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HomeMy WebLinkAboutKaltag Small Solar Project Round IV Grant ApplicationAlaska Village Electric Cooperative, Inc. Kaltag Solar Construction 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 13 7/21/2010 Kaltag Solar Construction SECTION 1 –APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Village Electric Cooperative, Inc Type of Entity: Electric Utility Mailing Address 4831 Eagle Street Anchorage,AK 99503 Physical Address 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 Account 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 2 of 13 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) Kaltag Solar-Construction (Round IV) 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. Kaltag (pop. 172)is located on the west bank of the Yukon River, 75 miles west of Galena and 335 miles west of Fairbanks. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic X 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 Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. AVEC proposes to install a 10 kWh solar array in Kaltag. The array would be installed on the side of the existing power plant facility that is owned and operated by AVEC. Work would involve shipping materials to the community, installing, integrating,testing, and commissioning the array. As a pilot study, installation of this small array in Kaltag would help AVEC evaluate the benefits of solar arrays installed at power generating facilities. 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.) As a pilot study, installation of this small array in Kaltag would help AVEC determine whether solar arrays would be successful at other AVEC facilities and other communities through the state. The possible displacement of diesel fuel used for village power generation in Kaltag could be Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 3 of 13 7/21/2010 607 gal/yr. This project could save $2,000 during its first full year of operation (expected to be 2012).The savings associated with this project would offset AVEC’s operating costs in Kaltag. 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. The total project cost for the project is $100,000 of which $90,000 is requested in grant funds from AEA. The remaining $10,000 (10%)would be matched in cash by AVEC. 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.$90,000 2.7.2 Other Funds to be provided (Project match)$10,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)$100,000 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) $100,000 2.7.5 Estimated Direct Financial Benefit (Savings)$ 2.7.6 Other Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) $ SECTION 3 –PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information,a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support.If the applicant expects project management assistance from AEA or another government entity, state that in this section. AVEC would provide overall project management and oversight.AVEC is the electric utility serving Kaltag.To assist in the installation of the array, AVEC plans to hire Remote Power, Inc., who completed all the preliminary work on this project. Brent Petrie, Manager, Community Development and Key Accounts,would lead the project management team consisting of AVEC staff, consultants, and contractors.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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 13 7/21/2010 Mr. Petrie has been employed in the energy and resource field for more than thirty years, having worked for the 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.) 1. Confirmation that all design and feasibility requirements are complete:Sept 2011 2. Completion of bid documents:Sept 2011 3. Contractor/vendor selection and award:Sept 2011 4. Construction Phases –Installation of panels:Oct 2011 5. Integration and testing:Oct 2011 6. Decommissioning old systems:N/A 7. Final Acceptance, Commissioning and Start-up:Oct 2011 8. Operations Reporting:ongoing 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.) 1.Confirmation that all design and feasibility requirements are complete (Sept 2011) AVEC would work with Remote Power, Inc to ensure that all design and feasibility requirements are completed once it is determined that the grant is funded. Since this is a relatively simple project, this should not take over one month to complete. 2.Completion of bid documents (Sept 2011) Since this is a simple project, bid documents would not be needed. AVEC would request a formal quote from Remote Power, Inc once it is determined that the grant is funded. 3.Contractor/vendor selection and award (Sept 2011) This task would be completed once the grant agreement is in place. AVEC has been working with Remote Power, Inc and has an existing contract in place. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 13 7/21/2010 4.Construction Phases –Installation of panels (Oct 2011) Materials would be shipped to Kaltag and the panels would be installed within one month of signing a grant agreement. 5.Integration and testing Oct 2011 The small solar array would be integrated into the existing AVEC system and tested once it is installed.This task would occur within one month of signing a grant agreement. 6.Decommissioning old systems:N/A 7.Final Acceptance, Commissioning and Start-up (Oct 2011) The new solar array would be accepted, commissioned, and begin running immediately after it is integrated and tested. 8.Operations Reporting ongoing Because this is a pilot study, AVEC would closely monitor the system to determine its success and flaws and whether a similar system could be installed at other AVEC facilities. 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 would use a project management approach that has been used to successfully design and construct wind turbines throughout rural Alaska: A team of AVEC staff and external consultants. AVEC staff and their role on this project includes: Meera Kohler,President and Chief Executive Officer,would act as Project Executive and will maintain ultimate authority programmatically and financially. Brent Petrie, Manager, Community Development and Key Accounts, would lead the project management team consisting of AVEC staff, consultants, and contractors. Together with his group, Brent would provide coordination of the project within AVEC. The group’s resources include a project coordinator, contracts clerk, accountant, engineer, and a community liaison.Brent would be responsible for reporting directly to AEA on the status of the project. Mark Teitzel, Vice President/Manager of Engineering,would provide technical assistance and information on the existing power system and possible issues and project study needs. Debbie Bullock, manager of administrative services,would provide support in accounting,payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. Anna Sattler, community liaison,would lead development of the Existing and Future Energy Costs and Markets Memorandum and the Conceptual Business and Operating Plan. Ms. Sattler would also communicate directly with Elim residents to ensure that the community is informed Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 13 7/21/2010 The current project manager for the project, Robin Reich of Solstice Environmental Consulting, would lead day to day work on the project, including ensuring: Project schedule and budget adherence AVEC’s Community Liaison has the most current project information to provide to the community 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. AVEC would require that monthly written progress reports be provided with each invoice submitted from contractors. The progress reports would include a summary of tasks completed, issues or problems experienced, upcoming tasks, and contractor’s needs from AVEC. Project progress reports would be collected and forwarded as one package to the AEA project manager each month. Quarterly face-to-face meetings would occur between AVEC and AEA to discuss the status of all wind projects funded through the AEA Renewable Energy Grants program. Individual project meetings would be held, as required or requested by AEA. 3.6 Project Risk Discuss potential problems and how you would address them. Resource availability:Because no long term monitoring of the solar resource has occurred in Kaltag, the return on this project is questionable. Solar panels that have been installed could be moved to another location, if the project is not as successful as expected. Winter upkeep:Snow would need to be cleared from panels in the winter in order to ensure performance. AVEC’s local operator would be responsible to maintaining the panels. If problems are experienced with the array,Remote Power,Inc would be available to assist. 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. See Tab G for additional information regarding the proposed resource and configuration. According to National Renewable Energy Laboratory (NREL) solar data,Remote Power, Inc Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 13 7/21/2010 expects 8,183 kW to be produced each year by a 10 kW array installed at the power plant in Kaltag. This assumes that the array is tilted to 49 degrees from May-September and 85 degrees from October-April and there is no shading of the panels. 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. AVEC currently provides power to the communities of Kaltag with diesel generators.The Kaltag power plant includes 3 CMS generator sets with a combined capacity of 835 kW (two 236 kW, and one 363 kW generator sets). All three generator sets were installed in 2004. The total production of the AVEC plant in Kaltag in 2009 was 745,913 kWh.The peak electric demand in Kaltag in 2009 was 396 kW.Average demand in 2009 was approximately 213 kW The Kaltag plant generated 14.23 kWh/gal kWh for each gallon of fuel consumed in 2009. 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. Kaltag uses diesel and heating oil as primary energy resources. In 2009,52,426 gallons of diesel fuel was consumed to generate 745,913 kWh. Installation of a 10 kW solar array will help to offset the operations at the power plant.In addition, this pilot project would help AVEC and AEA to determine whether solar power is a viable resource in Kaltag and other locations in the state. This project could lead to expansion of the array in Kaltag and installation of other small arrays at AVEC facilities to offset operation costs. 4.2.3 Existing Energy Market Discuss existing energy use and its market.Discuss impacts your project may have on energy customers. Kaltag is located on the west bank of the Yukon River, 75 miles west of Galena and 335 miles west of Fairbanks. It is situated on a 35-foot bluff at the base of the Nulato Hills, west of the Innoko National Wildlife Refuge. It lies at approximately 64.327220 North Latitude and - 158.721940 West Longitude.(Sec. 29, T013S, R001E,Kateel River Meridian.)Kaltag is located in the Nulato Recording District.The area encompasses 23.3 sq. miles of land and 4.1 sq. miles of water.The area experiences a cold, continental climate with extreme temperature differences. The average daily high temperature during July is in the low 70s °F; the average daily low temperature during January ranges from 10 to below 0 °F. Sustained temperatures of - 40 °F are common during winter. Extreme temperatures have been measured from -55 to 90 °F. Annual precipitation is 16 inches, with 74 inches of snowfall annually. The river is ice-free from mid-May through mid-October. In Kaltag, 33.9% of the population is below the poverty line, and the median household income is $29,167, which is 50% less than the State’s median household income of $59,036. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 13 7/21/2010 The electricity generation in Kaltag in 2009 was 745,913 kWh. The load of is highest during the winter months, with the bulk of electricity consumed by residences and the school.If this study finds that solar resources are suitable, the addition of solar arrays to the electric generation system could reduce the amount of diesel fuel used for operating the power plant in the community. Like all of Alaska, Kaltag is subject to long periods of darkness. Reliable electric service is essential for the operation of home lighting, streetlights, and security lighting.Outside lighting greatly improves the safety of village residents.Residents rely on subsistence resources including salmon, whitefish,moose, bear, waterfowl, and berries.Subsistence food is gathered and harvested and stored in refrigerators and freezers. Refrigeration is essential for the extended storage of perishable foodstuffs, and reliable electric service is essential for proper freeze storage of food. The construction of the proposed project would augment and improve the existing power generation system by incorporating a locally available renewable resource. Sources: Alaska Community Database. 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 Renewable Energy Technology.10kW solar array at the power plant in Kaltag (see Tab G for placement) Optimum installed capacity.10,000 watts. Anticipated capacity factor.9% Anticipated annual generation.8,118 kWh Anticipated barriers.Because no long term monitoring of the solar resource has occurred in Kaltag, the return on this project is questionable. Snow would need to be cleared from panels in the winter in order to ensure performance. AVEC’s local operator would be responsible to maintaining the panels. If problems are experienced with the array,Remote Power,Inc would be available to assist. Basic integration concept/Delivery methods.The array would hook directly into the power plant.Remote Power has determined that connecting into the existing system would not be an issue. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 13 7/21/2010 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. Land ownership would not be an issue because the project would be placed on land owned by AVEC. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. List of applicable permits Anticipated permitting timeline Identify and discussion of potential barriers No permits would be needed because the array would be installed on the outside of an existing power plant. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: Threatened or Endangered species Habitat issues Wetlands and other protected areas Archaeological and historical resources Land development constraints Telecommunications interference Aviation considerations Visual, aesthetics impacts Identify and discuss other potential barriers No environmental issues are expected since the array would be installed out the outside of the power plant, within fenced property owned by AVEC. 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 anticipated project cost, and cost for this phase/requested grant funding/matching funds.The total project cost for the project is $100,000 of which $90,000 is requested in grant funds from AEA. The remaining $10,000 (10%) will be matched in cash by AVEC. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 13 7/21/2010 Identification of other funding sources.No additional funding would be needed. Projected capital cost of proposed renewable energy system/projected development cost of proposed renewable energy system.No additional funding would be needed. 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 costs of operating and maintaining this system (primarily snow clearing and resetting the angle of the array once a year) would be included in the cost of maintaining the existing power plant in Kaltag. 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 AVEC, the existing electric utility serving Kaltag,is a member-owned cooperative electric utility and typically owns and maintains the generation, fuel storage, and distribution facilities in the villages it serves. This project is not expected to significantly affect the sale of power in Kaltag. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please see cost/benefit sheet under Tab C. 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 possible displacement of diesel fuel used for village power generation in Kaltag could be 607 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 13 7/21/2010 gal/yr. This project could save $2,000 during its first full year of operation (expected to be 2012). Installation of a 10 kW solar array would help to offset the operations at the power plant. In addition, this pilot project would help AVEC and AEA to determine whether solar power is a viable resource in Kaltag and other locations in the state. This project could lead to expansion of the array in Kaltag and installation of other small arrays at AVEC facilities to offset operation costs. Kaltag is a member of the Tanana Chiefs Conference. The Tanana Chiefs Conference, Inc Comprehensive Economic Development Strategy (TCC, 2002) Economic Development Goal (#2) lists alternative energy development (Objective 4) as a priority. Installation of a solar array would help the community and region to realize a goal that has been planned for over 8 years. This project would help with the understanding of the solar resource in Interior Alaska. Data acquired from this study assist nearby communities, like Nulato, Koyukuk, Galena, to understand their wind resource. 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 As a local utility that has been in operation since 1968, AVEC is completely able to finance, operate, and maintain this project for the design life. AVEC has capacity and experience to operate this project. Business Plan Structures and Concepts which may be considered:A business plan isn’t needed. 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/Operational issues which could arise/Operating costs:The costs of operations and maintenance would be funded through ongoing energy sales to the villages.There would be minimal cost associated operating this project. Commitment to reporting the savings and benefits:AVEC is fully committed to sharing the savings and benefits accrued from this project information with their shareholders and is committed to reporting project savings and benefits with AEA. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 13 7/21/2010 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. Because there are no permitting or land issues, this project is ready move forward.Once funding is known to be secured, AVEC would engage Remote Power to order equipment and make plans to install the panels.Remote Power would travel to Kaltag and install the array within one month of grant award. AVEC received an AEA Round 1 grant to study the solar potential in Ambler. This project is a result of the lessons learned in Ambler; however, AVEC used its own funds to plan and design the Kaltag project. 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. Kaltag is a member of the Tanana Chiefs Conference.The Tanana Chiefs Conference, Inc Comprehensive Economic Development Strategy (TCC, 2002) Economic Development Goal (#2) lists alternative energy development (Objective 4) as a priority. Installation of a solar array would help the community and region to realize a goal that has been planned for over 8 years. Letters of support have been received from the City of Kaltag and the Kaltag Tribal Council (Tab D). 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 The total project cost for the project is $100,000 of which $90,000 is requested in grant funds from AEA. The remaining $10,000 (10%)would be matched in cash by AVEC. A detail of the grant budget follows. Also see Tab C. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 13 7/21/2010 Milestone or Task Grant Funds AVEC Total 1.Confirmation that all design and feasibility requirements are complete $0 $0 $0 2.Completion of bid documents $0 $0 $0 3.Contractor/vendor selection and award $0 $0 $0 4.Construction Phases –Installation of panels $72,000 $8,000 $80,000 5.Integration and testing $16,200 $1,800 $18,000 6.Decommissioning old systems $0 $0 $0 7.Final Acceptance, Commissioning and Start-up $1,800 $200 $2,000 8.Operations Reporting $0 $0 $0 TOTALS $90,000 $10,000 $100,000 AVEC has used its own funds to plan for this project. 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 Kaltag Solar Construction 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. 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 ii.Rated capacity of generators/boilers/other 363 kW; 263 kw; 263 kW (all Kohlers) iii.Generator/boilers/other type diesel generators iv.Age of generators/boilers/other All installed 2004 v.Efficiency of generators/boilers/other 14.23 kW/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 $140,000 (labor and non-labor combined) ii.Annual O&M cost for non-labor N/A 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]745,913 kWh (2009 Operations data) ii.Fuel usage Diesel [gal]52,426 gal (2009 AVEC Operations data) Other iii.Peak Load 396 kW (2009 AVEC Operations data) iv.Average Load 213 kW (2009 AVEC Operations data) v.Minimum Load vi.Efficiency 14.23 kWh/gal (2009 AVEC Operations data) vii.Future trends d)Annual heating fuel usage (fill in as applicable) i.Diesel [gal or MMBtu] ii.Electricity [kWh] iii.Propane [gal or MMBtu] iv.Coal [tons or MMBtu] v.Wood [cords, green tons, dry tons] vi.Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round 4 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] 10 kW (Solar) b)Proposed annual electricity or heat production (fill in as applicable) i.Electricity [kWh]8,188 kWh 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 $100,000 b)Development cost c)Annual O&M cost of new system No change d)Annual fuel cost 5.Project Benefits a)Amount of fuel displaced for i.Electricity 607 gal/year ii.Heat iii.Transportation b)Current price of displaced fuel $3.11/gal (ISER, 2010) c)Other economic benefits d)Alaska public benefits 6.Power Purchase/Sales Price a)Price for power purchase/sale 7.Project Analysis a)Basic Economic Analysis Project benefit/cost ratio 0.47 Payback (years)n/a Tab C Budget Form Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10 KALTAG SOLAR CONSTRUCTION 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.Confirmation that all design and feasibility requirements are complete. Sept 2011 $0 $0 $0 2.Completion of bid documents Sept 2011 $0 $0 $0 3.Contractor/vendor selection and award Sept 2011 $0 $0 $0 4.Construction Phases –Installation of panels Oct 2011 $72,000 $8,000 Cash $80,000 5.Integration and testing Oct 2011 $16,200 $1,800 Cash $18,000 6.Decommissioning old systems N/A $0 $0 $0 7.Final Acceptance, Commissioning and Start-up Oct 2011 $1,800 $200 Cash $2,000 8.Operations Reporting ongoing $0 $0 $0 TOTALS $90,000 $10,000 $100,000 Budget Categories: Direct Labor & Benefits $$8,500 $8,500 Travel & Per Diem $$1,000 $1,000 Equipment $$$ Materials & Supplies $$500 $500 Contractual Services $90,000 $$90,000 Construction Services $$$ Other $$$ TOTALS $90,000 $10,000 $100,000 Tab D Letters of Support Tab E Authorized Signers Form Tab F Authority Tab G Additional Materials Report Name Kaltag Report Date 8/27/2010 0:00 Declination Location FAIRBANKS, AK 99708 Lat/Long 64.33 / -158.72 Weather Station NREL PVWATTS, , Elevation: N/A feet Site Distance N/A Miles Report Type PV Array Type Adjustable Tilt Tilt Angle 49.5 deg/85 deg Azimuth 133 deg Panel Make Sharp Panel Model NT-175U1 Panel Count 58 DC Rate (per panel)175 W Total System Size 10,000 W Inverter Make Enphase Energy Inverter Model M190-72-240-Sxx Inverter Count 58 Derate Method Using Components Derate Factor 0.795 Notes: Results assume array is tilted to 49 degrees from May-September and 85 degrees from October-April. Please visit us on the web at www.remotepowerinc.com. (907-457-4299) Remote Power, Inc Summary Report Solar Obstruction Data Month Actual Solar Rad w/ Shading Azimuth=180.0 Tilt=49.0 KWhr/m^2 Tilt=varies Actual AC Energy (KWH) w/ shading Azimuth=180 Tilt=varies Actual AC Energy (KWH) w/o shading Azimuth=180 Tilt=varies January 0.63 0.0 144.0 February 1.93 0.0 445.0 March 3.54 0.0 893.0 April 5.04 0.0 1,197.0 May 4.94 0.0 1,133.0 June 5.22 0.0 1,106.0 July 4.77 0.0 1,023.0 August 4.05 0.0 881.0 September 2.97 0.0 643.0 October 1.82 0.0 399.0 November 1.18 0.0 255.0 December 0.29 0.0 69.0 Totals 3.03 0.0 8,188.0 Yearly Average Notes: Results assume array is tilted to 49 degrees from May-September and 85 degrees from October-April. Please visit us on the web at www.remotepowerinc.com. (907-457-4299) Remote Power, Inc Summary Report