HomeMy WebLinkAboutSelawik Hybrid Wind-Diesel System Round IV Grant ApplicationsAlaska Village Electric Cooperative, Inc.
Selawik Hybrid Wind-Diesel System
Turbine Upgrade
Renewable Energy Fund-Round IV
Grant Application
Submitted by:
Alaska Village Electric Cooperative, Inc
4831 Eagle Street
Anchorage, Alaska 99503
Submitted to:
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
September 15, 2010
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 22 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.
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Grant Application Round IV
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Village Energy Cooperative (AVEC)
Type of Entity:
Electric Utility
Mailing Address
4831 Eagle Street
Anchorage, AK 99503
Physical Address
Same
Telephone
(907) 565-5531
Fax
(907) 562-4086
Email
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Brent Petrie
Title
Manager, Community Development Key
Accounts
Mailing Address
4831 Eagle Street
Anchorage, AK 99503
Telephone
(907) 565-5531
Fax
(907) 562-4086
Email
BPetrie@avec.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
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SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Selawik Hybrid Wind/Diesel System Turbine Upgrade – Conceptual Design and Feasibility Study
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.
This project is located in Selawik, Alaska, a small city with a population of 829 persons . Selawik
is located at the mouth of the Selawik River where it empties into Selawik Lake, about 90 miles
east of Kotzebue. It lies 670 miles northwest of Anchorage. The city is near the Selawik National
Wildlife Refuge, a key breeding and resting area for migratory waterfowl. The Selawik River is
navigable from early June to mid-October. Employment is provided by the school district , NANA
Regional Corporation, Native Village of Selawik, Maniilaq Association and retail establishments.
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)
Reconnaissance 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.
To determine the viability of upgrading the Selawik wind turbines from the existing AOC
machines to Northern Power NW100s, AVEC proposes to conduct a feasibility study and
conceptual design. AVEC will analyze and report findings to partners and community members.
By re-using the existing site, we anticipate to drive down the total installed cost significantly.
This total project concept, with wind generation, could be segmented into the following phases:
Phase 1. Feasibility study & conceptual design.
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Phase 2. Financing and negotiation of any power purchase agreement.
Phase 3. Design and engineering.
Phase 4. Installation of transmission and wind energy.
Phase 5. Operations and maintenance.
This proposal only covers phase 1.
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.)
Selawik was one of the first communities to install wind turbines in Alaska. In 2002, 4 AOC’s
(Atlantic Orient Corporation, Inc. now Entegrity Wind Technology) were installed with Denali
Commission funding as a demonstration project. At the time of construction, the NW100 was
not commercially available. A prototype unit had been installed in nearby Kotzebue, AK.
The performance of the AOC turbines is fairly well documented, including tip-brake problems
and other maintenance problems. Due to the AOC performance and maintenance issues, the
community of Selawik has not experienced the corresponding net benefit that other
communities with NW100 have experienced. With the more proven NW100 wind technology,
AVEC anticipates net benefits associated with the installation of 3 NW100 wind turbines.
Therefore, this feasibility study and conceptual design is designed to document and confirm
these net benefits. Our anticipated benefits are listed below:
The financial benefits of the project include the following:
Reduced Cost of Electricity. AVEC customers in Selawik could see reduced electricity
costs through reduced fuel consumption. Operations and maintenance (O&M) costs
may be reduced in Selawik with decreased use diesel prime power generators that need
service, repair, and eventual replacement.
The public benefits of the project include the following:
Reduced Water and Sewer Utility Costs. Conversion of excess wind power during
periods of high winds for utilization in the Selawik water/sewer system is less expensive
than using diesel oil for heating.
Reduced Pollution and Greenhouse Gas Emissions. The potential of reducing pollution
through wind energy is an appealing incentive.
Other Benefits to the Alaskan public will also exist. An important benefit of installing the
proposed wind turbines would be to reduce the direct and indirect costs of using fos sil fuels in
the region. This project could help stabilize energy costs and provide long-term socio-economic
benefits to local households. Locally produced, affordable energy will empower community
residents and may help avert rural to urban migration. This project would have many
environmental benefits resulting from a reduction of hydrocarbon use. These benefits include:
Reduced potential for fuel spills or contamination during transport, storage, or use (thus
protecting vital water and subsistence food sources);
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Improved air quality;
Decreased contribution to global climate change from fossil fuel use; and
Decreased coastal erosion due to climate change.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of fun ds, and the nature and source
of other contributions to the project.
This feasibility analysis, wind resource assessment, and conceptual design phase is estimated at
$93,500; $85,000 of which is requested of the Alaska Energy Authority. The remaining $8,500
will be matched in-kind by AVEC and sought from regional partners, including NANA Regional
Corporation. The rough order of magnitude estimate, through the construction phase, is $1.5
million-2.5 million, in the following three phases with the following potential sources of funding
or financing:
1) Feasibility analysis, resource assessment, and conceptual design $85,000 (AEA-R4)
2) Planning, permitting, and design $150,000 rough order of magnitude (AEA Round 5-
Anticipated)
3) Wind power construction $1.5-2.5 million- rough order of magnitude (AEA)
The project has one area of concentration: wind generation.
Wind Generation
Four AOC 15/50 wind turbines were installed in the spring of 2002 with funding from the Denali
Commission. The four AOCs were installed as part of an AVEC power plant and community tank
farm replacement project.
The AOC turbine has proven to be a high maintenance machine with lower than expected
energy production in the 8 years they have been in operation. An advanced wind-diesel control
system was installed with the turbines, but has been under utilized due to the unreliable and
erratic power output of the AOC turbines.
This project will analyze the feasibility of replacing the four AOC turbines in Selawik with three
Northern Power Northwind 100 (NW100) turbines, or equivalent units. The NW100 has been a
reliable and low-maintenance turbine for AVEC in many other villages. AVEC now has a team of
trained NW100 mechanics familiar with the machines. While the NW100 is the preferred
turbine option currently, other turbine options will also be explored as part of the feasibility
study. Reliable and sufficient power output from the wind turbines will allow the wind-diesel
control system to operate the power plant more efficiently and reduce the cost of electricity in
Selawik.
The study will analyze two approaches to the installation of the updated turbines:
1) Direct replacement of the four AOC turbines with multiple NW100 turbines (or
equivalent units). This installation would utilize the existing power line/communications
infrastructure and boardwalk access to the turbine site.
2) Installation of several NW100s at a new site west of Selawik. Under this option, new
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power line and communications infrastructure would be required; however, an access
road was installed for this area in recent years.
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. $85,000
2.7.2 Other Funds to be provided (Project match) $8,500
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $93,500
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)
$1.5-2.5 million rough
order of magnitude, see
note below.
2.7.5 Estimated Direct Financial Benefit (Savings) $To be determined.
Preliminary analysis
suggests a minimum of
$2.3 million over the life of
the project.
2.7.6 Other Public Benefit (If you can calculate the benefit in
terms of dollars please provide that number here and
explain how you calculated that number in your application
(Section 5.)
$ To be determined based
on avoided fuel costs
(power and thermal)
AVEC intends to utilize the existing site, power system, and integration technology to the
greatest extent practical. This will drive down the total installed cost in comparison to other
alternatives. To determine the extent that the site and technology can be re-used is the intent of
this feasibility study.
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). If the applicant does not have a project manager
indicate how you intend to solicit project management support. If the applicant expects project
management assistance from AEA or another government entity, state that in this section.
Alaska Village Electric Cooperative (AVEC), the electric utility serving Selawik, will provide
overall project management and oversight.
Brent Petrie, Manager, Community Development and Key Accounts, will take the lead role as
project manager. He has worked for Alaska Village Electric Cooperative since 1998, where he
manages the development of alternatives to diesel generation for AVEC such as using hydro,
wind, or heat recovery. He also manages relationships with AVEC’s largest customers and is the
project manager for AVEC’s many construction projects as an energy partner of the federally
funded Denali Commission.
Mr. Petrie has been employed in the energy and resource field for more than thirty years,
having worked for federal and state governments as consultant, planner, and project manager.
He has been a utility manager or management consultant since 1993. As General Manager of
Iliamna- Newhalen-Nondalton Electric Cooperative from 1994 to 1998, he reported to a seven -
member, elected board of directors, and served as project manager on its hydroelectric project
development. He is an elected member of the Board of Directors of the Utility Wind Interest
Group representing rural electric cooperatives and serves on the Power Supply Task force of
the National Rural Electric Cooperative Association. Mr. Petrie has a Master’s Degree in Water
Resource Management and a Bachelor's degree in Geography. His resume is attached.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
The project’s ten key milestones or tasks, and their subtasks, are listed below with estimated
completion dates (by task or subtask if subtasks are spread over more than one month):
1. Project scoping and contractor solicitation: September 1, 2011
Authorization to proceed
Engineering contractor selection
2. Detailed energy resource analysis: September 2011-September 2012
3. Identification of land and regulatory issues: January 31, 2012
Land and Regulatory Issues Memorandum
4. Permitting and environmental analysis: January 31, 201 2
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Environmental and Permitting Memorandum
5. Detailed analysis of existing/ future energy costs and markets: March 30, 2012
6. Conceptual business and operations plans: June 30, 2012
Conceptual Business Plan
Conceptual Operating Plan
7. Assessment of alternatives: August 30, 2012
Draft Wind Resource Report: July 2012
Alternatives Assessment: August 2012
8. Detailed economic and financial analysis: October 31, 2012
9. Conceptual design analysis and cost estimate: November 30, 2012
Wind Resource Report
Conceptual Design and Cost Estimate
10. Final project report and recommendations: December 31, 2012
Final Combined Report
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.)
To determine the viability of the wind concepts, the project will implement the following
milestones:
1. Project scoping and contractor solicitation (September 1-September 15, 2011)
AVEC will select a contractor for the wind feasibility and conceptual design immediately
following AEA’s authorization to proceed.
2. Detailed energy resource analysis (September 1-September 30, 2011)
AVEC will initiate the wind resource analysis before winter. AVEC will immediately seek
approvals from permitting agencies, starting the process before the grant is awarded to ensure
that the met tower can be installed in the late fall. The earlier the met tower is collecting data,
the earlier AVEC will have the wind resource data to ascertain the suitability of use of this
renewable resource.
3. Identification of land and regulatory issues (November 1, 2011-January 31, 2012)
AVEC will conduct site control discussions with the land owner and detail site control needs in a
memorandum.
4. Permitting and environmental analysis (November 1, 2011-January 31, 2012)
AVEC will discuss the project with regulatory agencies to determine permitting requirements.
Needed permits and any studies (i.e., bird studies) will be documented in a memorandum. FAA
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approval will be sought for the project.
5. Detailed analysis of existing/future energy costs and markets (February 1-March 30, 2012)
AVEC will draft a memorandum documenting the existing and future energy costs and markets
in Selawik. The information will be based on AVEC records and community plans. A community
meeting will be held to determine future energy markets.
6. Conceptual business and operations plans (April 1-June 30, 2012)
Draft business and operational plans will be developed with regional stakeholders.
7. Assessment of alternatives (June 1, 2012-August 30, 2012)
A draft wind resource report will be written using the first three quarters of collected met
tower data. A draft Alternatives Assessment Memorandum will be written detailing the
reasonable alternatives and the preferred alternative using the wind and geotechnical data. It is
expected that alternatives will vary based on the configuration of the wind turbines. A final
Alternatives Assessment will incorporate the last three months of the wind monitoring findings
and specify the alternative to bring forward to conceptual design. Also included in the
assessment of alternatives will be a detailed engineering estimate with the best available
information. Also included in this memorandum will be a constructability review, to include
any opportunities for construction co-mobilization. This assessment will be included in the final
report described in Milestones 9 and 10 below.
8. Detailed economic and financial analysis (September 1-October 31, 2012)
An economic and financial analysis which examines potential final design and construction
costs, operating and maintenance costs, user rates, and other funding mechanisms will be
developed.
9. Conceptual design analysis and cost estimate (October 1-December 31, 2012)
The met tower will be dismantled and the Final Wind Resource Report will be finalized by
incorporating the last three months of data. A conceptual design and cost estimate will be
prepared for the preferred alternative.
10. Final report and recommendations (December 31, 2012)
All of the memoranda and reports written for the project will be combined in a final report and
submitted to AEA. The Final Report will include final drafts of the following:
Land and Regulatory Issues Memorandum
Environmental and Permitting Memorandum
Existing and Future Energy Costs and Markets Memorandum
Feasibility Analysis
Conceptual Business Plan
Conceptual Operating Plan
Wind Resource Report
Alternatives Assessment
Economic and Financial Analysis
Conceptual Design Analysis and Cost Estimate
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3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
you may use for major equipment purchases or contracts. Include brief resumes and references
for known, key personnel, contractors, and suppliers as an attachment to your application.
AVEC will use a team of AVEC staff and external consultants--a project management approach
that has been used to successfully design and construct wind turbine projects throughout rural
Alaska.
AVEC staff and their role on this project includes the following:
Meera Kohler, President and Chief Executive Officer, will act as Project Executive and
will maintain ultimate authority programmatically and financially.
Brent Petrie, Manager of the Community Development Group, will be the project
manager. Together with his group, Brent will provide coordination of the installation of
the met tower and conceptual design. The group’s resources include a project
coordinator, contracts clerk, accountant, engineer, and a community liaison. Specific
duties of the project manager will include the following:
Obtaining site control/access and permits for the installation of the met tower.
Selecting, coordinating, and managing the engineering consultant.
Communicating with Selawik residents to ensure that the community is
informed.
Debbie Bullock, Manager of Administrative Services, will provide support in accounting,
payables, financial reporting, and capitalization of assets in accordance with AEA
guidelines.
Contractors for this project will include the following:
Engineering consultant. AVEC will employ an engineering consultant who will:
o Provide wind resource assessment services including installation of the met
tower, operation and maintenance of the met tower, and a draft wind
resource report.
o Provide Feasibility Analysis, Wind Resource Assessment, and Conceptual
Design.
o Provide the final feasibility and conceptual design report.
Selection Process for Contractors: The engineering consultant selection will be based upon
technical competencies, past performance, written proposal quality, cost, and general
consensus from the technical steering committee. The selection of the consultant will occur in
strict conformity with corporate procurement policies.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
AVEC will assign a project manager to the project who will compile periodic progress reports for
use by the Alaska Energy Authority. Weekly and monthly project coordination meetings will be
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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.
The following points are a discussion of risks for deployment of new wind turbines in Selawik.
FAA. The FAA is introducing stricter requirements on the amount vertical and horizontal
space clearance the vicinity of airports for aviation safety. The FAA will need to be
consulted on the existing turbine site to determine if taller NW100 turbines can be
installed. A new turbine site would also require FAA review for possible obstruction
lighting.
Foundation. The Selawik area is underlain by continuous permafrost. The surface in the
area is also very wet with many lakes, bogs and sloughs. The existing, dry-ground
turbine site and foundation system has worked well in supporting the AOC turbines.
One project cost saving measure is to utilize the three existing AOC pilings with the
addition of three or more pilings to form the foundation for the NW100. A thorough
geotechnical and structural engineering analysis is required to determine the risk
associated with utilizing the existing piles.
If a new site is chosen for the installation of the NW100 turbines, a similar elevated and dry site
will need to be selected in order to provide a solid foundation for the NW100 turbines.
Geotechnical analysis would be required to reduce the risk of piling failure.
Site Characteristics. The current Selawik wind turbine site has been in operation for 8
years. The site has good access via a sturdy wood boardwalk. The turbine array in a SW
to NE direction has proven to be able to capture the predominant wind resource. The
exiting site is roughly ¾ mile from the Selawik airport runway and approximately 30
degrees north of the east-west runway approach.
Site Control/Access and Permitting. In the NANA Region Strategic Energy Plan,
community members expressed support for investigating the potential for wind power.
It is expected that the community would support erection of the met tower , should it be
necessary. Consultation with the U.S. Fish and Wildlife Service would be conducted to
comply with the Endangered Species Act. AVEC would work openly with the agency and
conduct studies as appropriate.
Weather. Weather could potentially delay field work; however, experienced consultants
with working familiarity with Alaskan weather conditions will be selected. It is unlikely
that a delay in the total project schedule would occur if the field work is delayed. If
required, the met tower will be installed to withstand Selawik’s winter weather
conditions and regularly monitored to ensure its functionality.
Logistics. Transport of a met tower to Selawik will not be difficult, as there is good barge
and air access to the community.
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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.
According to the AEA Alaska high resolution wind resource map, Selawik is rated as a Class 2
wind regime. Assuming Class 2 wind regime, we expect the annual wind resource to be --13% of
installed wind turbine capacity. The three (3) turbines can be expected to produce an average of
--- 347,500kWh per year.
The intent of this feasibility study is to confirm the wind resource in Selawik.
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.
Selawik has a state-of-the-art, automated diesel power plant, elevated bulk fuel tank farm, and
four 66-kW AOC 15/10 (now Entegrity Wind Systems EW50) wind turbines. The power system,
which is owned by Alaska Village Electric Cooperative, integrates power from the four wind
turbines with a 1,660-kW, three-engine diesel system. A 160-kW electric boiler, a “secondary
load”, adds excess wind power to the diesel plant’s heat recovery system, which in turn supplies
heat to the village water treatment and distribution plant. The wind-diesel control system was
supplied by Sustainable Automation.
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 community of Selawik currently utilizes mostly diesel fuel for electric power generation and
space heating. Only a small portion of the electric power generation comes from the four AOC
wind turbines due to mechanical and electrical problems with the turbines. The project will
better utilize the wind resource and the advanced wind-diesel controls to offset the use of diesel
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fuel by the generator sets. Reduced fuel consumption will result in lower electric costs for th e
community.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Selawik is classified as an isolated village. Residents rely on air transportation for delivery of
medical goods and transport of sick or injured individuals or mothers nearing childbirth. Reliable
electric service is essential to maintaining vital navigation aids for the safe operation of aircraft.
Runway lights, automated weather observation stations, VASI lights, DME’s and VOR’s are all
powered by electricity.
Emergency medical service is provided in Selawik by a community health aide. Therefore,
medical problems and emergencies must be relayed by telephone or by some other
communication means for outside assistance. Operation of the telephone system requires
electricity. Reliable telephone service requires reliable electric service.
The heaviest consumers of power in Selawik are the school, water and sewer facilities, and a
small array of commercial buildings and multi-family housing units. Additionally, the
underground utilities are thawed by electrical heat trace. If one of these heat traces is left
without power, systems will freeze up and shut down.
Water in Selawik comes from the Selawik River and must be treated for use as potable water.
Reliable electric service is required for the continuous operation of the water and wastewater
systems and to prevent freezing of the systems which will cause extensive damage and
interruptions in service.
Selawik is subject to long periods of darkness. Reliable electric service is essential for the
operation of home lighting, streetlights and security lighting. Children walk to school and
outside lighting helps them navigate their route and identify potential hazards such as deep
snow or even polar bears.
Residents of Selawik rely on a subsistence lifestyle where food is gathered, harvested and stored
for later use. Refrigeration is essential for the extended storage of perishable foods. Reliable
electric service is essential for proper freezer storage of food during summer months.
The anticipated major users of power include the NWAB School District, City a nd Tribal Councils
in Selawik, and community residents.
We expect that the installation of more reliable and productive wind turbines in the electric
generation system will reduce the amount of diesel fuel used in Selawik for power generation
and for heating.
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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
By re-using the existing site and integration technology, we will be able to signifi cantly drive
down the costs associated with developing this site.
Alternative Energy Technology and Renewable Energy Transmission. AVEC plans to conduct a
Feasibility Analysis, Wind Resource Assessment, and Conceptual Design to assess potential
impact of turbine upgrades in Selawik.
Optimum installed capacity/Anticipated capacity factor/Anticipated annual generation. The
purpose of this work is to gather background information to plan for future alternative energy
upgrades. The capacity is unknown at this time.
Anticipated barriers. The potential barriers to success of this project include site access,
permitting, and weather. The barriers are minor and do not pose a threat to the completion of
this project or tasks which must be accomplished.
Basic integration concept/Delivery methods. Conceptual design, to be completed as a part of
this project, will detail how power from upgraded wind turbines would be integrated and
delivered into the existing system.
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.
While the study will include a cursory review of alternative sites, it is the team’s intention to use
the existing site. As a result, the team does not anticipate any major land issues. The site is
currently in use, and AVEC maintains a long-term lease on the land.
In the event that other sites are needed, NANA Regional Corporation, as the areas major land
owners, will assist with identification of suitable sites.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
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outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
The team anticipates few permitting requirements, as the intended site is currently in use. The
study will reference requirements associated with the following permits:
Due to the anticipated increased height of the NW100’s, consultation with FAA is imperative.
Consultation with the U.S. Fish and Wildlife Service in compliance with the Endangered
Species Act will be required to install the met tower. AVEC will work with the agency to
ensure that the requirements of the Act are met, while allowing for the success of the
project.
An U.S. Army Corps of Engineers Wetlands Permit may be needed for the geotechnical work.
The Corps has a “Nationwide Permit” for survey work, including geotechnical field work. This
permit usually takes no more than three weeks to obtain. Because a Corps’ Nationwide
Permit exists, a State of Alaska Department of Natural Resources, Division of Coastal and
Ocean Management Coastal Project Questionnaire and Enforceable Policies Consistency
Determination is not needed.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
The anticipated site is a well known, already permitted site. We anticipate minimal
environmental problems. In the event that a new site is chosen, AVEC will undertake a process
similar to what is described below.
The purpose of this work is to gather background information to plan for upgraded wind
turbines. As stated above, compliance with the Endangered Species Act will be required. Also, a
U.S. Army Corps of Engineers Wetlands Nationwide Permit may be needed to conduct
geotechnical work, provided the work is located within wetlands. Further work to comply with
other environmental laws, including the National Environmental Policy Act (if federal funding is
sought for construction), the Clean Water Act (for work in wetlands), and the National Historic
Preservation Act, would be conducted during the next stage of developmen t, if the economics
and wind resource are suitable for moving forward with the installation of an intertie and
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turbines.
AVEC will obtain permission to place the met tower and conduct geotechnical fieldwork from
the land owner as a part of this project. The community has supported this project in the past,
and it is not expected that a right of entry will be problematic. Further work to obtain a long
term lease will be needed if the study finds that the wind turbines are feasible.
Environmental Review and Due Diligence Approach. AVEC’s consultant will organize a pre-
application meeting to be coordinated with the ADNR, OC&OM office for the project. All
agencies, including federal agencies, will be asked to participate. The meeting will identify and
discuss appropriate permit issues and provide agency perspective on the proposed
development. Discussions will include actions to avoid, minimize, and mitigate wetlands
impacts. Possible compensation for wetlands loss will also be discussed. Results of this agency
pre-application meeting will be a 3-5 page meeting report summarizing agency concerns, issues,
and possible mitigation or compensation proposals. This will be as comprehensive as possible
but may not identify all permits required for project development given the preliminary nature
of the development proposal.
The following permits and/or authorizations will be necessary for installation of a wind farm, at
a minimum, and will be reviewed and discussed in the report:
USACE Section 404/401 Wetlands Permit and Water Quality Assurance
ADNR, OC&OM Coastal Zone Consistency Determination
Title 16 Fish Habitat Permit
SHPO “No Historic Properties Affected”
Storm Water Pollution Prevention Plan
Alaska Pollutant Discharge Elimination System
Vegetation Clearing Not Permitted between May 20 and July 20, except for black scoter
habitat where the end of the avoidance period is August 10
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
AVEC plans to conduct a Feasibility Analysis and Conceptual Design to assess the feasibility of
wind turbine upgrades in Selawik. The study will cost $93,500. AVEC requests $85,000 from AEA.
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AVEC will provide $8,500 as in-kind contribution.
If the wind resource proves suitable, the next phase of this project would be Final Design and
Permitting. The final phase of this project would be Construction and Commissioning. AVEC
estimates the total project cost at $4,500,000. It is possible that the funding for this work could
come from the AEA Renewable Energy Program, the Denali Commission, AIDEA, a USDA Rural
Utility Service program, or another grant program.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
The met tower will require monthly monitoring and data management. It is expected that this
will cost $700. The cost will be funded by this grant award.
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
A power purchase scenario is not required for this project, as AVEC would be the owner of all
generated power. AVEC is a member owned cooperative electric utility and typically owns and
maintains the generation, fuel storage, and distribution facilities in the villages it serves. At this
point in project development, the potential power price and rate of return on the project is
unknown.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
The basic premise of this feasibility concept is to redevelop the existing site and re-use the
existing power system and integration technology, as described in section 4.2.1, to the greatest
extent practical.
Although one tasking of the feasibility study will be to estimate the total installed cost, it is
conceivable that the total installed cost for this concept could be under $2 million for a 3 turbine
array, especially if opportunities for co-mobilizing construction deployment are found.
Please see the attached cost worksheet.
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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 fuel savings project to be almost 18,000 gallons per year of fuel for the generators and
almost 400 gallons per year of fuel for heating.
At 2009 fuel pricing of $4.50/gallon for generator fuel and $5.50/gallon for heating fuel, that
works out to $82,000 per year in fuel savings.
The current residential electrical rate is shown as $0.65/kWh, which, using this rate would result
in an annual savings of $185,000. The fuel-only portion of that, on a per-kWh basis, is $97,000
per year.
Green tags or RECs at $0.02/kWh result in an additional $7,000 per year value.
CO2 savings from fuel reduction is 200 ton/year.
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
Business plan structures and concepts which may be considered: The wind turbines and
intertie, if feasible, would be incorporated into AVEC’s power plant operation. Local plant
operators provide daily servicing. AVEC technicians provide periodic preventative or corrective
maintenance and are supported by AVEC headquarters staff, purchasing, and warehousing.
How O&M will be financed for the life of the project: The costs of operations and maintenance
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will be funded through ongoing energy sales to the villages.
Operational issues which could arise: There are no known operational issues. TBD.
Operating costs: The new Northwind 100 model requires only one maintenance visit each year.
The two turbines at Selawik will require a combined annual maintenance cost of $2,000.
Commitment to reporting the savings and benefits: AVEC is fully committed to sharing the
savings and benefits information accrued from this project with their shareholders and AEA. In
addition, AVEC acknowledges and agrees that if/when the wind -intertie is constructed, it shall be
constructed, owned, and operated for the benefit of the general public and will not deny any
person use and/or benefit of project facilities due to race, religion, color, national origin, age,
physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood.
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.
AVEC is in full compliance with all previous grants for Selawik and is ready to move
immediately.
In 2002, there were 4 AOC wind turbines installed as part of the bulk fuel and power system
upgrade program funded by the Denali Commission. The wind turbines were installed as a
demonstration project. Since that time, the AOC turbines have underperformed, largely due to
mechanical and electrical issues associated with the turbine design. Issues include the well
documented tip-brake issue.
Since installation, a new generation of wind turbine—the Northern power NW100—has come on
line and has proven itself in several rural Alaskan communities. The community of Selawik has
been very supportive of the previous demonstration project involving the AOC wind turbines. It
is now time to provide a proven technology so the community of Selawik can reap the anticipated
benefits.
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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.
AVEC has developed a foundation of support for the project. Key supporters are described
below:
AVEC – AVEC seeks to reduce energy costs for its members through the most economical
means. Wind power in other AVEC communities has been proven to help reduce energy
costs. It is the goal of AVEC to explore the feasibility and the conceptual design of turbine
upgrades and their associated wind power generation.
NANA Regional Corporation – NANA supports projects that will help reduce the cost of
energy for their shareholders. NANA is committed to assisting with this project to
determine if the turbine upgrades would benefit Selawik.
AVEC has not faced any opposition to the project at this stage of resource identification. This
feasibility study and conceptual design project will examine what opposition and support there
is for a constructed project. In addition to working with the partners described above to identify
and address concerns that could lead to opposition, AVEC will also conduct community meetings
to gauge village-level opposition and support of the proposed concept . AVEC is committed to
ensuring a positive process as well as an effective outcome.
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
AVEC plans to conduct a Feasibility Analysis, Wind Resource Assessment, and Conceptual
Design. This work will cost $93,500. AVEC requests $85,000 from AEA. AVEC will provide $8,500
of in-kind contribution.
A detail of the grant budget follows. Also, please see the attached grant budget.
Milestone
Grant
Request
AVEC
In-kind
Match Total Cost
1. Project development, scoping, and contractor solicitation $2,500 $3,000 $5,500
2. Detailed energy resource analysis $25,000 $500 $25,500
3. Identification of land and regulatory issues $2,500 $250 $2,750
4. Permitting and environmental analysis $7,500 $500 $8,000
5. Detailed analysis of existing/future energy costs and markets $5,000 $500 $5,500
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6. Conceptual business and operations plans $7,500 $750 $8,250
7. Assessment of alternatives $5,000 $750 $5,750
8. Detailed economic and financial analysis $5,000 $750 $5,750
9. Conceptual design analysis and cost estimate $20,000 $1,000 $21,000
10. Final report and recommendations $5,000 $500 $5,500
TOTALS $85,000 $8,500 $93,500
Tab A
Resumes
Tab B
Cost Worksheet
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 64% (wind speed > 3.5 m/s)
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other 3 generators
ii. Rated capacity of generators/boilers/other 1,686kW (1 x 363kW , 1 x 499kW, 1 x 824kW )
iii. Generator/boilers/other type diesel
iv. Age of generators/boilers/other 8 years old
v. Efficiency of generators/boilers/other 13.36 kWh/gal
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor This will be determined during the feasibility phase.
ii. Annual O&M cost for non-labor This will be determined during the feasibility phase.
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 2,802,375 kWh
ii. Fuel usage
Diesel [gal] 209,718 gal
Other This will be determined during the feasibility phase.
iii. Peak Load 724 kW
iv. Average Load 341 kW
v. Minimum Load 171 kW
vi. Efficiency 13.36 kWh/gal
vii. Future trends This will be determined during the feasibility phase.
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 215,843 gal
ii. Electricity [kWh] This will be determined during the feasibility phase.
iii. Propane [gal or MMBtu] This will be determined during the feasibility phase.
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons] This will be determined during the feasibility phase.
vi. Other
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
Wind—300kW installed capacity
(three Northwind 100 wind turbines)
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 347,500 kWh (HOMER software; 100% availability)
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system $1.5-2.5 million
b) Development cost
c) Annual O&M cost of new system $9,000 (for three wind turbines)
d) Annual fuel cost No fuel required for wind power
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 20,910 gal (238,000 liter) (HOMER software; 100% availability)
ii. Heat 13,442 kWh excess electricity to SL boiler, displacing ~400 gal heating fuel
iii. Transportation
b) Current price of displaced fuel Generator fuel: $4.50/gal; heating fuel: $5.50/gal
c) Other economic benefits This will be determined during the feasibility phase.
d) Alaska public benefits This will be determined during the feasibility phase.
6. Power Purchase/Sales Price
a) Price for power purchase/sale This will be determined during the feasibility phase.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio This will be determined during the feasibility phase.
Payback (years) This will be determined during the feasibility phase.
Tab C
Budget Form
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10
Milestone or Task Anticipated
Completion Date
RE- Fund
Grant Funds
Grantee Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
1. Project development, scoping, and contractor
solicitation
September 15,
2011 $2,500 $3,000
AVEC/NRC/Regional
Stakeholders $5,500
2. Detailed energy resource analysis
September 30,
2012 $25,000 $500
AVEC/NRC/Regional
Stakeholders $25,500
3. Identification of land and regulatory issues January 31, 2012 $2,500 $250
AVEC/NRC/Regional
Stakeholders $2,750
4. Permitting and environmental analysis January 31, 2012 $7,500 $500
AVEC/NRC/Regional
Stakeholders $8,000
5. Detailed analysis of existing/future energy costs
and markets March 30, 2012 $5,000 $500
AVEC/NRC/Regional
Stakeholders $5,500
6. Conceptual business and operations plans June 30, 2012 $7,500 $750
AVEC/NRC/Regional
Stakeholders $8,250
7. Assessment of alternatives August 30, 2012 $5,000 $750
AVEC/NRC/Regional
Stakeholders $5,750
8. Detailed economic and financial analysis October 31, 2012 $5,000 $750
AVEC/NRC/Regional
Stakeholders $5,750
9. Conceptual design analysis and cost estimate
December 31,
2012 $20,000 $1,000
AVEC/NRC/Regional
Stakeholders $21,000
10. Final report and recommendations
December 31,
2012 $5,000 $500
AVEC/NRC/Regional
Stakeholders $5,500
TOTALS $85,000 $8,500
AVEC/NRC/Regional
Stakeholders $93,500
TOTALS $
Budget Categories:
Direct Labor & Benefits $ $8500 $8500
Travel & Per Diem $ $ $
Equipment $ $ $
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10
Materials & Supplies $ $ $
Contractual Services $85,000 $ $85,000
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $93,500
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and Permitting Construction
1. Project scoping and
contractor solicitation.
2. Resource identification and
analysis
3. Land use, permitting, and
environmental analysis
5. Preliminary design analysis
and cost
4. Cost of energy and market
analysis
5. Simple economic analysis
6. Final report and
recommendations
1. Project scoping and contractor
solicitation.
2. Detailed energy resource
analysis
3. Identification of land and
regulatory issues,
4. Permitting and environmental
analysis
5. Detailed analysis of existing
and future energy costs and
markets
6. Assessment of alternatives
7. Conceptual design analysis
and cost estimate
8. Detailed economic and
financial analysis
9, Conceptual business and
operations plans
10. Final report and
recommendations
1. Project scoping and contractor
solicitation for planning and
design
2. Permit applications (as
needed)
3. Final environmental
assessment and mitigation
plans (as needed)
4. Resolution of land use, right of
way issues
5. Permit approvals
6. Final system design
7. Engineers cost estimate
8. Updated economic and
financial analysis
9. Negotiated power sales
agreements with approved
rates
10. Final business and operational
plan
1. Confirmation that all design
and feasibility requirements
are complete.
2. Completion of bid documents
3. Contractor/vendor selection
and award
4. Construction Phases –
Each project will have unique
construction phases, limitations,
and schedule constraints which
should be identified by the
grantee
5. Integration and testing
6. Decommissioning old
systems
7. Final Acceptance,
Commissioning and Start-up
8. Operations Reporting
Tab D
Letters of Support
September 14, 2010
Alaska Energy Authority
Renewable Energy Fund Round IV - 2012 Funding
Review Committee
To Whom It May Concern:
Working with our subsidiary, WHPacific, Inc., NANA Regional Corporation, Inc. (NANA) is pro-
actively pursuing and supporting renewable and alternative energy projects through the
“Renewable Energy Project” proposal for the Alaska Energy Authority (AEA).
Recent surveys of our shareholders have shown that NANA region residents are supportive of
renewable energies as a viable alternative to fossil fuels. Affordable energy is a key component
in ensuring that our villages can create stable, sustainable economies for the shareholders of
tomorrow.
Skyrocketing energy costs cause a real financial and personal burden to our shareholders.
NANA is working hard to identify ways to harness alternative and renewable energy sources to
help our villages and people cope with the current energy crisis.
NANA is committed to assisting the Alaska Village Electric Cooperative, Inc. (AVEC) with the
wind feasibility analysis, resources assessment, and conceptual design for replacement of the
wind turbine equipment in Selawik hybrid wind diesel system in Selawik, Alaska.
Sincerely,
Lance Miller
Vice President of Resources
Tab E
Authorized Signers Form
Tab F
Authority