. If work does not occur according to the schedule, AVEC’s CEO and Board of Directors are usually alerted by member communities, and there are repercussions. 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. According to National Renewable Energy Laboratory (NREL) solar data, consultant Remote Power, Inc. expects 44,623 kW to be produced each year by a 50 kW array installed in Shungnak. This assumes that the array is tilted to 49 degrees from May-September and 85 degrees from October-April, and there is minimal shading of the panels. This would offset about 3% of Shungnak’s present annual electric energy. AVEC decided to explore photovoltaic solar energy as a possible energy source after considering other options. Wind power is not a feasible solution, since the wind resource in this area is very low. Biomass (wood) has been suggested as an alternative heating source for all the villages; however, its use for electricenergy production is unproven in this region. Currently, AVEC and NANA Regional Native Corporation are exploring hydroelectric options near Ambler and Shungnak; however, it will be many years before a hydroelectric project could be online in the area. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 10 of 26 September 2012 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. AVEC currently provides power to the communit y of Shungnak with diesel generators. The Shungnak power plant includes one JD 202 kW generator (installed in 1991), one Caterpillar 335kW generator (installed in 1984), and one 314 kW Detroit Diesel (installed in 1998) with a combined capacity of 851kW. Kobuk became a member of AVEC on July 1, 2012, and the previous electric utility is nonoperational. For the communities of Shungnak and Kobuk, the total production of the AVEC plant in Shungnak in 2011 was 1,569,474 kWh. The peak electric demand in Shungnak and Kobuk in 2011 was 345 kW (in January). Average demand in 2011 was approximately 179 kW. The Shungnak plant generated 13.6 kWh for each gallon of fuel consumed in 2011. 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. Shungnak and Kobuk use diesel and heating oil as primary energy resources. Power is generated at a plant in Shungnak and provided to Kobuk via an eleven-mile intertie. In 2011, 115,282 gallons of diesel fuel were consumed to generate 1,569,474 kWh. Installation of a 50 kW solar array will help to offset the operations at the power plant. In addition, this project would help AVEC and AEA to determine whether solar power is a viable resource in the upper Kobuk region and other locations in the state. This project could lead to expansion of the array in Shungnak, and installation of other 50 kW arrays in communities where diesel is very expensive and where no other renewable energy options are readily available. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Shungnak, 2010 Census population of 262, is located in northwestern Alaska about 150 miles east of Kotzebue. Approximately 95% of the population is American Indian or Alaska Native. A federally recognized tribe is located in the community. Shungnak is a traditional village where residents depend on subsistence activities such as trapping, fishing, hunting and berry picking in a difficult but rewarding way of life. The 2006-2010 American Community Survey (ACS) estimated 34.5% unemployment. It listed $41,458 as the average median household incom e, and a per capita income of $9,269. About 25% of all residents had incomes below the poverty line. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 11 of 26 September 2012 The community’s average residential electric cost between January 1, 2011 and December 31, 2011 was $0.6944 per kWh, arrived at by dividing gross residential sales for the period by the total residential kWh sold in Shungnak during the same period. Using gross residential sales divided by the average number of residential customers, the average annual residential electricity bill for 2011 was $4,197. Kobuk, 2010 Census population of 151, is located about 7 miles northeast of Shungnak and 128 air miles northeast of Kotzebue. Approximately 90% of the population is American Indian or Alaska Native. Shungnak is also a traditional and subsistence-dependent village. For Kobuk, the 2006-2010 American Community Survey estimated 25% unemployment. It listed $28,438 as the average median household income, and a per capita income of $ 9,407. About 49% of all residents had incomes below the poverty line. According to the Alaska Energy Authority’s PCE Report, the community’s average residential electric cost during fiscal year 2011 was $0.87. Because Kobuk became a member of AVEC a little over one month ago (July 1, 2012) and the previous electric utility is nonoperational, little is known about the residential electric bills in the community. The Denali Commission in Alaska produces an annual update of its Distressed Community List. Shungnak is listed as a distressed community in 2012. The underlying data for the list is prepared by the Alaska Department of Labor. It uses the most current population, employment and earnings data available to identify those Alaska communities considered “distressed”. The Denali Commission reports Shungnak and Kobuk were also distressed in previous years. Costs of energy from all sources are high in this community. The State of Alaska fuel study done in January 2012 surveyed 100 rural Alaskan communities’ retail heating fuel and gasoline costs. Shungnak and Kobuk were not included in the study; however, the average cost for the northwestern Alaska communities was $10.59/gal for stove oil and gasoline. AVEC’s average diesel cost in Shungnak in 2011 was $6.94/gallon (considerably higher than listed in the ISER fuel cost analysis). Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 12 of 26 September 2012 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 Technological Design/Equipment The photo-voltaic (PV) generation system would consist of a PV array supported by a ground mounted structure, with an inverter and power control system in a new enclosure next to the Shungnak power plant. The DC power cables from the array to the inverter/control system enclosure, adjacent to the power plant, would be routed via under-ground or above-ground rigid metal conduit. The new AC connection to the existing power plant 480 V bus would be routed via an under-ground or above-ground/overhead conduit. Specifically, the PV array at present is proposed to consist of the following options:  50.4 kW capacity option (as proposed by Solar Wind Consultants in the August 2010 report) consisting of (288) 175 W Sharp solar modules, or equivalent. (12 modules per string, 12 strings per combiner box.)  56.4 kW capacity option, consisting of (240) 235 W Sharp solar modules, or equivalent. (12 modules per string, 10 strings per combiner box.) The array’s DC string wires in rigid conduit would connect to two combiner boxes, with internal disconnect and fuses. The panel mounting is anticipated to consist of the following:  An adjustable ground-mounted steel structure which will support the panels at a 34 degree tilt from May to September, and be changed to a 90 degree tilt from October to April (as proposed by Solar Wind Consultants in the August 2010 feasibility report). The mounting structure’s foundation would be on gravel to minimize permafrost effects; although gravel availability may be limited in Shungnak. Triodetic and other types of foundations for permafrost soils would be evaluated. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 13 of 26 September 2012 The inverter and system control equipment would be installed in a new heated enclosure, on a new concrete pad. The grid-tied PV inverter would include:  Fronius 55.5 kW 277 V AC, 3-phase power output (as proposed by Solar Wind Consultants in the August 2010 feasibility report), or similar inverter . The power electronics/controls would include:  Solar PV-diesel hybrid system supervisory controller by Sustainable Power Systems, or equivalent, with a ‘reverse power relay’ to prevent back feed into the existing diesel generation system. Discretionary loads, such as electric heaters, could also be integrated into the solar-diesel hybrid control system with a secondary load controller.  PV system monitoring and data acquisition system will also be installed and integrated into AVEC’s existing AC metering system at the Shungnak power plant. The electrical system connections would include an AC system disconnect switch, to connect 480 V output of converted DC array power to AVEC’s existing diesel power plant bus. The grounding system would include a PV system grounding wire connected to array modules, combiner boxes and inverter, with new buried grounding rods installed. The solar array would be surrounded by a 600-foot long perimeter fence. 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 solar array would be located on the lot just northwest of the existing Shungnak power plant. The land has been committed to AVEC through a memorandum of understanding between AVEC and the City of Shungnak. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 14 of 26 September 2012 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 U.S. Army Corps of Engineers (USACE) Section 404 (Wetlands) Permit A Section 404 Clean Water Act (Wetlands) permit would be acquired for the placement of panels in designated wetlands. It is likely that the project will fall under a Nationwide Permit #51 for land-based renewable generation facilities because the project would impact less than 0.5 acres of non-tidal wetlands. Once funding is approved, AVEC will prepare a USACE Pre-Construction Notification (PCN) and conduct required consultation with the SHPO for the installation of the array. The permit would be expected within 1 month of submitting the PCN. No work will be conducted prior to obtaining required permits or authorizations. 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 Threatened and Endangered Species According to the U.S. Fish and Wildlife Service, no threatened, e ndangered or candidate species or critical habitats are found in the project area. Habitat Issues The solar array would be located on a lot leased by AVEC just northwest of the existing Shungnak power plant and located within the community boundaries. There are no known habitat issues within the community boundaries. Wetlands or other protected areas There may be designated wetlands in the area. A Section 404 Clean Water Act (Wetlands) permit would be acquired for the placement of poles in designated wetlands. It is likely that the project will fall under a Nationwide Permit #51 for land-based renewable generation facilities because the project would impact less than 0.5 acres of non-tidal wetlands. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 15 of 26 September 2012 Historic Properties Based on a review of the Office of History and Archaeology Alaska Heritage Resources Survey (AHRS), there are no cultural or historic resources in the project area. The project is also not in or adjacent to a National Historic Landmark, and it will not impact, use, or alter any building or structure that was constructed more than 50 years ago. (See attached memorandum from Cultural Resources Consultants, July 23, 2012.) Land Development Constraints The solar array would be located on the lot just northwest of the existing Shungnak power plant. The land has been committed to AVEC through a memorandum of understanding between AVEC and the City of Shungnak. The land falls within the City of Shungnak, but it is not zoned. There is a history of the Kobuk River flooding; however, according to the U.S. Army Corps of Engineers (USACE) Floodplains Management Services, most of Shungnak, including the array site, is located on a bluff above the river and above the area of flooding. The array would be constructed above the USACE-recommended building elevation of 32.2 feet. Telecommunications No telecommunications interference will occur by the additi on of the solar array in the selected location. Aviation The solar array is not an impediment to aviation in that it is constructed flat on the ground. This project is located about one mile from the community. Visual Aesthetics or other Impacts The solar array will be placed away from the community on a lot next to the power plant. It is unlikely that the community would have concerns. AVEC will conduct community meetings to discuss visual impacts and how they could be mitigated, in the unlikely event that such issues arise. Other The project would not be located on a Brownfield site. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 16 of 26 September 2012 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system The project will cost $ 650,000. AVEC requests $ 585,000 from the State of Alaska through a Renewable Energy Fund award. AVEC will provide $65,000 (10%) as a match contribution. No other funding would be needed for the project. 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.) Minimal maintenance will be required for the array. Snow will need to be cleared, and the array’s incline would need to be changed from 34 degrees from May through September to 90 degrees the remainder of the year to take advantage of the solar angle. The local plant operator would be responsible for these simple maintenance activities, which would be included in the cost of maintaining the existing power plant in Shungnak. 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 This is not applicable to this project as AVEC is the applicant and the electrical utility for Shungnak and Kobuk. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 17 of 26 September 2012 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. 44,623 kW (based on Remote Power estimate) 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 ii. Rated capacity of generators/boilers/other JD=202 kW; Cat=335kW; Detroit Diesel=314 kW Total=815 kW iii. Generator/boilers/other type Diesel generators iv. Age of generators/boilers/other 21 years; 28 years; 13 years v. Efficiency of generators/boilers/other 13.6 kWh/gallon b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $140,000 (labor and non-labor) ii. Annual O&M cost for non-labor 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] 1,569,474 kWh (2011) ii. Fuel usage Diesel [gal] 115,282 gallons (2011) Other iii. Peak Load 345 kW (in January 2011) iv. Average Load 179 kW (2011) v. Minimum Load vi. Efficiency 13.6 kWh/gallon (2011) 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. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 18 of 26 September 2012 vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] Solar, 50kW capacity b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 44,623 kWh ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other Project Cost a) Total capital cost of new system $650,000 b) Development cost c) Annual O&M cost of new system $892/year (based on AEA $0.02/kWh) d) Annual fuel cost $0 Project Benefits a) Amount of fuel displaced for i. Electricity 3,433 gallons/year ii. Heat iii. Transportation b) Current price of displaced fuel $6.94/gallon (AVEC’s 2011 cost in Shungnak) Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 19 of 26 September 2012 c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale N/A Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 0.65 (ISER analysis, which AVEC believes to be very low) Payback (years) 31 years (ISER analysis) 27 years (using AVEC’s 2011 diesel cost) 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) N/A Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 20 of 26 September 2012 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 Potential Annual Fuel Displacement This project will provide a fuel savings of approximately 3,500 gallons/year. Based on a 2011 fuel price of $6.94/gallon, this project will save approximately $24,000 total per year. The project will pay for itself within 27 years (using AVEC’s 2011 diesel cost). Non-economic Public Benefits This project will increase efficiencies of the energy system in Shungnak and Kobuk. Shungnak and Kobuk are isolated villages which rely on air transpo rtation, especially for delivery of medical goods and the transport of sick or injured individuals, or mothers nearing childbirth. Reliable electric service is essential to maintaining vital navigation aids for the safe operation of aircraft: runway lights, automated weather observation stations, VASI lights, DMEs and VORs (aircraft navigation systems) are all powered by electricity. Shungnak and Kobuk are accessible only by airplane, barge, snowmachine or small boat. The state owns lighted gravel air strips in each community with regularly scheduled small aircraft service in both communities. Emergency medical service is provided in the health clinic by a health aide. Medical problems and emergencies must be relayed by telephone or by some other communication means for outside assistance. Tele-medicine is rapidly growing in rural Alaska as a means of regular and emergency care. Reliable telephone service and tele-medicine require reliable electric service. In Shungnak and Kobuk, water is obtained from wells and is treated. The community facilities such as the school and homes are connected to a piped water and sewer system. Reliable electric service is required for the continuous operation of the water and wastewater systems and to prevent freezing of the systems, which would cause extensive damage and interruptions in service. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 21 of 26 September 2012 Reliable electric service is essential for the operation of home lighting, streetlights, and security lighting. Outside lighting ensures the safety of residents during dark hours. Poor efficiency is a problem that continues to plague small, remote villages that lack an economic structure to support utilities. In many communities across the country, small and large businesses--and perhaps industrial facilities--pay a larger share of utility costs than do residential users. In doing so, they help pay for the necessary upgrades and improvements. Some Alaskan communities have seafood processing plants or tourist facilities that pay a larger share of the utility’s costs. But many Alaskan villages, including Shungnak and Kobuk, have only state and federal programs and their own--many times very poor--households to rely on to operate and maintain what they can and, in rare cases, build for the future. This project will encourage development of the community by helping to stabilize the cost of electricity to consumers. The very high cost of electricity is particularly difficult for families and a major hindrance for any economic development to occur in already impoverished communities. Shungnak and Kobuk are small remote communities where jobs are very limited. Typically, jobs are related to the local facilities like the power plant, school and health clinic. Shungnak and Kobuk residents also find seasonal employment in firefightin g. However, Shungnak and Kobuk have a strong Native culture and the residents desire to maintain their way of life that revolves around hunting, fishing and other subsistence activities as well as arts and crafts production. Those activities are time cons uming and often in conflict with the cash economy. That conflict, along with scarce jobs, is reflected in high unemployment and low family incomes. According to the 2010 Census, 25% of Shungnak residents and 49% of Kobuk residents had incomes below the poverty level. The Alaskan Denali Commission has deemed Shungnak and Kobuk “distressed communities”. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 22 of 26 September 2012 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 As a local utility that has been in operation since 1968, AVEC is completely able to finance, operate, and maintain this project for the design life. AVEC has the capacity and experience to operate this project. AVEC has operated solar projects throughout the state and is familiar with planning, constructing, operating, and maintaining solar systems. Business Plan Structures and Concepts which may be considered: The solar array will be incorporated into AVEC’s power plant operation. Local plant operators provide daily servicing. AVEC technicians provide periodic preventative or corrective maintenance an d are supported by AVEC headquarters staff, purchasing, and warehousing. How O&M would be financed for the life of the project: The costs of operations and maintenance would be funded through ongoing energy sales to the villages. Operational issues which could arise: Minimal operational issues are expected. The AVEC plant operator would be responsible for keeping the panels cleared of snow and for changing the tilt of the panels in the spring and fall. Operating costs: Based on AEA’s estimate of $0.02/kWh, the operating costs of the 50kW array would be approximately $892/year. Commitment to reporting the savings and benefits: AVEC is fully committed to sharing the savings and benefits information accrued from this project with its member owners and with AEA. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 23 of 26 September 2012 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. Work as described in this proposal will be initiated upon grant award . AVEC has completed all the steps leading up to this constructi on project. Design, permitting and bid documents will be complete by the end of this calendar year. AVEC matching funds will be available upon grant award. 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. All community entities in both Shungnak and Kobuk are in full support of this project a nd look forward to the energy cost savings. Please see the attached letters of support (Tab B). 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. Construction of a 50 kW PV solar array is estimated to cost $650,000. AVEC requests $585,000 from AEA. AVEC will provide $65,000 (10%) as a cash contribution. A detail of the grant budget follows. Funding from an AEA REF Round 1 grant award was used for a feasibility analysis and resources assessment for this project. Renewable Energy Fund Round 6 Grant Application Shungnak Solar Energy Construction Project AEA13-006 Grant Application Page 24 of 26 September 2012 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 Confirmation that all design and feasibility requirements are complete 12/31/12 $- $- $- Completion of bid documents 8/31/2013 $3,600 $400 Cash $4,000 Contractor/vendor selection and award 4/30/2014 $1,800 $200 Cash $2,000 Construction Phases 5/31/2014 $558,000 $62,000 Cash $620,000 Integration and testing 6/30/2014 $9,000 $1,000 Cash $10,000 Decommissioning old systems 8/31/2014 $- $- Cash $- Final Acceptance, Commissioning and Start- up 9/30/2014 $5,400 $600 Cash $6,000 Operations Reporting 11/1/2014 $7,200 $800 Cash $8,000 TOTALS $585,000 $65,000 $650,000 Budget Categories: Direct Labor & Benefits $18,000 $2,000 Cash $20,000 Travel & Per Diem $9,000 $1,000 Cash 10,000 Equipment $0 $0 Materials & Supplies $0 $0 Contractual Services $0 $0 Construction Services $558,000 $62,000 Cash $620,000 Other $0 $0 TOTALS $585,000 $65,000 $650,000 Tab A Resumes Tab B Letters of Support Tab D Governing Body Resolution Tab E Certification Tab F Additional Materials Ambler, Shungnak, and Noatak Photovoltaic Location and Feasibility Study Summary Prepared for Alaska Village Electric Cooperative, Inc. 4831 Eagle St. Anchorage, AK 99503 Prepared by Solstice Alaska Consulting, Inc 11760 Woodbourne Drive Anchorage, Alaska 99516 And Solar Wind Consultants 915 30th Avenue Suite 229 Fairbanks, AK 99701 August 2010 Purpose of R eport In 2009, the Alaska Village Electric Cooperative (AVEC) applied for separate Alaska Energy Authority (AEA) Renewable Energy Grants to construct photovoltaic (PV) solar systems in Ambler, Shungnak, and Noatak.AEA awarded AVEC the funding to study and design one project in Ambler, Shungnak, or Noatak. After discussions, it was determined that solar siting and feasibility studies would be conducted in the three villages. The purpose of this report is to provide a summary of the solar siting studies in Ambler, Shungnak, and Noatak.The information is presented to AVEC and AEA to assist in determining how to move forward with these solar projects. Background Existing Power Issues Currently, diesel-fuel power generation is the only source of electricity in these communities.In general, the cost of fuel is affected by two variables: the price of oil and the cost of delivery.The high cost of fuel transportation is the primary factor behind high fuel delivery costs in Ambler, Shungnak, and Noatak.In 2009, Ambler,Shungnak, and Noatak had the third,second, and first highest cost of delivered fuel of all AVEC communities.Much of the fuel for Ambler and Shungnak must be flown in because the Kobuk River is often too low to accommodate fuel barges.The Noatak River changed course in the mid-1990s and since then all deliveries of fuel to Noatak have been by air.Air deliveries are also complicated by a periodic shortage of aircraft that are equipped to deliver fuel.. As a result fuel delivery costs are high.In 2009 in Ambler,12 out of the 15 fuel deliveries were made by air. In Shungnak in 2009, 25 of the 28 fuel deliveries were made by air. In Noatak in 2009, all 28 of the fuel deliveries were by air. The average AVEC delivered fuel costs in 2009 to Ambler,Shungnak, and Noatak were $3.79/gallon, $4.35/gallon,and $6.41/gallon respectively.In 2008, average delivered fuel costs were significantly higher in Ambler and Shungnak; $6.13/gallon in Ambler and $5.55/gallon in Shungnak. Although the cost of energy is high, Ambler,Shungnak, and Noatak residents use more energy than most AVEC villages. Ambler’s average residential consumption of energy is above the average consumption of all AVEC villages most years, according to AVEC records. Shungnak and Noatak’s average residential energy consumption has been above the average consumption of all AVEC villages since 1992.It is unknown why these communities consume more power than other communities,but it is suspected that their high latitude position, and darker,colder winters contribute to this electric usage. Potential Renewable Energy Solutions AVEC decided to explore solar energy as a possible energy source after considering other options.Wind power is not a feasible solution, since the wind resource in this area is very low. Biomass (wood)has been suggested as an alternative heating source for all the villages; however, its use for energy production is unproven. Currently, AVEC and NANA Regional Native Corporation are exploring hydroelectric options near Ambler and Shungnak; however, it will be years before it is determined whether hydropower is a feasible alternative energy source. Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 2 Study Methods AVEC hired Remote Power, Inc.to study the solar energy potential and possible locations for PV panels in Ambler, Shungnak, and Noatak. Remote Power, using the Solar Pathfinder™(SP) site analysis tool, first generated sunpath diagrams from digital photos taken at each site.The sunpath diagrams were then used to determine solar positions and shading effects of landscape features on potential solar energy systems at each location.These images were then analyzed using Solar Pathfinder Assistant™ Version 4.0 (SPA) software to determine the most appropriate location for PV panels.Production estimates and fuel savings were then estimated through analysis of these images and an estimation of the effect the surrounding landscape would have on a potential PV array. Remote Power considered other issues associated with maintaining PV panels in cold, high latitude environments. Remote Power studied fixing the solar array tilt to keep snow from accumulating on the panels and inhibiting power production versus mounting panels on adjustable racks to maintain an optimum angle for year-round power production, especially in the late spring to early fall.Remote Power also investigated locations and options for PV panels considering the potential for vandalism of the solar arrays in the villages. Features in Common to All PV Options / General Considerations The PV arrays at that would be installed in the three villages would consist of 175-watt monocrystalline cell modules manufactured by Sharp Solar. The inverter that would be used with the PV arrays is manufactured by Fronius and would produce 277 vac 3-phase power.Unless otherwise noted, the tilt angle of each array, adjusted twice annually, would be 52 degrees from May through September and 90 degrees the remainder of the year.As much as possible, all trees or other obstructions to sunlight would be removed to ensure optimum system performance. The ideal foundations for PV arrays in Ambler, Shungnak, and Noatak have not been determined. Typically, foundations for unheated structures on ice rich and permanently frozen soils are constructed to ensure that the active layer is contained in a thaw-stable material such as gravel or that the load is supported by the frozen soil under the active layer.Foundations used to support the PV arrays in this study are expected to be installed on large quantities of non-frost susceptible soil such as gravel. Since gravel may not locally available in some communities, the shipping costs for this material could add substantially to overall project cost. The amount of gravel would be dependent upon the area of the foundation and the depth of the active layer of the soil that would have to be removed. If a large Triodetic foundation, a stiff foundation designed to resist twisting and buckling caused by heaving ground, were considered for this site, further research should be conducted to determine the capabilities and limitations of the Triodetic foundation. Additionally, ballast material added to the foundation or some sort of anchoring mechanism would be necessary to keep the solar array from blowing over or shifting in the event of high winds in the area. An alternative installation option would be to drive piles into the permafrost at a depth substantial enough to resist jacking (and creep settlement) and install the array on the piles.Pile depths depend on the conditions of the soil.A geotechnical report should be conducted for all foundation options to determine active layer depth and soil composition. Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 3 Connection to the existing AVEC power system was investigated for this study.There was concern that under certain conditions a large PV array could back feed power into the existing diesel generators, providing more power than the system might require, and causing a power reversal fault. As a safety precaution, a "reverse power relay" would be installed to prevent this from occurring.Reverse power relays are standard equipment on grid tie generators.On a multi generator system, the relays enable the generator that is being over-powered to disconnect from the grid.Another option to handle excess power would be to shunt the power into a storage battery or use it in a recovered heat system. Ambler Solar Project Options Four solar project options were investigated in Ambler, as described below.Table 1 summarizes the findings. Ambler Option #1 (Schwatka Street Option) Ambler Solar Site Option #1 is located across Schwatka Street,just southwest of the existing AVEC power plant facility (Figure 1).This lot slopes to the northwest and is currently covered with a mixture of densely growing black spruce and willows.1 A PV array at this site would consist of 180 PV modules rack mounted in a single long row running east to west.The relatively narrow east-west dimension of the property would limit the array size to 30.5kW instead of the preferred 50.4 kW size. 1 Because of dense vegetation growth, it was difficult to obtain a useful SP image of the site; however, SP images were taken from less obstructed areas adjacent to the site, and digital photographs were taken of the surrounding area to determine the project configuration and potential production. Figure 1. Ambler PV Option #1 location. Site 1: 30.5 kW Array AVEC Power Plant Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 4 Power Estimate/Fuel Savings The annual power production of Ambler Option #1, estimated based on the installation of a 31.5 kW array, would be 24,982 kWh (with shading), and the estimated fuel savings would be approximately 1,850 gallons annually.2 At the 2008 average cost of delivered fuel to Ambler ($6.13/gallon),the annual savings associated with this option would be about $11,332.At the 2009 average cost of delivered fuel to Ambler ($3.79/gallon), the annual savings associated with this option would be approximately $7,012. Installation Cost Ambler Option #1 would cost between $346,500 and $378,000 (assuming $11-12/watt).This cost does not include connection to the existing power lines or fencing around the array. Payback Period Based on a cost of between $346,500 and $378,000 and 2009 average fuel costs, it is expected that it would take between 49 and 54 years to pay for Ambler PV Option #1.At a higher fuel cost, for example using 2008 average Ambler delivered fuel costs, it would take between 31 and 33 years to pay for the Ambler PV Option #1.3 Option Analysis Ambler Option #1 was dismissed from further consideration.Although this option is near the existing AVEC power plant and has relatively low transmission costs and overall installation costs,the practical array size is limited and the potential for shading is high.The production from this option would only displace about 1,850 gallons of diesel annually and would not result in considerable cost savings. Ambler Option #2 (Old Sewage Lagoon Option) Ambler Solar Site Option #2 is located at the old sewage lagoon approximately 0.25 miles northwest of the AVEC power plant.The lagoon,which is scheduled to be closed and filled,would be available for development after the summer of 2010. A PV array at this site would consist of a 50.4 kW south-facing array of 180 modules rack mounted in a single long row running east to west. 2 Based on 13.5 kWh/gallon 3 Simple payback calculation: Payback Period=Initial Cost/Annual Cost Savings Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 5 Figure 2. Ambler PV Option #2 location Sewage Lagoon site AVEC Power Plant & Tank Farm Site 1 Pow er Estimate/Fuel Savings The annual power production of Ambler Option #2,estimated on the installation of a 50.4 kW array, would be approximately 44,623 kWh (with shading), and the estimated fuel savings would be approximately 3,305 gallons annually.4 At the 2008 average delivered fuel price, the annual savings associated with this option would be approximately $20,245.At the 2009 average delivered fuel price, the annual savings associated with this option would be approximately $12,526. Installation Cost Ambler Option #2 would cost between $503,600 and $554,000 (assuming $9-10/watt). This cost includes $50,000 for connecting into the existing power lines, but it does not include the cost of fencing the array.It is likely that some cost saving would be realized because after the lagoon site is filled and abandoned, it will be better prepared for installation of the array than other sites where site work would be required. Payback Period Based on a cost of between $503,600 and $554,000 and 2009 average Ambler delivered fuel costs, it is expected that it would take between 40 and 44 years to pay for Ambler PV Option #2.However, at 2008 fuel costs, it would take between 25 and 27 years to pay for the Ambler PV Option #2.5 Option Analysis Although this option had the best solar access and energy production capability in Ambler, Option #2 was dismissed from further consideration primarily because of installation cost and the potential for vandalism at the site. 4 Based on 13.5 kWh/gallon 5 Simple payback calculation Payback Period=Initial Cost/Annual Cost Savings Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 6 Ambler Option #3 (AVEC Facility Option) Ambler Solar Site Option #3 is located within the AVEC power plant facility.This option includes placing a south-facing 10.5 kW array consisting of 60 modules northwest of the fuel storage tanks.The location of the tanks and generator buildings on this property would cause considerable shading of the array. Power Estimate/Fuel Savings The annual power production of Ambler Option #3, estimated on the installation of a 10.5 kW array and considerable shading at the site,would be approximately 7,583 kWh,and the estimated fuel savings would be approximately 562 gallons annually.6 Installation Cost Ambler Option #3 would cost between $115,500 and $126,000 (assuming $11-12/watt).Since this option is located within the existing and fenced AVEC facility, there are no costs associated with fencing or connection into the existing power system.Using the 2008 average cost of delivered fuel to Ambler, the annual saving associated with this option would be about $3,442.Using the 2009 average cost of delivered fuel to Ambler, the annual savings associated with this option would be approximately $2,130. Payback Period Based on a cost of between $115,500 and $126,000 and 2009 average fuel costs, it is expected that it would take between 54 and 59 years to pay for Ambler PV Option #3. At 2008 fuel costs, it would take between 34 and 37 years to pay for the Ambler PV Option #3.7 6 Based on 13.5 kWh/gallon 7 Simple payback calculation Payback Period=Initial Cost/Annual Cost Savings Figure 3. Ambler PV Option #3 location Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 7 Option Analy sis Ambler Option #3 was dismissed from further consideration because of the low power output due to significant shading from the fuel tanks. Although this option had few costs associated with securing the array and connecting to the existing power system, the annual production from this option would only displace about 562 gallons of diesel annually and would not result in considerable cost savings. Ambler Option #4 (AVEC Tank Top/Power Plant Roof Option) Placing a PV array on top of fuel storage tanks and on top of the power plant modules within the AVEC facility was considered. While some vandalism concerns and shading concerns would be alleviated at this location,installation on top of the tanks would require adequate ballast or weight to secure the panels and tanks when the tanks are not full and winds are strong. Adding ballast could require excavation and the construction of a concrete and steel foundation. The soils in this location are seasonally frozen, resulting in movement throughout the year,which causes additional complications. Due to these factors, this option was not investigated in more detail. Installing PV panels on top of the AVEC generators modules was considered. To avoid the shading associated with the generator exhaust,the PV panels would only be suited on the southernmost modules.Large tracking arrays could not be installed because they could not turn without encountering the exhaust stacks. Because of these issues, an array on top of the power plant was not considered further. Table 1.Summary Photovoltaic Options in Ambler Option Summary Description Annual Power Estimate (kWh) Annual Fuel Savings (gallons) Annual Cost Savings A Installation Cost Years to Payback Ambler Option #1 31.5 kW array across road from AVEC power plant 28,032 1,850 $7,012 $346,500- $378,000 Simple: 49-54 Ambler Option #2 50.4 kW array at the old sewage lagoon 49,840 3,305 $12,526 $503,600- $554,000 Simple: 40-44 Ambler Option #3 10.kW array on the northwest side of tanks on AVEC property 8,942 562 $2,130 $115,500- $126,000 Simple: 54-59 Ambler Option #4 PV array sited atop AVEC fuel tanks or power plant Not pursued further due to wind, foundation, and generator exhaust issues A Using 2009 average cost of fuel delivered to Ambler=$3.79/gallon Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 8 Shungnak Solar Project Options Two solar project options were investigated in Shungnak as described below.Table 2 summarizes the findings. Shungnak Option #1 (North of AVEC Site-52 o Tilt ) Shungnak Option #1 would be located on the lot leased by AVEC just northwest of the Shungnak power plant (Figure 4). The lot consists of permafrost soils with scattered black spruce. This option includes installing a 50.4 kW array of 288 PV modules. The array would face true south. Power Estimate/Fuel Savings The annual power production of Shungnak Option #1, estimated on the installation of a 50.4 kW array and some shading, would be approximately 46,588 kWh, and the estimated fuel savings would be approximately 3,451 gallons annually.8 At the average 2008 delivered fuel cost to Shungnak ($5.55/gallon), the annual savings associated with this option would be approximately $19,169.At the average 2009 delivered fuel cost to Shungnak ($4.35/gallon), the annual savings associated with this option would be approximately $15,012. Installation Cost Shungnak Option #1 would cost between $554,400 and $604,800 (assuming $11-12/watt).These costs do not include fencing or connection into the existing power system. Payback Period Based on a cost of between $554,400 and $604,800 and Shungnak’s 2009 average delivered fuel costs, it is expected that it would take between 37 and 40 years to pay for Shungnak PV Option #1. At 2008 fuel costs, it would take between 29 and 32 years to pay for the Shungnak PV Option #1.9 8 Based on 13.5 kWh/gallon 9 Simple payback calculation Payback Period=Initial Cost/Annual Cost Savings Figure 4. Shungnak PV Option #1 and #2 locations. Proposed Solar Site Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 9 Option Analysis Although this option is close to the AVEC power plan and the cost associated with connecting to the local system would be low,this option was dismissed from further consideration primarily because of high installation cost.In addition,buildings and other obstructions in the vicinity of this option could lower power output during the winter months. Shungnak Option #2 (North of AVEC Site-34 o Tilt) Shungnak Option #2 is identical to Shungnak Option #1 (a 50.4 kW array of 288 PV modules located just northwest of the AVEC power plant, Figure 4),except that that the tilt of the array is different.Option #2 tilt angle of the array would be 34 degrees from May through September and 90 degrees the remainder of the year.10 Power Estimate/Fuel Savings Changing the summer tilt angle to 34 degrees shows approximately a 2.5% increase in power production compared to the 90/52 tilt scenario.The annual power production of Shungnak Option #2 would be approximately 47,731 kWh, and the estimated fuel savings would be approximately 3,536 gallons annually.11 At the average 2008 delivered fuel cost to Shungnak, the annual savings associated with this option would be approximately $19,641.At the average 2009 delivered fuel costs to Shungnak, the annual savings associated with this option would be approximately $15,382. Installation Cost It is assumed that the Shungnak Option #2 would cost the same as the Shungnak Option #1;between $554,400 and $604,800 (assuming $11-12/watt).These costs do not include fencing or connection into the existing power system. Payback Period At 2009 average Shungnak delivered fuel costs,is expected that it would take between 36 and 39 years to pay for Shungnak PV Option #2; about 1 year less than the Shungnak Option #1.At 2008 fuel costs, it would take between 28 and 31 years to pay for the Shungnak PV Option #2.12 Option Analysis Shungnak Option #2 is a better solar alternative than Option #1. Changing the tilt of the array to 34 degrees May through September would result in about 2.5% more energy production and additional annual fuel use savings compared to Option #1. This option was dismissed from further consideration, however,due to the high installation costs compared to the relatively low output. Another option investigated at this site included mounting the array 16 feet above ground level. Although the probability of any shading from obstructions would be minimized by this option, the additional cost and technical issues of raising the array indicate that this option should not be considered further. 10 The modeling feature that allowed angle and azimuth optimization was not available during the Ambler and Noatak site visits. 11 Based on 13.5 kWh/gallon 12 Simple payback calculation Payback Period=Initial Cost/Annual Cost Savings Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 10 Shungnak Option #3 (AVEC Tank Top/Power Plant Roof Option) Shungnak Option #3 includes installing PV panels either on top of the AVEC fuel tanks or power plant modules. Although this option alleviates security and vandalism issues, it would not be a feasible solution for lowering or maintaining energy costs in Shungnak. Additional costs and technical issues associated with wind and exhaust shading indicate that this option should not be considered further. Table 2. Summary Photovoltaic Options in Shungnak Option Summary Description Annual Power Estimate (kWh) Annual Fuel Savings (gallons) Annual Cost Savings A Installation Cost Years to Payback Shungnak Option #1 50.4 kW array just northeast of the AVEC facility with a 90/52 tilt 46,588 3,451 $15,012 $554,400- $604,800 Simple: 37-40 Shungnak Option #2 50.4 kW array just northeast of the AVEC facility with a 90/34 tilt 47,731 3,536 $15,382 $554,400- $604,800 Simple: 36-39 Shungnak Option #3 PV array sited atop AVEC fuel tanks or power plant Not pursued further due to wind, foundation, and generator exhaust issues A Using 2009 average cost of fuel delivered to Shungnak=$4.35/gallon Noatak Solar Project Options Two solar project options were investigated in Noatak as described below.Table 3 summarizes the findings. Noatak PV Option #1 (Riverbank Option) Noatak Option #1 would be located on a gravel all-terrain vehicle trail between the existing AVEC power plant and the Noatak River (Figure 5). This option includes installing a 50.4 kW array of 288 modules. Because of site constraints (the tank farm is located to the west and the river is located to the east), the array would face east toward the river. Power Estimate/Fuel Savings The annual power production of Noatak Option #1, estimated on the installation of a 50.4 kW array and some shading, would be approximately 33,144 kWh, and the estimated fuel savings would be approximately 2,455 gallons annually.13 At the 2008 average fuel delivery costs to Noatak ($6.22/gallon), the annual savings associated with this option would be about $15,282.At 2009 average fuel delivery costs to Noatak ($6.41/gallon), the annual savings associated with this option would be about $15,737. 13 Based on 13.5 kWh/gallon Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 11 Installation Cost Noatak Option #1 would cost between $554,400 and $604,800 (assuming $11-12/watt).These costs do not include fencing or connection into the existing power system. Payback Period Based on a cost of between $554,400 and $604,800 and Noatak’s 2009 average delivered fuel costs, it is expected that it would take between 35-38 years to pay for Noatak PV Option #1.At 2008 fuel costs, it would take between 36 and 40 years to pay for the Noatak PV Option #1.14 Option Analysis Noatak Option #1 was dismissed from further consideration because the riverfront site has significant shading from the western sun, which significantly impacts the production of the system , fuel savings, and system payback.In addition,although this location is near the existing AVEC facility,AVEC is planning to move the power plant and tank farm away from the Noatak River, which is prone to erosion in this area. Another 50.4 kW PV array option considered at this site included installing 16 separate pole mounted sub-arrays in a row along the riverfront. Each subarray would face south (instead of east) and would be separated by 20 feet.Because this configuration would result in most of the sub-arrays being significantly shaded by another subarray part of the day, this option would produce less power than an east-facing array.This option was omitted from further consideration because shading significantly limited power production. 14 Simple payback calculation Simple payback calculation Figure 5. Noatak Option #1 location Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 12 Noatak PV Option #2 (Near School Option) Noatak Option #2 would be located on property west of the village and adjacent to the newly constructed school. The lot consists of permafrost soils with occasional scrub spruce trees among the tussocks (Figure 6).The array would be installed at a new AVEC power plant and bulk fuel facility, which is being planned by AVEC and would be constructed once funding is acquired. Although the array was originally proposed on the north side of the future AVEC compound, Option #2 would place the array on the south side of the compound (Figure 7).This option includes installing a 50.4 kW array of 288 modules. Power Estimate/Fuel Savings The annual power production of Noatak Option #2, estimated on the installation of a 50.4 kW array and some shading, would be approximately 46,588 kWh and the estimated fuel savings would be approximately 3,573 gallons annually.At 2008 average fuel delivery costs to Noatak, the annual savings would be approximately $22,241.At 2009 average fuel delivery costs to Noatak, the annual savings would be about $22,903. Installation Cost Noatak Option #2 would cost between $554,400 and $604,800 (assuming $11-12/watt).These costs do not include fencing or connection into the existing power system. Payback PeriodBased on a cost of between $554,400 and $604,800 and Noatak’s 2009 average delivered fuel costs, it is expected that it would take between 24 to 26 years to pay for Noatak PV Option #2.At 2008 fuel costs, it would take between 25 and 27 years to pay for the Noatak PV Option #2.15 Option Analysis Out of all the options studied in this report, Noatak Option #2 has the highest power estimate and fuel savings. Using both 2008 and 2009 average delivered fuel costs to Noatak, this option has the best annual savings and payback. However, this option is not feasible until the new AVEC facility is installed in Noatak. It is recommended that this option be considered in the future, once funding has been obtained for the new power plant and tank farm. 15 Simple payback calculation Simple payback calculation Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 13 Figure 7. Noatak PV Option #2 layout Figure 6. Noatak Option #2 location Noatak Option #2 Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 14 Noatak PV Option #3 (Existing AVEC Tank Top/Power Plant Roof Option) A PV array was considered on top of fuel storage tanks and on top of the power plant modules within the currently existing AVEC facility.Mounting arrays on the fuel storage tanks was determined to be impractical because the tanks are close to eroding into the Noatak River and will likely be moved in the near future. Generator exhaust stacks would keep PV tracking systems mounted on the power plant from working correctly. In addition, exhaust could shade the panels and limit power production. This option was not investigated in more detail because it is likely that the power plant and tank farm will be moved in the future, and it would be difficult and expensive to move solar arrays after they have been installed. Noatak PV Option #4 (New AVEC Tank Top/Power Plant Roof Option) Noatak Option #4 consists of incorporating a PV array into the planned new power plant modules. This option would be designed in detail once funding is acquired for the new facility near the school. The overall design and placement of the power plant would consider the solar opportunities at this site.A south facing array on the side of the modules, instead of the top, could be incorporated into the design. Although no detailed analysis of this option was completed, it is likely that a 17 kWh (a 95 panel array) could be installed. It is recommended that this option be considered in the future, once funding has been obtained for the new power plant and tank farm. Table 2. Summary Photovoltaic Options in Noatak Option Summary Description Annual Power Estimate (kWh) Annual Fuel Savings (gallons) Annual Cost Savings A Installation Cost Years to Payback Noatak Option #1 50.4 kW east- facing array along the Noatak riverbank 33,144 2,455 $15,737 $554,400- $604,800 35-38 Noatak Option #2 50.4 kW array at the planned AVEC facility near the new school 46,588 3,573 $22,903 $554,400- $604,800 24-26 Noatak Option #3 PV array sited atop existing AVEC fuel tanks or power plant Not pursued further due to wind, foundation, and generator exhaust issues Noatak Option #4 PV array sited atop new AVEC fuel tanks or power plant Recommend option be considered in the future, once funding has been obtained for the a power plant and tank farm A Using 2009 average cost of fuel delivered to Noatak=$6.41/gallon Conclusions The cost of delivered fuel in Ambler, Shungnak, and Noatak is higher than in any other AVEC community. The high costs are associated with having to fly fuel in because the rivers are too low to accommodate Ambler, Shungnak, and Noatak PV Location and Feasibility Study Summary Page 15 barges. Renewable energy options in these communities are limited; however, solar energy may be a good alternative.Most PV options considered in this study have high installation costs and do not produce enough power to justify further planning or design. However, based on the expected solar output,gallons of fuel saved,and the high cost of delivered fuel in Noatak, it is recommended that PV options associated with the new power plant be studied in more detail. These options should be investigated once funding for the new power plant and tank farm is obtained. Although PV has a relatively high first cost on a per kilowatt basis, PV has the lowest maintenance and repair costs of any power generation scheme.In addition,PV inverters have 10 to 20 year warranties, and most crystalline PV modules come with a standard 25-year warranty.Considering that there are no other renewable energy sources in Noatak, PV appears to be the best-suited alternative energy source for this community. CULTURAL RESOURCE CONSULTANTS LLC 3504 East 67th Avenue Anchorage, Alaska 99507 (907) 349-3445 July 19, 2012 Known Archaeological and Historical Sites in the Shungnak Area Previous Research J. Louis Giddings conducted the earliest archaeological surveys in the Shungnak area between the 1940s and early 1960s. He investigated a site (SHU-009) on the left bank of the Kobuk River opposite the village of Shungnak (see below) and excavated two houses at Pick River, located 4.5 miles to the south-southwest. In 1972, Edwin Hall unsuccessfully searched down river from Shungnak for the large log cabin that served as U.S. Navy explorer Lt. George Stoney’s base camp in the winter of 1885-1886. Several areas in Shungnak were investigated in the 1970s to mid-1980s for U.S. Public Health Service sanitation projects. Also, the Bureau of Indian Affairs (BIA) archaeologists have surveyed several Native allotments in Shungnak, but have found no cultural resources. However, in 1989, BIA archaeologists did find the Cleveland Homestead (SHU-028) site containing a cabin, cache, and depressions about 4.6 miles west of the village. During a cultural resource survey in 1982 for the proposed Dahl Creek Road, Stephanie Stirling recorded a circa 1948 reindeer herder’s cabin (SHU-019) approximately 7 miles northeast of Shungnak and 2 miles west of Dahl Creek. Wayne Wiersum conducted an intensive survey in Shungnak in1985 for an Alaska Department of Transportation airport project, finding a flake scatter (SHU-027) near a proposed material source (see below). Mark Pipkin undertook a cultural resource survey in 2002 for a proposed project to upgrade about two miles of existing roads around Shungnak. He found nothing other than modern debris. In 2006, Cultural Resource Consultants evaluated the Kiana-Selawick-Shungak Trail (SLK- 147/SHU-037) for eligibility for listing on the National Register of Historic Places. The trail was recommended eligible under Criterion A for its significant role as both a traditional and historic transportation and communication route (see bleow). Clarus Technologies, LLC (2009) conducted a cultural resource survey south and north of Shungnak in 2009 for the Alaska Army National Guard to determine the location of known sites CULTURAL RESOURCE CONSULTANTS LLC 3504 East 67th Avenue Anchorage, Alaska 99507 (907) 349-3445 within the boundaries of the Guard’s Local Training Area lands. No new sites were apparently recorded. Known Sites in Shungnak listed in the Alaska Heritage Resources Survey In the 1950s, archaeologist James Giddings excavated one of several shallow pits (SHU-009) concealed by willow thickets on the left bank of the Kobuk River opposite the village of Shungnak. The 9.5 by 15.5-foot house pit with a 12-foot entrance tunnel dates from the mid- 1800s, or perhaps a little earlier. The Shungnak Airport Site (SHU-027) was formerly on a knoll on the right bank of the Kobuk River at the Shungnak airport. Reported by archaeologist Wayne Wiersum in 1978, the site was destroyed by construction of the airport. Wiersum recovered a number of flakes and received reports of other artifacts being collected by villagers. The 105-mile long Kiana-Selawik-Shungnak Trail (SHU-037) runs from Kiana, southeast through the Hockley Hills, up Portage Creek, and across Shogvik Lake to Selawik. It then turns east and continues along the Selawik River to the Kugarak River, where it proceeds northeasterly to and across Egaupak Lake. From Egaupak Lake, the route follows Kerchurak Creek to its headwaters and then proceeds east across Black River to Shungnak. The Kiana to Selawik part of the trail was a prehistoric traditional winter trail between two existing winter villages. The Selawik to Shungnak section was constructed as a mail route, probably after the village was moved to its current location in the 1920s. In 1932, the Alaska Road Commission formalized the Kiana to Selawik section as a mail trail and staked the open sections. The Selawik to Shungnak portion of the trail is listed as Route 41AA in ARC documents. A 2006 Determination of Eligibility is pending consultation with the State Historic Preservation Officer.