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HomeMy WebLinkAboutPuvurnaq Kongiganak Flywheel Grant Application4 Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 21 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 21 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Puvurnaq Power Company Type of Entity: Electric Utility Mailing Address PO Box 5009, Kongiganak, AK 99545 Physical Address Kongiganak, AK Telephone 907-557-5616 Fax 907-557-5614 Email puvurnaq@hughes.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Harvey Paul Title General Manager, PPC Mailing Address PO Box 5009, Kongiganak, AK 99545 Telephone 907-557-5616 Fax 907-557-5614 Email puvurnaq@hughes.net 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 conditio ns 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 21 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) Kongiganak Flywheel 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. Kongiganak, 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 project demonstrates the use of flywheel energy storage to stabilize any village power grid. Grid stability is needed to achieve increased use of wind and other renewable energy sources in diesel mini grids. The proposed project consists of installation of a Powerstore flywheel energy storage system, along with a state of the art Distributed Digital Control System, to create a very high-penetration wind diesel system with residential thermal storage in Kongiganak, Alaska. The demonstration of this system will enable the effective sizing and cost reduction measures to be identified so that the system can be widely replicated throughout the state and other power systems throughout the country. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 21 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.)
 Total annual benefits are estimated to be in excess of $113,441. With 22,100 gallons of additional fuel displacement operating time will be reduced by 2700 hours at $5.25-$6.25 per hour. Simple pay back for the project would be 14.63 years. At 5% interest for 20 years these savings represent a NPV of $3,751,034. With use of the flywheel, additional annual benefits over and above the simple wind-heat system is 11,189 gallons of diesel @ $5.00 per gallon of $55,945 dollars. HOMER analysis indicates 6630 hours of diesel operations will not be required. At $9.75/hr this saves an additional $64,642 dollars. The reduced usage of the diesel gensets results in double the replacement interval from 10 years to 20 years. This will save an estimated replacement cost of $320,000 (without inflation) for two gensets. 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 $1,395,231 with a project match of $166,137 from the community or a total project cost of $1,661,368. 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. $1,395,231 2.7.2 Other Funds to be provided (Project match) $166,137 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $1,561,368 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) $1,561,368 2.7.5 Estimated Direct Financial Benefit (Savings) $113,441 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.) $ 6360 in local labor hired for project Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 21 7/21/2010 Cost Saving comparison: Diesel Base Case/5 turbines w/heat recovery /5 turbines with Powerstore Load estimated 2015 Base 5 turbines Saving from base 5 Turbine Saving from base Saving from phase 1 Wind diesel Diesel only Heat recovery Heat Recovery Powerstore Flywheel kWhrs generated 1,522,409 Diesel galllons 109,157 65,779 216,890 54,590 54567 x 5.00=$272,835 11,189 x $5.00= $55,945 Diesel operating hours 15611 15611 8981 $64,642 6630 x $9.75 =$64,642 Surplus kWhrs 485,118 (gall eq. =16444) $49,332 @ $3.00/gal 372,842 gal equivalent= 12638 $37,916 @ $ 3.00/gal (-$11,416) Increased O&M Cost $30,000 -$30,000 $ 42000 -$42,000 $12,000 Increased Benefit $236,222 $ 333,393 $97,441 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 Intelligent Energy Systems, LLC. Intelligent Energy Systems’ work will be supervised and approved by Harvey Paul of Puvurnaq Power Company. Intelligent Energy Systems’ CEO Dennis Meiners, and Project Manager Ben May, will be in charge of coordinating the schedules and subcontractors for the project. – See supplemental section for resume and references. Mr. Paul is the Chief Administrative Officer of the village owned electric utility. He prepares and administers the annual budget and addresses capital improvement issues, and manages the power system operations. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 21 7/21/2010 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 flywheel systems July 2011 Construction and Installation Materials Delivery – flywheel, pilings, cables, equipment, etc. August 2011 Installation of pilings and flywheel October 2011 Integration and commissioning of flywheel storage November 2011 Evaluation 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 flywheel system. 2.) Ship and install flywheel and foundations. 3.) Integrate and commission flywheel storage system into existing wind-heat 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. Puvurnaq Power Company (PPC) is a locally owned electric utility, owned by the Native Village of Kongiganak. It was ordained by the Kongiganak Traditional Council (KTC) in January 15, 1983 (Ordinance No. 99-06-2). KTC reserves the power and authority of PPC’s budgets, rates and its acquisition or disposal of real property. PPC has a 5 member Board of Directors to manage and operate the public electric utility. The PPC 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. PPC holds a Certificate of Public Convenience and Necessity (No. 395) which was issued by the Alaska Public Utilities Commission, Docket No. U-87-71 (1), Date of Order – May 5, 1988, Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 21 7/21/2010 Executed June 1, 1988. Kongiganak Traditional Council: President - Peter Daniel Sr. Vice-President - Henry Kanuk Secretary - Mary Nicholai Members - Oscar Active and Eric Phillip Tribal Administrator- Oscar Active PPC’s Board of Directors: Chairman - Daniel Azean, Sr. Vice-Chairman - James D. Lewis Secretary - Jean Ivon Members - John A. Phillip, Sr. and Evon Azean PPC’s Staff: General Manager- Harvey B. Paul Bookkeeper - Ronald Otto Sub-Bookkeeper- Freida Beaver Operator- Glenn Ivon Operator- Kenny Nicolai Sub-Operator- Willie Mute Proposed Suppliers and Subcontractors, a description of their qualifications and experience of the staff and firms. Intelligent Energy Systems: Dennis Meiners, project coordination IES is supported by the following engineers and technicians: Albert Sakata P.E Electrical Engineer Construction: Project Manager: Ben May, IES STG Inc: Contact Dave Meyers, P.E, and Jim St. George See attached 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. 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, weekly and 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 21 7/21/2010 There are inherent risks in any project involving construction, logistics, and unpredictable weather. These risks will be managed by implementing meticulous planning resources, with contingency built into the project schedule. The team of Intelligent Energy Systems and STG has experience managing the logistics of this project. Flywheels have yet to be used in Alaska, so there may be some perceived risk surrounding their implementation. This project has elected to use a flywheel system, the PowerStore, that has been successfully implemented in multiple locations, some very remote, in Australia, as well as in conjunction with wind resources on several islands in the Azores, managing unstable loads and fluctuating power sources. These systems have produced unprecedented levels of high penetration, and been tested to the utmost level of confidence. 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. 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. The Kong site was selected by wind resource experts from the National Renewable Energy laboratory to provide a monitoring location which would provide regionally valuable data. The AEA website provides a complete wind resource assessment report. www.akenergyauthority.org/programwindresourcedata.html. The results of the wind resource evaluation indicate an outstanding wind resource with an Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 21 7/21/2010 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/m³. 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 the number, size, age, efficiency, and type of generation. The existing system consists of five Wind Matic 17-S wind turbines on 80 foot lattice towers, and a new 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 20 thermal stoves in the residences of village elders. The electric load data is displayed in the tables below and the following figure provides a profile of the loads which were used for this analysis. The load above includes an expected 15% load increase due to the new school which was completed in 2010. This figure shows ten year the average load is estimated to grow from 107 kW (2003) to 175 kW, or 4188 kWh/day 2010. Month 2003 Ave Load 2008 Ave Load 2010 Ave :Load, (est) (kW) (kW) (kW) Jan 129 182 207 Feb 127 185 209 Mar 131 182 208 Apr 96 147 167 May 82 127 147 Jun 82 123 141 Jul 82 120 125 Aug 83 125 127 Sep 97 144 155 Oct 117 169 194 Nov 117 172 195 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 21 7/21/2010 Dec 139 195 220 Ann kW 107 156 175 Ave kWh/d 2568 3744 4188 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 2010 Estimate Jan 18 10 2 35 13 207 Feb 18 13 2 35 13 209 Mar 17 10 2 35 13 208 Apr 15 10 3 30 12 167 May 14 9 2 28 12 147 June 14 7 2 25 11 141 July 14 6 1 10 11 125 Aug 15 6 2 10 12 127 Sept 17 7 2 20 13 155 Oct 17 8 2 35 14 194 Nov 18 9 2 35 14 195 Dec 18 11 2 35 14 220 Ave 16 9 2 28 13 175 Annual kWhrs 142,935 77,953 16,839 243,090 111,833 1,528,772 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 11 of 21 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 by easYgen or 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 reso urces. 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. Kongiganak is located on the west shore of Kuskokwim Bay, west of the mouth of the Kuskokwim River. 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. Kongiganak is accessible only by air or by snowmachine in winter, and boat in summer, for delivery of supplies. Due to recent construction of a new school and a new runway, Kongiganak has experienced recent upgraded infrastructure. In a recent RUBA report, it was indicated that Kongiganak meets all Essential indicators, and most Sustainability indicators. Kongiganak 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 Kongiganak. 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 In the current Kongiganak diesel system, it is important to realize that not all of the power Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 21 7/21/2010 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 to preserve the stability of the system frequency and voltage. A flywheel energy storage unit eliminates the need to either dump wind energy or curtail wind production through its ability to symmetrically and instantaneously inject and absorb real energy into the power system as needed. The installation of the flywheel acts as a shock absorber making up for any changes in consumer load, variations in wind output, and diesel loading. The flywheel enables optimum diesel savings in three ways: 1. Limits system spinning reserve to 15 kW in all operating modes, thus eliminating the need for excess diesel capacity, and allowing operating gensets to operate at maximum efficiency, while reducing engine starts and stops, and standby losses. 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. Increases economic value of the wind turbines. The average wind speed at Kongiganak is 7. 78 m/s per second. The typical wind turbine, such as the Windmatic or the Northwind 100 begins 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 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 PowerStore flywheel instantaneously and symmetrically absorbs and injects real and reactive power to smooth out the variation and provide the guaranteed power level, firming the continuity of the wind supply Two types of control are possible with the flywheel system. These are dynamic and logistic. Dynamic control is required in the system due to the presence of multiple synchronous wind generators, and changing load requirements. Of greater value are the logistical control modes, which make decisions when to stop and start a diesel engine, start a wind turbine and turn on and off loads. The flywheel eliminates restrictions placed on operating the wind turbines during certain combinations of wind strength and direction and have been proven in locations such as multiple locations in Australia, as well as Portugal and the Azores Islands. To result in considerably increased operating hours for high penetration The service life of the mechanical braking system is likely to be reduced due to the enhanced Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 21 7/21/2010 frequency of grid losses. The addition of the flywheel 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 flywheel results in additional annual fuel savings of 22,100 gallons of fuel and diesel operating hours by 2700 hours, or $9.25 an hour, and a resulting annual savings of $110,500 over the current wind diesel case. The constraints are: 1. Operating reserve as a percentage of load 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 low load set points. 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 dies 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 flywheel fixes the operating reserve requirement under all conditions at 15 kW, which is 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 flywheel eliminates the need for this setting, by providing real and reactive power to bridge system configuration changes, depending on how the settings are configured. The flywheel can provide both fast short term, and depending on the load, long term ride through support. The flywheel 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 flywheel fixes this parameter at 15 kW and then directs any and all wind to meet the highest value loads. Without the flywheel, the first 100 KW of wind energy would go to heat dumps. 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 flywheel sets the optimum diesel configuration and allows the system to stay in that configuration and absorb all the wind that is available. 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 setting to increase the percentage of wind versus diesel. The flywheel is especially valuable here as it enables the maximum penetration of Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 21 7/21/2010 wind at lower and medium wind speeds, where the wind turbine power output is most effected by small changes in wind speed. Diesel low load set points. The electronically fuel injected diesel engines are highly efficient across the full range of fuel setting, because fuel is managed so precisely. As wind penetration increases, less diesel fuel is injected into the cylinders. However, due to constraints on real or reactive power requirements, and the ability of the generators to accept large step loads, low load operation is currently limited to set points of 45 to 50% of rated capacity. The flywheel removes this constraint. HOMER MODELING RESULTS: are attached. Powerstore, flywheel based power station integration package. The PowerStore diesel power station integration package allows the PowerStore Energy Storage Flywheel to interact seamlessly with an existing automatic diesel power station, and consists of: Supply, electrical installation and commissioning of a PowerStore 300kW flywheel energy storage system with cold weather modifications; Supply and commissioning of a Powercorp Distributed Control System for four (4) generators, two (2) feeders, five (5) wind turbines, and one (1) “contractor driven” electric boiler, with algorithms to interface with metering controller for thermal stoves; Two (2) SCADA PC’s, data recorder and communications router for internet/telephone remote monitoring and control. Note that these PC’s are desktop PC’s and not touch screens; Engineering work required to make the DCS interface with the boiler and the Windmatic 95 wind turbines (specifications to be delivered to Powercorp; and Optional 5 year scheduled servicing of components. The Powerstore consists of a flywheel connected to a permanent magnet generator. Powerstore utilizes advanced power electronics interface to electronically decouple the rotational energy stored in the flywheel from the power grid. This configuration enables energy to be symmetrically absorbed and extracted from the flywheel rapidly and repeatedly over a wide range of rotational speeds, and power outputs. The Powerstore acts as a fast acting shock absorber to regulating real energy and reactive power to stabilize frequency and voltage as wind output and load fluctuate. The adjustments are made on a millisecond time frame, and enable the diesel system to reduce spinning reserve requirements. High Penetration Wind Systems To enable the advanced features of grid stabilization for high wind penetration systems, and maximum utilization of wind energy, the PowerStore system must communicate with the various system components on the grid to which it is connected. This is done through a system of distributed integrated controllers, which are placed on major system components, such as the diesel generators, wind turbines, and major load centers. These controllers overlay the existing control packages to create an integrated network. This network is driven by advanced software applications so each component in the system operates optimally and independently. The following monitoring modules are required in order for the PowerStore to perform correctly in High Renewable Penetration modes. Diesel Generator Monitors Small DIN-rail mountable monitoring modules are added to the existing generator controllers. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 15 of 21 7/21/2010 These modules send information back to the PowerStore about the current state of the generator (running, stopped, on-line or off-line) as well as how much power the generator is delivering if it is on-line. Using a power transducer tapping in to existing current transformers (CT’s) and potential transformers (PT’s) the monitoring device is also able to inform the PowerStore how much power is being generated, as well as how much spinning reserve is available on-line. Wind Turbines Similar to the generator controller, controllers are mountable monitoring modules are required to be added to the existing wind turbines. These modules send information such as the state of the machine (running, stopped, on-line and off-line) and how much power is being generated back to the PowerStore. Commands can also be sent from the PowerStore in order to reduce the power output of the machine through pitch regulation and power set point control on some or to shut- down or start-up. The monitoring modules use industry standard Ethernet communication hardware to communicate back to the PowerStore, allowing many different modes of data transport to the wind turbine tower, including fiber-optic and wireless. High Renewable Penetration operation occurs under the following three distinct modes: 1. Diesel + PowerStore 2. Diesel + PowerStore + Maximum Wind Turbine 3. Diesel + PowerStore + Limited Wind Turbine Diesel + PowerStore Under this mode of operation, the PowerStore stabilizes the frequency and voltage by using its internal monitoring, as in the basic functionality case. Additional functionality enabled by the inclusion of the external monitoring includes the ability of the PowerStore to provide temporary spinning reserve for overload conditions of the power station. During an overload condition, which is sensed by the generator monitoring modules, the PowerStore will export power in order to reduce the load on the generator down to no more than 100% of their rated power. The automatic power station controller is expected to change the generator schedule in order to prevent the failure of the power system, should the overload continue for an extended time. This feature saves diesel fuel by reducing spinning reserve requirements and also by “peak lopping” short overload peaks will also reduce the number of engine generator starts and stops, configuration changes and maintenance on the generators. Diesel + PowerStore + Maximum Wind Turbine The Diesel + PowerStore + Maximum Wind Turbine mode operates as the Diesel + PowerStore mode, with the addition of the operation of the Wind Turbines. This mode has all of the previous functions, including no requirement for spinning reserve and the frequency and voltage fluctuation reduction. The PowerStore monitors the wind turbine output, however the wind turbines are run at their maximum output until the power output of the diesel generators is reduced below a preset parameter (usually 30% - 40% of prime power output, and through automatic selection and configuration). At that point the control system switches to the next mode with limited wind turbine output. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 16 of 21 7/21/2010 Diesel + PowerStore + Limited Wind Turbine The Diesel + PowerStore + Limited Wind Turbine mode operates as the previous mode, with the addition of a control loop to limit the output from the wind turbines such that the diesel generators are never under-loaded – which is detrimental to both the stability of the power system and the mechanical operation of the diesel generators. The method of power limitation for the pitch controlled wind turbines such as the FL 600 machines, the output of the wind turbine can be limited in order reduce the amount of power generated without losing all of the power generated by the machine. The controller can also turn them off wind turbines one-by-one in order to maximize the amount of power delivered by the wind turbines without causing an over-power situation. Wind Turbine, Powerstore Diesel off mode: As the operators become more confident with the wind diesel operation, the Powerstore can be programmed for voltage support mode. In this mode the Powerstore would become the voltage and energy source for the system, and the diesel gensets could be shut off entirely. Demand managed devices The Wind Diesel Controller is capable of communicating with thermal storage devices , and can schedule and dispatch these loads to increase or decrease the penetration of wind. The heat recovery systems and demand-managed devices can be controlled in various ways, depending on the proportion of heat recovery load to the electrical load, and the level of control required. 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 Qemirtalek Village corporation. 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 17 of 21 7/21/2010 • 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 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 $1,561,368 is required to purchase and install a Powerstore flywheel grid stabilization and integration control module. The module will cost $1,002,800, and an additional $235,000 will be required to ship, and completely install the module. The module will require a pile foundation similar to that for the wind turbines and powerplant. Final engineering is required to complete electrical, mechanical and structural drawings. The total cost of the project is estimated to be $1,452,680. A contingency amount was added to address unknown factors, which always emerge in bush projects, for a total estimated project cost of $1,561,368. $1,395,231 in grant funds is being requested, and $166,137 in match will be from the community. 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 the 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) Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 18 of 21 7/21/2010 • 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. Simple pay back for the project would be 14.63 years. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Project cost worksheet attached. 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 A capital investment summary of $1,561,368 is required to purchase and install a Powerstore flywheel grid stabilization and integration control module. The module will cost $ 1,002,800, and an additional $235,000 will be required to ship, and completely install the module. The module will require a pile foundation similar to that for the wind turbines and powerplant. With use of the Powerstore flywheel, additional annual benefits over and above the simple wind- heat system is 11,189 gallons of diesel @ $5.00 per gallon of $55,945 dollars. HOMER analysis indicates 6630 hours of diesel operations will not be required. At $9.75/hr this saves an additional $64,642 dollars. The reduced usage of the diesel gensets results in double the replacement interval from 10 years to 20 years. This will save an estimated replacement cost of $320,000 (without inflation) for two gensets. Total annual benefits are estimated to be in excess of $113,441 Simple pay back for the project would be 14.63 years. At 5% interest for 20 years these savings represent a NPV of $3,751,034. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 19 of 21 7/21/2010 This would indicate a benefit/cost ratio of ($3751034/$1661368 = 2.25). 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 proje ct • 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 Kongiganak, 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 = $37,500 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 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 20 of 21 7/21/2010 In preparation for this award, the wind-heat system in Kongiganak, Alaska has commenced construction. The previously funded system should be fully operational upon receipt of funding for this project. Once approved, the flywheel system will be ordered immediately and upon receipt of the flywheel in Kongiganak will be installed and integrated. Other grants awarded for the wind system in Kongiganak consist of a designated legislative grant for $1,500,000 and AEA Renewable Energy Fund Grant for $1,700,000. 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 flywheel. 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 Kongiganak 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 $1,440,480 with a contingency added to address unknowns which always emerge in bush projects = TOTAL PROJECT COST of $ 1,561,368. $1,395,231 in grant funds are being requested, and $166,137 in match will be from the community. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 21 of 21 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