HomeMy WebLinkAbout2011 AVEC R5 App; Chevak Surplus Wind Recovery
August 26, 2011
Alaska Energy Authority
813 West Northern Lights Boulevard
Anchorage, AK 99503-2495
Attn: Renewable Energy Fund Grant Program Round V: Chevak Surplus Wind Energy
Recovery for Chevak Water System Heat
Dear Review Panel:
Alaska Village Electric Cooperative, Inc (AVEC), along with its project partner Alaska Native
Tribal Health Consortium (ANTHC) respectfully submits the enclosed application for grant
funds available through the Renewable Energy Fund Grant Program. The project would involve
design and construction of a secondary load system to capture excess energy from the existing
wind turbines to power space heating at the water treatment plant in Chevak.
AVEC is seeking $240,260 from AEA under this proposal. ANTHC would provide $12,645 as
an in-kind match, which would be provided by labor on the project. The total project cost for
design and construction is $252,905. It is expected that the project would decrease the water
utility system costs by about $12,500 annually.
Please don’t hesitate to contact Mr. Petrie of my staff if you have any questions.
Sincerely,
Meera Kohler
President and CEO
cc: Brent Petrie, AVEC; Carl Remley, ANTHC
Enclosures
Alaska Village Electric Cooperative, Inc.
Chevak Surplus Wind Energy Recovery
For Chevak Water System Heat
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 14 8/26/2011
SECTION 1 – APPLICANT INFORMATION
Name Alaska Village Electric Cooperative
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
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.
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SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Surplus Wind Energy Recovery For Chevak Water System Heat
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.
Chevak (pop.938)is located on the north bank of the Niglikfak River, 135 miles northwest of
Bethel and 17 miles east of Hooper Bay in the Yukon-Kuskokwim Delta. The community lies at
approximately 61.527780° North Latitude and -165.586390° West Longitude. (Sec. 34, T017N,
R090W, Seward Meridian.) The wind energy recovery for water system heat would include
upgrades to the AVEC power plant and the City of Chevak’s water plant are located within
Chevak city limits.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
X Wind Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
X Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance X Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Currently, AVEC’s four wind turbines (Northern Power Systems 100 B models) in Chevak
generate in excess of community requirements when there is moderate to heavy wind and
when the community load is light. Much of this excess energy is not captured, since there is no
economic way to store the energy. AVEC, together with Alaska Native Tribal Health Consortium
with input from the City of Chevak, are planning to design and construct a secondary load
installation to capture the excess energy to power space heating at the water treatment plant
and drinking water storage tank heating. Design of the proposed equipment would be based
on AVEC’s other secondary load installations adapted to installation into the water treatment
plant.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
Water systems and wastewater systems are the single largest energy consumer in arctic and
subarctic villages, often using up to 30% of all the energy, i.e., electricity and fuel oil, used in a
village. A significant portion of this in Chevak is for heating water in both the water storage
tank and operating the washers and dryers in the washeteria. The dryers are hydronically
heated. Use of excess wind energy which will be converted to heat in the water plant by
displacing essentially all of the fuel oil used for freeze protection and a significant percentage of
that used in the washeteria. Using the excess wind energy to displace the use of fuel oil in the
water plant will result in a reduction in fuel usage of approximately 8,603 gallons at a cost of
approximately $51,618. The approximate annual utility-billed cost of the excess wind energy
used to replace the fuel oil will be $12,477. This will result in a net savings to the community of
approximately $39,141 per year.
The benefits to the community of this project are a reduction in the amount of fuel required by
the community, a much more efficient use of the renewable wind energy generated in the
community, and a direct benefit to each community member due to the lower cost to produce,
store, and distribute water.
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.
This project involves two phases, design and construction. The estimated cost of design is
$53,820. The design cost includes an in-kind cost match of $2,691 provided by ANTHC. The
nature of the design cost match would be a contribution of project labor time by ANTHC.
The estimated cost of the construction phase of this project is $199,085. The construction cost
includes a in-kind match of $9,954 provided by ANTHC through project labor time.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application.$ 240,260
2.7.2 Other Funds to be provided (Project match)$ 12,645
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)$ 252,905
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)
$ 252,905
2.7.5 Estimated Direct Financial Benefit (Savings)$ 51,618 in fuel oil
annually
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.)
$
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). If the applicant does not have a project manager
indicate how you intend to solicit project management support. If the applicant expects project
management assistance from AEA or another government entity, state that in this section.
Two organizations would be participating in the implementation of this grant. They are the
Alaska Village Electric Cooperative (AVEC) and the Alaska Native Tribal Health Consortium
(ANTHC). Both members of this team have extensive experience designing, building, and
operating both electrical generation facilities (including wind) and water treatment plants in
rural Alaska.
This project would have co-project managers. They would be Brent Petrie of AVEC and Carl
Remley of ANTHC.
Mr. Petrie has worked for AVEC since 1998 where he manages the development of alternatives
to diesel generation for AVEC such as hydro, wind, and heat recovery. He also manages
relationships with AVEC’s many construction projects as an energy partner of the federally
funded Denali Commission. Mr. Petrie has been employed in the energy and resource field for
more than 30 years, having worked for the federal and state governments as consultant,
planner, and project manager. 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 Masters
Degree in Water Resource Management and a Bachelors degree in Geography.
Mr. Remley is Energy Projects Manager for ANTHC and has been an ANTHC employee since
2002. In that role, Mr. Remley is responsible for both energy conservation and renewable
energy projects. At present, this includes performing energy audits in public buildings in forty
rural Alaska villages, installing energy conservation displays in all homes in twelve villages,
evaluating heat recovery opportunities in ten villages, implementing heat recovery in several
villages, and acting as the energy coordinator for the Indian Health Service in the state of
Alaska.
Prior to that, Mr. Remley owned and operated an energy conservation consulting company for
twenty two years and was a design engineer in the aerospace industry for ten years. Mr.
Remley has a Bachelors Degree in Mechanical Engineering and a Masters Degree in Business
Administration. He is also both a Certified Energy Auditor and a Certified Energy Manager.
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.)
The design effort for this project would start as soon as funding was available. Based on data
available, this should be early September of 2012. Based on the work involved, it is anticipated
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that the design phase would continue through April of 2013. The construction phase would
start in late April of 2013 and be completed by the end of September of 2013. A detailed
schedule is attached to this application in Tab G.
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.)
During the design phase, the key task will be to assure that the results of the HOMER analysis
are properly utilized to assure adequate thermal storage capacity is available to maximize the
use of the low cost excess wind energy. The other challenge will be to assure the power plant
controls and the water plant controls are set up to maximize the use of the excess wind energy.
During the construction phase, the challenge will be to implement the modifications necessary
while minimizing the interruptions to operation of the water treatment plant. Since
implementation of the plumbing changes will be similar to the modifications to implement
more conventional heat recovery, no significant issues are anticipated.
A combination of the schedule (in Tab G) and the budget work sheets (in Tab C) will be used to
both assure we are on budget and on schedule and as a warning if we fall either behind
schedule or are over budget.
Where applicable, the schedule and budget project milestones follow AEA format. The plan is
to use force account labor where possible (maximizing local hire) which eliminates the bidding
process.
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.
As mentioned earlier, the co-project managers will be Brent Petrie of AVEC and Carl Remley of
ANTHC. They will be supported during the design phase by Will Fraser, Mechanical Engineering
Manager for ANTHC, Dave Reed, Electrical Engineering Manager for ANTHC, and Mark Teitzel
Vice President/Engineering Manager of AVEC. During the construction phase, the project
managers will be supported by Mark Bryan, Operations Manager for AVEC, Bill Thomson,
Technology and Training Superintendent for AVEC and an appropriate Construction Manager
from ANTHC. To the extent possible, local labor from Chevak will be used during construction.
Resumes of all key personnel are found in Tab A.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Written project progress reports will be provided to the AEA project manager each quarter.
Semi-annual face-to-face meetings would occur between AVEC, ANTHC, and AEA to discuss the
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status of all wind energy recovery 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.
In general, there are no technology risks involved with the plan to utilize excess renewable wind
energy to provide both space and process heat to the water treatment plant. AVEC has used
the technology successfully directing excess wind-energy to providing heat within the power
plants. Utilizing the technology within the water treatment plant has not been done in Alaska
before. However, implementation of this technology will be similar to implementing heat
recovery from the power plant to the water plant and that has been done many times before
and it being done in several plants now.
The challenge of this project will be to demonstrate that the electric boiler technology and
controls can be successfully used to provide heat to the various use points at the water
treatment plant on an interruptible basis. The availability of the water tank for thermal storage
greatly reduces any risks
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
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.
A feasibility study has been conducted on this project and is attached for review (Tab B). The
renewable energy resource that is available for this project is excess wind. The four Chevak
wind turbines (Northern Power Systems 100 B models) generate in excess of community
requirements when there is moderate to heavy wind and when the community load is light.
Currently, much of this excess is not used, since there is currently no economic way to store the
energy.
The HOMER analysis completed as part of the feasibility study predicts that the equivalent of
9,030 gallons of #1 fuel oil are available from the excess wind each year. The analysis also shows
that more excess wind is available during the colder months than the warmer months. The
water treatment plant load also peaks during the colder months.
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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.
On the power generation side, the AVEC power plant uses a combination of diesel and wind to
generate all electricity used in Chevak. The excess wind is produced by four existing Northern
Power Systems 100 B model wind turbines. As mentioned above per the HOMER analysis, the
excess wind generated by these four turbines is the equivalent of 9,030 gallons of oil.
The water treatment plant currently uses two oil fired hot water boilers to provide space heat,
water storage tank heat, and heat for the circulation loops. The overall efficiency of the boilers
is approximately 75%. A total of 14,480 gallons of fuel are used at the water treatment plant
annually.
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.
Fuel oil for both the AVEC power plant and the water treatment plant is barged in. The cost per
gallon for the water treatment plant fuel is approximately $6.00. This project would reduce the
amount of fuel barged to the community for the water treatment plant by approximately 8,603
gallons per year. This project would significantly increase the amount of renewable wind
generated electricity utilized by the community.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The community of Chevak uses renewable wind and diesel fuel for electrical power generation,
heating oil for boiler (thermal) and home heating, and diesel and gasoline fuel for transportation
needs. Heat for the water treatment plant is mostly generated by fuel oil. This project would
reduce the amount of fuel oil used in the community by approximately 8,603 gallons and
increase the amount of renewable wind energy utilized without adding additional wind
generation capacity. There would be no negative impact on the community energy prices due
to this project.
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
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Anticipated barriers
Basic integration concept
Delivery methods
The renewable energy technology utilized for this project is electricity produced by four existing
Northern Power Systems 100 B units. The specific application of that technology for this project
is to utilize most of the excess wind generated by the existing equipment to offset heating loads
in the water treatment plant during moderate to high wind and low electrical demand periods.
It is anticipated that a combination of the excess wind available and the storage capacity for the
heat available in the water tank and a 120 kW electric heating system in the water treatment
plant will allow for the elimination of 8,603 gallons of the present 14,480 gallons of fuel oil use.
Based on the HOMER analysis, the equivalent of 9,030 gallons of fuel oil are available in excess
wind. It is anticipated that 8,603 gallons of that will be utilized in the water treatment plant.
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.
There are no land ownership issues. No new land is necessary for this project and both the
current land owners, AVEC and the City of Chevak support the project.
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
The project will involve work to the existing power plant and water plant. A State Fire Marshall
Permits may be required. If so, the permit process will be started during the design phase and
completed prior to construction.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
The project will involve work to the existing power plant and water plant. Because of the limited
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scope of this project, it is unlikely that any environmental or land use issues will arise.
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 feasibility phase of this project, funded by AVEC, is complete and the report is attached.
This application is for the Design and Permitting and Construction phases. The total anticipated
project cost for the design and construction phases of the project is $252,905, including $53,820
for design and $199,085 for construction.
ANTHC is contributing a match of $12,645 in the form of in-kind labor hours for management
services. Therefore, the requested grant funding is $240,260. There will be no loans on this
project and no other funding sources are anticipated. The projected capital cost is the entire
project cost of the project less the match or $240,260.
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.)
There is minimal additional equipment required at the AVEC power plant and only an electric
boiler and associated controls at the water treatment plant. The operation of the excess wind
interruptible power system for the water treatment plant will be automated at both the AVEC
power plant and the Chevak water treatment plant. Therefore operational costs will be very
low, they are expected to be in the range of a few hundred dollars per year to replace controls
or heaters as necessary. AVEC’s costs of operations and maintenance would be funded through
ongoing energy sales to the villages that AVEC serves including those fees paid by the City of
Chevak as outlined in the Interruptible Electricity Sales Agreement.
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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
The buyer of the excess wind energy will be the City of Chevak. The price as offered by AVEC is
$0.05 per kilowatt-hour based on an interruptible rate.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
The project cost worksheet has been completed and is attached in Tab C. The costs as listed on
the budget sheet are a combination of AVEC and ANTHC costs. They have been combined and
both included since ANTHC will be a major collaborative partner on this project.
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 potential annual fuel displacement by this project is 8,603 gallons of #1 fuel. At today’s cost
of $6.00 per gallon, that would represent a reduction of $51,618 in fuel oil usage. Assuming a
twenty year life, the life time savings in today’s fuel cost would be $1,032,360.
Assuming an overall efficiency of the oil fired heating system of 75%, the fuel usage would
convert to an annual kilowatt-hour consumption of 499,545 kilowatt-hours. AVEC has agreed to
sell the excess wind energy at an interruptible rate of $0.05 per kilowatt-hour. This would result
in additional annual revenue to AVEC of $12,477. The lifetime revenue in today’s dollars would
be $249,540.
No additional revenue streams are known at this time.
The annual savings of $39,141 ($51,618 - $12,477) will result directly in that amount of lower
operating costs at the water treatment plant. These savings should be passed on to both the
commercial users and residential customers of the water treatment plant in Chevak for the life
of the project.
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In addition to the direct financial benefit to the community, Chevak will need 8,603 gallons less
of #1 fuel oil each year and will much more efficiently utilize its wind renewable energy source.
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
An interruptible Electricity Sales Agreement will be generated and signed that defines all
necessary parameters. The sales price of a flat $0.05 per kilowatt-hour has been agreed to by
AVEC. This will be a new rate structure that gives AVEC the ability to shut off the service when
excess wind is not available. The thermal storage at the water treatment plant will minimize the
fluctuations in the availability of interruptible power. It should be noted that this interruptible
power will be in addition to the existing electric service to the building and will be separately
metered.
The maintenance and operations of the equipment installed as part of this project will be
maintained by a combination of AVEC and the City of Chevak. AVEC will maintain the equipment
and controls in its facility as well as the power lines that feed the water treatment plant. Funds
for any required maintenance will come from the new revenue stream. The City of Chevak will
see decreased boiler maintenance and operating costs as a result of this project. The funds
presently utilized to maintain the fuel oil fired boilers can be diverted to fund any maintenance
needs of the new electric equipment.
AVEC has implemented electric boilers in several of its power plants around rural Alaska with no
significant issues. This project will locate the same or a similar boiler in the Chevak water
treatment plant. No operational issues are anticipated.
Any additional operational costs for AVEC will be minimal since the wind turbines are
operational. The only additional equipment in the AVEC power plant will be some minimal
controls. AVEC is fully capable of providing any on-going support for these controls. Operational
costs in the water treatment plant will be minimal as well. This new equipment has a life of
approximately twenty years. Any maintenance needs can be funded out of the reduced
maintenance needs of the oil fired boilers. The oil fired boilers will be maintained as a back-up
heat source. However, maintenance costs on those should be minimal due to greatly reduced
usage. AVEC’s costs of operations and maintenance would be funded through ongoing energy
sales to the villages that AVEC serves. The City of Chevak’s operations and maintenance would
be funding through local utility fees.
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ANTHC, teamed with AVEC is committing to reporting the savings and benefits to the Alaska
Energy Authority for the term required by the grant.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
The wind renewable energy source is operational in Chevak. At present, no benefit is being
derived from the excess wind energy that can be utilized to provide space and process heating
at the water treatment plant.
ANTHC and AVEC have worked together on this concept and evaluated existing systems around
the state where AVEC has implemented electric boilers to better control the wind energy
generated. All of these efforts have been successful. Both members of this team are confident
that the thermal storage available in the water treatment plant provide a perfect use for the
excess wind generation during times of moderate to high winds and low electric usage. This
project will reduce the fuel oil that needs to be imported to the village, provide a revenue
stream to AVEC for the excess energy, reduce the operating costs of the water treatment plant,
and therefore reduce the cost of water to both commercial and residential customers.
The intent of both partners in this project is to move forward with both design and construction
as soon as funding is available.
Accomplishments to date include completing a feasibility study that includes a HOMER analysis
which clearly shows the viability of this project. We have also worked to identify other locations
around the state where this approach can be used to maximize the efficiency of wind generation
capacity, reduce the use of fuel oil, and reduce the operating costs of both the power plant and
the water treatment plant.
All commitments made in other AEA grants have been met.
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.
We have attached a letter of support for this project from the City of Chevak. The City of Chevak
owns and operates the water treatment plant. There is no known opposition to this project.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 13 of 13 8/26/2011
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
This application is applying for Design and Permitting and Construction.
The total design cost for this project will be approximately $53,820. $2,691 of that amount will
be provided by ANTHC. The nature of the design cost match would be a contribution of project
management services. The requested design funds for this project are $51,129 ($53,820-
$2,961).
The total construction cost for this project will be approximately $199,085. $9,954 of that
amount will be provided by ANTHC. The nature of the construction cost match would be a
contribution project labor. The requested construction funds for this project are
$189,131($199,085 - $9,954).
The total funds being requested for this project are $240,260.
The investments made to date in this project include the costs associated with the attached
feasibility study and research into the proposed concept.
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
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 – Chevak Surplus Wind Project
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability.8,603 Gallons Equivalent Diesel Oil of Excess
Wind Energy.
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 4 North Wind 100 B
ii. Rated capacity of generators/boilers/other 100 Kw Each by AVEC
iii. Generator/boilers/other type Fuel Oil Boilers
iv. Age of generators/boilers/other 10 plus years
v. Efficiency of generators/boilers/other 75%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $ 100
ii. Annual O&M cost for non-labor $ 200
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]8,603 Gallons of Number 1 fuel oil equivalent of Surplus Wind power.
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]8,603 Gallons Number 1 Fuel Oil (Water Plant)
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
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
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]
Surplus wind recovery
b) Proposed annual electricity or heat production (fill in as applicable)
i.Electricity [kWh]
ii.Heat [MMBtu]8,603 gallons or 1,135 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 $ 252,905 (Design and Construction)
b) Development cost
c) Annual O&M cost of new system $ 300
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 8603 Gallons of Number 1 Fuel Oil Equivalent
iii. Transportation
b) Current price of displaced fuel $ 6.00 / Gallon
c) Other economic benefits New $ 12,477 annual revenue source for AVEC plant.
d) Alaska public benefits Reduced Water Utility Costs of $ 39,141 Annually
6. Power Purchase/Sales Price
a) Price for power purchase/sale $ .05 per KWH for interruptable power
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.62 (AEA Round V RE Fund project economic assessment)
Payback (years)4.9 Years Based on Fuel Savings (6.5 years including electricity costs)
Tab C
Budget Form
Chevak Design Milestone or Task Anticipated Completion Date RE-Funds Grant Funds Grantee Matching FundsSource of Matching Funds: Cash/In-kind/Federal Grants/OtherState Grants/OtherTOTALS Project Work Plan 9/3/20121,967$ 104$ In-Kind by ANTHC 2,070$ Project Scoping 10/1/20128,303$ 437$ In-Kind by ANTHC 8,740$ Preliminary Design 12/7/20125,244$ 276$ In-Kind by ANTHC 5,520$ 65% Design 2/8/201316,169$ 851$ In-Kind by ANTHC 17,020$ Permit Applications 5/1/20131,049$ 55$ In-Kind by ANTHC 1,104$ Negotiated Interruptible Power Sale Agreement 5/1/20131,049$ 55$ In-Kind by ANTHC 1,104$ 95% Design 4/1/20137,211$ 380$ In-Kind by ANTHC 7,590$ Engineers Cost Estimate 4/1/20133,146$ 166$ In-Kind by ANTHC 3,312$ Final System Design 5/1/20136,992$ 368$ In-Kind by ANTHC 7,360$ TOTALS51,129$ 2,691$ 53,820$ Budget Categories:Direct Labor & Benefits44,229$ 2,691$ In-Kind by ANTHC 46,920$ Travel & Per Diem5,980$ -$ In-Kind by ANTHC 5,980$ Equipment-$ -$ In-Kind by ANTHC -$ Materials & Supplies920$ -$ In-Kind by ANTHC 920$ Contractual Services-$ -$ In-Kind by ANTHC -$ Construction Services-$ -$ In-Kind by ANTHC -$ Other-$ -$ In-Kind by ANTHC -$ TOTALS51,129$ 2,691$ In-Kind by ANTHC 53,820$ Add additional pages as neededApplications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Chevak Design Milestone or Task Anticipated Completion Date RE-Funds Grant Funds Grantee Matching FundsSource of Matching Funds: Cash/In-kind/Federal Grants/OtherState Grants/OtherTOTALS Project Work Plan 9/3/20121,967$ 104$ In-Kind by ANTHC 2,070$ Project Scoping 10/1/20128,303$ 437$ In-Kind by ANTHC 8,740$ Preliminary Design 12/7/20125,244$ 276$ In-Kind by ANTHC 5,520$ 65% Design 2/8/201316,169$ 851$ In-Kind by ANTHC 17,020$ Permit Applications 5/1/20131,049$ 55$ In-Kind by ANTHC 1,104$ Negotiated Interruptible Power Sale Agreement 5/1/20131,049$ 55$ In-Kind by ANTHC 1,104$ 95% Design 4/1/20137,211$ 380$ In-Kind by ANTHC 7,590$ Engineers Cost Estimate 4/1/20133,146$ 166$ In-Kind by ANTHC 3,312$ Final System Design 5/1/20136,992$ 368$ In-Kind by ANTHC 7,360$ TOTALS51,129$ 2,691$ 53,820$ Budget Categories:Direct Labor & Benefits44,229$ 2,691$ In-Kind by ANTHC 46,920$ Travel & Per Diem5,980$ -$ In-Kind by ANTHC 5,980$ Equipment-$ -$ In-Kind by ANTHC -$ Materials & Supplies920$ -$ In-Kind by ANTHC 920$ Contractual Services-$ -$ In-Kind by ANTHC -$ Construction Services-$ -$ In-Kind by ANTHC -$ Other-$ -$ In-Kind by ANTHC -$ TOTALS51,129$ 2,691$ In-Kind by ANTHC 53,820$ Add additional pages as neededApplications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Tab D
Letters of Support
Tab E
Authorized Signers Form
Tab F
Authority
Tab G
Additional Materials
CHEVAK, ALASKA
ANTHC EXCESS WIND
ENERGY USE STUDY
PREPARED FOR:
ALASKA NATIVE TRIBAL HEALTH CONSORTIUM
PREPARED BY:
William Thomson PE
Al aska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
(907) 565 5342
August 20, 2011
ANTHC-Chevak Excess Wind Energy Use Analysis August 20, 2011
Alaska Village Electric Cooperative, Inc.
EXECUTIVE SUMMARY
The four Chevak wind turbines (Northern Power Systems 100B models) will generate in excess
of community requirements when there is moderate to heavy wind and when the community
load is light. Currently much of this excess is inefficiently utilized since there is no economic
way to store the energy yet. If electric heating is installed in the Chevak water plant and
controlled by the availability of excess energy, 8,603 gallons of fuel per year currently used by
the ANTHC water treatment plant could be eliminated. The design of the proposed equipment
is based on AVEC’s own secondary load installations but adapted to installation into the water
plant. The estimated cost for the heat recovery project is $252,905. The simple payback based
on a fuel cost of $6.00/gallon and fuel saved is 4.9 years. If the cost of the interruptible
electricity is subtracted, the simple payback increases to 6.5 years.
INTRODUCTION
Alaska Village Electric Cooperative (AVEC) and Alaska Native Tribal Health Consortium
(ANTHC) have been discussing ways in which operational coordination can achieve increased
village efficiency. One clear potential is the use of excess wind energy at the water treatment
plant (WTP). The problem with excess wind is its random, unpredictable nature, but the water
storage capacity at the water treatment plant provides a method for smoothing out this
inconsistency – heating water only when this is possible, and waiting out periods of light wind.
Unlike traditional heat recovery from engines, excess wind energy is transmitted via the existing
electrical distribution system. The power plant, wind turbines and water treatment plant can be
located at a distance from each other anywhere on the village electrical system and do not
require interconnecting piping.
The components of the required system break down into the following areas:
Design, purchase and installation of a 120 kW Water Heater;
Design and installation of system control and communications;
Installing new electrical service to the WTP.
AVEC’s experience since 2003 using electric water heaters for power plant secondary loads can
be directly applied to this application and will require no additional research and minimal
development. A CCI model VWB-10 boiler can be used as a 120 kW water heater, and can be
modified when delivered to Anchorage with a suitable control system. The boiler can be piped
directly into the existing boiler system using a recirculation pump. Piping and pumping capacity
will be required with a minimum of 50 GPM.
AVEC is currently controlling the wind turbines using network radio links, and there is a high
degree of confidence that a similar low-powered line-of-sight installation over 3/4 mile will
provide sufficient coordination between the AVEC powerhouse and the WTP. The AVEC
Chevak power plant has a network dispatcher capable of controlling the four wind turbines as
well as diverting excess energy into currently existing water and air heaters at the power plant.
The AVEC-designed system dispatcher can be modified to give the ANTHC WTP load priority
access to the surplus. Note that when the WTP cannot use the energy available, energy will
automatically shift from the WTP back to the AVEC power plant.
The 120 kW water heater load will require a new utility service, including a transformer bank and
a new 200 amp 480 volt service entrance. A separate revenue meter will be part of this service
and will be billed at a nominal rate to split the savings between AVEC and ANTHC. The agreed
price for energy sales is $0.05 per kW -hr. An important advantage of this approach over heat
recovery is the ease of metering – standard utility metering will keep track of the savings with a
high degree of accuracy. Monthly and other readings will be collected and billed using the
AVEC automated meter reading (AMR) system. A special system to monitor energy transfers is
not required.
Chevak has significant potable water storage and most of the fuel currently burned is used to
heat the water delivery system. No additional water storage is required.
There are no anticipated land use issues with this proposal.
There are no anticipated regulatory issues with this proposal.
There are no anticipated environmental issues with this proposal.
There is no current technology ready for implementation in Alaska Villages that would provide a
mechanism for time shifting generated energy from a time of abundant wind to a time of no
wind. While such a technology may be obtainable in the future, this proposal should still be
deemed economic as it will fully pay back the investment before any future technology could be
reasonably implemented.
THE BENEFIT ANALYSIS
The analysis of available surplus wind energy for use at the Chevak WTP was calculated with
Homer software for a typical year. In addition, these results were similar to actual wind data
collected during January through July 2011. As a requirement for system stability, the diesel
engines are not allowed to fall below 50 kW of load. This minimum requirement was included in
the Homer analysis. Energy in excess of village needs was estimated on an hourly basis and
exported from Homer.
Once the hourly data was available from Homer, a spreadsheet was used to determine the
effect of changing the size of the water heater. Based on this sensitivity check, a water heater
size of 120 kW was determined to be a reasonable compromise.
Monthly estimated kW -hrs were converted to gallons of diesel by using 132,000 BTUs / gallon
and 75% boiler efficiency.
Month
Potential Energy
available
(Gallons)
Current Usage
at the Chevak
WTP
Actual
Estimated
Savings
(Gallons)
January 861 2100 861
February 838 2120 838
March 697 1400 697
April 812 1200 812
May 311 1240 311
June 576 700 576
July 1127 700 700
August 555 700 555
September 642 760 642
October 857 900 857
November 839 1000 839
December 915 1660 915
TOTAL 9,030 14,480 8,603
CONCLUSIONS AND RECOMMENDATIONS
The estimated project cost for is $252,905. Estimated fuel savings are 8,603 gallons per year.
Using an average fuel price of $6.00/gallon results in estimated savings of $ 51,618 per year for
a simple payback of 4.9 years on the oil savings. If the cost of the interruptible electricity is
subtracted, the simple payback increases to 6.5 years. The village will see an annual savings of
$39,141 and AVEC will see an additional $12,477 of revenue from the sale of the surplus
power.
Chevak Excess Wind Energy Recovery Design
ITEM HRS, All UNIT Labor Travel Materials Total Cost
Disiplines COST
Project Work Plan 15 120 $1,800 $1,800
Project Scoping 30 120 $3,600 $4,000 $7,600
Preliminary Design 40 120 $4,800 $4,800
65% Design 120 120 $14,400 $400 $14,800
Permit Applications 8 120 $960 $960
Negotiated Interruptible
Power Sale Agreement 8 120 $960 $960
95% Design 55 120 $6,600 $6,600
Engineers Cost Estimate 24 120 $2,880 $2,880
Final System Design 40 120 $4,800 $1,200 $400 $6,400
Subtotal $46,800
Contingency 15% $7,020
Subtotal Design 340 $40,800 $5,200 $800 $53,820
Chevak Excess Wind Energy Recovery Construction and Total Project
MATERIALS AND EXPENSES LABOR FREIGHT TOTAL
ITEM QUAN UNIT UNIT MAT
Journey
LAB
Journey
LAB
General
LAB
General
LAB LABOR TOTAL UNIT FREIGHT TOTAL
COST COST HRS RATE HRS RATE COST WT(#) COST COST COST
AVEC Power Plant
Dispatcher Software
Changes 1 ea. $2,000 $2,000 80 $100 $8,000 $10,000
Radio Link Purchase and
installation 1 ea. $1,000 $1,000 15 $100 $1,500 20 $1.50 $30 $2,530
WATER PLANT
Pipe/Valves/Ftgs/
Gauges/Pump 1 lump $15,000 $15,000 80 $130 80 $50 $14,400 1000 $1.50 $1,500 $30,900
Radio Link Purchase and
installation 1 ea. $1,000 $1,000 15 $130 15 $50 $2,700 5 $1.50 $8 $3,708
120 kW Water Heater 1 Ea. $15,000 $15,000 50 $130 50 $50 $9,000 800 $1.50 $1,200 $25,200
Water Heater Modifications 1 ea $1,000 $1,000 20 $130 20 $50 $3,600 $4,600
New 200A 480V Service 1 lump $30,000 $30,000 0 $0 400 $1.50 $600 $30,600
Control Panel 1 lump $8,000 $8,000 16 $130 8 $50 $2,480 50 $1.50 $10,480
Misc Electrical 1 lump $2,000 $2,000 20 $130 20 $50 $3,600 100 $1.50 $150 $5,750
Commission System &
Training 40 $120 40 $50 $6,800 0 $6,800
Misc Hardware 1 lump $1,000 $1,000 0 500 $1.50 $750 $1,750
Misc Tools & Safety Gear 1 lump $1,000 $1,000 0 400 $1.50 $600 $1,600
Consumables, Gases, Etc. 1 lump $1,000 $1,000 0 200 $1.50 $300 $1,300
DIVISION 1 EXPENSES
Construction Management 120 100 $12,000 $12,000
Construction Admin/Engrg. 80 120 $9,600 $9,600
Superintendent Off-Site 40 $130 $5,200 $5,200
Crew Travel Time 20 $100 $2,000 $2,000
Crew Airfares 4 trips $1,000 $4,000 $4,000
Crew Per Diem 20
mn.dy
. $80 $1,600 $1,600
Housing Rent 1 mo. $1,500 $1,500 $1,500
Utilities 2 mo. $1,000 $2,000 $2,000
CONST SUBTOTAL $87,100 $80,880 $5,138 $173,118
CONST CONTIN 15% $25,968
DESIGN SUBTOTAL $53,820
TOTAL PROJECT $252,905