Loading...
HomeMy WebLinkAbout1 - Tuntutuliak Wind REF4 batterybank Application Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 24 7/21/2010 Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-IV.html Grant Application Form GrantApp4.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet4.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstructions4.pdf Instructions for completing the above grant budget form. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for 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. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER: ! Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. ! All applications received will be posted on the Authority web site after final recommendations are made to the legislature. ! In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 2 of 24 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Tuntutuliak Community Services Association, Inc Type of Entity: Electrical Utility Mailing Address P.O. Box 8027 Tuntutuliak, AK 99680 Physical Address 105 Airport Rd Tuntutuliak, AK Telephone 907-256-2529 Fax 907-256-2934 Email tcsaelec@unicom-alaska.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Carl Andrew Title General Manager Mailing Address P.O. Box 8027 Tuntutuliak, AK 99680 Telephone 907-256-2529 Fax 907-256-2934 tcsaelec@unicom-alaska.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for 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 Grant Application Round IV AEA11-005 Grant Application Page 3 of 24 7/21/2010 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) Tuntutuliak Wind Energy Storage 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. Tuntutuliak, Alaska 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 Solar X 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. This is a proposal to add electric thermal and battery energy storage to the existing Tuntutuliak wind/diesel system in order to increase the village’s use of wind energy and further displace the use and expense of diesel fuel. The project will increase power conditioning capabilities of the Tuntutuliak facility through the installation of a lithium ion battery and power conditioning system capable of providing 250 kW of energy for 15 minutes, which is sufficient time to start a diesel generator after a long period of diesel off operation, and the installation of an additional 92 kW of Electric Thermal Storage (ETS) in community facilities. The installation of the 250kW Battery Storage System in the existing power facility will provide: 1) adequate fault ride-through; 2) voltage and frequency support; 3) excess wind energy storage and 4) sufficient energy for extended periods of ‘Diesel Off’ operation. When successful, this project will provide a cost effective smart grid system which can be widely replicated throughout the state. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 24 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 24 7/21/2010 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.)! Modeling studies show that the addition of battery energy storage system will stabilize the grid, increasing the penetration of wind that will displace an additional 11,120 gallons of fuel over and above the wind diesel system, as well as allowing a total of 2600 hrs of diesel off operation, and extended replacement periods. The annual benefits are estimated to be $70,445 per year. The cost of the improvements are $708,122, and a simple payback would be less 10.0 years. With use of the Battery Energy Storage System, additional annual benefits over and above the simple wind-heat system is 5,400 gallons of diesel @ $5.00 per gallon or $55,945 dollars. HOMER and Hybrid 2analysis indicates between and 3000 and 4600 hours of diesel operations will not be required. At $9.75/hr this saves an additional $44,642 dollars Diesel generator cost $9.75/hour to operate. Hybrid 2 analysis indicates 2600 hours of “diesel off” operations for a savings estimated to be $25,350. The reduced usage of the diesel gensets results in extending the replacement interval from 10 years to 15 years. At an estimated replacement cost of $320,000 for the two gensets. Therefore there is an additional savings of $5340 per year, ($16000 per year, vs, $10,166 = $5430/yr.) Additional benefits which are more difficult to quantify include: • Lower maintenance burden on staff • Easier operation of wind diesel power system • Improved power quality 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. Total funds requested are $708,162 with a project match of $3,200,000 from the community for a total project cost of $3,908,162. 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. $708,162 2.7.2 Other Funds to be provided (Project match) $3,200,000 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 24 7/21/2010 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $3,908,162 Benefits Summary The load is growing rapidly in Tuntutuliak due to new water services, and the construction of a new church, opening of the new teacher housing. The load in 2010 is estimated to be 1,007,000 kWhrs, with a peak load of 265 kW and average load of 115 kW, for an overall hourly generation average energy nearing 2760 kWhrs. Fuel usage in 2010 is expected to be 71,880 gallons. -Potential savings to village utility in the use of ‘Battery Energy Storage’ system over . Potential enhancement / benefits to current ‘Wind Diesel’ system in the use of ‘Battery Energy Storage’ is at least $72,738 annually. -Available for conversion to heat in homes and public facilities – 519,843 kWh electricity Gallons of Diesel Used For Power Generation (USGallons) Diesel Operating (Hours) Increased O & M Costs (US$) Net additional Benefits (US$) Diesel Only System 79,676 Gallons 9663 Hrs 0 0 Diesel and Wind System 35,844 Gallons 9663 Hrs $31,000 Diesel / Wind w/ Battery 32,377 Gallons (5042 gallon @ $5) Savings= $25,210 5097 Hrs (Est) (4566 x $9.25) + ($6000/yr extend replacement) =$48,235 $3000 $ 70445 ! Load estimated 2015 - 1,465,475 kWhr, 2010 estimated load = 1,007,400 kWhrs, pk 265, ! Fuel Costs est. 5.00US$ / Gallon ! Operating Costs Fixed est. $9.25 / Hr Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 24 7/21/2010 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) $ 2.7.5 Estimated Direct Financial Benefit (Savings) $365,570 p/yr 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.) $ 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. The Project Manager will be Dennis Meiners of Intelligent Energy Systems, of Anchorage assisted at the village level by Carl Andrew, Utility Manager of TCSA. Ben May project manager for IES will be coordinating subcontractors and the overall system designs. Chief Electrical Engineer is Albert Sakata of Sakata Engineering in Anchorage. ! Mr. Andrew is the Chief Administrative Officer of the village owned electric utility and will prepare and administer the annual budget, address capital improvement issues, and manage the power system operations. 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.) Design and Engineering Final design and engineering of battery systems October 2010 Construction and Installation Materials Delivery – batteries, PCS modules, thermal storage, August 2011 Installation of storage units, battery management system and electric thermal storage September/October 2011 Integration and commissioning of energy storage November 2011 Evaluation Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 24 7/21/2010 First Quarterly report January, 2012 Second quarterly report April, 2012 Third quarterly report July, 2012 Fourth quarterly report October, 2012 Project Close out December, 2012 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.) Milestones for this project are few and simple. 1.) Final design and engineering of system, construction drawings 2.) Ship and install batteries and power conditioning modules. 3.) Integrate and commission battery system into existing wind-heat control system. 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. Tuntutuliak Community Service Association is a locally owned electric utility, owned by the Native Village of Tuntutuliak. It has a 5 member Board of Directors to manage and operate the public electric utility. The KPC Board of Directors hires a General Manager to act as the chief administrative officer of the utility. The utility is operated from a fund separate from the general fund of the village. Proposed Suppliers and Subcontractors, a description of their qualifications and experience of the staff and firms. Intelligent Energy Systems: Dennis Meiners, CEO Ben May, Project Manager IES is supported by the following engineers and technicians: Albert Sakata P.E Electrical Engineer Subcontractors: Rob Bensin, Electrical Administrator Bering Straits Development Company Construction: Local trained labor Construction Supervision, Albert Sakata, P.E., Electrical Administrators license, Ben May, Project Manager, IES See attached 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 24 7/21/2010 A full-time, qualified project manager will be monitoring this project. The project point of contact and the project manager will jointly submit periodic status reports. Additionally, monthly project coordination meetings will be held with the project team to track progress and address issues as they arise. 3.6 Project Risk Discuss potential problems and how you would address them. There is a growing body of data to indicate that the application of high penetration wind diesel systems with energy storage should be widely applied in Alaska. A recent ISER reports indicated, the reliability, production of these systems have been increasing, while the costs of installation and operations and maintenance costs are declining. This is due to a number of factors, including a growing body of experience, more qualified technologist and the availability or proven equipment. This project has uses power electronic conditioning and lithium ion battery energy storage. There are no special purpose components being used in this project. The power conversion system and battery systems are highly developed products which have been designed for grid connected applications. The companies that are supplying these components in serial production and have worldwide service, distribution networks. The lithium ion batteries selected for this project are designed for power system regulation and use in electric plug in and hybrid vehicles. The battery, battery management and power conditioning systems are supplied as an integrated design and built for grid regulation applications. All components are available in modular formats which can be expanded by adding units, and changing controller parameters. The battery management system as well as the power conversion are monitored via the internet, and can be remotely diagnosed and reprogrammed. In case of an internal failure, a defective module or battery is disconnected and the remaining system can continue to operate at proportionally reduced power. Individual modules are designed so that one or two persons with simple hand tools can be remove a defective unit, and the replacement and shipped via snow machine or single engine aircraft. What is being proposed here is an expansion to the existing power conditioning platform in the Tuntutuliak powerplant. This proposal is an expansion of the addition of 250 kVar of inverter capacity, along with a lithium ion battery bank which is capable of 250 kW of continuous output for 15 minutes. Should additional battery capacity, power conditioning capacity or a flywheel need to be warranted in the future, additional inverter modules can be added. All components are available from reputable manufacturers who provide performance guarantees, warranties, training and service. Every component is designed for no to low maintenance, long life, and simple rugged use. The power conditioning units require yearly air filters changes, as the only moving parts are two small cooling fans which dissipate internal cabinet heat during periods of continuous high output operations. The project site is located in an excellent wind resource. The community is entirely dependent on diesel fuel. The cost of everything in the village is high. The site has a well trained, competent staff of local mechanics and electrical workers. There is a substantial need for the energy for both power generation and home heating. The advantage of the battery system is that it is simple to maintain, and significantly increases operational flexibility. To be economically Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 24 7/21/2010 attractive, the fuel savings brought about by installing wind capacity and batteries must over the lifetime of the project, be more than adequate to pay for the additional costs required. The addition of battery energy storage ensures this success. This village wind system is characterized by frequent operation in which the wind power is greater than the load. The primary risk is insuring that battery resources are well managed. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 24 7/21/2010 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. Tuntutuliak is 40 miles South of Bethel and 25 miles North of Kongiga nak and the wind resource in Kongiganak is well documented. One year of 30 meter onsite data was available and can be downloaded from the Alaska Energy Authority Website. Since long-term meteorological data for Kong, Tunt, and Bethel all correlate well, it is a reasonable to conclude that the Tuntutuliak wind resource is similar to Kongiganak’s resource. TThe AEA website provides a complete wind resource assessment report. The results of the wind resource evaluation indicate an outstanding wind resource with an average wind speed is 7.78 m/s, and with the power distribution well suited for the capture of wind energy. The AEA report gives an annual average temperature of 1.4°C, which at sea level corresponds to an air density of 1.286 kg/m!. The data was analyzed in the Homer model to and compared with the power curves of various candidate wind turbines. 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 24 7/21/2010 the number, size, age, efficiency, and type of generation. The existing system consists of five Wind Matic 17-S wind turbines on 85 foot lattice towers, and a 10 year-old diesel powerplant. By July 1, 2011, the system will also include an energy recovery boiler at the washeteria for frequency control, a smart metering system, and 27 thermal stoves in the residences of village elders. The current electrical load anticipated to increase by 10% load due to the recent addition of the new clinic, fishery building, 5-unit housing complex, and airport lights. This table describes the increase in demand by sector: Estimated Electric Demand of Future Facilities in kW Month Residential Sector Public Water System Airport School Other 2015 Estimate Jan 18 10 2 30 13 207 Feb 18 13 2 30 13 209 Mar 17 10 2 30 13 208 Apr 15 10 3 30 12 167 May 14 9 2 23 12 147 June 11 6 2 20 11 141 July 11 5 1 10 11 125 Aug 12 5 2 10 12 127 Sept 17 7 2 20 13 155 Oct 17 8 2 30 14 194 Nov 18 9 2 30 14 195 Dec 18 11 2 30 14 220 Ave 16 9 2 24.4 13 175 Annual kWhrs 142,935 77,953 16,839 213,890 111,833 1,445,400 Diesel Generation Power Plants at the three villages consists of 4 generators and switchboard with 4 generator cabinets and 1 master cabinet. Engines: (2) John Deere model 6090 HF 485 Generators—275 kW, 413 FLA (1) Older John Deere model 6081AF001— 190 kW, 286 FLA (1) Older John Deere model SE500862— 125 kW, 188 FLA Generators: (2) Marathon Electric Generator Model 432RSL6210, 260 KW, 3 Phase, 1800 RPM, 480 Volts, with Permanent Magnets (1) Marathon Electric Generator—Model 4320SL6212, 180 KW, 3 Phase, 1800 RPM, 480 Volts (1) Marathon Electric Generator—Model 4310SL6204, 120 KW, 3 Phase, 1800 RPM, 480 Volts Controls: Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 24 7/21/2010 All generators are wired with a DVR2000E made by Marathon Electric. On the older generators the voltage will be controlled by the DVR2000, and the fuel (frequency) is controlled by a woodward actuator connected through a DG2 interface. All Gens are monitored and controlled GCP 31 controllers in the switchboard control panel. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The existing power plant supplies electrical energy supplied by the wind turbines, and diesel fuel burned in engine-driven generators to supplement wind power produced. Wind turbines offset a substantial amount of diesel previously burned, as well as supply energy to thermal stoves, which offset heating oil. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Tuntutuliak is located at the highest extent of the tides of Kuskokwim Bay, 40 miles South of Bethel, AK. It is located in a marine climate. Precipitation averages 22 inches, with 43 inches of snowfall annually. Summer temperatures range from 41 to 57, winter temperatures are 6 to 24. Tuntutuliak is accessible only by air or by snow machine in winter, and boat in summer, for delivery of supplies. In a recent RUBA report, it was indicated that Tuntutuliak meets all Essential indicators, and almost all Sustainability indicators. Tuntutuliak relies on electricity to maintain home lighting, street lighting, telephone service, school service, clinic hours, and freezers to maintain a subsistence lifestyle. Reliable electricity is crucial to the residents of Tuntutuliak. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods The Tuntutuliak wind diesel heat system consists of Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 24 7/21/2010 Currently, wind diesel hybrid power systems are under construction in Tuntutuliak, Kongiganak, Kwigillingok are scheduled for completion by Spring 2011. Each of the systems under construction includes: Five Windmatic 17S Windturbines, rated at 95 kW, Hybrid Smart Grid Controller Power electronics line regulation, with planned expansion for battery storage Heat recovery boilers Advanced metering system Residential thermal storage heaters Five wind turbines have a maximum rated output of 475 kW, however this output may exceed 650 kW during cold periods in the winter when the air is dense and much more power is developed. The average electrical load in the community is 250 kW for 9 months of the year and 150 kW for the summer months. Therefore, in the current system configuration there will be an excess of wind energy averaging 180 kW in the powersystem much of the time. The expansion of the STAT/Com PCS system from and the addition of a battery energy storage system will allow the operation of the system in a diesel off mode, for an estimated 2200 hours per year. The current design involves the operation of at least one diesel engine generator running at all times to regulate voltage and provide fault current. As the wind comes up, which occurs frequently at night most of the winter, excess wind energy would be made available to customers at a reduced rate. This excess wind energy would be captured in Electric Thermal Storage (ETS) heating units. ETS appliances are boxes, filled with bricks which are heated with electricity. The ETS units are to be adapted with special, Grid Friendly Controllers, which are able to dynamic response in a complementary way to the amount of wind energy in the system. A two way communication link Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 15 of 24 7/21/2010 will be established between the power generation system and the ETS units as a demand controlled device. Thus the ETS units are smart-grid ready and have the ability to respond to real-time pricing, load & demand management, alternative energy, frequency control and other signals available from power system controllers. This functionality enables the Hybrid Smart Grid Controller (HSMGC) to better manage the output of the wind turbines, and smoothing the energy peaks and valleys that occur from changes in wind turbine output and consumer energy demand. The Hybrid Smart Grid Controller would determine the amount of available wind energy, available the Hybrid Smart Grid Controller. The SGC serves a number of purposes, it is a communication gateway, provides some local data storage, interfaces with the metering system and will establish/adjust the system frequency targets. The Smart Grid controller communicates with the electric thermal storage units, through the metering system, or via a wifi broadcast. A redundant method of communication using a Wide Area Network to establish two way communication to the ETS units could be used. Using the metering system to enable the ETS units and other devices in the home, is the most straight forward manner of managing the ETS units. The Smart Grid Controller and the metering system must be able to separate and account for wind energy used to charge ETS devices as, this energy is not e ligible for the State of Alaska Powercost Equalization Subsidy. Therefore it is important that any excess wind energy absorbed by the ETS units must be metered separately from diesel generated sales. The fan and controller electrical components of the ETS units are eligible for the subsidized electrical rates. Therefore, a method must be devised to submeter the ETS unit charge elements. Each ETS device would be enabled to capture excess wind energy when available and store it for heating use throughout the day or for several days. The ETS devices must have the following functionality, termed “Grid Friendly behavior: 1. response to changes in system frequency, differing set points 2. Low frequency cut out, to prevent outages. 3. Internal ability to sense condition of grid, apply time outs and staggered reconnections 4. proportional charge control, SCR based in response to changes in Hz, enables units to self regulate charge 5. Submetering of charge elements 6. Reporting state of charge 7. Two way communications, either direct broadcast or through the meter. This proposed system provides an integrated village heat and power system which uses advanced electrical metering, supervisory demand control and thermal energy storage devices to capture, store excess wind energy with the objective of reducing overall diesel fuel consumption for a village by 50%. This project proposes to make for changes to the power system to reduce maintenance, improve reliability of operations and increase fuel savings. These changes include: 1. The increase of the capacity of the Power conditioning module from 250 kVAr, to 500 kVAr. 2. The addition of lithium ion battery bank which will provide 250 kWs of ride through power for 15 minutes. 3. The installation of 2, 46 kW electric thermal storage units in the community center and head start buildings. 4. The upgrading of the ETS controllers in 21 thermal storage units to “Grid Friendly” control capability. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 16 of 24 7/21/2010 In the current Tuntutuliak diesel system, it is important to realize that not all of the power produced by the wind turbines can effectively utilized, especially at its highest value which is the displacement of diesel fuel used to meet the guaranteed consumer electrical load. This is true because a large proportion of the wind generated energy at all times must be dissipated to energy storage (either the heat recovery boiler in the power plant or into residential electric thermal storage regulate power system frequency.) The wind turbines are induction type generators and require reactive power support for starting, and operation. Reactive power support is provided by a powere electronics static var compensation power conditioning system (STATCom/PCS) device rated at 250kVar. The STATCom/PCS accomplishes seemless power conditioning by using IGBT-based inverter modules through AC/DC/AC power conversion. When connected to real energy storage such as that provided by a flywheel or batteries the PCS system allows control and conditioning of both real and reactive power based on the system configuration and capacity. In this proposal, the capacity of the PCS module is upgraded from 250kVa to 500 kVa, and a premium lithium ion battery bank with the capacity to supply 250 kWhrs of real energy for 15 minutes is added. The addition of the battery storage unit provides additional Vars and current to supplement the a single generators ability to start wind turbines without special sequencing over the full range of wind speeds. More importantly the addition of battery energy storage will provide the voltage support required to operate in diesel-off mode. Modeling studies indicate the potential to reduce diesel operation in the range of 2000 hours annually, with a total fuel reduction in the range of 50%. The batteries have a turn around electrical efficiency in the range of 90%, and the battery management system will be set to recharge the batteries using wind power only. The batteries will reduce the need to either dump wind energy or curtail wind production through its ability to instantaneously inject real energy into the power system as needed. The primary frequency of the power system will be controlled through the fast absorption and release of energy used to charge a 250 kW heat recovery boiler in the powerplant and 250 kWs of electric thermal storage devices distributed throughout the community. Homer and Hybrid 2 modeling indicate that the power system should be able to absorb 450 kW or peak excess wind out put and a sustained multi day output of 170 kWs. The battery energy storage will be charged using excess wind energy and is antipated to utilize in the range of 6 % of the excess wind energy for charging. The expansion of the STATcom/PCS and the addition of the Lithium Ion battery bank enables optimum diesel savings in three ways: 1. Increases dynamic reactive power/ VAr control from +/- 250 kVAr to +/-500 kVar, which allows anytime starting of induction wind turbines, increases wind turbine run time. 2. Increases frequency and duration of high wind penetration diesel displacement by eliminating the restrictions on operating wind turbines during certain combinations of wind strength and load. 3. Enables wind only operation, as well as wind operation with smaller generator sets. The average wind speed at Tuntutuliak is 7. 78 m/s per second. The Windmatic 17s wind turbine is capable of producing energy at a wind speed of 4 m/s and reaches full rated capacity at 14 m/s. The nature of the wind resource is such that 90% of the energy is produced at wind speeds below the rated capacity, while only 10% of the energy is produced at wind speeds below 7 m/s. This implies that in order to achieve significant fuel displacements estimated by the HOMER modelling, the wind system must be able to reliably meet full guaranteed electrical demand (consumer load, lighting, communications, electrical appliances, tools, motors, etc.) over fairly narrow band of wind speeds and time durations. HOMER modelling estimates that the full Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 17 of 24 7/21/2010 consumer electrical load would be met whenever the wind speeds exceed 8 m/s (16 mph), which is 60% of the time. However, in reality this level of performance is only possible with the addition of the flywheel or other form of real energy storage such as a battery bank. The HOMER model assumes that the wind diesel system operates over 15 minute or 1-hour time steps and that the wind turbines produce only at a guaranteed power level. In reality the equilibrium of the current and voltage, fluctuates along a sub second time frame and is subject to the random nature of the wind, instantaneous changes in consumer load, and the rapid variability of turbine output. The wind diesel system is designed to operate most of the time with substantial excess of wind energy. In order to accomplish this 21, 9.6 kW, and two larger 46 kW electric thermal storage devices are installed throughout the community. These devices are to be equipped with “grid friendly” controller, which receive and updated operational set point from the central power station controller every 4 seconds. The “grid friendly” controllers are sensitive to the frequency of the power grid, and autonomously adjust their rates of charge or discharge around and established frequency set point. The grid frequency is a measure of the balance of energy supply and energy usage on the grid. The grid friendly electric thermal storage devices response to small changes in frequency so that that battery are not required to respond to the many small cyclic changes to energy flows on the grid. This feature substantially increases the lifetime and usefulness of the PCS and lithium ion battery bank. The grid friendly controllers in the ETS units are set to respond to changes in power in 200W steps, using low noise zero- crossing silicon controlled rectifiers (SCR) switching. This switching occurs autonomously within each device at variable settings from .4 seconds to minutes/hours. The PCS unit supplies reactive power conditioning instantaneously, the ETS units and heat recovery boiler in the power plant respond to small changes in frequency and the batteries are called upon to make up deficits in real power, which are only anticipated to occur once or twice per day during wind operation. This system is designed to be robust, and simple to operate. A drawing of the proposed component layout is provided in the Appendix. The addition of the expanded PCS/battery system eliminates or reduces the following operating constraints (conditions the power system must be met to represent a feasible operating mode) on the current wind diesel system. When modeled in Homer, the addition of the battery system results in additional annual fuel savings of 20,000 gallons of fuel and reduced diesel operating hours by 2200 hour. At $5.00 per gallon for diesel fuel and an estimated diesel operating cost of $9.25 an hour, and a resulting annual savings of $70,445 over the current wind diesel case. The additional operations and maintenance costs over the first 10 years of operation, are estimated to be approximately $25,000 annually. Annual maintenance includes battery replacement cost of $150,000 at the end of 10 years, and a maintenance reserve of $1000 per year for the replacement of airfilters on the PCS, the potential to need to replace one or both of the PCS cabinet cooling fans over the first 10 years of operation. The lifetime of the PCS module is 20 years. The planned lifetime of the battery bank is at least 10 years. Advances in lithium ion battery technology are bring costs down on battery systems and performance is rapidly increasing. Interviews with battery supplies anticipate a 50% reduction in cost within 5 years. Therefore a replacement cost of $150,000 is an estimate which would include returning the old batteries back to the factory for recycling. The constraints on operation of the diesel plant eliminated by expansion of the PCS and addition of the battery bank include: 1. Operating reserve as a percentage of load Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 18 of 24 7/21/2010 2. Operating reserve a percentage of annual peak 3. Operating reserve as a percentage of wind power output. 4. Control averaging time for power generated power 5. Diesel off operation Operating reserve is the surplus generating capacity that is required at all times. The amount of operating reserve can be expressed as a percentage of load, percentage of annual peak load, and percent of wind power output. Operating reserve as a percentage of short-term loads. This is a diesel generation requirement, which defines a percentage of the total power output that must be covered at all times by diesel generation. This constraint is to provide enough real or reactive power in the event that the load increases suddenly or the power output from the wind fluctuates suddenly. The higher the operating reserve is as percentage of load, the greater the amount of diesel generation that must stay on line, and thus the amount of excess generation capacity that will be shunted to thermal loads in wind operational modes. The battery energy storage capacity and battery management system enables the adjustment of the operating reserve requirement based on operating experience, it is estimate that with the addition of the battery system and the optimized operation of the heat recovery boiler, it may be able to reduce this amount to 15 to 20 kW, which is about half the current amount. Operating reserve as a percentage of annual peak. This defines the percentage of total power output that must be covered by the spinning reserve in the long-term. The constraint insures sufficient spinning reserve in the event the power output of the wind turbines continues to decrease over time, or the load slowly begins to grow. The combination of the power system control setting, operation of load absorbing heater, and the energy stored in the battery system will eliminate the need for constant adjustment of this setting, by providing real and reactive power to bridge system configuration changes, depending on how the settings are configured. The electric thermal storage device controllers can provide fast short term response to decreasing loads. Depending on the load, the margin of safety required and the wind production forecast the battery storage system can provide minutes of long term ride through in gusty winds, thus prolonging diesel off operation, and delays increase in diesel capacity. Operating reserve as a percentage of wind power output. Sometimes this is referred to as a margin of safety. This is a setting which determines how much available wind will be shunted to heating loads, or relied upon for “firm” capacity. This constraint ensures enough diesel capacity is available to meet the load in case of a sudden loss of wind power. The Hybrid Power System Controller, and Smart grid controller monitor the status of the wind, make a forecast for the next 15 minutes, and establish operational setpoints for each ETS device every 2 seconds. Thus this fixes this parameter is automatically adjusted and the available wind energy is directed to meet the highest value loads. Without the battery system, additional diesel capacity would be placed on line for operating reserve, and that energy would go to heat recovery system in the powerplant and dissipated to the outside through the power plant radiator. Control Averaging time. The time over which each of the parameters is evaluated establishes the operational modes of equipment. This parameter has perhaps the greatest effect on fuel saving. The Hybrid Power Station controller sets the optimum diesel configuration and allows the system to stay in an optimized wind configuration. The averaging time has the most significant impact in establishing long-term spinning reserve requirements, both in real or reactive power modes, which takes precedence in configuring settings to increase the percentage of wind versus diesel. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 19 of 24 7/21/2010 The battery energy storage and expanded PCS system dynamic capacity of the power system to sustained changes in real and reactive power which enables the maximum penetration of wind at lower and medium wind speeds. The system is particularly susceptible to changes in reactive power when the wind turbine power output is approaching its peak output. Diesel off operation. Diesel off operation is enabled with the addition of the battery backup system. HOMER MODELING RESULTS: are attached. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The land for the project has been donated by the Native Village of Tuntutuliak. 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 additional permitting required. 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 land use issues apply. 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 20 of 24 7/21/2010 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 A capital investment summary of $708,162 is required to purchase and install a 250-500 kVar battery storage system, grid stabilization and integration control module. Design work to be completed on the battery system and PCS will cost $31,000. Shipping and installation is estimated at $527,560. Full integration costs will include an additional $86,880 through commissioning. A contingency of about 5% was added to address unknowns that always emerge in bu sh projects. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) O&M costs will be funded through disbursement of fuel cost savings over time. 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 potential buyers for the power supplied by this project are existing and new utility customers. The purchase price will be determined once the supplied energy is available to be sold back into the power system. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. See attached Cost Worksheet Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 21 of 24 7/21/2010 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 Annual savings over diesel-only system with wind are equal to $240,614. The addition of the battery storage system (BSS) adds an additional $124,956/yr over diesel only. The addition of the BSS potentially provides for “diesel off” operating scenarios which significantly reduce diesel fuel consumption and O&M costs. The non-economic benefits include reduced carbon emissions from offset diesel use and exposure to technical training for local residents for on-going maintenance of wind-heat system. 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 The Chaninik Wind Group is working to develop a regional wind system business plan, based on a cooperative business model. The primary elements of this plan include utilizing combined funding from the savings of displaced diesel fuel to pay for system maintenance, and overall administration. The greater the number of wind turbines and energy storage, the more fuel displaced, the more viable will be the financial strength of the group. One of the principles of successful operation will be to create a well-paid job in each community to support the wind system operation, and to create a network of trained operators, one in each village, including Tuntutuliak, who can support each other. A proposed source of funding would be to allocate $.05 per kilowatt hour for wind production to the operation and support. Each wind turbine will conservatively produce 150,000 kWhrs annually. This would be $7500/turbine x 5 turbine = $37500 in additional wages to utility personnel. Another $.03 / kWhr would be dedicated to a replacement fund. However, a production bonus would be paid to the utility personnel for any kilowatt hours produced above 200,000 kWhrs per year. This production bonus would be $.10/kWhrs. This could be as much as $4000 per turbine or $20,000. The increased cost of turbine operations would be partially paid for through the turbine bonus, increased non-fuel operating costs provided in the PCE program, and Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 22 of 24 7/21/2010 through fuel savings. The customer would still see a significant decrease in electrical rates, as the current value of kilowatt of displaced fuel is in the range of $.30/kWhr. The overall business plan would be administered by the Chaninik Wind Group with the assistance of the automated meter reading and information technology systems. In each village the system would be administered through the use of prepaid meters. The business plan when developed will provide a detailed management and financial plan, and outline utility performance standards. 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. In preparation for this award, the wind-heat system in Tuntutuliak, Alaska has commenced construction and is anticipated for commissioning by July 2011. The previously funded system should be fully operational upon receipt of funding for this project. Once approved, the battery storage system will be ordered immediately and upon receipt in Tuntutuliak will be installed and integrated. Other grants awarded for the wind system in Tuntutuliak consist of a designated legislative grant for $1,600,000 and AEA Renewable Energy Fund Grant for $1,600,000. These grants were received to build the 5 turbine wind system, with powerplant upgrades, upgraded metering systems, boiler grid interface, smart grid systems, and thermal stove storage. By the time the funding for this grant is approved, most of the substantive work on that system will be completed and the system will be primed for the installation of the battery storage system. With the other grant systems, most requirements have been met or are anticipated to be met in a timely manner. SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The Council and residents of Tuntutuliak have been entirely supportive of this project and the anticipated savings it will bring to their community along with the reduced carbon footprint 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 – GrantBudget3.doc A total construction budget of $675,440 with an added contingency fund added to address Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 23 of 24 7/21/2010 unknowns which always emerge in bush projects = TOTAL PROJECT COST of $708,162. $708,162 in grant funds are being requested, and $3,200,00 in match will be from the community. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 24 of 24 7/21/2010 SECTION 9 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. B. Cost Worksheet per application form Section 4.4.4. C. Grant Budget Form per application form Section 9. D. Letters demonstrating local support per application form Section 8. E. An electronic version of the entire application on CD per RFA Section 1.6. F. Authorized Signers Form. G. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. H. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations. Print Name Signature Title Date