HomeMy WebLinkAboutGVEA solar thermal AEA Grant App
Renewable Energy Fund Round 3
Grant Application
AEA 10-015 Application Page 1 of 18 10/7/2009
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-III.html
Grant Application
Form
GrantApp3.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet3
.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget3.d
oc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
Form Instructions
GrantBudgetInst
ructions3.pdf
Instructions for completing the above grant budget form.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential, it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
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Grant Application Round 3
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Golden Valley Electric Association
Type of Entity:
Non-profit electric utility cooperative holding a certificate of public convenience
Mailing Address
PO Box 71249, Fairbanks 99707
Physical Address
758 Illinois Street, Fairbanks
Telephone
907 452 1151
Fax
907
Email
tmh@gvea.com
1.1 APPLICANT POINT OF CONTACT
Name
Todd Hoener
Title
Energy programs specialist
Mailing Address
(SAME)
Telephone
907 451 5607
Fax
907 458 6369
Email
tmh@gvea.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
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SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Combined / hybrid solar-thermal collection and storage with ground-source heat-
pumps
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.
Physical location: City of Anderson, about 55 air-miles (76 driving miles) southwest
of Fairbanks. A 6-mile access road runs west from the George Park’s Highway at
Mile Post 283.5.
Beneficiaries: City of Anderson, Denali Borough School District, Membership of
Golden Valley Electric Association, State of Alaska
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
X Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
X Solar X Storage of Renewable
X Other (Describe) Solar thermal system
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.
Examine the feasibility and develop a conceptual design of a hybrid ground source
heat pump (GSHP) system that utilizes solar thermal collectors and storage
capacity (STC&SC) to offset the year-round non-renewable energy resources
currently being consumed in a group of City and Borough buildings. This project
would demonstrate that a hybrid GSHP system combined with a STC&SC system is
a viable alternative to reduce the consumption and costs associated with the
current heating system. The integration of solar thermal system with a ground
source heat pump could compliment each system’s strengths. The result could be a
significant year-round source of renewable-generated heat for water and space
heating needs at the Denali Borough School District’s school and the City of
Anderson’s public buildings.
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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.)
Currently, the Denali Borough School District and the City of Anderson spend a
combined annual estimate of $94,000 on fuel oil for space heating in the Anderson
School, the City of Anderson office (which includes space for the U.S. Postal Service
and the State of Alaska Department of Motor Vehicles), the City of Anderson fire
station garage and shop and the health clinic building. Electricity for these buildings
(which include some domestic water heating stations) is a combined annual cost of
about $62,000 for the above listed facilities.
The financial benefit would be to reduce permanently a majority of the necessary
load required by these buildings and currently supplied by non-renewable energy
(electricity and fuel oil) currently costing the Denali Borough and City of Anderson
combined over $156,000 annually at 2009 prices. This renewable energy project
will result in lower operating costs for both government bodies.
The public benefits are enormous. More funding currently spent to meet the loads
of these facilities can be targeted elsewhere – or saved (currently many smaller
Alaskan communities, such as Anderson, are experiencing an economic downturn).
The project could make a major contribution towards achieving climate and energy
challenges in Interior Alaska. The project could expand the introduction and
application of an energy technology that is working in other countries as well as
serve as a research tool. It would serve as a showcase that would invite and attract
a variety of interested visitors and students of solar thermal storage and heat pump
technologies.
The project could increased the ability to attract additional economic development
resulting from demonstrable expertise, commitment, and capacity of building and
operating such a system. There would also be the possibility of generating revenue
from professional development courses and the increased visibility would provide a
better perception of the community because renewables will soon represent an
increasingly large part of the energy budget. This will all be complemented with
locally grown expertise from practical application.
Naturally, the immediate public benefit will be environmental with reduced
emissions derived from less energy consumption.
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.
From estimates provided by two consulting firms (PDC Engineering and ABS
Alaskan, a renewable energy system consulting, designing, supplying and system
building contractor – both proposals are attached), the estimated costs for their
services range from $65,000 to $70,000. GVEA hopes to integrate each firm’s
expertise into this study. We also hope to obtain professional expertise from Dr.
Ron Johnson, a mechanical engineering professor at the University of Alaska
Fairbanks, who would be retained as a consultant on the project. Their anticipated
service expenses are not included in the committed amount of labor and services
costs that will be provided by GVEA, Denali Borough and the City of Anderson for
time spent on this feasibility study and concept design project.
Though this project concept – using solar thermal collection panels to deliver BTUs
to an energy center that will deliver heat for space and water heating and for
charging a thermal energy storage system to be utilized during the heating season
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by heat pumps– is not a new or theoretical concept, it has not yet been fully
explored in Alaska though it has been the topic of numerous discussions.
The cost of investigating the feasibility of a more complex solar thermal system for
Anderson (more complex, for example, than a solar water heating system) is
expected to be more than GVEA’s feasibility study for the Denali Education Center
in 2008, which was estimated at $80,000.
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. $ 80,000
2.7.2 Other Funds to be provided (Project match) $ 21,500
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 101,500
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$ 101,500
2.7.5 Estimated Direct Financial Benefit (Savings) $ 82,000 (annual
estimated fuel savings for
off-setting)
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.)
$ 6,770 (theoretical future
estimated price per ton of
CO2 offset)
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include a resume and references
for the manager(s). If the applicant does not have a project manager indicate how you intend to
solicit project management support. If the applicant expects project management assistance
from AEA or another government entity, state that in this section.
The project manager is Todd Hoener, Golden Valley Electric Association’s energy
programs specialist. For nearly two decades, Mr. Hoener has successfully
developed, managed, administered and fulfilled numerous housing and energy-
focused grants. These include two recent (2009) GVEA renewable energy projects
funded by Alaska Energy Authority grants: (1) A feasibility study project and (2) a
design and construction project both for installing a solar water heating system and
energy distribution center for the non-profit Denali Education Center near Denali
National Park. (Resume’ 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.)
GVEA will begin work on the feasibility study / conceptual design as soon as funding
is made available from AEA, 01 July 2010. However, that date (set within the
parameters of the REF Round 3 grant application) could be pushed sooner (into
spring of 2009 or sooner) depending on costs that could be born by GVEA until AEA
funding is available (under Sec. 1.16). GVEA is ready to go when given the go-
ahead.
1. Project scoping, on-going, July 2010 (or sooner) until project completion or
June 2011
2. Selecting contractor for feasibility study and conceptual design (after award
is announced in 2010)
3. Discussions of land, permitting and regulatory issues (by August 2010).
4. Receipt of draft feasibility study and conceptual design to move to next
phase of final design and construction ( by October 2010 – in time for next
anticipated round of RFPs for renewable energy fund)
5. Final report and recommendations (by March 2011) delivered to AEA
6. Final billings prior to June 2011
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
The goal of this feasibility study and conceptual design process is to determine the
likelihood of succeeding with a hybrid ground source heat pump (GSHP) system
that utilizes solar thermal collectors and storage capacity (STC&SC). The study will
be completed in part by several independent consultants. GVEA has a vested
interest in promoting renewable energy but also has a responsibility to its
membership. We plan to work with our partners and potential beneficiaries to
assess objectively the potential benefits, likelihood of succeeding economically and
technically and carefully measuring risk.
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1) Review and verify existing documentation on buildings and heating systems
and review past energy consumption to draw a comprehensive picture of
heating loads that now exist.
2) Review various solar thermal collection and storage options and alternatives,
including what is working now in other nations and the comparisons or
differences to consider in systems.
3) Conduct an analysis of solar collection system, solar storage capacity and
practical structural or size considerations, distribution system and heat pump
capabilities using such a proposed solar / heat pump hybrid system.
4) Examine thoroughly the potential thermal energy sources and storage
structure and location and the application of heat pumps in this system.
5) Examine any land ownership issues and right-of-way or easement issues.
6) Conduct an analysis of soil, water, and environmental considerations and
whether any permitting is applicable to construction.
7) Conduct a financial and economic analysis including the projected future
operating and maintenance costs using the current existing heating system
and a proposed renewable energy hybrid will be included.
8) Rank options of what alternative options are feasible
9) Prepare a conceptual design of potential solar collection and storage options
that could be used with heat pumps.
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.
GVEA will use staff expertise and management to facilitate this feasibility study /
conceptual design process. GVEA has contacted the engineering firm of PDC, Inc.
Engineers to help achieve the primary objectives of this work (PDC Engineers
Qualifications Statement attached). GVEA will use AEA staff for consulting.
In addition, GVEA has contacted ABS Alaskan, a supplying, designing and
construction company specializing in renewable energy systems in Alaska, and who
was the former primary contractor for the solar water heating system feasibility
study, conceptual design and design and construction work completed for the
Denali Education Center, projects funded through Alaska Energy Authority in 2008
and 2009).
GVEA will use consulting expertise of Ron A Johnson, Ph.D. and presently Professor
of Mechanical Engineering at the University of Alaska Fairbanks. Dr. Johnson has
advised GVEA in the past as a member of our “Green Power Advisory Committee”
and his work and expertise in renewable energy systems is established.
Other partners include the Denali Borough, including the assistance of Jon E. Bailey,
Facility Maintenance for Anderson School, and David M. Talerico, Denali Borough
Mayor (short bios attached). In addition, we are collaborating with the City of
Anderson office and facility staff and will be able leverage on-site equipment and
labor. The City of Anderson is also the landowner of which GVEA will eventually site
a future solar thermal system.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
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Once notification of a successful funding grant has been determined (perhaps
before the project funding is released), GVEA project manager, the primary and
secondary engineers and consultants will meet with the Denali Borough and City of
Anderson partnering officials to discuss a uniform visions and goals for the project,
the scope of work and the responsibilities of each partner. We will have regular
meetings to update progress on the feasibility and design concept criteria. Besides
renewable energy collection, distribution and storage options and analysis, there
will be discussions of the siting of collectors and any alterations to exiting buildings
or land for solar collection and storage capacity.
At all meetings, notes will be taken and AEA grant managers are welcome to
attend. GVEA will also make a minimum of weekly contacts between all contractors
and collaborating partners and regularly report progress to AEA.
AEA will be copied on the most relevant email correspondence. A more formal
report will be issued to AEA as required and all work related activities, discussions
and reports will be reported to the GVEA board members.
GVEA’s intention is for a successful, transparent and cooperating project. We expect
to sell this concept to our members, we want the State of Alaska – through AEA –
to see the benefits and sell this renewable energy concept to the rest of the state.
It is in GVEA’s interest to maximize the success of the project and demonstrate the
benefits and eventually move to the design and construction phase after this study
and conceptual design phase is successfully completed
The project manager will oversee and coordinate contractor and consultants weekly
and report to AEA quarterly.
3.6 Project Risk
Discuss potential problems and how you would address them.
The risk and potential problems associated with this phase of feasibility study and
conceptual design are, at this point, mostly human related. That is, the meeting of
obligations related to the goals, milestones and timelines of this phase, which we
do not anticipate problems with this feasibility design and conceptual design phase
since we trust the full commitment of all parties to have a successful project.
There are no potential design risks, construction risks, climate, environmental,
equipment, labor, logistics, and purchasing (etc.) problems foreseen at this phase
of the project development.
One risk considered is reliability of any heating system. The hybrid solar thermal
collection, storage and ground source heat pump system is not conceptualized at
this point to provide 100 percent of the necessary BTUs for space or water heating.
Therefore, the existing heating systems would be upgraded for back-up purposes.
In addition, a back-up power system is considered for additional “insurance”
purposes in case of unanticipated power outages (currently back-up power systems
are already in place).
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project, provide a
plan and grant budget form for completion of each phase.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
The City of Anderson, located in the Interior Alaska, is considered – according to the
National Weather Service – a “definite continental climate.” During the months of
June and July, the sun is above the horizon between 18 and 21 hours per day and
daily average maximum temperatures reach the lower 70s.
The concept of this project is to determine the feasibility and conceptual design of a
renewable energy system that uses solar thermal heating, through collection panels
and storage capabilities, and combines such a solar system with ground source heat
pumps. The idea is to collect summer solar radiation to be used during the winter.
Storage is a critical component of solar thermal systems providing both space and
water heating production.
The technology and practice of solar thermal water heating is not new to Interior
Alaska or Golden Valley Electric Association, which built the state’s largest solar
water heating system some 60 miles south of the City of Anderson. The technology
and practice of achieving substantial energy savings by using solar energy collected
during the summer solar season and providing space and water heating needs
during the winter season through thermal storage is also not new but has not been
used in Alaska as it has been utilized in Canada, Germany, Norway, Sweden, Poland,
Netherlands, Belgium, Denmark, Spain, UK and other countries.
This feasibility study is intended to demonstrate the potential viability of this source
of energy and the conceptual design is intended to use the study to create a
preliminary plan to move forward with additional design and eventually construction.
GVEA has previously conducted the reconnaissance requirements of such a project.
There is a viable energy source: Summer solar gain.
The existing energy resources are fuel oil and electricity. These energy sources
serve several space heating boiler systems, forced air furnace systems and domestic
water heating systems within the compound of buildings this project is investigating.
The annual fuel consumption and current fuel prices are known, as well as the load
information for both the electricity and fuel oil use. (See attached documents.)
After receiving the funding, all the principal partners and consultants will convene to
review the goals and end mission of the project. We will want, in the end and if
feasible to continue with a construction phase, a good idea of what our final design
and construction plan will be next.
We will review the sites, facilities and ground/soil conditions. We will analyze heat
loads and any potential savings from improved building conditions. Current space
and water heating systems will be analyzed for condition and age. Most of the
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equipment is old. We will review historical energy performance and determine if any
building candidates represent better or worse opportunities and prioritize or modify
those.
4.1 Proposed Energy Resource
The potential extent/amount of the energy resource is encouraging: During the
months of June and July, the sun is above the horizon between 18 and 21 hours per
day and daily average maximum temperatures reach the lower 70s.
The solar insulation of Interior Alaska (that is the amount of solar radiation striking
a surface exposed to sky, taking Fairbanks, Alaska as a comparison) has a higher
“high figure” (5.87 high) than Saint Louis, Missouri (4.87 high) or Atlanta, Georgia
(5.16 high). Interior Alaska has a higher “ average figure” (3.99 year-round
average) than Cleveland, Ohio (3.94 average) or Chicago, Illinois (3.14 average) do.
The pros for this study is the eventual capacity to expand Interior Alaska’s summer
solar gain into useful winter energy. This could drastically improve the viability for
this community and save the public ever-more-scarce energy dollars.
The cons sited for this study is that there now remains an energy source that is
generated by or produced from non-renewable fossil fuels. However, those pricing
trends continue to rise.
The use of heat pumps and solar thermal storage capacity are indirect sources of
directly collected solar energy.
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.
Attached is a list and images of the existing systems in all the facilities (Anderson
School, City of Anderson city offices, health clinic and fire station / garage / shop.
For the Anderson School, the existing energy systems include four Burnham fuel oil-
fired boilers and one Jackson and Church forced-air furnace. For the four City of
Anderson buildings (combined), the existing energy systems include two boiler and
five forced-air furnace. In addition, here are five electric water heaters in the
combined buildings. All are energized by either fuel oil or electricity. All existing
systems are between 30- and 5-years-old with the majority over 20-years old.
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.
Attached is information about the number, size, age, efficiency, and type of
generation of the Anderson School. The City of Anderson existing heating systems
are old and unknown as far as size, age and efficiency but images were taken and
are attached.
The total heating load of the Anderson School serves approximately 45,600 square
feet of space. The heating, electrical and septic systems of the Anderson School are
all over 30 years old.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
We do not expect to offset all non-renewable (fossil fuel derived) energy uses in this
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community. The negative impact on those suppliers in this market would be
minimal. In GVEA’s case, as one of those suppliers of energy now using primarily
fossil fuels to generate electricity, the impact would most likely be positive.
In addition, the further integration and penetration of heat pumps into the Interior
Alaska market – with or without solar thermal support – would assist GVEA’s
primary market and improve the air quality. This well-established and highly
efficient technology has not been fully exploited due to market hesitation, a
reluctance to change and spend money on regionally unconventional heating
sources and past energy dependence solely on fossil fuel derived energy within
Interior Alaska.
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
Build a year-round central solar heating system with a solar thermal energy storage
capacity, heated by a solar thermal collection system, delivered by an insulated
distribution system, and heating pumps to provide space and water heating.
Such systems now in use (in Canada and some European nations) use either a
stagnate aquifer thermal storage system or borehole (drilled holes) to seasonally
heat the ground and draw that heat out in the winter.
This feasibility study would allow us to develop a conceptual design and better
determine the best storage system and medium within the storage system.
The City of Anderson has agreed to donate the land. The environmental issues are
minimal, as such a system – albeit without the storage system – was already
developed within the Denali Borough at the Denali Education Center.
System Design
The proposed renewable energy system:
• A description of renewable energy technology specific to project location:
Solar collection and storage, heat pump delivery for space and water heating. The
concept of this project is to determine the feasibility and conceptual design of a
renewable energy system that uses solar thermal heating, through collection panels
and storage capabilities, and combines such a solar system with ground source heat
pumps. The idea is to collect summer solar radiation to be used during the winter.
Storage is a critical component of solar thermal systems providing both space and
water heating production.
• Optimum installed capacity: To provide at least enough energy to offset at
least 50 percent of the conventional energy now being purchased and used.
• Anticipated capacity factor: 50 percent
• Anticipated annual generation: 3,500 Mmbtu
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• Anticipated barriers: Prejudices toward technology not previously used in
Alaska; perceived public benefit to City of Anderson; necessary adaption to
unforeseen situations not yet anticipated
• Basic integration concept: solar collection, solar thermal storage, delivery and
distribution of BTUs through an energy center and heat pump integration into
system
• Delivery methods: Energy center will collect and exchange heat between solar
thermal collectors and transfer heat through distribution system of insulated pipes
to load centers and heat pumps and/or solar thermal storage depending on demand
and supply of heat.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The land ownership is the City of Anderson and Denali Borough. Both government
entities have provided cooperation with this project and intent to provide the
necessary land.
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
We will discuss permit issues with various agencies. We will be advised by our
consultants, such as PDC. However, from GVEA’s previous experience in solar
thermal installation and delivery, we do not anticipate any permitting problems and,
perhaps, only one permit – if any at all.
• List of applicable permits: Possibly Department of Environmental
Conservation, although this system will be a closed loop and double-contained,
which will prevent any mixing of potable water.
• Anticipated permitting timeline: If any (not anticipated), June 2010.
• Identify and discussion of potential barriers: If any, vacations and lack of
personnel. In addition, there is a lack of understanding and natural hesitation
toward accepting an unfamiliar type of energy generating and delivery system.
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
Address whether the following environmental and land use issues apply, and if so
how they will be addressed:
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Anticipated environmental and land use issues listed below.
• Threatened or Endangered species: None known
• Habitat issues: None known
• Wetlands and other protected areas: Consult with Corp of Engineers
• Archaeological and historical resources: None known
• Land development constraints: None
• Telecommunications interference: None
• Aviation considerations: None known
• Visual, aesthetics impacts: None known
• Identify and discuss other potential barriers: None known at this time.
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 estimated costs for this feasibility study and conceptual design phase are
$101,500 with no projected revenues.
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: $80,000, engineering, consultants
• Applicant matching funds – loans, capital contributions, in-kind: GVEA project
manager costs and other GVEA costs are estimated at $16,500, match
• Identification of other funding sources: Support from Denali Borough and City
of Anderson in-kind on site services are estimated at $5,000, match
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.)
Minimal operating costs with finished project, funded by savings extracted by
replacing existing energy system with proposed renewable energy system. O&M
operating costs may not differ significantly from existing costs. Costs of O&M
essentially are shifted from existing M&O to the new system plus additional
monitoring responsibilities. GVEA does not expect an additional extraordinary M&O
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burden cost, but this will be determined with this phase of planning.
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): No power agreements
• Potential power purchase/sales price - at a minimum indicate a price range:
No purchase agreements
• Proposed rate of return from grant-funded project: To be seen from feasibility
study, but we anticipate approximately a 16% rate of return (if the capital project
cost is, for discussion purposes, $500,000 and the annual operating savings is near
$82,000 per year, the rate of return on the capital investment is 16 percent)
4.4.4 Project Cost Worksheet
Complete the cost worksheet form, which provides summary information that will be considered
in evaluating the project.
Form submitted as an attachment.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
The feasibility study and conceptual design will explore off-setting 50 percent of the
energy load now generated by fossil fuels. If this project could offset the estimated
3,500 Mmbtu envisioned (50% of the peak energy consumed from historical record-
keeping), with an estimated 1:6 ration of electricity derived BTUs-to-fuel derived
BTUs, then – at current energy prices – the proposed system could save as much as
$82,000 a year in energy costs. This savings could be considered an equivalent to
“anticipated annual revenue.”
The potential additional annual incentives (i.e. tax credits) are unknown, but the
potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available) could potentially be $6,700
based on $1.50 per ton of CO2 offset price (which is a low estimate in the current
market).
Obviously a new, reliable, renewable source of energy that could significantly
improve quality of winter air, reduce costs for energy and stabilize a volatile energy
market.
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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
There will be a training component to understanding, operating and maintaining any
heat pumps because that expertise capacity is absent in Interior Alaska. Solar
thermal collections systems, however, are more common and operation of such
systems relatively rudimentary and straightforward. The general understanding of
such systems with a solar thermal storage component is not widespread but the
basic principles are not complex or difficult, though there is obviously a learning
curve for balancing such an integrated system.
The proposed business structure is to train the local workforce and contract this
workforce to operate and monitor the system with GVEA oversight and inspection.
This would be a relatively small capacity generator so financing the maintenance and
operations is not seen as a negative impact considering the future benefits especially
if heat pump installations and markets grew within the utility’s service area.
Operational issues, from reports on other such systems, appear to be balancing
issues of temperature. The ability of the solar panels to displace energy and charge
the storage system are not constant in practical application at this latitude, so there
would be most likely be an adjustment period of several years as a better
understanding of the charging and discharging is gained.
Existing systems using conventional non-renewable energy sources, upgraded or
replaced, will still be necessary as supplemental heating sources and backup. The
storage collection, storage and heat pump system is conceived, at this point, to
augment 50 percent of the necessary peak energy load.
GVEA is committed to reporting savings and benefits as this will not only help
reaffirm GVEA’s already stated commitment to renewable energy resources but will
also help educate the public and advance newly introduced technologies.
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.
GVEA has had meetings, emails and phone conversations about the design and
potential costs and options of serving the existing needs with the proposed
renewable energy system. We have discussed the benefits of fuel displacement and
savings and the non-monetary benefits of such a newly introduced technology into
Interior Alaska and the service area.
We have researched projects now in place in other parts of the planet. We discussed
this project with academics at the University of Alaska, with engineers, with
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contractors who design and construct solar water heating systems.
We have visited the site, looked at existing heating systems and inspected spaces
that will benefit from this proposed project. We discussed land ownership of where
the project would be potentially be placed and found no objections and only
agreement and cooperation. We have discussed water issues and leveraging
information from the proposed village safe water project scheduled for Anderson,
which is also a job PDC Engineering is involved.
GVEA has successfully submitted proposals in the past to utilize the renewable
energy fund through the Alaska Energy Authority. All projects have been
successfully implemented, which include the following: (1) Nenana run-of river
hydro assessment; (2) Eva Creek wind interconnection criteria; (3) Little Gerstle
hydro assessment: (4) Denali solar thermal feasibility assessment; (5) Waste heat
recovery project at North Pole power plant; (6) Denali solar thermal system
construction project; and (7) Eva Creek wind construction proposal.
We are ready to proceed immediately after notification.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
The local support for this project is established. Interest in this project came first
from officials of the Denali Borough who, upon learning of the successful solar water
heating system that GVEA built at Denali Education Center and of realizing GVEA’s
commitment to develop renewable energy resources using grants offered by AEA,
approached GVEA with a request for collaborating in this proposed venture.
The City of Anderson, too, backs this project and sees it as part of the community’s
recovery path.
Letters of support are attached.
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
GVEA is asking for $80,000 in grant funds from the Renewable Energy Fund
through AEA.
The investments made by GVEA and is collaborating partners to date have been
primarily devoted to reconnaissance: meetings to discuss the potential renewable
resource and potential system; discussions on the existing energy system, the basic
configuration of the systems, efficiency and ages; what the current fuel
consumption and fuel prices are and have been; discussions on load and any plans
for upgrades, etc.
We have had meetings, emails and phone conversations about the design and
potential costs and options of serving the existing needs with the proposed
renewable energy system. We have discussed the benefits of fuel displacement and
savings and the non-monetary benefits of such a newly introduced technology into
Interior Alaska and the service area.
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We discussed land ownership of where the project would be potentially be placed
and found no objections and only agreement and cooperation. We have discussed
water issues and leveraging information from the proposed village safe water
project scheduled for Anderson, which is also a job PDC Engineering is involved.
As the grant applicant, GVEA is committed to investing more recourses as the
phases of project development are met. GVEA has demonstrated its commitment in
the past to such projects. That investment for this phase is estimated at $16,500,
which is time and resource support for GVEA project manager.
The estimate of budget costs by milestone is included as an attachment
(GrantBudget3.doc)
Other commitments from GVEA’s collaborating partners is also attached.
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SECTION 9 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4.
B. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.6.
F. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
Print Name Todd Hoener
Signature
Title GVEA Energy Efficiency Specialist
Date 09 November 2009