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HomeMy WebLinkAbout1 - Napakiak Grant Application4 Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 17 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 17 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Type of Entity: Napakiak Ircinraq Power Company Mailing Address PO Box 34030, Napakiak, AK 99634 Physical Address Napakiak, AK Telephone 907-589-2227 Fax 907-589-2250 Email napcorp@hughes.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Daniel Nelson Title General Manager Mailing Address PO Box 34030, Napakiak, AK 99634 Telephone 907-589-2227 Fax 907-589-2250 Email napcorp@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 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 17 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) Napakiak Wind Design and Construction Planning 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. Napakiak, Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) X Reconnaissance X Design and Permitting X Feasibility Construction and Commissioning X Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. Besides photovoltaic power, the only clean emissions free renewable power source with the potential for significantly lowering energy costs in Napakiak, (pop. 370) is wind energy. The community has selected a wind site on land owned by the corporation along a newly constructed 8.9 mile, 12470 V, 3 phase tieline over which the community receives all of its electricity from Bethel Utilities. This tieline is capable of handling up to 2 MW of power. Funding is being sought to complete final designs, construction cost estimates and integration studies needed for a construction ready project. The preliminary feasibility favors the installation of sufficient wind capacity to meet the majority of the community energy requirements and potentially sell wind energy back across the tie line into Bethel. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 17 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.)
 This project will benefit the village of Napakiak by determining the feasibility for installing a wind energy system in the community. Positive determinations and resulting plans will set the stage for the development of a high-penetration wind system which could augment the current high cost for electricity, has the potential for supplying enough heat to local residences and will displace diesel use in the Bethel Utilities service region. 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 $282,395 with a project match of $20,000 from the local village corporation, for a total project cost of $302,395. 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. $282,395 2.7.2 Other Funds to be provided (Project match) $20,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $302,395 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) $302,395 2.7.5 Estimated Direct Financial Benefit (Savings) see cost worksheet 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.) see cost worksheet Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 17 7/21/2010 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 Daniel Nelson of Napakiak Ircinraq Power Company, assisted by Dennis Meiners of Intelligent Energy Systems, LLC, he will be coordinating subcontractors and the overall project. Mr. Nelson 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. Project supervision: Dennis Meiners of Intelligent Energy Systems 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.) Begin Reconnaissance & Monitoring January 2011 Geotechnical Analysis March 2011 Begin Integration & Conservation Study May 2011 Begin Electrical & Foundation Design July 2011 Compile available monitoring data August 2011 Complete Integration & Conservation Study September 2011 Complete Electrical & Foundation Design October 2011 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.) Reconnaissance & Monitoring – on going, September 2011 Geotechnical Analysis – April 2011 Integration & Conservation Study – September 2011 Final Electrical & Foundation Design – October 2011 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 17 7/21/2010 for known, key personnel, contractors, and suppliers as an attachment to your application. Intelligent Energy Systems, LLC will administer this grant and act as project managers for the benefit of Napakiak Ircinraq Power Company, and the Native Village of Napakiak, Intelligent Energy Systems, LLC will administer this grant and act as project managers for the benefit of Napakiak Ircinraq Power Company, and the Native Village of Napakiak, Dennis Meiners of Intelligent Energy Systems, LLC will be the project manager and Ona Brause will provide project administrative and reporting assistance. On-site project supervision will be conducted by local community representatives - working through the project supervisor, Ben May of IES. The Alaska Energy Authority is assisting with the wind resource assessment. Wind resource assessment specialist, J..P. Pinard, P.E. Phd, will assist with the wind resource assessments. Albert Sakata P.E. is providing electrical engineering design assistance. Golder Associates are the candidates for geotechnical analysis. Foundation design assistance will be in conjunction with the wind turbine and wind turbine tower manufacturers and one of the several experienced wind turbine foundation design firms in Anchorage. 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. There are very few risks to this project. The primary purpose of this design & feasibility study is to reduce the risk and increase the benefit of installing a wind energy system in Napakiak. The wind resource has been demonstrated. By obtaining worthwhile monitoring and analytical data, progress will be made towards an appropriate design strategy that maximizes benefit to the community. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 17 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. Napakiak Wind Feasibility, Final Design and Construction Planning Besides photovoltaic power, the only clean emissions free renewable power source with the potential for significantly lowering power costs in Napakiak, a community of 370 residents, is wind energy. The community has selected a wind site on land owned by the corporation about 1 mile south of the airport. The site is situated along a newly constructed 12470 V, 3 phase tieline over which the community receives all of its electricity from Bethel Utilities. This tieline is capable of handling up to 2 MW of power. In June 2010, Napakiak and the Alaska Energy Authority erected an anemometer tower to collect wind data at the tieline wind site. Analysis and correlation of recently collected data, with long term meteorological measurements at Bethel indicates that Napakiak has a class 6 wind resource at height of 70 meters. There is a growing body of experience in Alaska to indicate that larger wind turbines produce more energy at lower overall costs, are more reliable and are easier to maintain than smaller machines. The Napakiak Wind site has the potential to not only produce sufficient energy to reduce the purchase of and thus the cost of electricity across the Bethel tieline but could also produce a surplus which could be used for home heating, local transportation and possible sale back into the Bethel power grid. Preliminary analysis supports the economic viability of installing wind turbines in Napakiak, however further study is needed to complete the final feasibility and design for a cost effective construction ready project. That includes the potential to construct larger capacity wind turbines that appear to offer significant financial and operational advantages such as the EWT 900 direct drive machine on a 73 meter tower. Sufficient resource assessment work has been completed to indicate the potential viability of a wind project in Napakiak. The purpose of this funding request is to complete feasibility, integration and design studies in conjunction with conformational resource assessments, which will further substantiate the resource. Funding is needed to complete feasibility assessments, install load monitoring equipment, complete interconnection and final design, as well as associated construction plans that will lead to a construction ready project. Project Summary: Intelligent Energy Systems, LLC will administer this grant and act as project managers for the Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 17 7/21/2010 benefit of Napakiak Ircinraq Power Company, and the Native Village of Napakiak, population 370. Recently a new 8.9 mile, 7.2/12.47 kV, 3-phase electrical intertie was constructed from Bethel to Napakiak. The grant will be used to complete final designs, construction cost estimates, integration studies and permitting, for the installation of one 900 kW EWT direct drive wind turbine for the Village of Napakiak and connected into the existing tie line with Bethel. The wind turbine would be built to meet the majority of the electrical requirements for the community of Napakiak and potentially sell wind energy back across the tie line into the Bethel grid. Project Description: This work includes the installation of load monitoring equipment, collection of energy usage data and geotechnical data needed to complete final design and integration studies for a wind systems consisting of one or more Northwind 100 turbines or a single EWT 900 kW machine, connected to the Bethel-Napakiak powerline. This study will examine two control scenarios: 1. Keeping all the wind energy within the Napakiak control area, and 2. Exporting excess wind energy into the Bethel grid. The energy data collection, load monitoring and geotechnical analysis are needed as a basis of design studies which will evaluate the physical construction and interconnection requirements, including turbine foundation designs, and construction costs and installation issues. This information will also be used for the associated the integration studies will identify control area service requirements needed to interconnect with Bethel Utilities. Together these studies are needed to define construction costs, regulatory authority and project financial feasibility. A brief summary of the studies to be conducted consist of the following: Integration Studies: Since Napakiak currently purchases all of its electricity, over the tieline, Bethel Utilities provides all ancillary regulation services required to integrate the wind system. If Napakiak intends to introduce several hundred to 1000 kW of wind onto the Bethel intertie, the following types of analysis are required: • Power flow and transient stability • Regulation studies • Voltage and frequency-ride-through requirements and reclosing sequencing • Under frequency load shedding schemes, and curtailment procedures. Project Feasibility Studies: Project feasibility study will include the following tasks: • Conformational wind resource studies • Community energy usage surveys • Installation of load monitoring load equipment necessary to complete design. • Documentation of equipment and hardware performance needs • Quantify energy market and sales rates in Napakiak. • Identify integration issues for both, one or multiple 100 to 1000 kW wind turbines. • Determine potential wind project costs and benefits • Provide a conceptual wind project design for Napakiak. Final Design and Construction Cost Estimates: Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 17 7/21/2010 The final design will include: • Development a project program description • Site plans • Obtain all necessary permits and site control documents • Conduct geotechnical analysis • Complete wind turbine foundation design for EWT 900 and NW 100 turbines • Turbine construction plan • Distribution, cabling and interconnection • Access pads and roads • Lighting and lightning protection • Complete interconnection and integration studies • Integration and control hardware and software • Monitoring, communication, metering and control • Design and specify interconnection hardware • Protection systems, and relaying schemes • Final site design • Construction methods, cost estimates and schedules For this project the Napakiak met station data for the period July 30 to August 27 2010 was correlated to the National Climate Data Center (NCDC) Bethel airport data so as to project the wind data to long term (15 years). The average wind speed during the July-August 2010 period are 4.93 and 5.28 m/s at 20 and 30 m AGL respectively at the Napakiak met station; and 4.21 m/s (10 m above ground level, AGL) at the Bethel airport. The correlation between the Napakiak met station data and Bethel airport data during that period is R = 0.91 which is considered to be an excellent correlation (R = 1.0 is perfect). The short-term wind speed measured at the Napakiak met station site is adjusted to a fifteen- year mean using the MCP (Measure-Correlate-Predict) method of measuring, correlating, and predicting the long-term mean winds. The formula is: , where Es is the estimated long term wind speed at the site of the wind monitoring station, µs is the measured wind speed at the site, µr is the measure reference wind speed, and Er is the measured long-term mean wind speed at the reference station. The other variables in the equation are the correlation coefficient R and the standard deviation for the reference station, σr, and the wind monitoring site, σs. These values are listed in Table 1. From the above formulae the fifteen-year (1994-2009) projected mean of the Napakiak Wind site is 6.02 m/s at 30 m AGL. Table 1: Details of values in the evaluation of the long-term mean wind speed of the Napakiak met station using the Measure-Correlate-Predict method Table 2 shows summary values of wind speeds for the Bethel airport and the Napakiak met station sites. The Napakiak met station numbers include wind projected to higher levels above ground. These numbers were obtained by using log law formulation. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 17 7/21/2010 Turbulent airflow over rough surfaces tends to generate a vertical profile of horizontal winds that are fairly predictable. The wind speed profile near the ground is dependent on neutral well-mixed air conditions and the roughness of the ground surface. This vertical profile can be defined by the natural log law equation: where u1 is the known wind speed at z1 (typically at 10 m AGL), and is projected to u2 at the height z2. The surface roughness is defined by zo which as a rule of thumb is 1/10 the height of the grass, brush, or ground undulations surrounding the site where the measurements are made. This equation is considered most accurate up to approximately 100 m above the surface. The surface roughness zo, can be categorized by the type and size of vegetation as well as the hilliness of the ground itself. If we know the wind speeds at two heights of say 10 and 30 m then we can also find the value of zo, look the value up on a roughness chart and compare the land description to the actual ground surrounding the station. With the known zo we can use the log equation to predict the wind speed at higher elevations. The surface roughness based on the measurement is estimated to be zo = 0.06 m, this would represent a surface roughness of flat tundra with scattered low brush. Table 2: Details of measurements and their projection to longer term and to higher elevations. Bold values indicate the estimated long-term (15-years, 1994-2009) mean wind speed at the Napakiak met station. At the site of the Napakiak met station the mean longterm wind speed at 70 m AGL is estimated, according to the best fit of the log law curve, to be 7.01 m/s. A graphical representation is given in Figure 1 below. AEA Analysis of the Bethel met station measurements reported a long term wind speeds of 6.7 and 7.3 m/s at 30 and 50 m AGL respectively, which is roughly 0.5 m/s higher than the Napakiak met station (July-August 2010) measurements. Available wind resource data, general construction estimates and load estimates were analyz ed using Homer (Hybrid Optimization Model). Preliminary analysis favors the installation of larger wind turbines with the generation of excess electrical energy that can be used for heating, or other uses in Napakiak with any excess available to be sold back into the intertie. A simple comparison of wind energy generation cost is provided below. The purpose of this study is to refine the estimates, and interconnection, construction costs, and energy value estimates. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 17 7/21/2010 Figure
1:
Vertical
profiles
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horizontal
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speeds
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Napakiak
met
station.
The
vertical
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“U(log)”
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“U(msd)”
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U(15‐yr
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 Estimated Annual Energy Performance of Candidate Wind Turbines in Napakiak kWhr/yr Est. Cost Cost/kW installed O&M cost/ kW, 1%/yr Northwind 100 250,525 $800,000 to $900,000 $8000-$9000 $.03/kWhr/yr EWT 900 2,403,028 $4,000,000 to $4,500,000 $4000 -$5000 $.016/kWhr/yr Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 17 7/21/2010 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. Recently a new 8.9 mile, 7.2/12.47 kV, 3-phase electrical intertie was constructed from Bethel to Napakiak. The new 3-phase tieline allows the Napakiak Ircinraq Power Company to provide reliable 3-phase power to the community of Napakiak (pop. 370), and for the first time, the Napakiak School, which up until this year generated its own power using diesel generation. In addition to the tieline a new standby power generation module was built to provide emergency 3-phase power to the community in the event that power is not available from Bethel. The community buys power from Bethel Utilities Corporation at approximately $.40/kWhr. 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. Currently, all electrical power is provided to Napakiak over the tieline. The wind project could potentially be located along the tieline and provide energy in either direction to Napakiak and Bethel. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. This is the first year the school in Napakiak has been purchasing power from Napakiak. Total yearly electrical consumption is estimated at 1,100,000 kWhrs annually. The average residential energy rate into Napakiak from Bethel is seen in the table below. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 17 7/21/2010 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 environmenta l 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 To be determined in studies. 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 property proposed for the wind project is owned by the local 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 The existing meteorological tower has been permitted, at the proposed wind site. A preliminary review indicates no permit obstacles, however, this issue will be addressed in the reconnaissance phases of the project. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 17 7/21/2010 One of the major issues to be studied in this project is to determine requirements to interconnect wind systems into the Bethel Grid. 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 A wind site has been selected in consideration of permitting issues. It is anticipated that some fill may be necessary for construction and a Corp of Engineers Wetlands jurisdictional waiver may be required. These issues will be thoroughly addressed in the initial design phases. 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 Total funds requested for the feasibility study are $282,395 with a project match of $20,000 from the local village corporation, for a total cost of $302,395. See attached grant budget form. 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.) To be determined in studies. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 15 of 17 7/21/2010 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 One of the outcomes of this study will be to complete interconnection studies required to determine wind energy costs to customers in Napakiak, and the potential to sell excess wind energy back into the Bethel grid across the tieline. 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. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The potential project benefit is lower energy costs in Napakiak and the potential for additional displaced diesel fuel in Bethel. 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 To be determined in Feasibility Assessments and Operating Plans SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 16 of 17 7/21/2010 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. This project consists of engineering and feasibility studies needed for construction readiness. A wind monitoring station has been placed at the potential wind site. A new 3-phase tieline allows the Napakiak Ircinraq Power Company to provide reliable 3-phase power to the community and the Napakiak School. The power company is owned by the village corporation, which is committed to lowering local energy costs. They will be contributing matching cash for this project and are motivated to complete project as soon as possible. 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 Napakiak Corporation and the utility are in agreement that wind power has been identified as the preferred alternative energy source. This project is needed to more fully understand how to harness this resource. 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 Total funds requested are $282,395 with a project match of $20,000 from the local village corporation, for a total project cost of $302,395. See attached grant budget form. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 17 of 17 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