HomeMy WebLinkAboutElim Wind Feasibility Round IV Grant ApplicationAlaska Village Electric Cooperative, Inc.
Elim Wind Feasibility
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 17 7/21/2010
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
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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)
Elim Wind Phase II Feasibility
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.
Elim (pop. 337) is located on the northwest shore of Norton Bay on the Seward Peninsula, 96
miles east of Nome.
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.
AVEC proposes to install a wind meteorological (met) tower and complete geotechnical work to
determine the feasibility of installing wind turbines in Elim.The work would involve obtaining a
letter of non-objection from the landowner for the placement of the met tower and
geotechnical fieldwork, permitting, transporting and installing a met tower at this location,
studying the wind resource for one year, and conducting a geotechnical investigation to
determine the soil conditions and needed engineering at the site. A conceptual design would
be created based on the outcome of the met tower recordings and geotechnical investigation.
Permits and site control would be obtained for the conceptual design of this project.
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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.)
The primary financial benefit from this project would be to determine whether the wind
resources are suited to provide power to the community and to prepare a conceptual design of
a wind facility.
The possible displacement of diesel fuel used for village power generation in Elim could be
28,709 gal/yr (assuming 80% turbine availability). This project could save $104,786 during its
first full year of operation (expected to be 2014).
Detailed benefits are explained in Section 5.0.
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 $150,000 of which $142,500 is requested in grant funds
from AEA. The remaining $7,500 (5%)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.$142,500
2.7.2 Other Funds to be provided (Project match)$7,500
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)$150,000
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)
$2.0M
2.7.5 Estimated Direct Financial Benefit (Savings)$ to be determined
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
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.
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AVEC would provide overall project management and oversight.AVEC is the electric utility
serving Elim.To further support the AVEC team in project delivery, wind resource, engineering,
and environmental consultants would be selected.
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 wind, hydropower, and 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 worked 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.)
Authorization to Proceed:September 2011
Select Contractors:September 2011
Obtain Site Control/Right of Entry/Permits:September 2011
Ship Met Tower:September 2011
Erect Met Tower:September 2011
Complete Monitor Met Tower Data:October 2011-September 2012
Geotechnical Field Work:October 2011
Geotechnical Report:December 2011
Dismantle Met Tower:September 2012
Wind Resource Report:October 2012
Conceptual Design and Cost Estimate:November 2012
Permits for Conceptual Design:December 2012
Renewable Energy Fund
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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.Project scoping and contractor solicitation (September 1-September 15, 2011)
AVEC would select a contractor for the wind feasibility, geotechnical analysis, conceptual
design, and permitting immediately following AEA’s authorization to proceed.
2.Detailed resource assessment (September 15, 2011-October 31, 2012)
To initiate the Wind Resource Analysis before winter,AVEC would purchase (if necessary),ship
and erect the met tower in September 2011. AVEC would 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 would have the wind resource data to ascertain the suitability of use this renewable
resource.Monitoring of the met tower would continue until September, 2012, when the met
tower would be dismantled. The wind resource report would be drafted by the end of October,
2012.
3.Identification and resolution of land issues (September 1, 2011-June 1, 2012)
AVEC would work with the Corporation to obtain a letter of non objection for the placement of
the met tower and geotechnical work. Permanent site control to place turbines, if feasible,
would be negotiated.
4.Detailed analysis of current cost of energy and future market (February 1-March 30, 2012)
AVEC would draft a memorandum documenting the existing and future energy costs and
markets in Elim. The information will be based on AVEC records and community plans. A
community meeting would be held to determine future energy markets.
5.Detailed economic and financial analyses (June 1-August 30, 2012)
An economic and financial analysis, which examines potential final design and construction
costs, operating and maintenance costs, user rates, and other funding mechanisms,would be
developed.
6.Conceptual business & operations plan (June 1-October 31, 2012)
Draft business and operational plans would be developed working with the City of Elim and the
Elim Native Corporation.The conceptual plan would include draft recovered heat agreements.
7.Conceptual design and costs estimate (September 1-November 1, 2012)
A conceptual design and cost estimate would be prepared using information gathered from the
wind study and geotechnical fieldwork.
8.Permitting and environmental analysis (September 15-December 15, 2012)
Environmental permits would be obtained for the conceptual design of the project.
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9.Final report and recommendations (December 31, 2012)
All of the memoranda and reports written for the project would be combined in a final report
and submitted to AEA. The Final Report would include final drafts of the following:
Wind Resource Report
Site Control Memo
Existing and Future Energy Costs and Markets Memorandum
Economic and Financial Analysis
Conceptual Business and Operating Plan
Geotechnical Report
Conceptual Design Analysis and Cost Estimate
Environmental Permits
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
would 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 installation of the met
tower, geotechnical work, conceptual design, and permitting. 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
An AVEC project manager would lead this project.It is likely that one of AVEC’s in-house
contractors would lead the work.The project manager would be responsible for:
Obtaining site control/access and permits for the installation of the met tower and
geotechnical work
Renewable Energy Fund
Grant Application Round IV
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Selecting, coordinating, and managing the wind resource, geotechnical,engineering,
and permitting consultants and ensuring that their deliverables are on time and within
budget
Working with AVEC’s Community Liaison to develop the Existing and Future Energy
Costs and Markets Memorandum and the Conceptual Business and Operating Plan
Working to develop the Economic and Financial Analysis
Contractors for this project would include:
Wind Resource Consultant.AVEC currently has an on-call contract with V3 Energy, LLC for
wind resource studies and reports.It is likely that V3 would work on this project. Doug
Vaught’s (V3’s owner)resume is attached.V3 would:
o Supervise the installation of the met tower
o Consult on the operation and maintenance of the tower
o Draft the wind resource report
o Geotechnical consultant.AVEC would select and employ an experienced geotechnical
consultant who will:
o Conduct a geotechnical and natural hazards field study and report of the project
area
Engineering consultant.AVEC would select and employ an engineering consultant who
would:
o Provide conceptual design and engineering specifications for the wind turbines
Environmental Consultant.AVEC currently has an on-call contract with Solstice Alaska
Consulting, Inc for environmental permitting. It is likely that Solstice would work on this
project. Robin Reich’s (Solstice’s president) resume is attached. Solstice would:
o Consult with agencies
o Develop and submit permit applications
o Document mitigation requirements
Selection Process for Contractors:The geotechnical and engineering consultant selection
would be based upon technical competencies, past performance, written proposal quality, cost,
and general consensus from the technical steering committee.The selection of the consultant
would occur in strict conformity with corporate procurement policies, conformance with OMB
circulars, and DCAA principles.
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.
Renewable Energy Fund
Grant Application Round IV
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3.6 Project Risk
Discuss potential problems and how you would address them.
Site Control/Access.Wind power development is a community priority listed in the Elim
Community Economic Development Plan. Because the community supports the project, it is not
expected that gaining approval to place a met tower would be difficult.
Weather.Weather could delay geotechnical fieldwork and/or the erection of the met tower;
however, an experienced consultant, familiar with Alaskan weather conditions, would be
selected. It unlikely that a delay in the total project schedule would occur if the field work or
erection of the met tower is delayed.It is possible to erect the met tower during winter
months.The met tower would be installed to handle the Elim’s coastal Alaska winter weather
conditions. The met tower would be monitored by local AVEC personnel to ensure the met
tower is up and functioning properly throughout the year.
Construction Funding.By having the project designed and permitted, AVEC would be prepared
to capitalize on many funding opportunities.
Environmental Permitting.Permits would be acquired as a part of this project.AVEC would
hire an environmental consultant familiar with permitting wind projects in Alaska. Early
consultation with agencies would occur in order to flesh out location, natural and social
environment, specific species, and mitigation issues. The consultant would work openly with
the agencies and conduct studies as appropriate.
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, Elim is rated as a class 4 wind
regime. AVEC expects the annual wind resource to be 30% of installed wind turbine capacity.
Two wind turbines can be expected to produce in the range of 491 MWh (100% avail.); 392
MWh (80% avail.).The appropriate total rating would be determined by this feasibility study.
Hydroelectric power is a community interest; however, there is little information to determine
whether it is a viable solution. In addition, hydroelectric power projects have higher capital
costs than wind and would not operate in the winter.
Renewable Energy Fund
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Solar power from photovoltaic solar arrays is a potential alternative, but has higher capital cost
and lower resource availability than wind in Elim.
The production of energy using ocean tidal motion is a newly developing possibility. Technology
to make use of tidal motion is under development.Even after initial development activities
have been completed, the sub-arctic maritime environment may provide additional challenges
to the use of this developing technology.
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 community of Elim with diesel generators.With the
combined capacity of 1,105kW,the Elim power plant has two Detroit Diesel generators (236kW
[7 years old] and 363 kW [7 years old, overhauled in 2008]) and one MTU generator (506 kW [7
years old]).
The data indicates that peak demands in Elim have remained relatively constant over the past
five years with a maximum one-minute average peak of 269 kW occurring in 2002. Average
demand over the same period was approximately 145 kW.
The Elim plant generated 13.67 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.
Elim uses diesel and heating oil as primary energy resources.In 2009,82,189 gallons of diesel
fuel was consumed to generate 1,123,447 kWh.
If this study finds the wind resource suitable, installation of wind turbines in the community
would decrease the amount of diesel fuel used for power generation.The diesel generator use
in Elim would be decreased thereby decreasing generator operations and maintenance costs
and enabling generators to last longer and need fewer overhauls.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Elim is located on the northwest shore of Norton Bay on the Seward Peninsula, 96 miles east of
Nome. It lies 460 miles northwest of Anchorage. It lies at approximately 64.617500 North
Latitude and -162.260560 west longitude.(Sec. 15, T010S, R018W, Kateel River Meridian.)Elim
is located in the Cape Nome Recording District.The area encompasses 2.4 sq. miles of land and
0.0 sq. miles of water.Elim has a subarctic climate with maritime influences. Norton Sound is
ice-free generally between mid-June and mid-November. Summers are cool and moist; winters
are cold and dry. Summer temperatures average between 46 to 62 °F; winter temperatures
average -8 to 8 °F. Annual precipitation averages 19 inches, with about 80 inches of snow.
In Elim, 7.9% of the population is below the poverty line, and the median household income is
$40,179, which is 32% less than the State’s median household income of $59,036.
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The electricity consumption (kWh sold)in Elim in 2009 was 1,123,447 kWh. The load is highest
during the winter months, with the bulk of electricity consumed by residences and the school.If
this study finds that winds are suitable, the addition of wind turbines to the electric generation
system could reduce the amount of diesel fuel used for power generation. Energy costs would
be stabilized in Elim.
Like all of Alaska, Elim 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 fish,
seal, walrus, reindeer, and beluga whale.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.AVEC plans to conduct a feasibility analysis,resources
assessment,conceptual design, and permitting to assess the possibility of using wind power in
Elim. If the wind resource proves suitable and funding is obtained, wind turbines would be
installed.
Optimum installed capacity/Anticipated capacity factor/Anticipated annual generation.The
purpose of this work is to gather background information to plan a future alternative energy
facility. The capacity is unknown at this time; however, it is expected to be around 491 MWh
(100% avail.); 392 MWh (80% avail.); however, this is an estimate.
Anticipated barriers.The potential barriers to success of this project include weather,
permitting,site control,and construction funding.Weather is a minor barrier and does not pose
a threat to the completion of this project.Permitting, based on an initial investigation does not
appear to be a significant hurdle to completing this phase of the project. Construction funding
will be easier to obtain with design and permits in hand.Site control should not be difficult to
obtain, since the Corporation and City support the project (See Section 8 and Tab D).
Basic integration concept/Delivery methods.Conceptual design, to be completed as a part of
this project, would detail how power from a wind turbine would be integrated and delivered
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into the existing system in Elim. If the wind is suitable for development, the turbines will
interconnect with a new power line and power plant in Elim. It is expected that wind-generated
electrical energy will be delivered via the existing electrical distribution grid.
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.
AVEC has not obtained site control for the placement of the met tower or conducting
geotechnical fieldwork. A letter of non-objection would be sought from the corporation or city,
depending on location, after project funding is assured. Starting with a community meeting to
announce that the project has been funded, AVEC’s community liaison would lead the effort to
gain site control.Since the major landholders support the project (See Section 8 and Tab D),site
control will not be an issue for the placement of the met tower and conduction geotechnical
fieldwork.
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
FAA Air Navigation Hazard Permitting.A non-hazard determination would be sought from the
Federal Aviation Administration as soon as the met tower location has been determined. It is
expected that this determination would be issued within one month, since the location would
be selected based on airspace availability and limitations.
After it is determined that the wind resource is suitable and the turbine location and type has
been selected, AVEC would seek a non-hazard determination from FAA for the potential
turbines. AVEC would to this early in the process, to ensure that enough time and resources are
allocated to this effort. It is expected to take about 3 month to obtain the determination for the
turbines.
Endangered Species Act/Migratory Bird Treaty Act Consultation:Consultation with the U.S.
Fish and Wildlife Service (USFWS)in compliance with the Endangered Species Act and Migratory
Bird Treaty Act would be required to install the met tower.A finding letter stating that the
project would not be expected to impact threatened or endangered species or birds would be
drafted and submitted to the USFWS once AVEC is assured this project is funded. It is expected
that AVEC would receive concurrence from the Service within one month. The authorization
would be issued prior to initiating met tower work in October 2011.
After it is determined that the wind resource is suitable and the turbine location and type has
been selected, AVEC would prepare another letter to the USFWS stating that the project would
not be expected to impact birds under their jurisdiction. It is expected that the USFWS would
concur with AVEC’s finding within one month of receiving the letter.
Clean Water Act (Section 401) Permit:An U.S. Army Corps of Engineers (Corps)Wetlands
Permit may be needed for the geotechnical work and/or the placement of the met tower.
Because of the limited footprint of the met tower and geotechnical work,a “Nationwide Permit”
would be sought. The application/preconstruction notice would be submitted to the Corps once
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funding is assured, and the permit would issued prior to initiating met tower work in October
2011.
To permit the potential turbines, an individual wetland permit would be sought from the Corps.
The application would be submitted once conceptual design has been completed. It is expected
that the permit would be issued within 3 months.
Coastal Plan Consistency Determination:A State of Alaska Department of Natural Resources,
Division of Coastal and Ocean Management (DNR-DCOM)Coastal Project Questionnaire and
Enforceable Policies Consistency Determination (CPQ) would be prepared and submitted after
the conceptual design of the turbines is completed. By statute, it would take at least 60 days to
complete the permitting process.(Because a Corps’ Nationwide Permit exists,a DNR-DCOM
determination is not needed for the met tower.)
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
Much of the work conducted for this project would be to determine whether the environmental
issues listed above would need to be addressed.
Threatened or endangered species.The USFWS would be consulted to ensure that the
construction of the future proposed wind turbines would have no affect on threatened or
endangered species. Construction would be timed to avoid impacts to migratory birds in
compliance with the Migratory Bird Treaty Act.
Habitat issues.During permitting, the project team would work with agencies to ensure that
the project would not impact any State refuges, sanctuaries, or critical habitat areas, federal
refuges or wilderness areas, or national parks.
Wetlands and other protected areas.A Corps Wetlands Nationwide Permit could be needed to
conduct place the met tower,geotechnical work, and install future turbines, depending on if the
work is within wetlands.
Archaeological and historical resources.Compliance with the National Historic Preservation Act
and consultation with the State Historic Preservation Officer would be conducted prior to
construction of the wind turbines.
Land development constraints.A letter of non-objection to place a met tower and conduct
geotechnical fieldwork would be sought once funding is assured for this project. Since the
Corporation and City (major landowners) are supportive of this project, it is expected that use of
their land would not be an issue.Negotiations to obtain a long-term lease would be needed if
the study finds that the wind turbines are feasible.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 13 of 17 7/21/2010
Aviation considerations.The met tower would be located considering FAA airspace issues to
ensure that the FAA would issue a no hazard determination for the met tower. The
determination would be in hand by September 2012. An FAA determination would be sought
for the turbines once the project is considered feasible and the turbine location and type has
been determined. It is expected that the FAA determination would be issued within a month of
submitting the online application.
Visual, aesthetics impacts.Because of its size, the met tower would not be expected to impact
visual resources in Elim.Later in the project,AVEC would conduct community meetings to
discuss potential visual impacts from future potential turbines and how they could be
minimized.
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.AVEC plans to conduct a Feasibility Analysis, Resources Assessment, and Conceptual
Design to assess the possibility of using wind power in Elim. This work would cost $150,000.
AVEC requests $142,500 from AEA. AVEC would provide $7,500 as an in-kind contribution.The
total anticipated cost of this project is expected to be around $2.0 M.
Identification of other funding sources.If the wind resource proves suitable, the next phase of
this project would be final design and construction. Although it is difficult to determine without
an assessment of the resource and what type, size, and number of turbine would be needed,
AVEC expects that final design and construction would cost $2.0 million. It is possible that the
funding for this work could come from a USDA Rural Utility Service program,the Denali
Commission, or another grant program.
Projected capital cost of proposed renewable energy system/projected development cost of
proposed renewable energy system.The final phase of this project would be Design and
Construction and Commissioning (Phase IV). AVEC estimates that this phase could cost $2.0
million assuming installation of two 100 kW wind turbines. AVEC would provide a 10% cash
match ($200,000)for the construction project.
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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 would require monthly monitoring and data management.It is expected that this
would cost $700 total for the year that the met tower is erected.The cost would 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
Identification of potential power buyer(s)/customer(s).AVEC, the existing electric utility
serving Elim,is a member-owned cooperative electric utility and typically owns and maintains
the generation, fuel storage, and distribution facilities in the villages it serves.
Elim includes about 106 households and community facilities, including the Yukuniaraq
Yunqcarvik health clinic, city office, tribal council office,school,and piped water and sewer
systems, which would continue to purchase power from AVEC.
Potential power purchase/sales price/ Proposed rate of return from grant-funded project.At
this point in project development, the potential power price and rate of return on the project is
unknown. Work done under this grant would determine this.
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
Potential annual fuel displacement:The project could decrease diesel use by 28,709 gal/yr
(based on preliminary numbers and 80% turbine availability) and 574,174 over the lifetime of
the project. Based on ISER’s estimated fuel costs, this project could save approximately
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Grant Application Round IV
AEA11-005 Grant Application Page 15 of 17 7/21/2010
$107,786 year during its first full year of operation (planned to be 2014).
Anticipated annual revenue/Potential additional annual incentives/Potential additional
annual revenue streams.Because this project is in the feasibility and concept design stage,
revenue and incentives are unknown.
Non-economic public benefits.The anticipated benefits of installation of the wind turbines
would be reducing the negative impact of the cost of energy by providing a renewable energy
alternative.This project could help stabilize energy costs and provide long-term socio-economic
benefits to village households.Locally produced, affordable energy would empower community
residents and could help avert rural to urban migration, which would help larger Alaska
communities.
This project would help AVEC to determine potential locations to be served by recovered
heat. If determined feasible, the terms of recovered heat agreements would be
negotiated with entities to be served. Once the wind project is constructed and heat
recovery systems are in place,the costs to operate important facilities in Elim,including
the water treatment plant and school,would be decreased, enabling managing entities
(city government, tribe, school district) to operate more economically.
This project would help with the understanding of the wind resource in Northwest Alaska. Data
acquired from this study assist nearby communities, like Koyuk, Golovin, and White Mountain,
to understand their wind resource.Data collected from this project could also be used to
improve the accuracy of the State High Resolution Wind Map.
Stabilized energy costs would allow community entities, including the City and Tribe to plan and
budget for important community infrastructure listed in the Elim Local Economic Development
Plan 2005-2010 Addendum B Updated Priorities (Kawerak,February 2009) including a teen center
and tribalhall (community infrastructure social/cultural priorities 1, 2).
The wind turbine would provide a visual landmark for sea, air, and overland travelers, which
would help navigation in the area.Wind turbine orientation and rotor speed would provide
visual wind information to residents.
Elim residents health and safety would benefit from the environmental benefits resulting from a
reduction of hydrocarbon use, including:
Reduced potential for fuel spills or contamination during transport, storage, or use (thus
protecting vital water and subsistence food sources)
Improved air quality
Decreased contribution to global climate change from fossil fuel use
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,
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 16 of 17 7/21/2010
operate, and maintain this project for the design life. AVEC has capacity and experience to
operate this project. AVEC has operating wind projects throughout the state and is very familiar
with planning, constructing, operating, and maintaining wind systems.
Business Plan Structures and Concepts which may be considered:The wind turbines 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
will be funded through ongoing energy sales to the villages.
Operational issues which could arise:There are no known operational issues.
Operating costs:AVEC’s existing NW 100-A wind turbines at other sites require two maintenance
visits a year.Each visit costs AVEC $1,750 per turbine; therefore, maintenance visits currently
cost AVEC $3,500 per turbine per year.The new Northwind 100-B model requires only one
maintenance visit each year. Therefore, the two new turbines at Elim would require a combined
annual maintenance cost of $3,500.
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 the
information regarding savings and benefits with AEA.
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.
Once funding is known to be secured,AVEC would seek a non-objection letter from the
landowner and begin the FAA and USFWS permitting process.AVEC would seek contractors to
install the met tower and complete the geotechnical work once the grant agreement is in place.
Met tower installation and geotechnical work would occur before winter.Work that can be
completed before the wind study is completed would occur over the winter, including analysis
of current cost of energy and future market and the economic and financial analyses. Once the
wind study is completed, the conceptual design and permitting would occur.
In 2003, the Denali Commission funded the power line extension to power plant and in 2001,
the Commission funded power upgrades to the AVEC power plant. These projects, which were
completed in 2005,make the existing power system more compatible with wind energy
generation.Incorporating an alternative energy source into the Elim system is AVEC’s next step
in stabilizing energy costs in the community.
SECTION 8–LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
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letters of support from the community that would benefit from this project.
The Elim Local Economic Development Plan (Kawerak, February 2004)shows support for this
project.Development Goal 3 lists developing Elim to improve the quality of life for all the
residents under the development areas of transportation,tribal and city government,health,
sewer and water,power,and fuel.One of the objectives (B) under this goal is to enhance the
community and living standards for healthy living by developing wind power.
Letters of have been received from the Elim Native Corporation and the City of Elim in support
of this project. (See 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
AVEC plans to conduct a feasibility analysis, resources assessment,conceptual design, and
permitting to assess the possibility of using wind power in Elim. This work would cost
$150,000. AVEC requests $142,500 from AEA. AVEC will provide $7,500 as cash contribution.
A detail of the grant budget follows. Also see Tab 4.
Milestone or Task Grant Funds AVEC Cash
Match TOTALS
1.Project scoping and contractor solicitation $1,900 $100 $2,000
2.Detailed resource assessment (includes,
purchasing a met tower,monitoring,and
reporting)*(
$31,350 $1,650 $33,000
3.Identification and resolution of land issues $4,750 $250 $5,000
4.Detailed analysis of current cost of energy and
future market $9,500 $500 $10,000
5.Detailed economic and financial analyses $4,750 $250 $5,000
6.Conceptual business & operations plan $1,900 $100 $2,000
7.Conceptual design and costs estimate (includes
geotechnical work)$78,850 $4,150 $83,000
8.Permitting and environmental analysis $6,650 $350 $7,000
9.Final report and recommendations $2,850 $150 $3,000
TOTALS $142,500 $7,500 $150,000
*If a met tower is available without purchase, there would be cost savings to the project.
To date,no funds have been obtained for this project.
If the wind resource proves to be suitable, AVEC would seek funding to construct turbines in
Elim.AVEC would provide a 10% cash match to any obtained funding.
Tab A
Resumes
V3 Energy, LLC Douglas Vaught, P.E. 19211 Babrof Drive Eagle River, AK 99577 USA tel 907.350.5047 email dvaught@mtaonline.net Consulting Services : • Wind resource analysis and assessment, including IEC 61400-1 3 rd ed. protocols • Wind turbine siting, FAA permitting, and power generation prediction • Wind-diesel power plant modeling and configuration design • Cold climate and rime icing environment analysis of wind turbine operations • Met tower/sensor/logger installation and removal (tubular towers 10 to 60 meters in height) Partial List of Clients: • Alaska Village Electric Cooperative • NANA Pacific, LLC • enXco Development Corp. • Bristol Bay Native Corp. • Naknek Electric Association • Kodiak Electric Association • Barrick Gold • Alaska Energy Authority • North Slope Borough • Manokotak Natives Ltd. Representative Projects: • Alaska Village Electric Cooperative. Site selection, FAA permitting, met tower installation, data analysis/wind resource assessment, turbine energy recovery analysis, rime icing/turbine effects analysis, powerplant system modeling. Contact information: Brent Petrie, Key Accounts Mgr, 907-565-5358 • Kodiak Electric Association. Met tower installation, data analysis and modeling for Alaska’s first utility scale turbines (GE 1.5sle) on -line July 2009. Contact information: Darron Scott, CEO, 907 -486-7690. • NANA Pacific, LLC. Site reconnaissance and selection, permitting, met tower installation, wind resource assessment and preliminary power system modeling for Northwest Arctic Borough villages and Red Dog Mine. Contact information: Jay Hermanson, Program Manager, 907-339-6514 • enXco Development Corp. Met tower installation documentation, site reconnaissance , analysis equipment management for utility-sca le wind projects, including Fire Island near Anchorage. Contact information: Steve Gilbert, Alaska Projects Manager, 907-333-0810. • Naknek Electric Association. Long -term wind resource assessment at two sites (sequentially), including site selection, met tower installation, data analysis, turbine research, performance modeling, and project economic analysis. Contact information: Donna Vukich, General Manager, 907-246-4261 • North Slope Borough (with Powercorp Alaska, LLC). Power system modeling, site reconnaissance and selection, FAA permitting, wind turbine cold climate and icing effects white paper. Contact information: Kent Grinage, Public Works Dept., 907-852-0285 Recent Presentations: • Wind Power Icing Challenges in Alaska: a Case Study of the Native Village of Saint Mary’s, presented at Winterwind 2008, Norrköping, Sweden, Dec. 8, 2008.
Tab B
Cost Worksheet
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10
Elim Wind Feasibility
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.Wind Class 4 (est.); 28%gross turbine CF (est.)
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 236 kW, 363 kW, 506 kW
iii.Generator/boilers/other type diesel
iv.Age of generators/boilers/other Overhauled: 2003, 2008, 2003 respectively
v.Efficiency of generators/boilers/other 13.67 kWh/gal (2009 AVEC Operations data)
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]1,123,447 kWh (2009)
ii.Fuel usage
Diesel [gal]82,189 gal (2009 AVEC Operations data)
Other
iii.Peak Load 235 kW (2009 AVEC Operations data)
iv.Average Load 128 kW (2009 AVEC Operations data)
v.Minimum Load
vi.Efficiency 13.67 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]
Wind, 200 kW capacity expected (NW100 turbine)
b)Proposed annual electricity or heat production (fill in as applicable)
i.Electricity [kWh]392,448 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 $2.0M ($10,000/kW installed)
b)Development cost
c)Annual O&M cost of new system $8,850 (wind only; $0.022/kWh, 1st yr, 2.5%↑/yr))
d)Annual fuel cost
5.Project Benefits
a)Amount of fuel displaced for
i.Electricity 28,709 gal/yr
ii.Heat
iii.Transportation
b)Current price of displaced fuel $3.00/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 0.77 (3%discount rate)
Payback (years)16.8
Tab C
Budget Form
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10
ELIM WIND FEASIBILITY
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 scoping and contractor solicitation Sept 15, 2011 $1,900 $100 Cash $2,000
2.Detailed resource assessment (includes
monitoring and reporting)
Oct 31, 2012 $31,350 $1,650 Cash $33,000
3.Identification and resolution of land issues June 1, 2012 $4,750 $250 Cash $5,000
4.Detailed analysis of current cost of energy
and future market
Mar 30, 2012 $9,500 $500 Cash $10,000
5.Detailed economic and financial analyses Aug 30, 2012 $4,750 $250 Cash $5,000
6.Conceptual business & operations plan Oct 31, 2012 $1,900 $100 Cash $2,000
7.Conceptual design and costs estimate
(includes geotech work)
Nov 1, 2012 $78,850 $4,150 Cash $83,000
8.Permitting and environmental analysis Dec 31, 2012 $6,650 $350 Cash $7,000
9.Final report and recommendations Dec 31, 2012 $2,850 $150 Cash $3,000
TOTALS $142,500 $7,500 $150,000
Budget Categories:
Direct Labor & Benefits $$5,000 $5,000
Travel & Per Diem $$2,000 $2,000
Equipment $$$
Materials & Supplies $$500 $500
Contractual Services $142,500 $$142,500
Construction Services $$$
Other $$$
TOTALS $142,500 $7,500 $150,000
Tab D
Letters of Support
Tab E
Authorized Signers Form
Tab F
Authority