HomeMy WebLinkAboutRenewable Support Mode for BESS Grant App/4=103E) ALASKA Renewable Energy Fund Round 3
GEWiENERGY AUTHORITY Grant Application
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-Ill.html
Grant Application
GrantApp3.doc
Application form in MS Word that includes an outline of
Form
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
Costworksheet3
Summary of Cost information that should be addressed by
Worksheet
doc
applicants in preparing their application.
Grant Budget
GrantBudget3.d
A detailed grant budget that includes a breakdown of costs by
Form
oc
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
GrantBudgetlnst
Instructions for completing the above grant budget form.
Form Instructions
ructions3. df
• 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.
AEA 10-015 Application Page 1 of 34 10/7/2009
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Renewable Energy Fund
Grant Application Round 3
SECTION 1 — APPLICANT INFORMATION
......... .
Name (Name of utility, IPP, or government entity submitting proposal)
Golden Valley Electric Association
Type of Entity:
Non -Profit Cooperative Electric Utility
Mailing Address
Physical Address
P.O. Box 71249
758 Illinois Street
Fairbanks, AK 99707
Fairbanks, AK 99701
Telephone
Fax
Email
1.1 APPLICANT POINT OF CONTACT
Name
Title
Mike Wright
Vice President of Transmission & Distribution
Tim DeVries
Manager of Engineering Services
Dan Bishop
Senior Engineer
Mailing Address
P.O. Box 71249
Fairbanks, Alaska 99707
Telephone
Fax
Email
(907)451-5679
m iw@avea.com
(907)451-5669
(907)458-6371
trd0avea.com
(907)451-5610
drb@avea.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);
Pending
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
I 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)
Renewable Support Mode for BESS
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
The project is in Fairbanks, Alaska. It will benefit members of the GVEA Cooperative in
the communities served by GVEA. These communities include Cantwell, Healy, Ferry,
Anderson, Nenana, Ester, Fox, Fairbanks, Ft. Wainwright, North Pole, Eielson AFB,
Salcha, Ft. Greely, and Delta Junction.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
x
Wind
Biomass or Biofuels
Hydro, including run of river
Transmission of Renewable Energy
Geothermal, including Heat Pumps
Small Natural Gas
Heat Recovery from existing sources
x
Hydrokinetic
Solar
x
Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check aH that apply)
Reconnaissance
x
Design and Permitting
x
Feasibility
x
Construction and Commissioning
x
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The variability of the output of wind power projects is a major technical and economic
obstacle. Energy storage systems can mitigate the variable output, but are often so
expensive that they are not practical. Through a fortunate coincidence, GVEA expects
to be able to provide energy storage for a wind project by taking advantage of
improvements in the battery technology that will be installed at the BESS to support the
Healy Clean Coal Plant (HCCP). This project will determine the feasibility, develop a
conceptual design, and implement control system modifications to allow the BESS to
respond to variations of wind energy or hydrokinetic generation.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
The cost of load regulation is a significant obstacle to attracting the development of wind
energy onto the GVEA electrical system. The additional cost of load regulation is
expected to be about $50/MWh for the 24MW Eva Creek Wind Project, so it will roughly
double the cost of the energy. We expect that the energy storage capacity of the BESS
will reduce these costs, and improve the opportunities for GVEA and independent
power producers to install wind energy systems.
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.
It is anticipated that this project will cost about $300,000. GVEA proposes to provide
15% of the total cost in the form of direct payments to contractors and in-house labor.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and yourproject's total costs and benefits below.
Grant Costs
1 (Summary of funds requested)
I 2.7.1 Grant Funds Requested in this application.
$ 255,000
2.7.2 Other Funds to be provided (Project match)
$ 45,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)
$ 300 000
Project Costs & Benefits
I (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
$ 300,000
including estimates through construction)
2.7.5 Estimated Direct Financial Benefit (Savings)
$ 10,000,000
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.)
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ENERGY AUTHORITY Grant Application Round 3
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 managers). 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.
Mike Wright — GVEA Project Manager
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.
Phase II Feasibility Study Schedule:
1/29/2010 AEA Forwards "Renewable Support Mode for BESS" to the Legislature
2/08/2010 GVEA requests that ABB develop a proposal to asses the technical and
operational viability of the new control mode.
2/08/2010 GVEA sends RFP to consultants to analyze economic and financial
benefits of providing energy storage capability for the Eva Creek Wind
Project, or decides to do this task with in-house labor.
3/31/2010 GVEA reviews proposals and awards a contract for economic analysis.
3/31/2010 GVEA reviews ABB's proposal and negotiates a contract for feasibility
analysis of the proposed control mode.
5/03/2010 Consultant for economic studies begins work.
5/03/2010 ABB begins work on the technical feasibility studies.
7/01/2010 AEA approves funding.
8/02/2010 ABB finishes technical feasibility study.
8/02/2010 Consultant or GVEA finishes economic benefit study.
9/01/2010 AEA finalizes Award Documents
9/17/2010 GVEA submits final report on Phase II
Phase III Final Design Schedule:
9/06/2010 GVEA requests that ABB develop a proposal to develop specifications and
a detailed conceptual design for the new control mode.
10/15/2010 GVEA reviews ABB proposal and negotiates tentative contract.
11/05/2010 ABB begins work on detailed conceptual design.
12/31/2010 ABB completes detailed conceptual design.
01/31/2011 GVEA submits final report on Phase III
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Phase IV Construction
1/31/2011 GVEA requests a proposal from ABB to make modifications to control
software for the BESS
2/25/2011 GVEA negotiates a contract with ABB for control system software
modifications.
4/04/2011 ABB begins work to implement design in software.
11/18/2011 BESS control system modifications are ready for live testing and evaluation
period.
03/20/2012 Evaluation period ends and report writing to summarize results begins.
06/01/2012 GVEA issues AEA Closeout Report
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
1/29/2010 AEA forwards "Renewable Support Mode for BESS" to the Legislature.
8/02/2010 ABB finishes technical feasibility study.
8/02/2010 Consultant or GVEA finishes economic benefit study.
4/09/2010 GVEA decision to issue contracts to financial / engineering consultant and
ABB before Legislative approval of the project.
10/01/2010 GVEA decides if results of feasibility studies justify continued work.
12/31/2010 ABB completes detailed conceptual design.
01/31/2011 GVEA decides if costs of implementation are justified and sufficient funds
are available.
06/01/2012 GVEA issues AEA Closeout Report
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 Transmission & Distribution — Project management, technical, and financial
evaluation (Mike Wright, Tim DeVries, & Dan Bishop).
GVEA Administrative Services — Accounting and administrative support.
GVEA Purchasing — Contract development and negotiations.
ABB — Technical expertise required to modify BESS control systems.
The Financial Engineering Company (Mike Hubbard) — Financial Evaluation
SAFT — Battery Issues (SAFT is working with GVEA to supply batteries and evaluate
their capability under another contract, so there will be no cost to this project).
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3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The GVEA Project Manager or his designee shall oversee and facilitate the work of ABB
and The Financial Engineering Company. The feasibility and conceptual design stages
(Phases II & III) are envisioned to be completed during a single quarter, so no formal
intermediate reports will be required from the contractors. During Construction (Phase
IV) brief monthly reports will be expected from the contractor (ABB).
3.6 Project Risk
Discuss potential problems and how you would address them.
1) The BESS already fills several roles and has corresponding control modes.
Adding another will require careful analysis to insure smooth transitions between
the modes.
2) If energy from the BESS is discharged to reduce the impact of a change in wind
power output the energy will not be available to respond to a transmission line
fault or generation trip. A performance standard may be developed to determine
how often such a conflict may occur. A statistical analysis of the frequency of
this type of conflict is expected to be necessary.
3) The economic benefits of this energy storage may be difficult to quantify. A
literature search will be performed to asses the current state of understanding
and the experience of other organizations.
4) The BESS is a one -of -a -kind installation and the expertise to modify it is not
widely available. We will work with the original vendor, ABB, and the original
project personnel as much as possible.
5) The impact of this project on the life of the BESS batteries is critical, and it must
be carefully evaluated.
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/G@ww)) ALASKA Renewable Energy Fund
40Ki ENERGY AUTHORITY Grant Application Round 3
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 cost of load following regulation for the proposed Eva Creek Wind project was
previously estimated to be $50/MWh, or about $3,425,750/year. This cost is primarily
due to the reduced efficiency of a combustion turbine that is run at a low load so that its
output will be immediately available if the output of a wind plant decreases. If GVEA
needed to run a Frame 7 combustion turbine at no load to support one or more wind
projects, it would burn over 1300 gallons/hour of fuel. If the combustion turbine could be
shut off and started only when the wind died, then much of this fuel could be saved. A
feasibility study will be required to determine if this is practical and better quantify the
benefits. We hope to achieve savings of fossil fuel consumption worth $500,000 -
$2,500,000 per year.
Another important benefit of this project is ramp rate relief. If the output of a wind project
decreases suddenly because of fluctuations in the wind, and a combustion turbine is on
line waiting to pick up the load, the BESS will be able to inject power into the system so
that the ramp rate doesn't exceed the capability of the combustion turbine.
The advantage of the proposed project is that for a relatively minor cost there is
potentially a very large benefit to be gained by using infrastructure that will be installed
for another project (HCCP).
The primary disadvantage is the complexity of the resulting system and the care that will
be necessary to ensure that the reliability enhancements provided by the BESS are not
compromised to an unacceptable extent.
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.
GVEA's power generation infrastructure consists of coal fired plants and gas turbines burning
fuel oil. GVEA also receives power from Bradley Lake Hydro, Chugach, and MUP via the
Railbelt Alaska Intertie Transmission Svstem.
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Grant Application Round 3
Station
Year
Fuel
Type
Production
Efficiency
1
1967
Coal
Pulverized Coal
26 MW
25%
-Healy
Zehnder
1971
Fuel Oil
Gas Turbines-2
41 MW
24%
NPPP
1978
Fuel Oil
Gas Turbines-2
120 MW
34%
NPEP
2007
Naphtha
Combined Cycle
60 MW
48%
Delta Chena 6
1977
Fuel Oil
Gas Turbine-1
21 MW
25%
Aurora Usibelli
1952
Coal
Stoker Boilers-4
25 MW
24%
42.2 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.
GVEA uses an economic dispatch model for supplying power to customers. Healy and Aurora
plants are normally base -loaded. Up to 70 MW can be purchased for GVEA members via the
Alaska Intertie as available. NPEP can be regulated to provide incremental power on an as -
needed basis during off-peak season or base loaded in the winter. Zehnder and NPPP are
operated on an as -needed basis to fulfill power supply requirements to customers. The Delta
Plant is an emergency generation facility for the Delta Junction customers.
The construction of this project will reduce power generation from HAGO (Heavy Atmospheric
Gas Oil) during winter, and Naptha during the off-peak season.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Integrating 24MW or more of wind power into GVEA's transmission system has been studied
and grid stability issues can be mitigated through proper design, but the expected environmental
and economic benefit is compromised by the requirement to keep combustion spin on line. This
project will reduce the time and quantity of the required combustion generation.
GVEA's members have a keen interest in renewable power and some have chosen to pay more
for power produced by SNAP. The GVEA Board of Directors and Green Advisory Committee
support the development of wind power. Other intermittent resource generation, like run -of -river
hydroelectric, might also eventually benefit from this project.
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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
This project will use energy storage technology to enhance the value of intermittent
renewable generation. This grant application is tailored to the proposed Eva Creek wind
project because GVEA is familiar with it and the power capacity of the BESS is about the
same as the output power of the Eva Creek project, but other projects may also benefit.
The other projects could include independently developed wind projects or run -of -river
hydroelectric projects. The BESS by coincidence has about the optimum capacity (27 —
40 MW for 15 minutes depending on the number of battery strings) to support wind
projects of a size generally accepted by the industry for grid penetration on a system of
GVEA's size (220MW peak load).
The expected capacity factor of the Eva Creek Wind Project is about 32.6%, and during
the time that it is producing power GVEA's economic dispatch could be adjusted to
substantially decrease fossil fuel consumption if the BESS had a renewable energy
support mode.
This project will not create power, but it will reduce the fuel consumption and cost
associated with integrating renewable energy into GVEA's system.
The anticipated barriers are minimal, and involve technical and economic evaluation. No
objections are expected from the public or members of GVEA.
The basic integration concept is to provide 1) load regulation relief and 2) ramp rate relief
by using the energy storage capability of the BESS to a) support electrical load when the
output of a wind project decreases quickly, so that there is time to start a combustion
turbine, and b) reduce the ramp rate requirements on combustion turbines that are
already running by smoothing the transitions in output power of a wind project.
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..
No additional land will be used for this project.
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ENERGY AUTHORITY Grant Application Round 3
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
• List of applicable permits
• Anticipated permitting timeline
• Identify and discussion of potential barriers
No permits will be required for this project.
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
This project will not have any environmental impacts because it consists entirely of
control system modifications to the existing BESS.
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 an 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
GVEA expects a total project cost of $300,000 or less, but the costs are difficult to
quantify and will be better defined during the Feasibility (Phase II) and Conceptual
Design (Phase III) stages of the project.
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4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
This project is not anticipated to significantly affect the O&M costs of the BESS.
4.4.3 Power Purchase/Sale
The power purchaselsale 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
J • Proposed rate of return from grant -funded project
This project will reduce the cost of providing renewable power to GVEA members, and
will save fuel, but will not produce power.
The rate of return is expected to be very high, because the cost of the project could be
recovered in a single year of operation of the proposed Eva Creek Wind project. GVEA
expects that CREBs will be available to fund the Eva Creek Wind Project, and with this
energy storage mode the rate of return on the wind project may much better. The rate of
return will be better quantified by the feasibility studies (Phase II).
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
AEA Cost Worksheet (Appendix B)
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)
❑iscuss the non -economic pubIic benefits to Alaskans over the lifetime of the p ro'ect
The potential annual fuel displacement will be determined by running a detailed dispatch
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model, but an upper limit of approximately 3.5 million gallons, or $7.2 million, may be
calculated by the simplistic approach of considering the capacity factor of a the proposed
wind project, assuming that it produces power at full output for all of the time that it
operates, and assuming that one of GVEA's Frame 7 turbines must operate at no load
during this time.
Actual benefits are expected to be much lower because it is likely that economic
dispatch methods would be used to reduce the time that a Frame 7 generator would
operate at no load.
Previous estimates of the cost of load regulation for the Eva Creek Wind Project were
$50/MWh, for a total annual cost of about $3.4 million. We expect this project to
dramatically reduce this cost.
The minimum expected benefit is expected to be about $500,000 per year. Assuming
that the BESS operates for another 20 years, the lifetime benefit would be $10 million or
more. Feasibility studies are required to better quantify the costs.
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
This project will be accommodated within the existing GVEA business structure. The
incremental cost of maintenance and operations is negligible, and will be funded through
the existing program for maintenance of the BESS.
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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.
For this project GVEA has requested SAFT (the manufacturer of the BESS batteries) to
evaluate the potential for using the new batteries for support of renewables. SAFT has
studied the issue and concluded that it is a practical option.
No previous grants have been awarded for this project.
SECTION 8— LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
We expect no opposition to this project because no physical infrastructure is required.
Local support is expected for modifications of the BESS system to support development
of renewable resources like wind power and run -of -river hydroelectric power.
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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
AEA Grant Budget Form (Appendix C)
GVEA estimates a total project cost of $300,000. Of this $300,000 we expect to spend
$42,000 for the Feasibility Study (Phase II), $61,000 for the Design (Phase III), and
$197,000 for Construction (Phase IV). GVEA proposes to fund 15% of this project
through cash and in -kind labor. GVEA requests AEA to fund 85% of the project.
GVEA's preliminary work with SAFT, the manufacturer of the batteries for the BESS,
has indicated that this project is practical because the latest battery technology
developed by SAFT for the BESS has 3-4 times the 80% depth -of -discharge capacity as
the original batteries.
AEA10-015 Grant Application Page 15 of 34 10/7/2009
ZV ALASKA
Renewable Energy Fund
Grant Application Round 3
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
/J1 (A ) r q
Signature
I
Title
v U
�' � � s s-� d�
Date
/ f(7
t
t
AEA10-015 Grant Application Page 16 of 16 10/7/2009
Appendix A
Resumes
%
/
AEA10-015 Grant Application Page 19 of 34 10/7/2009
/
/�
AEA10-015 Grant Application Page 23 of 34 10/7/2009
/
/
AEA10-015 Grant Application Page 25 of 34 10/7/2009
AEA10-015 Grant Application Page 27 of 34 10/7/2009
/
/
/
AEA10-015 Grant Application Page 30 of 34 10/7/2009
/
/
/
AEA10-015 Grant Application Page 33 of 34 10/7/2009
GEIDIIIIIEWDALASM
Renewable Energy Fund
Grant Application Round 3
RESUMES FOR ABB EMPLOYEES — PENDING
AEA10-015 Grant Application Page 34 of 34 10/7/2009
Appendix B
AEA Grant Cost
Worksheet
/Galuu ALASKA Renewable Energy Fund Round 3
MIE) ENERGY AUTHORITY Project Cost/Benefit Worksheet
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank)
i. Number of generators/boilers/other
ii. Rated capacity of generators/boilers/other
iii. Gene ratorlboilerslother type
iv. Age of gene ratorslboilerslother
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor
ii. Annual O&M cost for non -labor
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]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
H. 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.
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
1W) ALASKA Renewable Energy Fund Round 3
ENERGY AUTHORITY Project Cost/Benefit Worksheet
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity This is an energy storage project, so no additional
(Wind, Hydro, Biomass, other) capacity is created.
[kWh or MMBtu/hr]
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu]
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
a) Total capital cost of new system $300,000
b) Development cost $300,000
c) Annual O&M cost of new system negligible
d) Annual fuel cost none
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity $500,000 — $7,200,000
ii. Heat
iii. Transportation
b) Price of displaced fuel $2/gal
c) Other economic benefits
d) Amount of Alaska public benefits $500,000 — $7,200,000 for 20 years ($10,000,000 minimum)
a) Price for power purchase/sale n/a
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback
33 (contingent on installation of utility scale wind project on GVEA grid)
One year (contingent on installation of utility scale wind project)
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
Appendix C
AEA Grant Budget Form
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Appendix D
Governing Body
Resolution
RESOLUTION NO. 112-09
A RESOLUTION OF THE BOARD OF DIRECTORS
SUPPORTING THE REQUEST FOR STATE FUNDING TO MODIFY GVEA'S BATTERY
ENERGY STORAGE SYSTEM (BESS) TO SUPPORT ENERGY STORAGE FROM
RENEWABLE ENERGY PROJECTS THROUGH THE ALASKA ENERGY AUTHORITY
(AEA) RENEWABLE ENERGY FUND
WHEREAS, Golden Valley Electric Association (GVEA) supports diversification of energy
sources through the use of alternative energy to reduce electric costs to its members and
customers; and
WHEREAS, GVEA has invested in studies of alternative energy sources to reduce its
dependence on fossil fuels; and
WHEREAS, the Board of Directors introduced the Sustainable Natural Alternative Power
(SNAP) program in 2005 and as such was the first utility in the state to do so to demonstrate
its commitment to alternative energy; and
WHEREAS, GVEA met the 2007 goals of its Green Power Pledge to supply its peak system
load with 10 percent renewable sources utilizing a combination of conservation, hydro -electric
power and power contributed by SNAP producers; and
WHEREAS, the Board of Directors has supported studies required to electrically integrate
wind energy systems into GVEA's electrical grid; and
WHEREAS, the BESS was energized in 2003 to the reduce the impact of generation and
transmission outages on GVEA members, the BESS can provide up to 27MW of power for 15
minutes, and the BESS capacity will be enhanced and expanded with improved technology to
support the Healy Clean Coal Project (HCCP); and
WHEREAS, GVEA in 2008 and 2009 received funding through AEA (1) to conduct electrical
integration studies and (2) to do preliminary design work for the proposed 24MW Eva Creek
Wind Project, which are successfully completed and in progress, respectively; and
WHEREAS, the BESS will be upgraded with improved battery technology that will
serendipitously expand its capability from a system that is only suitable for reliability
enhancements to a system capable of smoothing the rapid variations in the output of a utility -
scale wind energy system; and
WHEREAS, development of control system modes that allow the BESS to smooth the output
of a utility -scale wind power project will reduce the amount of fossil fuel used to operate
generation solely for load -following and increase the economic benefits of wind energy; and
WHEREAS, the GVEA Board of Directors authorizes the application to AEA for project
funding for the project identified as "Renewable Support Mode for BESS" and authorizes and
names GVEA Vice President Mike Wright as the project manager and point of contact to
represent the applicant for purposes of this application; and
WHEREAS, the GVEA Board of Directors authorizes up to a total of 15% matching funds,
including GVEA labor costs, to a project budget of up to $300,000 spread over the years
2010, 2011, and 2012; and
WHEREAS, Brian Newton, President & CEO, shall be authorized to execute all agreements
on behalf of the Association.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of Golden Valley
Electric Association hereby endorses GVEA's request for funding through the State of
Alaska's Renewable Energy Fund for purposes of developing BESS control algorithms to
monitor and smooth the output of wind power projects by storing and releasing electrical
energy as appropriate to provide time for conventional generation resources to start or
respond to the fluctuating output of electrical energy from utility scale wind power projects for
the benefit of all members of GVEA, and affirms that GVEA is in compliance with all federal,
state, and local laws, including existing credit and federal tax obligations.
CERTIFICATION
I, John Sloan , do hereby certify that I am the Secretary of Golden Valley Electric Association, Inc., an electric
not -for -profit cooperative membership corporation organized and existing under the laws of the State of Alaska;
that the foregoing is a complete and correct copy of a resolution adopted at a regular meeting of the Board of
Directors of this corporation, duly and properly called and held on the 10th day of November 2009; that a
quorum was present at the meeting; that the resolution is set forth in the minutes of the meeting and has not
been rescinded or modified.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of the corporation this 10th
day of November, 2009.
(SEAL)
John Sloan, Secretary