HomeMy WebLinkAbout2011 AVEC R5 App; Upper Kalskag Solar Construction
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4831 EAGLE STREET * ANCHORAGE, ALASKA * PHONE (907) 561 -1818 * FAX (907) 562-4086
August 26, 2011
Alaska Energy Authority
813 West Northern Lights Boulevard
Anchorage, Alaska 99503-2495
Attn: Renewable Energy Fund Grant Program Round 5: Upper Kalskag Small Solar Project
Dear Review Panel:
Alaska Village Electric Cooperative, Inc. (AVEC) respectfully submits the enclosed application for grant
funds available through the Renewable Energy Fund Grant Program. The project would involve
constructing a solar array in Upper Kalskag.
AVEC proposes to install a 10 kW solar array on the side of the existing power plant in Upper Kalskag.
The project would produce about 9,096 kWh annually and save about 673 gallons of diesel a year. The
savings associated with this project would offset AVEC’s operating costs in the community. In addition,
this pilot project would help AVEC and AEA to determine whether solar power is a viable resource in
Upper Kalskag and other locations in the state. This project could lead to expansion of the array in
Upper Kalskag and installation of other small arrays at AVEC facilities.
The project would require $100,000; AVEC is seeking $90,000 from AEA and would provide a 10% cash
match of $10,000 for this work.
Please do not hesitate to contact Mr. Petrie of my staff if you have questions.
Sincerely,
Meera Kohler
President and CEO
cc: Brent Petrie, AVEC
enclosures
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction
Renewable Energy Fund-Round V
Grant Application
Submitted by:
Alaska Village Electric Cooperative, Inc
4831 Eagle Street
Anchorage, Alaska 99503
Submitted to:
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
August 26, 2011
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Grant Application Page 1 of 13 8/26/2011
Upper Kalskag Solar-Construction
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
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
Telephone
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.
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 2 of 13 8/26/2011
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)
Upper Kalskag Solar-Construction
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.
Upper Kalskag (Kalskag) is located on the north bank of the Kuskokwim River, 2 miles upriver
from Lower Kalskag. It lies 30 miles west of Aniak, 99 miles northeast of Bethel, and 348 miles
west of Anchorage. It lies at approximately 61.54 North Latitude and -160.31 West Longitude.
(Sec. 27, T017N, R061W, Seward Meridian.)
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)
Reconnaissance Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
AVEC proposes to install a 10 kWh solar array in Upper Kalskag. The array would be installed on
the side of the existing power plant facility that is owned and operated by AVEC. Work would
involve shipping materials to the community, installing, integrating, testing, and commissioning
the array. A small solar array in Upper Kalskag would help AVEC evaluate the benefits of solar
arrays installed at power generating facilities.
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 3 of 13 8/26/2011
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.)
A small array in Upper Kalskag would be installed modeling after the successful design
employed in Kaltag. The possible displacement of diesel fuel used for village power generation
in Upper Kalskag could be 673 gal/yr. This project could save $2,500 during its first full year of
operation (expected to be 2013). The savings associated with this project would offset AVEC’s
operating costs in Upper Kalskag.
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 for the project is $100,000 of which $90,000 is requested in grant funds
from AEA. The remaining $10,000 (10%) would be matched in cash by AVEC (Tab C).
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.$90,000
2.7.2 Other Funds to be provided (Project match)$10,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)$100,000
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$100,000
2.7.5 Estimated Direct Financial Benefit (Savings)$2,500 (year one)
$3,125 (average yearly)
2.7.6 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.)
$ To be determined
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 4 of 13 8/26/2011
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 would provide overall project management and oversight. AVEC is the electric utility
serving Upper Kalskag. To assist in the installation of the array, AVEC plans to hire Remote
Power, Inc., who completed all preliminary work on this project.
Brent Petrie, Manager, Community Development and Key Accounts, would 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, and heat recovery.
He also manages relationships with AVEC’s largest customers and is the project manager for
AVEC’s many construction projects as an energy partner of the federally funded Denali
Commission.
Mr. Petrie has 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 (Tab A).
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
1.Confirmation that all design and feasibility requirements are complete:Sept 2012
2.Completion of bid documents:Sept 2012
3.Contractor/vendor selection and award:Sept 2012
4.Construction Phases – Installation of panels:Nov 2012
5.Integration and testing:Nov 2012
6.Decommissioning old systems:N/A
7.Final Acceptance, Commissioning and Start-up:Nov 2012
8.Operations Reporting:ongoing
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 5 of 13 8/26/2011
1.Confirmation that all design and feasibility requirements are complete (Sept 2012)
AVEC would work with Remote Power, Inc to ensure that all design and feasibility requirements
are completed once it is determined that the grant is funded. Since this is a relatively simple
project, this should not take over one month to complete.
2.Completion of bid documents (Sept 2012)
Since this is a simple project, bid documents would not be needed. AVEC would request a
formal quote from Remote Power, Inc once it is determined that the grant is funded.
3.Contractor/vendor selection and award (Sept 2012)
This task would be completed once the grant agreement is in place. AVEC has been working
with Remote Power, Inc and has an existing contract in place.
4.Construction Phases – Installation of panels (Nov 2012)
Materials would be shipped to Kaltag and the panels would be installed within one month of
signing a grant agreement.
5.Integration and testing (Nov 2012)
The small solar array would be integrated into the existing AVEC system and tested once it is
installed. This task would occur within one month of signing a grant agreement.
6.Decommissioning old systems:N/A
7.Final Acceptance, Commissioning and Start-up (Nov 2012).
The new solar array would be accepted, commissioned, and begin running immediately after it
is integrated and tested.
8.Operations Reporting ongoing
AVEC would closely monitor the system to determine its success and flaws and whether a
similar system could be installed at other AVEC facilities.
3.4 Project Resources
Describe the personnel, contractors, 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 would use a project management approach that has been used to successfully design and
construct renewable energy projects 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 Office, would act as Project Executive and
would maintain ultimate authority programmatically and financially.
Brent Petrie, Manager, Community Development and Key Accounts, would lead the
project management team consisting of AVEC staff, consultants, and contractors.
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 6 of 13 8/26/2011
Together with his group, Brent would provide coordination of the installation of the met
tower, geotechnical work, and conceptual design. The group’s resources include a
project coordinator, contracts clerk, accountant, engineer, and a community liaison.
Debbie Bullock, manager of administrative services, would provide support in
accounting, payables, financial reporting, and capitalization of assets in accordance with
AEA guidelines.
Anna Sattler, community liaison, would communicate directly with Upper Kalskag
residents to ensure that the community is informed of construction activities.
The day to day project manager for the project, Robin Reich of Solstice Alaska Consulting,
would lead day to day work on the project, including ensuring:
Project schedule and budget adherence
AVEC’s Community Liaison has the most current project information to provide to the
community
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
AVEC would require that monthly written progress reports be provided with each invoice
submitted from contractors. 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 and forwarded as one package to the AEA
project manager each quarter.
Semi-annual face-to-face meetings would occur between AVEC and AEA to discuss the status of
all wind projects funded through the AEA Renewable Energy Grants program. Individual project
meetings would be held, as required or requested by AEA.
3.6 Project Risk
Discuss potential problems and how you would address them.
Resource availability:Because no long term monitoring of the solar resource has occurred in
Upper Kalskag, the return on this project is questionable. Solar panels that have been installed
could be moved to another location, if the project is not as successful as expected.
Winter upkeep:Snow would need to be cleared from panels in the winter in order to ensure
performance. AVEC’s local operator would be responsible to maintaining the panels. If
problems are experienced with the array, Remote Power, Inc. would be available to assist.
SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
If some work has already been completed on your project and you are requesting funding for
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 7 of 13 8/26/2011
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.
See Tab G for additional information regarding the proposed resource and configuration.
According to National Renewable Energy Laboratory (NREL) solar data, Remote Power, Inc.
expects 9,096 kW to be produced each year by a 10 kW array installed at the power plant in
Upper Kalskag. This assumes that the array is tilted to 45 degrees from May-September and 90
degrees from October-April and there is no shading of the panels.
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 communities of Upper Kalskag with diesel generators.
The Upper Kalskag power plant includes 3 generator sets, including a 236 kW Detroit Diesel, a
363 kW Detroit Diesel, and a 499 kW Cummins. These generator sets were originally installed in
2004, and the second genset was overhauled in 2011.
The total production of the AVEC plant in Upper Kalskag in 2010 was 1,421,567 kWh. The peak
monthly electric demand in Upper Kalskag in 2010 was 341 kW. Average demand in 2010 was
approximately 239 kW. The Upper Kalskag plant generated 14.17 kWh for each gallon of fuel
consumed in 2010.
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.
Upper Kalskag uses diesel and heating oil as primary energy resources. In 2010, 100,322 gallons
of diesel fuel was consumed to generate 1,421,567 kWh.
Installation of a 10 kW solar array will help to offset the operations at the power plant. This
project could lead to expansion of the array in Upper Kalskag and installation of other small
arrays at AVEC facilities to offset operation costs.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Upper Kalskag encompasses 3.8 square miles of land and 0.4 square miles of water. The climate
in Upper Kalskag is semi-arctic with influences from the Bering Sea. Annual snowfall averages 60
inches, with total precipitation of 19 inches. Temperatures range from -55 to 87 °F. The
Kuskokwim River near Kalskag is ice-free from mid-June through October.
In Upper Kalskag, 34.4% of the population is below the poverty line, and the median household
income is $26,250, which is 40%of the State’s median household income of $66,712.The
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 8 of 13 8/26/2011
electricity generation in Upper Kalskag in 2010 was 1,421,567 kWh. The load of is highest during
the winter months, with the bulk of electricity consumed by residences and the school. If this
study finds that solar resources are suitable, the addition of solar arrays to the electric
generation system could reduce the amount of diesel fuel used for operating the power plant in
the community.
Like all of Alaska, Upper Kalskag is subject to long periods of darkness. Reliable electric service is
essential for the operation of home lighting, streetlights, and security lighting. Outside lighting
greatly improves the safety of village residents. Residents rely on subsistence resources
including salmon, moose, rabbit, and waterfowl. Subsistence food is gathered and harvested
and stored in refrigerators and freezers. Refrigeration is essential for the extended storage of
perishable foodstuffs, and reliable electric service is essential for proper freeze storage of food.
The construction of the proposed project would augment and improve the existing power
generation system by incorporating a locally available renewable resource.
The addition of a solar array to the generation system would help to offset AVEC’s operating
costs in Upper Kalskag.
Sources: Alaska Community Database.
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
Renewable Energy Technology.AVEC plans to install a 10kW solar array at the power plant in
Upper Kalskag (see Tab G for placement)
Optimum installed capacity.10kW.
Anticipated capacity factor:13.1%
Anticipated annual generation.9,096 kWh
Anticipated barriers.Because no long term monitoring of the solar resource has occurred in
Upper Kalskag, the return on this project is questionable. Snow would need to be cleared from
panels in the winter in order to ensure performance.AVEC’s local operator would be
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 9 of 13 8/26/2011
responsible to maintaining the panels. If problems are experienced with the array, Remote
Power, Inc. would be available to assist.
Basic integration concept/Delivery methods.The array would hook directly into the power
plant. Remote Power has determined that connecting into the existing system would not be an
issue.
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.
Land ownership would not be an issue because the project would be placed on land owned by
AVEC.
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
No permits would be needed because the array would be installed on the top of the existing
power plant modules.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
No environmental issues are expected since the array would be installed on the top of the
existing power plant modules, within fenced property owned by AVEC.
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:
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 10 of 13 8/26/2011
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
Total anticipated project cost, and cost for this phase/requested grant funding/matching
funds.The total project cost for the project is $100,000 of which $90,000 is requested in grant
funds from AEA. The remaining $10,000 (10%) will be matched in cash by AVEC.
Identification of other funding sources.No additional funding would be needed.
Projected capital cost of proposed renewable energy system/projected development cost of
proposed renewable energy system.No additional funding would be needed.
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.)
The annual cost of operating and maintaining this system (primarily snow clearing and resetting
the angle of the array once a year) would be approximately $50 (using AEA’s estimate for O&M
of $0.005/kWh). AVEC’s community plant operator would do this work.
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
AVEC, the existing electric utility serving Upper Kalskag, is a member-owned cooperative electric
utility and typically owns and maintains the generation, fuel storage, and distribution facilities in
the villages it serves.
This project is not expected to significantly affect the sale of power in Upper Kalskag.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Please see cost/benefit sheet under Tab B.
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 11 of 13 8/26/2011
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 (gal and $) 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 possible displacement of diesel fuel used for village power generation in Upper Kalskag
could be 673 gal/yr. This project could save $2,500 during its first full year of operation
(expected to be 2013).
Installation of a 10 kW solar array would help to offset the operations at the power plant. In
addition, this pilot project would help AVEC and AEA to determine whether solar power is a
viable resource in Upper Kalskag and other locations in the state. This project could lead to
expansion of the array in Upper Kalskag and installation of other small arrays at AVEC facilities to
offset operation costs.
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 capacity and experience to
operate this project.
Business Plan Structures and Concepts which may be considered:A business plan is not
needed. Local plant operators provide daily servicing. AVEC technicians provide periodic
preventative or corrective maintenance and are supported by AVEC headquarters staff,
purchasing, and warehousing.
How O&M will be financed for the life of the project/Operational issues which could
arise/Operating costs:The costs of operations and maintenance would be funded through
ongoing energy sales to the villages that AVEC serves. There would be minimal cost associated
operating this project.
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 12 of 13 8/26/2011
Commitment to reporting the savings and benefits:AVEC is fully committed to sharing the
savings, benefits and information accrued from this project with its shareholders and is
committed to reporting project savings and benefits with AEA.
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.
Because there are no permitting or land issues and because a successful design has been
developed in Kaltag, this project is ready move forward. Once funding is known to be secured,
AVEC would engage Remote Power to order equipment and make plans to install the panels.
Remote Power would travel to Upper Kalskag and install the array within three months of the
grant award.
AVEC received an AEA REF Round I grant to study the solar potential in Ambler. In addition,
AVEC received AEA REF Round IV funding to install a 10 kW array in Kaltag.
This project would be modeled from the successful Kaltag project.
SECTION 8– LOCAL SUPPORT
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.
Letters of support have been received from the City of Upper Kalskag and the Village of Kalskag
(Tab D).
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.
Include an estimate of budget costs by milestones using the form – GrantBudget5.doc
The total project cost for the project is $100,000 of which $ 90,000 is requested in grant funds
from AEA. The remaining $10,000 (10%) would be matched in cash by AVEC. A detail of the
grant budget is below. Also see Tab C.
Alaska Village Electric Cooperative, Inc.
Upper Kalskag Solar Construction Project
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 13 of 13 8/26/2011
Milestone or Task Grant Funds AVEC Total
1.Confirmation that all design and
feasibility requirements are complete $0 $0 $0
2. Completion of bid documents $0 $0 $0
3.Contractor/vendor selection and award $0 $0 $0
4.Construction Phases –Installation of
panels $72,000 $8,000 $80,000
5.Integration and testing $16,200 $1,800 $18,000
6.Decommissioning old systems $0 $0 $0
7.Final Acceptance, Commissioning and
Start-up $1,800 $200 $2,000
8.Operations Reporting $0 $0 $0
TOTALS $90,000 $10,000 $100,000
Tab A
Resumes
Tab B
Cost Worksheet
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 1 8-26-11
Upper Kalskag Solar Construction
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability.Shaded Solar Radiation Estimate (Azimuth=180.0;
Tilt=varies 45-90 KWhr/m^2): 37.85
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. 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 236 kW Detroit Diesel; 363 kW Detroit Diesel; 499
kW Cummins
iii. Generator/boilers/other type diesel generators
iv. Age of generators/boilers/other All installed 2004; 363 DD overhauled in 2011
v. Efficiency of generators/boilers/other 14.17 kWh/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 $140,000 (labor and non-labor combined)
ii. Annual O&M cost for non-labor N/A
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]1,421,567 kWh (2010)
ii. Fuel usage
Diesel [gal]100,300 gallons (2010)
Other
iii. Peak Load 251 kW (2010 AVEC Operations data)
iv. Average Load 160 kW (2010 AVEC Operations data)
v. Minimum Load
vi. Efficiency 14.17 kWh/gal (2010 AVEC Operations data)
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]
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 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 2 8-26-11
v. Wood [cords, green tons, dry tons]
vi. Other
3. 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]
10 kW (Solar)
b) Proposed annual electricity or heat production (fill in as applicable)
i.Electricity [kWh]9,096 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
4. Project Cost
a) Total capital cost of new system $100,000
b) Development cost
c) Annual O&M cost of new system $50/year
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 673 gal/yr
ii. Heat
iii. Transportation
b) Current price of displaced fuel $3.27/gal (2011 ISER spreadsheet)
c) Other economic benefits
d) Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 0.55
Payback (years)n/a
Tab C
Budget Form
Renewable Energy Fund Grant Round V Grant Budget Form 8-26-11
UPPER KALSKAG SOLAR CONSTRUCTION
Milestone or Task
Anticipated
Completion Date
RE- Fund
Grant Funds
Grantee Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
1.Confirmation that all design and feasibility
requirements are complete.
Sept 2012 $0 $0 $0
2.Completion of bid documents Sept 2012 $0 $0 $0
3.Contractor/vendor selection and award Sept 2012 $0 $0 $0
4.Construction Phases –Installation of
panels Oct 2012 $72,000 $8,000 Cash $80,000
5.Integration and testing Oct 2012 $16,200 $1,800 Cash $18,000
6.Decommissioning old systems N/A $0 $0 $0
7.Final Acceptance, Commissioning and
Start-up Oct 2012 $1,800 $200 Cash $2,000
8.Operations Reporting ongoing $0 $0 $0
TOTALS $90,000 $10,000 $100,000
Budget Categories:
Direct Labor & Benefits $$8,500 $8,500
Travel & Per Diem $$1,000 $1,000
Equipment $$$
Materials & Supplies $$500 $500
Contractual Services $90,000 $$90,000
Construction Services $$$
Other $$$
TOTALS $90,000 $10,000 $100,000
Tab D
Letters of Support
Tab E
Authorized Signers Form
Tab F
Authority
Tab G
Additional Materials
Remote Power Inc.
Summary Report
Report Name Upper Kalskag
Report Date 8/11/2011 12:12
Declination 14d 16m
Site Location AVEC Compound
Latitude 61.56
Longitude 160.32
Weather Station Aniak AP, Aniak, AK
Distance From Site 26 miles
Report Type PV
Array Type Fixed Angle
Tilt Angle 45 / 90 deg
Azimuth 180.00 deg
Estimated Electrical Cost 0.5 ($/KWH)
PV System Size 10.0 KW
Panel Make Sharp
Panel Model ND-Q240Q2
Panel Count 42
DC Power Rating (per panel)240 Watt
Inverter Make SolarEdge Technologies
Inverter Model SE5000 (240V)
Inverter Count 2
PV System Derate Method Using Components
Derate Factor 0.816
Notes: PV arrays should be mounted on top of poles to minimize power loss due to shading from obstructions to the
south. Power production estimates in this report assume that the arrays will be tilted at 45 degrees May - September and
at 90 degrees October through April. This is done in order to minimize production loss due to snow accumulation on the
PV panels.
Remote Power Inc. 981 Gold Mine Trail Fairbanks, Alaska 99712
Month
Shaded Solar
Radiation
Estimate
Azimuth=180.0
Tilt=varies 45-
90 KWhr/m^2
Shaded AC
Energy
Estimate (KWH)
Azimuth=180.00
Tilt=45.00
PV Solar
Generated Fuel
Savings
(13.5
kWh/gallon)
January 1.08 292.7 21.7
February 2.26 531.0 39.3
March 3.23 843.4 62.5
April 3.74 891.0 66.0
May 6.21 1505.8 111.5
June 5.88 1334.0 98.8
July 4.55 1061.0 78.6
August 3.51 826.8 61.2
September 3.94 946.2 70.1
October 1.79 443.4 32.8
November 1.57 396.1 29.3
December 0.09 25.4 1.9
Totals 37.85 9096.8 673.8
Avg. Sun Hours 3.15
G.Egan 8/13/2011
Remote Power Inc.
Summary Report
Solar Obstruction / Production Data
Notes: Production estimates in this report assume that the arrays will be tilted at 45 degrees May -
September and at 90 degrees October through April.
Remote Power Inc. 981 Gold Mine Trail Fairbanks, Alaska 99712