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HomeMy WebLinkAboutKotzebue Electric Association High Wind Battery ApplicationKotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant: Round Three November 10th 2009 Kotzebue Electric Association November 10th 2009 Proposal for Renewable Energy Fund Alaska Energy Authority Grant High Penetration Wind-Battery-Diesel System Kotzebue Electric Association Inc. (KEA) is proposing the expansion of its wind power plant with the deployment of mid-size utility grade wind turbines and a flow battery storage system. The proposed system will significantly increase the penetration levels of renewable energy on the KEA grid and provide a significant reduction to the amount of diesel required to operate the generation system for the community. The residents of NW Alaska are facing some of the highest costs for energy anywhere in the nation. KEA continues to work towards the development and implementation of long term energy solutions for electric and thermal energy needs. Kotzebue Electric Association’s current wind plant has an installed capacity of 1.14MW which provides the city of Kotzebue with 1.2 million kilowatt-hours per year. This meets roughly 8% of the community’s electrical demand and displaces an average of 140,000 gallons per year. KEA is planning to increase the installed capacity to 2.95 MW by fall of 2011 in order to further reduce diesel dependency. Increasing the wind capacity in Kotzebue from 1.14 MW to 2.95 MW in conjunction with an energy storage system, such as a Premium Power Flow Battery, will reduce diesel consumption by over 486,370 gallons a year, and increase the contribution of the wind plant to 26% of the electrical total. In addition, excess electricity will be available for use in a heating distribution system that would provide a large benefit to Kotzebue. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 2 of 39 Table of Contents 1. Applicant Information ........................................................................................................................... 4  1.1. Applicant Point of Contact .................................................................................................................. 4  1.2. Applicant Minimum Requirement ....................................................................................................... 4 2. Project Summary .................................................................................................................................... 5  2.1. Project Type ............................................................................................................................................ 5  2.2. Project Location ..................................................................................................................................... 5  2.3. Project Type ............................................................................................................................................ 5  2.4. Project Description ................................................................................................................................. 5  2.5. Project Benefit ......................................................................................................................................... 5 2.6. Project Budget Overview ...................................................................................................................... 6 2.7. Project Cost and Benefit Summary ..................................................................................................... 7 2.7.1. Grant Funds Requested .................................................................................................................... 7 2.7.2.  Other Funds Requested ..................................................................................................................... 7 2.7.3.  Total Grant Costs ................................................................................................................................ 7 2.7.4. Total Project Costs .............................................................................................................................. 7 2.7.5. Estimated Direct Benefits .................................................................................................................. 7 2.7.6.  Estimated Benefits (savings).............................................................................................................. 7 3. Project Management Plan ................................................................................................................... 7  3.1. Project Manager .................................................................................................................................... 7  3.2. Project Schedule .................................................................................................................................. 12  Figure 1: Project Schedule.......................................................................................................................... 12 3.3. Project Milestones ................................................................................................................................ 13  3.4. Project Resources ................................................................................................................................. 14  3.5. Project Communications .................................................................................................................... 14  3.6. Project Risk ............................................................................................................................................. 15 4. Project Description and Tasks ............................................................................................................. 15 4.1. Proposed Energy Resource ................................................................................................................ 15  Figure 2: Kotzebue Monthly Wind Power Roses ..................................................................................... 16  Figure 3: Kotzebue Wind Resource Summary ........................................................................................ 16  4.2. Existing Energy System ......................................................................................................................... 16  4.2.1. Basic Configuration of Existing Energy System .............................................................................. 16 Fugure 4: Generating Plant One-Line Diagram ..................................................................................... 18 4.3. Proposed System .................................................................................................................................. 19  4.3.1 System Design ..................................................................................................................................... 19  4.3.1.1 Rationale for Wind-Battery-Diesel System ................................................................................... 19  4.3.1.2 Description of the Wind Turbine Technology ............................................................................. 19  Figure 5: EWT 900 Operational Specifications ......................................................................................... 19  Figure 6: EWT 900 Rotor Specifications .................................................................................................... 20  Figure 7: EWT Pitch System Specifications ............................................................................................... 20  Figure 8: EWT 900 Brake System Specifications ...................................................................................... 20 Figure 9: Nacelle Cross Section ............................................................................................................... 22 4.3.1.3 Description of Storage Device ..................................................................................................... 22 4.3.1.4 Objective ......................................................................................................................................... 22 4.3.1.5 Scope ............................................................................................................................................... 22  4.3.1.6 Benefits ............................................................................................................................................. 23 4.3.1.7 Scope of Work ................................................................................................................................ 23  Figure 10: Premium Power Zinc Bromide Battery .................................................................................... 24 4.3.1.7 Challenges ....................................................................................................................................... 24  Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 3 of 39 4.3.1.8 Conclusion ........................................................................................................................................ 24 4.3.2 Land Ownership ................................................................................................................................ 24  4.3.3  Permits ................................................................................................................................................. 24  4.3.4  Environment ....................................................................................................................................... 25  4.4 Proposed New System Costs and Projected Revenue .................................................................. 25  4.4.1 Project Development Costs ............................................................................................................. 25 4.4.2 Project Operations and Maintenance Costs ................................................................................ 25 4.4.3 Power Purchase/Sales ...................................................................................................................... 25 4.4.4 Project Cost Worksheet (See Appendix 1) .................................................................................... 25 4.5 Energy Cost Reduction Plan ............................................................................................................... 26 4.5.1 Business Plan ....................................................................................................................................... 26 4.5.2  Increased Wind Capacity ................................................................................................................ 26 4.5.2.1  Objectives ........................................................................................................................................ 26 4.5.2.2 Benefits ............................................................................................................................................. 26 4.5.2.3 Scope of Work ................................................................................................................................ 26 4.5.2.4 Challenges ...................................................................................................................................... 27 5 Project Benefits ..................................................................................................................................... 27 5.1 Potential Annual Fuel Displacement ................................................................................................. 27 5.2 Anticipated Annual Revenue ............................................................................................................ 27 5.3 Potential Additional Annual Incentives ............................................................................................ 27 5.4 Potential Additional Annual Revenue Stream ................................................................................. 28 5.5 Non-Economic Benefits ....................................................................................................................... 28 6 Sustainability .......................................................................................................................................... 28 7 Readiness & Compliance with Other Grants ................................................................................... 29 8 Local Support ........................................................................................................................................ 29 9 Grant Budget ........................................................................................................................................ 29 Figure 11: Grant Budget Form .................................................................................................................... 30 10 Additional Documentation and Certification ................................................................................. 31 Appendix 1: Cost Benefit Worksheet ........................................................................................................ 34 Appendix 2: Estimated Cost Share ........................................................................................................... 37 Appendix 3: Other Components of Fuel Reduction Planning .............................................................. 38 Part 1: Waste Heat Recovery and Power ................................................................................................ 38 Part 2: Solar Thermal .................................................................................................................................... 39   Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 4 of 39 1. Applicant Information Kotzebue Electric Association Po Box 44 Kotzebue, Alaska 99752 Phone: (907) 442-3491 Fax: (907) 442-2482 1.1. Applicant Point of Contact Brad Reeve General Manager Kotzebue Electric Association Po Box 44 Kotzebue, Alaska 99752 b_reeve@kea.coop Work: (907) 442-3491 Fax: (907) 442-2482 1.2. Applicant Minimum Requirement As an Applicant, we are an electric utility holding a certificate of public convenience and necessity under AS 42.05 Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participants governing authority is necessary. 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. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions will be clearly noted and submitted with the application.) Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 5 of 39 2. Project Summary 2.1. Project Title High Penetration Wind-Battery-Diesel Hybrid 2.2. Project Location Kotzebue, Alaska 2.3. Project Type This is a construction project that will generate electricity using a locally available wind resource. It will include the installation of two EWT 900kW wind turbines and a Premium Power Flow Battery onto an existing wind -diesel hybrid system. 2.4. Project Description Rural residents in NW Alaska are facing some of the highest costs anywhere in the nation. In order to proactively address the region’s energy crisis, KEA is working to implement long term energy options. While there are a variety of alternative energy options available to the Kotzebue region, such as wind, solar, and geothermal; wind energy has a proven track record of success in this community. The goals of the proposed project are: • To increase the wind capacity of KEA from 1.14 MW to 2.95 MW using 2 EWT 900kW wind turbines. • To integrate the increased wind capacity with a 500 kW / 3.7 MW Premium Power Flow Battery. • To utilize the excess electricity in a distributed heating system. This is a two-year project. Year one involves performing all pre-construction and foundation construction tasks. Year two involves the wind turbine erection and commissioning. 2.5. Project Benefit The proposed wind generation infrastructure will help reduce energy costs by reducing the quantity and cost of fuel that will stabilize energy costs, providing long-term socio-economic benefits to Kotzebue. Any energy produced by renewable sources provides a hedge against high fuel costs. Energy stability provides greater economic sustainability. Kotzebue residents are confronted by the reality that plagues much of rural Alaska: limited economic opportunity combined with an almost astronomical cost of living. The high cost of energy is forcing residents to choose between leaving village life behind in order to relocate to larger cities in search of affordable living. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 6 of 39 NW Alaska suffers greatly from the high cost of electricity. 2008 residential power rates in the region varied from $.48/kWh in Kotzebue (up from $.39/kWh in 2007). The anticipated benefits of this project are many; primary among these is reducing the negative impact of the cost of energy in these communities by providing a renewable energy alternative. This alternative could help stabilize energy costs and provide long-term socio-economic benefits to village households. Locally produced affordable energy will empower our community residents and will help avert rural to urban migration. KEA is proposing to increase the capacity of the wind plant from 1.14 MW to 2.94 MW which currently exceeds the electrical needs of the community but will open up a non-diesel based method of procuring thermal energy for residential and commercial heating. Many communities in rural Alaska have excellent to superb wind resource potential. Several communities already have or are planning to install wind farms that will help to offset the high cost of diesel. High penetration wind plants without any energy storage are not fully optimized. Energy storage allows excess power to be absorbed and then released during peak loads or used for thermal applications. General benefits of a high penetration wind-battery-diesel system in rural Alaska include: • Lower electricity generation costs • Low environmental risks and damage • Energy security • Increased energy independence and reliance on renewable local energy resources. • Ability to utilize excess wind power in a distributive heating system acting as a dump load during times of high penetration. • Ability to charge electric vehicles during off peak times with excess wind energy. • Reduced reliance on the PCE program. 2.6 Project Budget Overview The total project cost is $10,755,497. Currently, Kotzebue Electric Association is committed 62.81% match including an AEA Renewable Energy Fund Round 1 grant (See Appendix 2). This amount totals $6,755,487 and includes $2,000,000 in Clean Renewable Energy Bonds (not yet finalized), in kind administration and engineering ($390,497), a State of Alaska Grant ($200,000), a DOE grant ($95,000), and a NRECA CRN ARRA grant to be determined. The project costs include the capital cost of two EWT 900kW turbines, 70 meter towers, shipping to Seattle, estimated shipping from Seattle to Kotzebue, estimated foundation costs, energy storage, and associated administration, and engineering. Kotzebue will continue to seek funding through other agencies, including a low interest Rural Utility Service loan, USDA High Cost of Energy Grant, and Clean Renewable Energy Bonds (CREB’s). 2.7. Project Cost & Benefit Summary 2.7.1 Grant Funds Requested in this Application: $4,000,000 Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 7 of 39 2.7.2 Other Funds to Be Provided: $0 2.7.3 Total Grant Costs (Sum of 2.5.1 and 2.5.2): $4,000,000 2.7.4 Total Project Cost: $10,755,497 2.7.5 Estimated Direct Financial Benefits (Savings): $2,578,589/yr 2.7.6 Estimated Benefit (Savings): With increased wind on the system and a Premium Power Flow Battery, KEA will save the community $2,578,589 a year. Without energy storage, the increased wind capacity’s benefits would be limited, in order to maintain grid stability, and the wind plant would then save only $1,324,747 a year. Due to technical limitations HOMER modelling will not be available in a printable format in this section. The complete modelling file can be found in the CD included in the application. A summery is as follows: Expanded wind capacity has the potential to increase the instantaneous penetration to over 100%, providing the wind farm the potential to provide to 26% of Kotzebue’s electrical total. Homer’s inability to integrate Flow Battery technology, beyond grid stabilization, still projects up to $0.13 kWh (COE) in savings, which is expected to increase in real-world implementation. As stated above, the integration of storage technology, such as a Premium Power Flow Battery, has the potential to save the community additional fuel savings by increasing the diesel plants efficiency beyond the increased wind production savings. In addition, $2 million in savings has the potential to reduce Kotzebue’s Power Cost Equalization Program burden to the state. 3.0 Project Management Plan 3.1 Project Manager KEA will be responsible for producing and maintaining all project schedules and budgets and handling all major procurements. Once systems are installed, KEA will ensure that operations and maintenance training is provided to personnel. KEA has a staff of 15 full time employees including the General Manager, a mechanical engineer, power plant operators, diesel mechanics, electrical technicians, trained linemen, and administrative staff. Brad Reeve, KEA General Manager since 1988, has extensive business, construction, and management experience of projects and programs in rural Alaska. Mr. Reeve has overseen the installation of major power generation units as well as power distribution upgrades. He has also managed the installation multiple wind turbine generators and their integration into the KEA utility power grid. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 8 of 39 In the application of wind energy technology, KEA has become a regional center of engineering and technical expertise and often provides other small village utilities with support and training. The vitae of key personnel are included below. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 9 of 39 Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 10 of 39 Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 11 of 39 Jesse L. Logan 1200 Karluk St #1 Anchorage, AK 99501 (907) 575-3421 j_logan@kea.coop Education • Master of Arts- Global Environmental Policy 2007-2009 Northern Studies Program, University of Alaska, Fairbanks August 2009 GPA 3.96 Thesis: Renewable Energy in Rural Alaska: Two Case Studies and their Implications. • Alaska Pacific University Summa Cum Laude Graduate 1997-2001 Bachelor of Arts, Liberal Studies Work Experience • Kotzebue Electric Association 2009- Present Project Development • Graduate Teaching Assistant, Political Science 2007-2009 University of Alaska, Fairbanks Northern Studies Dept • Naturalist/Program Leader 2007, 2008, seasonal Institute of Arctic Biology’s Large Animal Research Station University of Alaska, Fairbanks• Band Leader for “The Incoming Band” 2003-2007 Girdwood, Alaska Field Experience • Wind Energy in Kotzebue, Alaska 2007-2009 Studied implementation of wind energy in rural Alaskan village, long-term sustainability and project design. • Geologic Field Research Assistant, Alaska Volcano Observatory Summer 2007 University of Alaska Geophysical Institute Lead mountaineering guide, expedition planning, geologic data collection in Katmai National Park • Sustainable Development Volunteer 2001-2002 Foundation Human Nature, L-Ya Ecuador. Awards, Conferences, Committees • Coordinator, UAF Student Initiative for Renewable Energy Now (SIREN) 2008-2009 • Raised $2-4 million for renewable energy and energy efficiency at UAF • Graduate Teaching Assistantship (UAF) 2007-2009 • Geothermal Energy Conference, Chena Hot Springs Fall, 2009 • Student Representative, UAF energy board 2009 • Alaska Wind-Diesel Energy Conference, Girdwood, Alaska Fall, 2008 • Judith Kleinfeld Prize for Excellence in Research (UAF) Fall, 2008 • Mary Jane Heartman Memorial Scholarship in Creative Writing (APU) 1998 • Distinguished Scholar Scholarship (APU) 1997-2001 Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 12 of 39 3.2 Project Schedule The Kotzebue Electric Association is proposing to complete final design, construction, erection, startup, and commissioning of two EWT 900 wind turbines to be added to the existing 1.14 MW Wind Farm in Kotzebue, Alaska. The Alaska Energy Authority must receive and approve evidence that each milestone has been reached prior to approving reimbursement or releasing funding for the corresponding tasks. The milestones and corresponding tasks are outlined in the table below. The project start date and timeline is based on the acceptance of an official grant agreement between KEA and the State of Alaska. Milestone Project Schedule Timeline 1. Complete and Execute Grant Agreement September 1, 2010 1.1 Initial Foundation and Integration Design Jan-10 2. Provide 25% Design Drawings Feb-10 2.1 Finalize Foundation Design Mar-10 2.2 Finalize Integration Design Apr-10 3. Provide 75% Design Drawings November 31, 09 3.1 Turbine Procurement Jan-10 3.2 Foundation Material Procurement Feb-10 3.3 Battery Procurement Dec-09 4. Provide Planned Dispatch Strategy February 1, 2009 4.1 Materials & Equipment arrive Jul-10 4.2 Site Access and Foundation Installation Jul-10 4.3 Tower/Turbine Erection Aug-10 4.4 System Integration Aug-10 4.5 Commissioning Sep-10 4.6 As-Build and Project Close Out Sep-10 5. Performance Operation and Maintenance Reporting October 1, 2011 5.1 Ongoing reporting 2010-2012 Figure 1: Project Schedule Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 13 of 39 3.3 Project Milestones Pre-Construction Program Activities Kick-off Meeting: Begin to coordinate with potential contractors and re-evaluate project timelines. Geotechnical Review: Existing geotechnical data will be reviewed for the wind site. If more information is required for the increased foundation size a qualified geotechnical engineer will do an appropriate analysis. Permit Review: The site has been in use as a wind power plant since 1997. An Environmental Assessment was completed by Dames and Moore in 1998 and submitted to US DOE (DOE/EA-1245). Other permitting has been approved that is associated with the roads to the site which were submitted by the Kikiktagruk Inupiat Corporation. As well the site was monitored and reviewed for avian interaction in coordination with US F&W for a 10 year period and there were no avian fatalities. Even though most permits have already been acquired in association with the existing wind plant, they will be reviewed and further action will be taken if indicated. Wind-battery-diesel Integration: A wind-diesel integration study; including assessments of dynamic load control, balance of system electrical interconnect assessment, SCADA systems, heating distribution systems, and conceptual system design. Civil/Structural Engineering on Wind Turbine Tower Foundation: The project team will evaluate the geotechnical report and recommend, design, and engineer a foundation type appropriate to KEA’s wind site and suitable for the larger turbine size. Electrical Interconnect Design: Design will include electrical one-line diagram and load study. Final Design and Construction/Installation Plan: This final step will ensure proper execution of the proposed plan. Construction Program Activities Equipment Procurement: Procure wind turbines, towers and foundation. Installation: Install wind tower foundations, erect wind turbines, install a battery system. Commissioning: Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 14 of 39 Write O&M manuals, make system modifications, monitor and report on system performance, and provide local operator training, system maintenance, and technical support services 3.4 Project Resources 3.4.1. Personnel/Partners Kotzebue Electric Association (KEA) is a non-profit Rural Utility Systems cooperative that serves the residents of Kotzebue, Alaska. KEA owns a wind-diesel power plant which has six engine/generator sets and 17 wind turbines (with a total installed wind capacity of 1.14 MW). KEA has demonstrated successful leadership and innovation in remote wind-diesel applications and will be a valuable partner for this project. A competitive bid process will be followed to do to most project management, procurement, and construction. While KEA will do most work using established contractors, KEA will collaborate on the use of cranes anticipating that a 250 ton crane could be available for turbine erection. There is some crane availability currently staged in Nome and Kotzebue. A minimum of a 160 ton crane will be required for the 70 meter tower. KEA has a demonstrated track record of utilizing local personnel in as many aspects of project development and construction as possible. As well, KEA possesses the local knowledge and prior experience to complete this project under the terms defined herein. 3.5 Project Communications KEA will work closely with any subcontractors to ensure that the project schedule is followed and high quality products are delivered. KEA already has an effective management and communication structure built in place. The management of the enlarged plant will follow the model of the existing plant. KEA will provide quarterly reports to the Alaska Energy Authority (AEA). Project collaborators will provide additional reports to KEA as required by AEA. In addition, public presentations on project progress will be given at community meetings and possibly conferences. Informational brochures and other publications will be produced for the general public. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 15 of 39 3.6 Project Risk The biggest potential risk will be delay in the shipment of the wind turbines and towers. The demand is currently very high for turbines over 1 MW in size. The few manufacturers that are making turbines in the 500-1,000 kW range are taking orders that can be up to 1-3 years out. For example, Fuhrlander has provided the three utilities with a quote stating a 12 month lead time. The EWT 900kW have a six month lead time however this is increasing now to a 9 month lead time due to the extremely limited barge season, shipping delays will be a big cause of concern for this project. This is not a new challenge to KEA. KEA is accustomed to dealing with such limitations, and has extensive experience in addressing the difficulties associated with conducting business in such challenging conditions. Shipping arrangements for construction equipment and supplies will be made with ample allowance for possible delays, and sufficient flexibility will be included in construction schedules to ensure on-time and successful completion of all project phases. Additionally, having an in depth project plan upon completion of the pre- construction phase will also help to avert any construction related scheduling problems. The installation of such a high penetration wind system will have unique engineering challenges but also present tremendous opportunity for the community. KEA will ensure that the proper systems and safeguards, such as energy storage, resistance heat loads, are in place before the turbines are online. 4.0. Project Description and Tasks 4.1 Proposed Energy Resource KEA has been actively monitoring the existing wind resource since 1992. In 1999, KEA hired a consultant, Wind Economics & Technology, Inc (WECTEC) to summarize the wind resource data. Kotzebue has an annual average wind speed of 6.3 m/s at the 110 foot level that would be higher at the proposed turbine height. The winds are weakest from March through July and the strongest winds are in October, November, and February. Prevailing winds are generally from the east with some light westerly winds during early summer. The energy producing winds generally come from due east. The following data was compiled by Nick Szymoniak from the Alaska Energy Authority. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 16 of 39 Figure 2: Kotzebue Monthly Wind Power Roses Figure 3: Wind Resource Summary 4.2 Existing Energy System 4.2.1 Basic Configuration of Existing Energy System The diesel generator plant is located about 4.5 miles from the wind turbine site, with an existing feeder line (voltage 12.5 kV, 3 phase) capable of carrying over 2.5 MW. Power for the KEA grid is generated by the diesel generators at 4,160V and stepped up through transformers to 12,500 VAC, three-phase, three-wire for distribution throughout the town. The existing power grid has the following electrical characteristics: Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 17 of 39 Grid Voltage: 12.5 kV Frequency: 60 Hz ± 0.5 Hz Efficiency: 14.5 kWh/gal Power Factor: 0.92 lagging Average load: 2500 kW Maximum Load: 3700 kW Minimum Load: 1700 kW Diesel Powered Generators: Unit 7: 1025 kW 3516 series Cat (16 cylinder, 1200 rpm)–Restricted to 1000 kW Unit 10: 3080 kW EMD 710 series (20 cylinder) Unit 11: 1025 kW 3512 series Cat (12 cylinder, 1800 rpm)- Restricted to 900 kW Unit 12: 1025 kW 3512 series Cat (12 cylinder, 1800 rpm)- Restricted to 810 kW Unit 14: 2800 kW EMD 710 series (16 cylinder) Unit 15: 2800 kW EMD 710 series (16 cylinder) Wind Turbines 15 Entegrity Wind System (EWS) Turbines: 66kW each 1 North Wind 100: 100kW each 1 Vestas: 65 kW each The generating plant one-line diagram is provided below. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 18 of 39 Figure 4: Generating Plant One-Line Diagram Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 19 of 39 4.3 Proposed System 4.3.1 System Design 4.3.1.1 Rationale for a Wind-Battery-Diesel System Kotzebue Electric Association (KEA) has been a long-time leader in developing, designing, building, and operating wind-diesel hybrid systems in remote locations in rural Alaska. Kotzebue has a known resource which is successful. The hard work has been done in preparing the KEA power plant to integrate wind onto the system; all we are doing is increasing the payback and adding a storage device. The storage device is described in the next section. 4.3.1.2 Description of the Wind Turbine Technology The EWT 900 is a direct-drive variable speed, pitch regulated, horizontal axis, three-bladed upwind rotor wind turbine. The gearless direct driven synchronous generator operates at variable speed. This is made possible by an actively controlled AC_DC-AC IGBT power converter connected to the grid. Benefits of this design are low maintenance, constant power output at wind speed above rated, and relatively low structural loads compared to constant-speed stall controlled or constant-speed pitch-controlled wind turbines. The generator is fully integrated into the structural design of the turbine, which allows for a very compact nacelle design. The drive-train makes use of only one main bearing, whereas classic designs have separately supported main shaft, gearbox and generator. All dynamically loaded interfaces from the blades to the foundation are sturdy flange connections with machined surfaces and high tensile steel. KEA will purchase the EWT 900 Cold Weather edition which offers a minimum operating temperature down to -40 Celsius. Figure 5: EWT 900 Operational Specifications Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 20 of 39 The rotor has a diameter of 50m with a length of 24 m for the individual rotor blade. The rotor blade is made of fiberglass/epoxy resin, and designed in a multi-cellspar/shell structure. Figure 6: EWT 900 Rotor Specifications The pitch system works as both, a primary braking system and a speed controller during nominal output performance of the wind turbine. It consists of 3 individual servomotors, which set the blade pitch angle via gearbox/pinion gear arrangement. A disk brake at the high speed shaft of the gearbox works as an emergency brake as well as a parking brake for service purposes. Figure 7: EWT Pitch System Specifications Figure 8: EWT 900 Brake System Specifications Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 21 of 39 Figure 9: Nacelle Cross Section Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 22 of 39 4.3.1.3 Description of Storage Device Premium Power Zinc Bromide Battery 4.3.1.4 Objective The installation of a Premium Power Battery Energy Storage System (FBESS) will increase voltage stability, increase the efficiencies of operating diesel generators, and capture excess wind energy during off-peak hours. 4.3.1.5 Scope KEA is one of four cooperatives that are written into American Reinvestment and Recovery Act grant sponsored by the National Rural Electric Cooperative Association (NRECA) Cooperative Research Network (CRN) for a Premium Power Flow Battery. Kotzebue Electric Association (KEA) is proposing to install one PPC TransFlow 2000 (500 kW, 3.7 MWh, 7.4 hours) to shift wind turbines from off-peak to on-peak, reduce diesel generation operation and number of starts, reduce diesel fuel consumption, and provide frequency regulation. This storage system would increase emergency capacity for the system, as KEA is subject to 10 or more cyclonic storms each winter. By installing the TransFlow 2000 battery, KEA’s Cost of Energy Reduction Program will achieve a more than 30% reduction in diesel-based power. This battery will also increase voltage stability. The battery will benefit the KEA existing system in three specific ways. Diesel turbines run most efficiently when operating to the fullest capacity. Thus, charging the battery during the off- peak—when the generator would otherwise operate below ideal conditions—will increase overall system efficiency, greatly reduce the cost for fuel, provide backup capacity, reduce emissions, and reduce the levelized cost of electricity. Second, KEA runs one EMD Diesel Engine year round and supplements this with a second lower efficiency CAT generator when the load demands it. Instead of starting the second generator, a battery would supply the electricity. Normally, the less efficient CAT gen set is run approximately 3,200 hours per year. This will be reduced to less than 350 hours per year with the battery online. This results in a direct reduction in diesel consumption. Third, energy storage is required to realize the benefits of increased wind penetration in Kotzebue. At this point, the KEA system has seen up to 60% wind and, as it is an islanded utility, a fast-acting TransFlow 2000 battery system would provide the necessary frequency regulation and spinning reserve for the utility to utilize these high levels of wind and maintain system stability. The simple payback for a battery system is less than three years. KEA is looking at increasing the wind penetration in its system. The storage system would be integrated into the existing SCADA system. As the battery system would reduce congestion on the distribution lines, it would be an alternative to reconductoring the lines to address congestion occurring due to an increase in generation from the wind plant. While this installation will serve Kotzebue, the demonstrated technology could offer significant benefits to other villages in Alaska as more wind energy is harnessed. At the top level, the objective of this part of the project is to test and prove the value of high capacity battery storage as a key element of firming the capacity of renewable energy in Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 23 of 39 the state. To that end, KEA’s participation in this project will bring a greater understanding of storage systems to Alaska. KEA will be a able to share information concerning the technical and economic viability of utility-scale Zinc Bromide (ZnBr) battery technology as part of a larger project in multiple commercial applications under a wide range of regional settings (South Carolina, Hawaii, Alaska, and Florida). 4.3.1.6 Benefits The FBESS will benefit KEA’s existing system in three specific ways. Diesel turbines run most efficiently when operating to the fullest capacity. Charging the battery, when the generator would otherwise operate below ideal conditions, will increase overall system efficiency. Secondly, KEA runs one EMD year round and supplements this with a second CAT generator when the load demands it. Instead of starting the second generator, the FBESS will supply the electricity. Normally, the CAT gen set is run approximately 3,200 hrs per year. This will be reduced less than 350 hrs per year with the FBESS online. This results to a direct reduction in diesel consumption. Thirdly, in order to realize the benefits of increasing the level of wind penetration in Kotzebue, energy storage MUST be utilized. The simple payback for the FBESS is under three years. 4.3.1.7 Scope of Work Phase one, Initial Design and Engineering, of this system has been funded. Phase Two, summer 2010, will consist of the construction of an Energy Storage Facility and the installation of a 500 kW, 3.7 MWh, 7.4 hours system. Phase Three will continue in 2011 with further testing to evaluate the additional fuel savings of another unit that would be sized for the additional wind capacity. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 24 of 39 TransFlow - 2000 Utility-Scale Mobile Energy Storage Figure 10: Premium Power Zinc Bromide Battery 4.3.1.8 Challenges KEA doesn’t expect any major obstacles. However, any newer technology will have Issues to resolves. Communication lines are very open between project partners and this will continue as construction proceeds. However, the unique mobile design of the flow battery module aids KEA in rapid deployment. 4.3.1.9 Conclusion By increasing wind capacity, introducing energy storage, and capturing waste heat for power generation KEA will effectively combat the trends of rising fuel costs. The projects will require significant capital for development but when combined these projects will save over nearly 500,000 gallons of diesel every year. 4.3.2. Land Ownership The land proposed for use in this project owned by Kikiktagruk Inupiat Corporation, KIC, and has been leased to KEA since 1997. 4.3.3. Permits The site has been reviewed and an Environmental Assessment was completed by Dames and Moore in 1998 and submitted to US DOE (DOE/EA-1245). Other permitting has been approved that is associated with the roads to the site which was submitted by the Kikiktagruk Inupiat Corporation. As well the site was monitored and reviewed for avian interaction in coordination with US F&W for a 10 year period and there were no avian fatalities. Even Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 25 of 39 though most permits have already been acquired from installation of the existing wind plant, they will be reviewed and further action will be taken if indicated. 4.3.4. Environmental No known hazards 4.4 Proposed New System Costs and Projected Revenues 4.4.1. Projected Development Costs Total anticipated project cost: $10,755,497 Requested grant funding: $4,000,000 Applicant matching funds: $6,755,497 Identification of other funding sources: KEA will also pursue funding through USDA’s Rural Energy Grants, Rural Utility Service’s low interest loans, and Clean Renewable Energy Bonds. 4.4.2. Project Operating and Maintenance Costs The estimated Operating and Maintenance costs (as described in the attached Project Cost Worksheet) are $90,000 annually. This differs very little from the normal wind-diesel operations. KEA has ongoing O&M for the diesel and wind plants and any additional O&M costs will be absorbed into the overall cost structure of KEA. 4.4.3. Power Purchase/Sales KEA is a cooperative non-profit utility that serves the community of Kotzebue, Alaska. The power purchase/sales price is a function of KEA’s cost structure. As a part of its rate structure KEA uses a COPA to include the cost of fuel into its rates. Any reduction in fuel usage has a positive effect on the rates of the KEA member consumers. 4.4.4. Project Cost Worksheet Submitted as an attachment: See Appendix 1. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 26 of 39 4.5 Energy Cost Reduction Plan 4.5.1 Business Plan Kotzebue Electric Association is a known wind industry leader whose knowledge has been relied upon for operations and maintenance on renewable energy systems. KEA already has in place standard protocols for operations and maintenance that have been successful in Kotzebue. To further guarantee optimum performance KEA will create a business plan using templates created by the Alaska Department of Commerce and Economic Development. KEA will also send the in house operators/engineers to EWT headquarters to receive in-depth training. This training will enable the local operators to have detailed discussions with many of the lead engineers, programmers, and operations personnel. This will be done before project commissioning. A manufacturer’s representative will also be on-site post installation to review and refine operating procedures. Kotzebue Electric Association has created a Cost of Energy Reduction Plan, CERP, which collectively addresses many aspects of our current energy crisis. The CERP is detailed here to provide a more complete picture of how the proposed project fits into KEA’s “big picture.” 4.5.2 Increased Wind Capacity 4.5.2.1 Objective Kotzebue Electric Association’s current wind plant has an installed capacity of 1.14MW that provides the city of Kotzebue with 1.2 million kilowatt-hours. This meets roughly 8% of the community’s electrical demand and displaces an average of 140,000 gallons per year. KEA is planning to increase the installed capacity to 2.95 MW by fall of 2010 in order to further reduce diesel dependency. 4.5.2.2 Benefits There is no doubt of the urgency to reduce diesel dependency. Kotzebue’s current load averages 2.7 MW. A 2.95MW wind plant will exceed the electrical demand of Kotzebue. In addition to electricity, thermal energy also needs to be addressed. When the wind allows the turbines to operate near capacity, excess electricity will be ‘dumped’ into thermal loads that can then be used, for space and water heating, in the homes and businesses of Kotzebue. The overall goal will be to drastically reduce diesel consumption both for electric and thermal generation. 4.5.2.3 Scope of Work Adding 1.8 MW of wind will be done by installing two EWT 900kW turbines. This initially was going to be done in conjunction with the utilities of Nome and Unalakleet. Larger turbines Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 27 of 39 need to be purchased in batches of ten or more. Combining efforts with these utilities would reduce the overall cost of shipping, of both the necessary crane and turbines. KEA would like to begin construction and foundation work in the summer of 2010. The EWT’s can be purchased without a lot-of-ten and therefore KEA will proceed without the other two utilities. The wind turbines have a lead time of 6 months, allowing for turbine erection in the fall of 2010. 4.5.2.4 Challenges At most KEA currently has 60% wind energy on the grid system at any one time. This has allowed for a stable and reliable grid. A system which has over 100% wind energy cannot function without considerable further safeguard measures. One of which is the installation of a Flow Battery which is designed to absorb any surges caused by wind gusts and provide the needed frequency control. These design issues are being addressed. 5 Project Benefit 5.1 Potential Annual Fuel Displacement The proposed system has the potential to displace nearly 500,000 gallons of diesel fuel annually. This is a 20 year project, and therefore has the potential to displace a total of 9,727,400 gallons of diesel fuel. 5.2 Anticipated annual revenue There is no expectation of increased revenue from this project. KEA is a non-profit electric cooperative that primary function is to serve the electric needs of the community of Kotzebue. As a part of its rate structure KEA uses a COPA to include the cost of fuel into its rates. Any reduction in fuel usage has a positive effect on the rates of the KEA member consumers. 5.3 Potential additional annual incentives KEA has also had discussions with Native Corporations to determine if there would be any advantage to partnerships that would allow the transfer of potential annual incentives such as production tax credits. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 28 of 39 5.4 Potential Additional Annual Revenue Streams KEA currently has a relationship with the Bonneville Environmental Foundation for the Denali Green Tag program that benefits renewable energy projects in Alaska and provided some income to the cooperative. Additionally, KEA will track the potential of Carbon Emission Credits that may become available in the future. 5.5 Non-Economic Benefits Environmental Benefits Environmental benefits and impacts of the project, based on reduction of hydrocarbon use, include reduced potential for fuel spills/contamination episodes in 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, decreased coastal erosion due to climate change. Non-Income Benefits Faced with the challenges of high costs, limited local employment options and the need to support their families, rural Alaskans are being faced with the choice of leaving village life behind in order to relocate to larger cities in search of employment and affordable living. In such small communities, each household is important to the well-being of the entire community. As KEA is a non-profit cooperative utility, savings in fuel will have a positive benefit to the community in the form of lower electricity prices, more money being retained within the community, and overall community empowerment through decreased reliance on outside assistance. 6. Sustainability The estimated O&M is $90,000/year (See appendix 1). At the same time, the project could realize over $2million in annual savings. The financing for the O&M of the new wind turbines and power storage device will be absorbed into the overall cost structure of KEA. Operational issues that may arise are will be addressed by the engineering team. With any new technology there are bound to be issues that are unforeseen. KEA will work through these issues as they have been done in the past with other successful projects the cooperative has undertaken. KEA is committed to reporting the savings and benefits of this high penetration wind-battery- diesel hybrid system to both the grant awarding organization (AEA) as well as other Alaska Utilities. In order to establish the efficacy of this type of project in an arctic environment, KEA will closely monitor all aspects of the operation, maintenance, and savings. These will be communicated to other communities wishing to capitalize on the experience and expertise Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 29 of 39 of KEA. If awarded the grant, KEA will comply with all reporting obligations as defined in the grant agreement. 7. Readiness and Compliance with other Grants As outlined in the Project Schedule (above) and the Grant Budget Form (below), KEA will be working with the state to begin steps for the purchase of the two EWT 900 wind turbines. This is before the grant awards are to be announced. In order to begin construction in the summer of 2010, turbines would need to arrive in Seattle in time for the summer barge season. KEA has already spent several years working with partners, and regional and local organizations to develop this project. Designs have been made in partnership with Thompson Engineering, Premium Power, and KEA. Grants that contribute to this project have been awarded by AEA, the U.S. DOE, the State of Alaska, and the NRECA CRN ARRA. KEA has complied with all grant agreements. 8. Local Support KEA is part of the NANA Regional Strategy Plan efforts and is supported by all of the entities that are involved, such as NANA, the Maniilaq Association and the NW Arctic Borough. 9. Grant Budget The total project cost is $10,755,497. The overall cost share will be $6,755,497. The $2,000,000 in Clean Renewable Energy Bonds is not yet finalized. KEA will continue to pursue outside funding with a low interest RUS loan or the USDAs High Cost of Energy grant. It should be noted at this point that this budget lacks the detail and thoroughness that is needed. The applicant is comfortable with these estimates but will continue to acquire more detail on foundation costs, costs of crane usage, etc. The capital cost of the turbine, towers, and including shipping is $3,659,552. This is from quotes that have been received, although the shipping to Seattle is a firm quote, the shipping from Seattle to Anchorage is an estimate only. Foundation costs in this budget represent 20% of the capital cost of the turbine. The civil, structural and electrical engineers each represent 10% of the capital cost of the turbine. Administration and project management will be done in house as in kind contributions to the project. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 30 of 39 The grant budget form is below: 10. Additional Documentation and Certification Figure 11: Grant Budget Form Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 31 of 39 Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 32 of 39 Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 33 of 39 Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 34 of 39 Appendix 1: Cost Benefit Worksheet 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 90% 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 6 ii. Rated capacity of generators/boilers/other 11,520 kW iii. Generator/boilers/other type iv. Age of generators/boilers/other 1987-2005 v. Efficiency of generators/boilers/other 14.27 vs. sales b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $539,559 ii. Annual O&M cost for non-labor $246,836 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] 21,904,956 ii. Fuel usage Diesel [gal] 1,428,8781 gallons #2 Diesel Other iii. Peak Load 3,731 kW iv. Average Load 2,500 v. Minimum Load 1,700 vi. Efficiency 14.27 vs. sales vii. Future trends d) Annual heating fuel usage (fill in as applicable) 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. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 35 of 39 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 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) [kWh or MMBtu/hr] 1.8 MW Wind b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 4,800,000 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 1,400,000 gallons #2 Diesel 4. Project Cost a) Total capital cost of new system $10,755,497 b) Development cost $200,000 c) Annual O&M cost of new system $96,000 d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 486,370 gallons ii. Heat iii. Transportation b) Price of displaced fuel $2,062,208 c) Other economic benefits $30,000 Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 36 of 39 d) Amount of Alaska public benefits $2,578,579 6. Power Purchase/Sales Price a) Price for power purchase/sale 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.05 Payback 4.17 years Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 37 of 39 Appendix 2: Estimated Cost Share Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 38 of 39 Appendix 3: Other Components of Fuel Reduction Planning 1. Waste Heat Recovery and Power Objective The installation of a stack heat recovery unit and an ammonia absorption cycle waste heat power plant will allow KEA to fully utilize diesel fuel whenever the diesel turbines are in operation. Only one third of a fuel’s energy content is used for electricity generation. The remaining two thirds are turned into thermal energy or ‘waste heat’. KEA currently utilizes one third in its district heating system, water heating for the city’s water line, and in the absorption chiller which generates ice for the commercial fishing industry. The remaining third exits the exhaust stack. A heat exchanger can be installed in the stack heat to capture this thermal energy. Energy Concepts has designed a turbine which will generate 150kW from that ‘waste heat’. Benefits The capital cost of this equipment is low relative to the benefits it provides. The simple payback for a waste heat project of this scope is under 2 years. This technology could be of great benefit to any village using diesel turbines. Scope of Work Only one third of a fuel’s energy content is used for electricity generation. The remaining two thirds are turned into thermal energy or ‘waste heat’. KEA currently utilizes one third of that ‘waste heat’ in its district heating system, water heating for the city’s water line, and in an absorption chiller (designed by Energy Concepts) which generates ice for the commercial fishing industry. The remaining third exits the exhaust stack. A heat exchanger can be installed in the stack heat to capture this thermal energy. Energy Concepts has designed a turbine which will generate 150kW from that ‘waste heat’. This turbine will be installed in the summer of 2010. The existing Absorption Chiller consists of outdated technology. Energy Concepts will simultaneously update this system while installing the turbine. Challenges Stack heat recovery has not been met with much success in Alaska. There are challenges which need to be addressed but the technology has evolved to the point where these are not insurmountable, but only need to be discussed and properly engineered. Waste heat power generation is also not new technology. Chena Hot Springs Resort has had much success with their Organic Rankine Cycle turbine which gets its heat source from a geothermal reservoir. Kotzebue Electric Association High Penetration Wind-Battery-Diesel System Renewable Energy Fund Grant November 10th 2009 Page 39 of 39 2. Solar Thermal Objective In an effort to mitigate the rising costs of home heating KEA will investigate the success of solar thermal systems. Partnering with NIHA, KEA will install a total of ten systems spread out in Kotzebue. Benefits Modeling done in Ret Screen has shown that the Northwest Arctic Region can obtain a 50% solar fraction on a properly designed system. Meaning solar energy can reduce their current energy use by half. The payback for solar averages out to be 6-8 years depending on system design and current energy methods and costs. Scope of Work: Of the ten installed systems, two will consist of evacuated tubes and these will need to be located in Kotzebue. These tubes have the potential to be more troublesome, but more advantageous, than their flat panel counterparts. The tank less water heats (two using propane and two using electricity). The remaining 3/7 will have storage tanks. Half of the systems will use an antifreeze looped system and the others will utilize a drain back system. This combination of techniques will allow NIHA and KEA to determine what type of system will be most beneficial to residents will being simple to maintain and operate. Challenges Not many people have experimented with solar thermal in the Arctic. Cold Climate Housing Research Center has recently installed both an evacuated tube space heating solar thermal system and a glazed panel water heating solar thermal system in Fairbanks. Each system has its advantages and disadvantages. The challenge will be in maintaining the systems and retrieving data. However, the partnership between KEA and NIHA will ensure this success. There are unique design issues when above the Arctic Circle. Systems which are perfect in Arizona will not necessarily be a good match in the Arctic. This study will obtain much needed data, provide the training and education for potential installers, increase awareness of solar thermal, and prepare the community for more installations to follow.