HomeMy WebLinkAboutWainwright Wind Diesel Application
Renewable Energy Fund Grant Application
For
Wainwright - Wind Diesel Generation Project
North Slope Borough
Project Location
Wainwright, Alaska
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 2 of 31 11/10/2009
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
North Slope Borough
Type of Entity:
Government and Electric Utility
Mailing Address
P.O. Box 69
Barrow, Alaska 99723
Physical Address
[same]
Telephone
(907)852-0884
Fax
(907)852-4145
Email
Brett.goodwin@north-slope.org
1.1 APPLICANT POINT OF CONTACT
Name
K.C. Miller
Title
Grants Administrator
Mailing Address
P.O. Box 69
Barrow, AK 99723
Telephone
(907) 852-0467
Fax
(907) 852-4145
Email
KC.Miller@north-slope.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, or
X 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 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.)
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SECTION 2 – PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA.
W ainwright Wind Diesel Generation Project: We propose a project to complete the final
design, permitting, and construction of a system to add electrical generation from wind power to
the existing electrical generation and distribution system in Wainwright, Alaska.
2.2 PROJECT DESCRIPTION
Provide a one paragraph description of your project. At a minimum include the project location,
communities to be served, and who will be involved in the grant project.
Our project involves the final design, permitting, construction, erection, startup, and
commissioning of three wind turbines to supplement the existing power generation and
distribution system for the community of Point Hope. Participants in the project include North
Slope Borough, a contracted A&E firm, a contracted General Contractor, and a supplier for the
wind turbines and supporting towers. The North Slope Borough will provide overall project
management. The contracted A&E firm will provide civil and electrical system engineering
for the project. The General Contractor will be responsible for the installation of all civil
works, erection of the wind turbines and supporting towers, and installation of all ancillary
electrical systems. The supplier for the wind turbines and supporting towers will also provide
startup & commissioning services.
Note: Northern Power Systems of Barre, Vermont, is supplier of wind turbines and supporting
towers that have been proven to work effectively in Alaska. References to
Northern Power provided Northwind 100/21 B model wind turbines within the remaining
sections of this application are for descriptive purposes only to indicate that product or a
comparable product.
2.3 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. Include a project cost summary that includes an estimated total cost
through construction.
The project requires $3,857,047 to complete. We anticipate AEA funding of $3,506,406.
NSB will provide a project match of 10% of the AEA funding amount for the project, in in-
kind and cash donations valued at $350,641.
2.4 PROJECT BENEFIT
Briefly discuss the financial benefits that will result from this project, including an estimate of economic
benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public.
The primary financial benefit from this project will be reduced fuel costs to the people of North
Slope Borough. Simulations of wind resource versus load demand result in an estimated gross
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fuel savings of over 49,000 gallons (operating at 90% availability) and over 55,000 gallons
(operating at 100% availability) of diesel fuel per year at the Wainwright plant, from efficiency
improvements due to new automated switchgear, from diesel-powered generation being
displaced by wind, and by displacing diesel-fired hot water heating with excess electrical energy
from the wind turbines.
In addition to the direct fuel reduction are the benefits of:
- reduced long-term dependence on outside sources of energy;
- reduced exposure to fuel price volatility;
- reduced air pollution resulting from reducing fossil fuel combustion;
- reduced possibility of spills from fuel transport & storage; and
- reduced overall carbon footprint and its contribution to climate change.
2.5 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project’s total costs and benefits below.
2.5.1 Total Project Cost
(Including estimates through construction.)
$3,857, 047
2.5.2 Grant Funds Requested in this application. $3,506,406
2.5.3 Other Funds to be provided (Project match) $350,641
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $3,857,047
2.5.5 Estimated Benefit (Savings) $206,530 per year
(1st year, estimated 2010
fuel price of $3.80/gal)
2.5.6 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 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.
North Slope Borough’s project management approach to this project, and to its overall energy
upgrade program, is to utilize a team approach consisting of North Slope Borough staff, external
consultants, and general contractors. Mr. Kent Grinage will be the Program Manager. His
resume is attached. He is employed as the Fuels Division Manager for North Slope Borough.
North Slope Borough provides a project team from its operating staff. The Program Manager
(PM) provides oversight to Project Administrators (PA) who interface with the Engineering
Consultant and General Contractor (GC). The PM and PA group provides internal focus and
coordination of special projects including project development, planning, construction
coordination, and reporting. The Engineering Consultant of the North Slope Borough provides
technical input on generation and distribution issues to the team. Additionally, the engineering
group provides specifications, design, and drawings for North Slope Borough construction of
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diesel power plants and distribution systems. The Engineering Consultant provides construction
administration and commissioning input on behalf of new construction performed by the North
Slope Borough contractor. The manager of administrative services provides support in
accounting, payables, financial reporting, and capitalization of assets in accordance with NSB
guidelines. The Grants Administrator serves as the Primary Point of Contact to assure that all
contracts and invoices are in compliance with grant requirements.
The project management team’s structure is designed to provide flexibility for the North Slope
Borough participants. They have operational responsibilities to the Borough as well as project
development responsibilities. The functional-interface relationships allow engineering tasks,
village government and public relations tasks, procurement functions, and internal construction
operations to be dovetailed into the project development process. Cross utilization of talent and
resources is an advantage to the project delivery process, providing economies of scale for using
project resources.
For project delivery, an amalgamated team approach is utilized. To support the North Slope
Borough team, design consultants and construction services managers are selected. Both
disciplines are derived from a resource bank of professional firms with applicable histories of
performance in rural Alaska. The construction services manager works concurrently with the
design consultant through design development to provide constructability insight and value
engineering to maximize the overall effectiveness of the final construction documents.
Concurrent with design development, material and equipment procurement packages are
formulated by the General Contractor in collaboration with North Slope Borough’s Program
Manager and Grant Administrator. Each package is competitively procured or issued from NSB
materials. Purchase orders are formulated with delivery dates consistent with dates required for
barge or air transport consolidation. The GC tracks the shipments and provides handling
services to and around the destination project sites.
The GC is responsible for the construction activities for all project components of the facility
upgrade. Local labor forces are utilized to the maximum extent possible to construct the
projects. Local job training is provided as a concurrent operation under the management and
direction of the GC. All construction costs, direct and indirect are reimbursed on a Fixed Fee
reimbursement to the GC or paid directly by North Slope Borough.
For the facilities applied for in this application, North Slope Borough is responsible for
managing the commissioning process in content with the GC, designers, and vendors. That
entails testing and training of operational personnel, as well as providing for all contract closeout
documents.
North Slope Borough’s concern and objective is to have a managed project delivery approach
from inception, through operation, and closeout.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
The following presents an easily accomplished schedule for completion of the project by end of
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summer 2012. However, if the initial RFP’s, awards, and permitting can be completed in time to
allow for delivery of the towers and turbines to the Seattle dock before the 2011 barge’s
scheduled departure, construction could actually be completed in 2011. NSB will vigorously
attempt to meet a more aggressive schedule to allow completion of project construction in
2011 rather than waiting until 2012.
• Grant Award Announcement: 09/01/2010
• Issue RFP for Design Engineers: 10/01/2010
• Response from Design Contractor: 10/30/2010
• Award Contract to Design Contractor: 12/01/2010
• Authorization to Proceed: 01/01/2011
• Permitting: 02/01/2011
• Order Wind Turbines & Towers: 03/30/2011
• Complete Electrical System Design: 03/30/2011
• Complete Civil Works Design: 03/30/2011
• Issue RFP for Construction Contractor: 5/30/2011
• Response from Construction Contractors: 6/30/2011
• Award Installation Contractor: 08/30/2011
• Turbines Ready to Ship: 06/01/2012
• Complete Civil Works: 06/30/2012
• Turbines On Site: 8/17/2012 (approximate date)
• Complete Turbine Erection & Electrical Works: 9/12/2012
• Complete Turbine Commissioning: 9/26/2012
• Complete Secondary Load Controller Commissioning: 10/23/2012
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Award notification and Authorization to Proceed: required as early as possible to allow turbines
to be ordered.
Order Wind Turbines & Towers: 6 months required from order to ready-to-ship date.
Permits Obtained: required by 2/10/2010 to allow time to hire contractor to be ready for start of
construction season.
Complete Civil Works: foundations and access roads need to be done by time turbines arrive on
site.
Complete Turbine Commissioning: needs to be done early enough in the season to allow time to
commission and tune the secondary load controller.
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.
North Slope Borough will ultimately be responsible for successful completion of the project,
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using partners that have successfully installed similar systems in the recent past. Electrical
system engineering will be subcontracted, using current internal procurement practices and
selection of engineering service providers from prequalified organizations. The contracted A &
E firm will design the wind turbine foundations. NSB will subcontract for construction of the
foundations and Contracted A & E firm will manage that construction.
NSB anticipates using one hundred kilowatt Northwind 100/21 B (NW100/21) wind turbines
such as those supplied by Northern Power (or a comparable product should one be available).
The permanent magnet, direct-drive NW100/21 is the latest wind turbine model from Northern
Power, based on earlier Northwind 100 kW wind turbine models that Alaska Village Electric
Cooperative (AVEC) has installed and operated in wind/diesel applications for several years
now. Developed in conjunction with NASA, NREL, and NSF specifically for remote use in
extreme environments, the NW100/21 embodies the most recent design practices in the industry.
Northern Power’s experience with wind/diesel control systems complements North Slope
Borough’s wind power needs.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
North Slope Borough will assign a project manager to the project. One responsibility of the
project manager will be to compile periodic progress reports for use by the Authority. Weekly
and monthly project coordination meetings will be held with the project team to track progress
and address issues as they arise.
3.6 Project Risk
Discuss potential problems and how you would address them.
In general, logistics, construction activities and weather all contain significant risks. North Slope
Borough routinely purchases Builder’s Risk insurance to mitigate its exposure to these risks. In
addition to outside insurance, the experienced team of North Slope Borough and Contracted
A&E firm with projects much like this one in similar circumstances reduces much of the risk.
Logistics and weather are routinely issues in rural Alaska. The North Slope Borough has
extensive experience working in rural Alaska under these conditions. Crucial to successful
completion of projects in these environments are advance planning and flexibility in timing.
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 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 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
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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.
A met tower was erected at the proposed wind turbine site in Wainwright in June 2009, and is
functioning normally. To date, the wind resource appears robust with a measured average wind
speed at 30 meters of 6.60 m/s (6/19 thru 9/29). Based on this data alone, Windographer software
predicts a Class 4 (good) wind resource, but with just summer months represented, true annual
wind resource is undoubtedly Class 5 to 6. Measured turbulence to date is also promising with a
mean turbulence intensity of 0.082 at 15 m/s, classifying the site so far as IEC 61400-1 3rd edition
(IEC3) category C. Extreme wind probability is unknown, but IEC3 Class II or III is likely.
For purposes of modeling and estimating turbine performance in Wainwright using HOMER
software, a virtual wind resource was created as the met tower data from Wainwright collected to
date is insufficient to characterize the site on an annual basis.
An AEA wind report for the Barrow airport, using 8 meter ASOS data, indicated a Class 4 wind
resource with an annual average wind speed of 5.53 m/s. Assuming a power law exponent of
0.14 (reasonable for open tundra), this data was scaled to 30 meters to yield an average annual
wind speed of 6.66 m/s. With only two full months to compare – July and August – the 30 m
Barrow average was compared to the 30 m Wainwright data. Wainwright wind speed average
was essentially equal to Barrow’s in July and slightly lower in August. Although admittedly this
methodology is somewhat basic, but with a good data correlation between Wainwright and
Barrow for the months of July and August, it was decided to use Barrow data as surrogate wind
data for Wainwright. Hence, for purposes of the proposal, an average wind speed of 6.66 m/s (at
30 meters) in Wainwright is used. Actual annual wind speed average in Wainwright is probably
higher, however, so the Barrow data should be considered conservative for this proposal. Other
wind characteristics such as Weibull k and autocorrelation factor were assumed by reference to
recently collected Point Lay met tower data that was analyzed by NREL (note that Point Lay is
located south of Wainwright on the coast).
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.
The existing power plant at Wainwright consists of five diesel-powered engine generator sets:
three rated at 430 kW, and two rated at 950 kW.
Individual generator efficiency is not tracked, but the aggregate diesel generator efficiency is
assumed to be 14.0 kWh/gal by reference to NSB’s September 2009 PCE report to the Alaska
Energy Authority for the North Slope Arctic Ocean coastal villages of Point Hope and Point Lay.
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.
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The existing power plant produces electrical energy by burning diesel fuel in engine-driven
generators. By adding wind turbines to the existing system, we expect the project to provide the
same amount of electrical energy using substantially less diesel fuel than is true today. In
addition to offsetting much of the diesel-generated electricity, we also expect to use whatever
wind-generated energy that exceeds electrical demand to heat water, also displacing diesel fuel
that is presently burned in boilers.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Wainwright sits on the west coast of Alaska on the Arctic Ocean, 85 miles southwest of Barrow.
It is subject to severe cold winter temperatures, extended periods of darkness and blowing snow.
Reliable electric service is essential to maintaining home heating systems necessary to safeguard
the health of the population.
Wainwright is classified as an isolated village, relying on air transportation for delivery of
medical goods and transport of sick or injured individuals or mothers nearing childbirth. Reliable
electric service is essential to maintaining vital navigation aides for the safe operation of aircraft.
Runway lights, automated weather observation stations, VASI lights, DME’s and VOR’s are all
powered by electricity.
Emergency medical service is provided in Wainwright by a health aide. Therefore medical
problems and emergencies must be relayed by telephone or by some other communication means
for outside assistance. Operation of the telephone system requires electricity. Reliable telephone
service requires reliable electric service.
The heaviest consumers of power in villages of the North Slope Borough are the water and sewer
facilities. Additionally the underground utilities are thawed by electrical heat trace. If one of
these heat traces is left without power, systems will freeze up and shut down.
Water in Wainwright comes from a fresh water lake and must be processed for use as potable
water. Reliable electric service is required for the continuous operation of the water and
wastewater systems and to prevent freezing of the systems which will cause extensive damage,
interruptions in service, and expensive repairs.
Wainwright is subject to long periods of darkness. Reliable electric service is essential for the
operation of home lighting, streetlights and security lighting. Outside lighting reduces safety
hazards, such as deep snow and the infrequent visit of polar bears, for pedestrian school children.
Residents of Wainwright rely on a subsistence lifestyle where food is gathered and harvested and
then stored for later use. Refrigeration is essential for the extended storage of perishable food
stuffs.
We expect the addition of wind turbines to the electric generation system to reduce the amount of
diesel fuel used on the island for both power generation and for heating.
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4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Delivery methods
Renewable energy technology description
Wind power is the renewable energy option of choice for Wainwright. Northern Power’s
Northwind 100 kW B model turbine with a 21 meter rotor (NW100/21) is proposed for
Wainwright. The NW100/21 (B model) represents a new generation of wind turbines. Its
permanent-magnet, direct-drive architecture is the current state of the art for advanced wind
turbine design. That architecture overcomes many of the challenges of connecting old-style
induction generators to electrical distribution grids. The permanent-magnet generator is connected
to a full power converter that converts its variable, low-frequency, alternating-current output to
direct current, then back to tightly regulated alternating current for output to the grid. The
permanent-magnet generator requires no reactive power to energize its magnetic field, removing
that influence from the grid. The power converter allows a broad degree of control over the form
and quality of the power output to the grid. The capacitance and active controls in the power
converter allow reactive power to be either consumed or produced by the Northern 100 regardless
of its real power output, even in the complete absence of wind. The turbine controls allow power
output to be controlled by dynamic grid conditions, including automatic output reduction or
complete shutdown, regardless of wind conditions. The combination of advanced controls and
integrated disk braking allows gradual ramping of turbine output up or down, minimizing flicker
and maximizing usable power.
Optimum installed capacity
The system we plan consists of three (3) NW100/21 turbines to operate with the existing diesel
plant as a wind-diesel hybrid power system. Installed wind power capacity will be 300 kW.
Anticipated capacity factor
HOMER software was used to model three NW100/21 turbines to estimate capacity factor and
system penetration, or renewable fraction. Because HOMER considers the wind turbine to be
available 100% of the time, it calculated an optimum renewable fraction of 13.3%. Using Barrow
Airport ASOS and recent Wainwright met tower data as discussed in section 4.1, at 100%
availability the turbines’ capacity factor would be 32.6%. With 90% expected wind turbine
availability, a 29.3% capacity factor is anticipated. Note: an analysis of turbine metrics by
Northern Power for NW100 turbines in operational status in Alaska yielded an approximate 90%
average availability.
Anticipated annual generation
In the initial analysis, Homer software indicates annual wind production of 856,800 kWh with no
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excess energy (0.0% of electrical production) that could be diverted to a secondary load boiler
(100% turbine availability). With expected turbine availability of 90%, annual wind production
of 771,100 kWh is anticipated.
Anticipated barriers
No barriers to successful installation and integration of a wind turbine in Wainwright are
expected. The project design is modeled on recent successful projects of similar design.
Basic integration concept
The integration design concept is comprised of three NW100 turbines, a secondary load boiler to
augment an existing diesel generator heat recovery loop (if deemed necessary after further
analysis), a secondary load controller to manage the “dumping” of excess electricity (if
necessary), a SCADA system to manage the combine operation of the diesel generators and wind
turbine, and the SmartView system to enable remote monitoring and control of the wind-diesel
hybrid power plant. Alternatively, and this would require more analysis, if there will not be
significant excess electricity generated and it appears from preliminary analysis that there won’t,
a secondary load controller and boiler could be replaced by a dispatch control feature that would
serve to curtail one of the wind turbines during the rare occurrences where wind power output
equals or exceeds the load demand.
Delivery methods
The wind-generated electrical energy will be delivered using the existing electrical distribution
grid.
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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.
North Slope Borough and the Village corporation have substantial land holdings in the villages
and will make the necessary agreements to provide the optimal site for each turbine.
4.3.3 Permits
Provide the following informationas 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
Application for permits will be made no sooner than one year prior to construction to be valid for the
construction period.
The following permits and/or authorizations will be necessary for installation of the wind turbines:
• North Slope Borough permitting
• USACE Section 404/401 Wetlands permit and Water Quality Assurance
• ADNR, OC&OM Coastal Zone Consistency Determination
• Title 16 Fish Habitat Permit
• SHPO “No Historic Properties Affected”
• Storm Water Pollution Prevention Plan
• Alaska Pollutant Discharge Elimination System
• Vegetation Clearing Not Permitted between May 20 and July 20, except for black scoter habitat
where the end of the avoidance period is August 10
• FAA 7460-1 Notice of Proposed Construction or Alteration
Environmental & Permitting Review and Due Diligence Deliverable. The deliverable of this step is a
5 page report detailing findings of the agency meeting and discussions.
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
Wainwright, Alaska is located on the western coast of Alaska and underlain by continuous stable
permafrost. `There are known threatened or endangered species in the Wainwright vicinity. Both
Spectacled and Steller Eider are known to nest in the area. Both are threatened species. The
Black Brant, Long Tailed Duck, Red-throated Loon and Yellow-billed Loon are also sensitive
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species in the area. The USFWS has published a voluntary Interim Guidelines to Avoid and
Minimize Wildlife Impacts from Wind Turbines document. Consideration of threatened or
endangered species and for birds, in general, is critical to wind farm development. Depending on
location and proximity to nesting habitat, a USFWS Section 7 consultation could be required.
Wainwright is in the North Slope Borough Coastal Resource Service Area and is subject to a
Coastal Zone Consistency Determination. Coastal Zone review is conducted through the State of
Alaska Department of Natural Resources, Office of Coastal and Ocean Management. Coastal
Zone review functions as a clearing house for all permits issued by State agencies.
North Slope Borough will instruct the contracted A & E firm to coordinate with the ADNR and the
Borough Program Manager for the Wind Diesel Project to identify and discuss appropriate permit
issues and provide agency perspective on the proposed development. Discussions should include
actions to avoid, minimize, and mitigate wetlands impacts.
4.4 Proposed New System Costs (Total Estimated Costs and proposed 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
This application is for the initial phase to completion of the project. We anticipate that the project
will cost $3,857,047 to complete. We are requesting $3,506,406 from AEA. North Slope
Borough will provide a project match valued at $350,641 as a cash and in-kind contributions
toward the project.
Cost data is based on engineer’s estimates for previous, similar projects constructed in the
Northwest Arctic Borough, Alaska, as well as from conversations with Northern Power
associates.
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.
• Total anticipated project cost for this phase
• Requested grant funding
The new Northwind 100/21 B model requires only one maintenance visit each year. The three
turbines for Wainwright will require a combined annual maintenance cost of $9,000. This cost
will be funded by a NSB operations budget. No additional grant funding will be requested to
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cover these costs.
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
North Slope Borough is also the owner/operator of the utility in this community; therefore, no
wholesale Power Purchase/Sale is required.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
Cost data sources:
• 2008 and 2009 fuel cost data from NSB
• Powerplant fuel usage data from NSB
• Powerplant configuration data from NSB
• Generator efficiency data from NSB’s Sept 2009 PCE report
• Wind turbine power curve from Northern Power Systems (NPS)
• Wind turbine capital and O&M costs from NPS
• 2010 fuel price assumed (average of 2008 and 2009 prices)
See attached cost/benefit worksheet – Attachment “B”.
4.4.5 Business Plan
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.
The project will be incorporated into North Slope Borough’s existing power plant operations.
The North Slope Borough is a sustainable entity and the business plan will follow the existing
successful operations practices of the Borough.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
The wind turbines and control systems provided as part of this project will be fully incorporated
into North Slope Borough’s power plant operations. From that perspective, the wind turbines will
be treated as generating equipment, just like the generator sets. Maintenance schedules will be
routinely developed and managed. The result will be improved reliability from the existence of
additional generating sources and reduced fuel consumption from the use of wind. We do not
anticipate any additional project development work at this site following this project.
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 15 of 31 11/10/2009
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 avoided cost of ownership)
• 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
HOMER software predicts an annual fuel savings of 46,170 gallons with three NW100/21
turbines operating at 90% availability. Over a 20 year project life, lifetime fuel savings would
equal 923,400 gallons (90% availability). Beginning with an estimated 2010 fuel cost of $3.80
per gallon, a 20 year project life, a 2.5% inflation rate, and considering the annual cost of
turbine maintenance visits, the cumulative project benefit is $4.525 million. The benefit/cost
ratio for our proposed project is 1.29 with a 17.9 year payback period.
The non-economic benefits to the Alaskan population at large will be from the reduced carbon
footprint of the power plant. By reducing the amount of fuel burned at the Wainwright power
plant by over 13%, we will prevent over 548 metric tons of carbon dioxide from entering the
atmosphere each year. Other significant emissions improvements are a reduction of 1350
kg/year of carbon monoxide and 12,100 kg/year of nitrogen oxides.
Additional benefits include local jobs associated with local generation of power. The program
will work in conjunction with Northern Power to train local power plant operators with the
operations and maintenance of the wind diesel system. This training will have a multiplier
effect, by increasing the knowledge base and furthering the competencies of the local
workforce.
We will explore other tax credits as a benefit to the project. Also, any future value laid to
carbon offsets will contribute to additional savings as a result to the project.
Finally, the controls system associated with wind diesel systems can help facilitate a change-
over from a manual, traditional system to that of smart grid and general, village-wide control
integration.
SECTION 6 – GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources,
how much is requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by tasks using the form - GrantBudget.xls
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 17 of 31 11/10/2009
Attachment A
RESUMES
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 23 of 31 11/10/2009
Attachment B
COST WORKSHEET
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 24 of 31 11/10/2009
Please note that some fields might not be applicable for all technologies or all project phases.
The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 75% (wind speed > 3.5 m/s) (estimated)
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 Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other 5 generators
ii. Rated capacity of generators/boilers/other 3,190 kW (3x430 kW, 2x950 kW)
iii. Generator/boilers/other type diesel
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other 14.0 kWh/gal (estimated based on Sept 2009 PCE
report of Point Hope and Point Lay)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $542,202
ii. Annual O&M cost for non-labor $1,824,580
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] 6,741,000 (estimated based on assumed generator efficiency)
ii. Fuel usage
Diesel [gal] 480,800 (NSB Fuel Division data, 8-08 thru 7-09)
Other
iii. Peak Load 1,260 kW (estimated, AK Village calculator)
iv. Average Load 770 kW (estimated, AK Village calculator)
v. Minimum Load 410 kW (estimated, AK Village calculator)
vi. Efficiency 14.0 kWh/gal (estimated)
vii. Future trends 3.7% annual increase in power plant fuel usage, 2000 to 2009
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association,
the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 25 of 31 11/10/2009
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]
Wind power – 300 kW installed capacity (three NW100
turbines)
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 856,800 (HOMER software; 100% turbine availability)
ii. Heat [MMBtu]
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system
b) Development cost
c) Annual O&M cost of new system $9,000 (for three wind turbines)
d) Annual fuel cost No fuel cost for wind power.
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 55,060 gal (208,400 L) (HOMER software; 100% turbine availability; no
excess electricity to SL boiler)
ii. Heat
iii. Transportation
b) Price of displaced fuel 2010 price: $3.80/gal (estimated)
2009 price: $3.054/gal ($0.807/L)
2008 price: $4.499/gal ($1.189/L)
c) Other economic benefits not calculated
d) Amount of Alaska public benefits not calculated
6. Power Purchase/Sales Price
a) Price for power purchase/sale N/A
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.39
Payback 16.8 years
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 26 of 31 11/10/2009
Attachment C
GRANT BUDGET FORM
Milestone or Task
Anticipated Completion
Date
RE- Fund Grantee Matching Source of Matching Funds:
TOTALS Grant Funds Funds
Cash/In-kind/Federal Grants/Other
State Grants/Other
Project Scoping 8/1/2010 $10,000 North Slope Borough (NSB) $
Finalize Feasibility Study 10/1/2010 $117,500
Identification/Resolution of land and
regulatory issues 11/1/2010 $12,000 $12,000 $
Environmental analysis 12/1/2010 $120,000 $25,000 NSB $
Permit applications & Approval 12/31/2010 $5,000 $15,000 $
Final system design 4/15/2011 $475,000 $10,000 $
Final business and operational plan 4/1/2011 $24,000
Equipment Purchase & Procurement 1/15/2011 $1,380,000 $24,000
Equipment Transportation 6/1/2011 $100,000
Construction Contractor Selection 6/1/2011 $24,000 NSB In-kind
Construction & Installation Phases 9/1/2011 $1,327,406 NSB
Commissioning, Integration and
Testing 10/15/2011 $75,000 $75,000 NSB
Operations Reporting 11/1/2011 $12,000 $14,141 NSB
TOTALS $3,506,406 $350,641 3857047
Budget Categories:
Direct Labor & Benefits 0 $96,067 $
Travel & Per Diem $48,217
$
Equipment $144,652 $14,465 $
Materials & Supplies $1,242,000 $138,000 $
Contractual Services $385,705 $38,570 $
Construction Services $1,402,406 $63,539 $
Other $283,426
$
TOTALS $3,506,406 $350,641 $
Attachment D
Electronic Version
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 29 of 31 11/10/2009
Attachment E
GOVERNING BODY RESOLUTION
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 30 of 31 11/10/2009
Renewable Energy Fund
Grant Application
AEA 10/015 Grant Application Page 31 of 31 11/10/2009