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Home My WebLink AboutTuntutuliak High Penetration Wind Diesel App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 39 9/2/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Tuntutuliak Community Services Association Electrical Services Type of Entity: Electric Utility Mailing Address P.O. Box 8127 Tuntutuliak, Alas ka 99680 Physical Address Tuntutuliak, Alaska Telephone 907 -256 -2529 Fax 907 -256 -2934 Email 1.1 APPLICANT POINT OF CONTACT Name Carl Andrew Title Utility Director Mailing Address Same Telephone 907 -256 -2529 Fax 907 -256 -2934 Email 1.2 A PPLICANT 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 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 39 9/3/2008 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.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 39 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1 -2 page overview of your project. 2.1 PROJECT TYPE Construction This is a community-wide , high penetration wind-diesel system, that uses smart metering to capture and store excess wind energy for residential heating throughout the day. The wind energy is sold an equivalent cost to $2.60 diesel fuel for heating. The costs are allocated and the heaters are enabled through individual electrical meters. The figure below represents the project: 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. This is a request for funding to construct a high-penetration wind-diesel system for the community of Tuntutuliak. The wind diesel system will displace 30% of the diesel fuel currently being used to generate electricity and used to provide residential home heating. The work plan consists of the installation, control and integration of five major components: 1. Five (5) Wind matic 17-S Wind turbines on 80 feet-tall lattice towers 2. Diesel power system control and integration upgrade s 3. Energy recovery boiler at the school 4. Smart metering system 5. 40 Residential electric thermal room heating units The wind turbines will be installed 250 feet apart on pile foundations on the abandoned runway. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 39 9/3/2008 Construction will take place during the Summer and Fall of 2009. Each turbine will be connected to the electrical distribution system via a buried armored cable. A fiber optic cable will be buried alongside the power cable to provide a communications link with the powerplant. Three hierarchical methods of integrating the wind into the diesel grid include: 1. Heat recovery with frequency control 2. Adaptations to diesel generators to enable low -load operation 3. An integrated control system that operates both the wind turbine s and diesel generators in a coordinated manner with ceramic therma l storage . 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. This is a request for $1.760,000 from the Renewable Energy Fund. These funds will be matched by $1.6 million in cash from the community. Project Cost (by Task/Category) Furnish and Install Wind Turbines $ 1,966,000 Integration, Control and Stabilization $ 646,000 Heat Recovery, Storage, Metering and Management $ 358,000 Project Engineering and Management $ 390,000 Project Cost $ 3,360 ,000 Cash Match From Utility $ 1,600,000 Grant Funds Requested $ 1,760 ,000 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. Project Savings Cost savings were estimating using the Homer Hybrid System (www.nrel.gov/homer) modeling tool and the best available information. Construction cost estimates were developed based on current construction practice, component costs and the optimal design as determined by Homer analysis. The load growth is projected to grow at 3% as outlined in the AEA Power System Upgrade Conceptual Design Study of 2003. The HOMER modeling results were used to estimate fuel savings over the life of the project, which is 20 years. Fuel Savings : HOMER results indicate an annual costs savings in 2015 from displaced fuel used for power generation of 53938 gallons using five Windmatic S-17 turbines. At $ 5.00 per gallon this represents a annual savings of $219,690. In addition to the fuel savings , approximately 551,228 kilowatt hours would be available as wind generated heat. Some of this energy is anticipated to be captured by a waste heat recovery system which will serve the fisheries and utility maintenance buildings, proposed for location near the powerplant. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 39 9/3/2008 7000 gallons of fuel equivalent heat would be availa ble for this use. The 550000 kWhrs of wind generated electricity would be sold into the thermal stoves for half the cost of heating fuel (at $ 8.00 / gallon, the cost BTU equivalent to $133,093 which would be sold for $ 55,000, at $.10/kWhr, saving 35 facilities, $2200 annually in their heating costs). Summary of Community Benefits Utility Fuel Savings = $ 219,690 16,636 gallons of diesel in residential at $ 8.00 = $ 133,093 7,000 gallons in public facility recovered heat = $ 35,115 Increased O&M costs = $ (31,750) Increased Revenues to Utility in kWhrs sales to heat = $ 55,000 Home Owner reduced heating fuel costs = $ 77,000 Increased local employment benefit = $ 20,000 Net Community Benefit (Annualized) = $ 508,148 Net present value 3%,20 years 3,360,000 principle = $ 4,157 ,757 Estimated Total Benefits (per year) = $ 508,148 Benefits to all Alaskans: The investments of the Renewable Energy Fund should create social value above and beyond their purchasing power. The fund can accomplish this by using their funds to leverage new and more cost- effective ways of implementing innovative projects. Some direct benefits are: 1. The expansion of the economical use of wind power in this village , and creating a replicable model for other villages within the state. 2. The reduction of heat and power cost to consumers. 3. The creation of a new method of rural construction , implementing summer installations. 4. The use of the "Smart Grid" to improve energy management and to better link communities together. 5. The enhancement of local econom ies by providing new employment streams. Each of these elements builds on past investments, and leads the way to lower overall costs. By evaluating and actively supporting this project, the State improves the return on its investment by improving the performance of village renewable energy systems, creating new knowledge , and fostering new wa ys to implement innovation and maximize efficiency. These strategies start with funding the right projects, ensuring efficient replicability, and will influence larger public and private investments, thus bringing more resources to the problem and multiplying the value of the State’s investment. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 39 9/3/2008 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.) $3,360 ,000 2.5.2 Grant Funds Requested in this application. $1,760,000 2.5.3 Other Funds to be provided (Project match) $1,600,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $3,360,000 2.5.5 Estimated Benefit (Savings) (NPV, 3%, 20yrs) $ 4,157,757 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.) $ 508 ,148 annually Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 39 9/3/2008 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. Project Manager: Carl Andrew, general manager Tuntutuliak Community Services Association, Electric al Services. Project Management Assistance: William Igkurak of Kwig Power Company, President of the Chaninik Wind Group Harvey Paul, General Manager Puvurnaq Power Company, Vice President of the Chaninik Wind Group Dennis Meiners of Intelligent Ene rgy Systems, LLC, who will be responsible for coordinating subcontractors and the overall system designs. The Project Engineers : Dale LeTo urneau, P.E., and Albert Sakata Metering, M onitoring and Web-B ased Suppo rt Tools : Doug Riffle Power System Contro l and Integration: Gavin Bates, Powercorp Alaska Wind Turbine Training and Support : Roger Tuck of Tuck Enterprises, electrician, turbine operator and maintenance instructor. Construction Manager: Dave Meyers , STG, Inc. 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 construction schedule for this project is summarized in the tables below. Construction on this project can be performed during the Summer months, as the site is accessible by heavy equipment. If funding is approved, turbines and foundation materials can be purchased and delivered to each site for installation this winter. Control and integration work will be completed between March 2009 and September 2009. This project is being coordinated with other work in the community for which a crane and other heavy equipment has been mobilized, and in conjunction with the Chaninik wind group projects in Kong, Kwig, Kip nuk and Tuntutuliak. Phase #1 - Engineering and Permitting Site Selection Completed Site Control and Permitting Underway, anticipated completion is Dec 1, 2008 Surveying of Wind Turbines To be completed one month after installation, in April 2009 Geotechnical Investigation Completed; conformational studies required. Foundation Design and Civil Work Completed As Built System Drawings Underway; completed November 2008 Revised Electrical Drawings Underway; completed November 2008 Mechanical Drawing Underway; completed December 2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 39 9/3/2008 Integration and Communications Underway; completed December 2008 Phase #2 – Construction Materials Delivery, turbines, piling, power cables, poles, cross arms, etc. July 2009 Install power and communicatio ns to Site and Install Wind Turbines, includes driving pile and setting turbines, and transformers August 2009 Control Systems Upgrades: Dynamic Grid Interface and boiler September 2009 through December 2009 Metering system, Procure and install January through July 2009 Thermal stoves, delivered and installed August - December 2009 Barge charter to Tuntutuliak August and October 2009 Phase #2B - Construction Support Operator Training, wind turbines Underway; started August 2008 Wind System Start-Up,System Commissioning and Training October- November 2009 Metering System implemented May – June 2009 Thermal Stoves July – September 2009 Daily Monitoring begins October 2009 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Key milestones include: Making winter construction schedule 2009. Completing installation of turbines, by August 2009 Installation of control and integration upgrades, July - September 2009 Installation of Smart Grid System, August- September 2009 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 39 9/3/2008 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. Intelligent Energy Systems (IES) De nnis Meiners , Project C oordination (see attached résumé and references) IES is supported by the following engineers and technicians : Albert Sakata P.E Electrical Engineer Dale LeTourneau, Electrical Engineer Doug Riffle, Industrial Controls, Communications and Metering Applications Engineer , Powercorp Alaska : Gavin Bates, Applications Engineer Controls and integration, engineering, supply, install, commission and support STG Inc Contact Dave Meyers, P.E, (see attached résumé and references) and Jim St. George Construction and Construction Management Powercorp Select Projects CLIENT PROJECT TECHNICAL DETAILS DATE VALU E AEA Golovin Powercorp Control System 2004 $190K Australian Antarctic Division Mawson Wind Diesel Project 3 X Enercon E40/600kW wind turbine generators and Powercorp Boiler Grid Interface, Powercorp Control System 2003 $2.3m Stanwell Corpor ation Windy Hill Wind Farm 20 X Enercon E40/600kW wind turbine generators 2000 $20m Tarong Energy Mount Millar Wind Farm 38 X Enercon E66/1.8MW wind turbine generators 2004 $15m Western Power Corporation Albany Wind Farm 12 X Enercon E66/1.8MW wind turbine generators 2001 $45m Bremmer Bay Wind Diesel Project 1 X Enercon E40/600kW wind turbine generator, Powercorp Control System, civil works 2004 TBA Denham Wind Diesel System & Showcase Projects 3 X Enercon E30/230kW wind turbine generators 2003 $2.6m Esperance Wind Diesel Project 6 X Enercon E40/600kW wind turbine generators, Powercorp Control System 2003 $8.3m Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 39 9/3/2008 Hopetoun Wind Diesel Project 1 X Enercon E40/600kW wind turbine generator, Powercorp Control System, civil works 2004 TBA Rottnest Island Wind Diesel Project 1 X Enercon E40/600kW wind turbine generator, Powercorp Control System, civil works 2004 TBA STG, Inc. In 1996, St. George Construction was incorporated as STG, Inc. Since incorporation, STG has become a prevalent bulk fuel syste ms and power generation facility contractor in Interior and Western Alaska. Pile foundations, a component of most bulk fuel tanks facilities and power systems, have become a niche for STG. Additionally, STG has expanded to become United Utilities' preferred contractor for their “Delta Net Project”, which involves the installation of communication towers and related equipment throughout the Yukon Kuskokwim Delta. STG has achieved this preferred status by demonstrating competitive rates and the ability to perform in remote locations with extreme logistical challenges. STG maintains a fleet of state -of -the -art, late -model equipment. This equipment includes, but is not limited to the following: Year Make Model Description 2004 Kobelco CK1600 160 Ton Crane with 200 ft. main & 100 ft. jib 2003 APE D2532 Diesel pile driving hammer 2004 Ford F-350 Crew cab 4x4 Pickup 2001 Caterpillar 960F Front-end Loader w/Forks 2002 Caterpillar 320LC Excavator 2005 Caterpillar 287B Multi-terrain loader 2004 JLG JLG 660 Tracked Manlift 2003 Miller Welder 2003 Trimble GPS Survey Equipment The STG team has developed and continues to maintain the capacity to manage our projects through a set of key deliverables to ensure appropriate management of our jobs through their complete life cycle. These are as follows: · Provision of a quality project at a fair and reasonable price · Timely delivery within budget · Safe and professional performance on all work · Positive relationships with clients to ensure that project deliverables are met · New, modern equipment that results in high productivity · State of Alaska Professional Land Surveyor (Reg. 10192) on staff with modern Trimble GPS Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 39 9/3/2008 equipment STG Relevant Project Experience Renewable Energy Systems STG specializes in the installation of renewable energy systems in rural Alaskan communities. These systems have included both wind generation and waste heat recovery systems. STG has installed 6, and is currently installing 3, wind generators and 10 waste heat recovery systems for Ala ska Village Electric Cooperative. These wind generators, consisting of both AOC 15/50's and Northern Power's Northwind 100 wind turbines, are integrated with the onsite diesel generation systems. The waste heat recovery system captures the waste heat from the generators and also provides a dump load source for the wind generators during times of high winds and low village load demands. The recovered waste heat and excess wind energy is used to heat various facilities within the communities. Power Distribution STG has completed several power distribution projects in Western Alaska for Alaska Energy Authority, Alaska Village Electric Cooperative and United Utilities, Inc. The projects have consisted of both direct bury poles and poles installed on pile foundations. Terrain has varied from across tundra to steep mountainous slopes. Foundations Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 39 9/3/2008 STG has emerged as the prevalent pile foundation contractor in the Interior and Western Alaska. STG's experience includes installation of driven and drilled steel piles, thermopiles, helical anchors and piles, concrete foundations and rock anchors. STG has the specialized equipment necessary for installing foundations in extremely remote and logistically challenging locations. Civil Construction STG utilizes the newest, state -of -the -art, late -model equipment to execute civil construction. They have the ability to perform any concrete, demolition, earthwork, utilities, drilling/blasting and crushing/screening jobs. These projects are generally performed in conjunction with their other work. However, they have executed several "stand-alone" civil projects, as well. Power Plants Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 39 9/3/2008 STG has constructed over twenty diesel power generation facilities (power plants) throughout Western Alaska for both Alaska Energy Authority and Alaska Village Electric Cooperative. These power plants, which range in size from 100 to 1,500 kilowatts, generally consist of modular units with either gravel pad or pile foundations. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. IES will submit monthly status reports via the internet and/or fax during project procurement, construction and implementation. The Status Report will be filed within the first 5 working days of the month following the reportable activity and specifically after each milestone is completed/attained. Once operational, the project is capable of being monitored for output, efficiency, and any possible failures through Web-based monitoring and Web-based high speed diagnostics for recommissioning. 3.6 Project Risk Discuss potential problems and how you would address them. Important Aspects to be Considered for Project Success: Power System Stability Power system stability is important because there is great variation in available wind power from season to season, hour to hour, minute to minute and even second to second. The presence of short- term wind speed fluctuations (turbulence) and the frequent passage of weather systems can lead to highly variable power production. Making use of the available wind requires some long-term (several hours) storage systems, and the ability to instantaneously absorb large amounts of wind and maintain a stable power system. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 39 9/3/2008 Components and Controls The Components and Control methods selected for this project have been repeatedly proven and are known to be highly dependable. The thermal storage devices are simple, and have proven to operate for many years without maintenance. Full integration of the central supervisory controller signals with the metering system will be done onsite and backed up by a web-based server. The communications between the supervisory controller of the power system (which designates the amount of excess wind energy available for "green heat") will be accomplished with the use of two redundant mechanisms : a powerline carrier signal from the powerhouse, and through the electrical metering system, via wireless link. Both of these systems will enable the receivers on the stoves through the pow erplant supervisory controller. The meters will account for differing energy sales rates, depending on time of day and amount of excess energy available. Summer Construction Many costly delays result from an inability to efficiently complete construction during the Summer months when there are barge and other equipment and materials shipping options available, and when daylight and weather are much more favorable. This project proposes to build short access pads to construct the turbines. A small batch plant will be mobilized to pour the concrete pile cap and turbine attachments, during the summer months. Break -in Perio d and Oversight The primary project challenge will be solving numerous small-scale issues that commonly occur after comm issioning and continue through the break-in and training period. A full-time qualified project engineer will be assigned to the project from September 2009 through September of 2011 to oversee, address, and solve each issue as it arises. System Resources Management Resource Management issues are fairly common in the initialization and implementation of a new wind- energy system and will be quickly and thoroughly addressed as each arises. The issues often include: Management of the prepaid system; potential rationing of available wind energy for home heating; careful allocation of PCE; and education of customers. The system now calls for rotation of meters on a first in first out basis, and a re-prioritizing of the availability of excess wind energy on a daily basis. SECTION 4 – PROJECT DESCRIPTION AND TASKS · Tell us what the project is and how you will meet the requirements outline d 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 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 39 9/3/2008 Tuntutuliak is located in the Bethel Region and has been identified in the Alaska Energy Authority Regional Wind Development Screening Results Draft as being located in a class 6 wind regime. Airport wind data was correlated with one ye ar of 30 mete r onsite data measured at Kongiganak, approximately 28 miles south of Tunt. The Kong site was selected by wind resource experts from the National Renewable Energy laboratory to provide a monitoring location which would provide regionally valu able data. The AEA website provides a complete wind resource assessment report. www.akenergyauthority.org/programwindresourcedata.html. The results of the wind resource evaluation indicate an outstanding wind resource with an average wind speed is 7.78 m/s, and with the power distribution well suited for the capture of wind energy. The AEA report gives an annual average temperature of 1.4°C, which at sea level corresponds to an air density of 1.286 kg/m³. The data was analyzed in the Homer model and compared with the power curves of various candidate wind turbines. In order to accurately address future fuel uses and opportunities, the viability of other potential alternative energy sources were considered. These include: 1. Waste Heat Recovery; A waste heat recovery system is incorporated into the existing powerplant, in which diesel engine jacket water heat is captured. and used to heat the However, there are no buildings located within a reasonable distance of the powerplant to make economic use of the heat. Two new facilities will be located near the power plant which may consider using this available heat. These include: the Coast Villages Regions Fund fisheries support center, and the airport equipment storage building. 2. Conservation. An energy use survey of residential fuel and energy usage is underway. The purpose of this study by the Chaninik Wind Group and the Tuntutuliak Community Services Association is to identify the level of energy efficiency upgrades that have taken place and to identify additional efforts which could have significant impacts on energy usage. This study is ongoing , and preliminary results provide a basis for the expanded use of wind energy to displace heating fuel. 3. Geothermal Energy: Based on a review of the 2003 Department of Energy map of Alaska Geothermal Resources, and discussions with elders and with the staff of the Department of Natural Resources, no viable geothermal energy source is believed to exist within the area. However, the use of ground sourced heat pumps which are supplemented with electric thermal storage devices (which can utilize excess wind energy) could be the lowest cost source of heating, and deserves further investigation. 4. Hydroelectric . AEA studies (RW Beck, 1981, Acres -1982, and ISER 1976-1995) do not indicate any viable sources of hydroelectric energy. 5. Alternative Fuels : A) Wood: Drift wood and scrap wood, when it is available, is harvested and used to heat homes and steam houses. The Coastal Villages Regions Fund also delivers a limited amount of beetle -killed timber from Kenai????. This is used for steam houses and heating. B) Other Aternative Fuels: No other alternative fuels exist locally in significant quantities to be considered. An analysis of the above -listed options shows that there are really only three main options for producing heat for the village. Wood heating , improved diesel powerpla nt generation efficiency improvements, and wind. The only real option for the long-term energy needs of Tuntutuliak is wind energy and its effective use and management. The use of wind-driven turbines that will not only meet the village's present energy needs, but will drive down the cost of heating homes and while increasing revenues. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 39 9/3/2008 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 diesel powerplant in Tuntutuliak came on line in the Fall of 2003 , and consists of four diesel generator sets: two sized at 190 kWe, one at 122 kWe and a fourth at 90 kWe. The average daily load at the powerplant is 15 0 kW, with a peak of 280 kW and a minimum load in the middle of the Summer of 55 kW. Diesel Generation The generation system consists of four diesel generators comprised of John Deere diesel engines. Two of the diesel generators are currently scheduled for replacement. The new generators are electronically fuel injected and can be expected to increase fuel efficiency over a range of loads. Table 2 –Generat or Assumptions Generator Capital Cost ($) Replacement Cost ($) O&M Cost ($/hr) Lifetime (hrs) Min. Load Ratio Fuel Curve Intercept (L/kWh) Fuel Curve Slope (L/kWh) JD 235 kW 0 144,000 8.80 80,000 20%* 0.04 0.25 JD 190 kW 0 117,000 7.60 80,000 20%* 0.04 0.25 JD 122 kW 0 86,000 6.60 80,000 40% 0.05 0.25 Tuntutualiak has 92 residential customer, and 4 commercial facilities. Average residential heating fuel consumption = 760 gallons per year, @ $ 8.00 /gallon Fuel used for power generation no wind, estimated diesel only case by 2015 = 137,000 gallons/year Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 39 9/3/2008 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 inf rastructure and resources. Diesel fuel is used for all heating and power generation needs. Residents reduce heating fuel requirements through the collection and burning of wood. However, the main source of wood is drift wood of unreliable availability. The wood is washed ashore down river in the springtime. Driftwood is used for heating when available. The TCSA uses Diesel # 1, with a heating value of 133,000 BTU/gallon. This fuel is also used for home heating. Diesel # 2 contains 140,000 BTU/gallo n, however conversion to #2 is problematic because this fuel requires additional measures be taken to prevent waxing in cold weather. Efficiency improvements: A community energy survey is being conducted and a list of end use recommendations and measures is being developed to identify cost effective upgrades to lighting and heating systems. However, conservation impacts wil l not be substantial enough to effect fuel growth consumption. Wind Energy: Available and could be used through future extensions of this project to reduce fuel consumption by up to 50%, for all forms of energy use, including power, heat and transportation. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. TCSA currently sell approximately 1,000,000 kWhrs annually. It is estimated that the electrical load will exceed 1,500,000 kWhrs by 2015. New sources of demand over the next five years are estimated to be: 4 Electrical consumption is growing. Immediate sources of increased electrical demand are the addition of four (4) new homes and requirements for new airport lighting and communications. The average load has risen by 10 kW in the last month. The AkDoT estimates that the peak demand load for the new airport can reach 50 kW. 4 Coastal Villages Regions Fund, (CVRF), fisheries support center and shop. 5 kW 4 Alaska Village Council Presidents (AVCP) plans to construct four (4 ) new single family homes in 2010. Additionally, AVCP indicates a commitment to construct approximately 15 single-family units in the next 6 to 10 years. 4 Alaska Native Tribal Health Consortium (ANTHC) – is in the process of constructing a washeteria and water treatment facility as part of a long term master plan for develop ment. Electricity for these improvements is projected to increase the electrical load by 50 kW. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 39 9/3/2008 Hourly Electric Load 0 100 200 300 400 500 600 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov DecAverage Load (kW) The table below estimates the load growth for the next five to ten years, over which time the average load is estimated to grow from 125 kW (2008) to 175 kW, or 4188 kWh/day. This estimate is based on planned projects and comparisons with similar communities of a similar size in this region. For the purposes of this project, the load was projected to be 1,500,000 kWhrs per year. Estimated Average Electrical Load by Month Ave Monthly kW 2007 Ave kW 2010+ Jan 119 148.8 Feb 115 153.0 Mar 112 146.2 Apr 106 135.5 May 89 118.8 Jun 69 103.8 Jul 87 101.3 Aug 86 115.2 Sep 97 130.7 Oct 107 141.9 Nov 117 146.2 Dec 119 151.7 This table describes the estimated increase in demand by sector through 2015. Estimated Electric Demand of Future Facilities in kW Month Residential Sector Public Water System Airport School Other Estimate Jan 15 8 2 34 13 207 Feb 15 8 2 34 13 209 Mar 14 8 2 34 13 208 Apr 12 8 3 29 12 167 May 11 8 2 27 12 147 June 11 5 2 9 11 141 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 19 of 39 9/3/2008 July 11 5 1 9 11 125 Aug 12 5 2 9 12 127 Sept 14 5 2 19 13 155 Oct 15 6 2 34 14 194 Nov 15 7 2 34 14 195 Dec 16 10 2 34 14 220 Ave 13 8 2 25 13 175 Annual kWhrs 113,880 70,080 16,839 243,090 111,833 1,528,772 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 High Penetration Wind Diesel Smart Grid This proposed system provides a scalable village power system architecture, which can be expanded to incorporate more wind, pv, and thermal and real energy storage. The proposed system architecture includes: 4 five 90 kW Windmatic 17-S wind turbines, 4 wind diesel control and integration upgrades 4 heat recovery boilers located in the washeteria and school controlled by electronic boiler interface and integrated with the wind system. 4 35 thermal storage heaters will be placed in the city and utility offices, the head start preschool, the clinic, and the homes of all village elders. 4 a smart metering system Two existing gensets will be replaced to enable improved low -load operation with reduced fuel consumption. The diesel generator sets would be protected from reverse power operations through the use of control settings and a powerelectronics controller. The wind tur bines and power system have advanced remote diagnostics capability. These components can be monitored and controlled via Etherne t connection through the use of web-based visualization software. The proposed system is based on estimated electrical load growth of 22-25%, over the next 5 to 7 years. This load growth has been experienced by other communities in this region with populations of 400 residents. Load growth is driven by increases in residential housing, school improvements, the addition of water and sewer systems, as well as clinics, fisheries service, and airport expansions. This load growth is similar to that experienced in similarly situated communities in this region. Electrical loads are expected to Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 20 of 39 9/3/2008 grow from 1,000,000 kWhrs per year to 1,500,000 kWhrs by 2015. A residential heating fuel survey is being conducted in support of this project. Results indicate average residential fuel usage in the range of 760 gallons annually. Below is an aerial photo/diagram of the wind site in Tuntutuliak . The Village Smart Grid The Sma rt Grid is an advanced electrical metering system which provides better energy management methods to the utility and the energy customer, and is used to account for and to control the sale of excess or makes excess wind energy or "green energy" . The smart metering system receives information of the amount of excess wind energy available and communicate s this to consumers. The smart meter can then enable on residential thermal storage devices to accept the energy if the customer desires and account for the sale of this energy at “non-diesel” rates. The meters come with a user interface which helps customers understand their energy usage, and can be programmed for prepa yment to assist the customer and utility with financial ma nagement. In this phase of the project, 40 electric thermal storage devices will be installed to absorb and store the excess wind for use throughout the day. In this phase of the project, the stoves will be installed in 1/3 of the homes in the community. The smart meters will be installed in every home. The Smart grid is a way of combining the various compone nts of the power system and managing them to support new services for customers. In simple terms, the powerplant controller tells the electric meter that there is excess wind available for sale at a reduced price. The smart electric meter signals various devices, like thermal energy storage unit s to turn on and store wind energy. When low cost wind energy is not available , the meters turn off the heating elements in the stoves. The meters keep track of the two types of electricity, "green only " and diesel-generated electricity, and provide an in -home display so that customers can keep track of their costs and energy uses. The result is a new way of managing rural energy systems, and the creation of new opportunities to expand the role of wind energy to reduce the dependency on diesel fuel. One of the next stages in implementing the Smart Grid and Excess Wind Energy sales is to sell excess Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 21 of 39 9/3/2008 wind into plug-in four -wheelers used for local transportation. The community will benefit from the Smart Grid in three ways: 1. Lower cost energy as heat and electricity 2. Increased revenues to the utility 3. Ability to store wind energy as heat for later use. Below is a diagram of the proposed system. This diagram, contains two future elements, the solar panels, and distributed residential energy storage/plug in vehicles. These two components are shown only to indicate the extent of the sys tem potential. The project design offers a very simple and reliable wind diesel architecture, which will achieve 30% fuel saving at the elect ric utility, and meet 30-50% of the heating requirements of a residential customer. Wind Energy Two candidate wind turbines were primarily considered for this project: The Northwind 100 and the Windmatic 17-S. An analysis using both turbines was made for cost effectiveness. The comparative economic feasibility favors the use of multiple Windmatic turbines, primarily due to the additional foundation expenses incurred to install the Northwind 100 in a warm permafrost area such as Tuntutuliak. Cost estimates for the installation of each turbine was developed after geotechnical investigations and load analysis , and are summarized in Table 3 (below). Gross annual estimated energy production for each turbine was arrived at through comparison of power curves and wind resource information using HOMER. The results are summarized in Table 4. A 20-year investment hor izon and a 5% nominal interest rate were used for economic analysis. These are the same investment guidelines as proposed in the Alaska Rural Energy Plan, April 2004. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 22 of 39 9/3/2008 Table 3 – Wind Turbine Assumptions Pe r-Turbine Costs Turbine Rated (kW) Hub Height (m) Lifetime (yr) Capital Replace O&M Windmatic 90 24.4 20 $275,000 275,000 $ 150,000 $ 2,400/yr Northwind NW100/19 100 30 20 $650,0000 625,000 $ 350,000 $ 6,750/yr Table 4 – Wind Turbine Energy Production Note: Homer modeling was done on representative 25 -meter towers, at constant air density and wind shear. Blade extension s and taller towers can be used to increase the output of both wind turbines. The AEA report estimates the NW100 number is 313 MWh, which is 10% higher than our number of 282 MWh. This is a conservative estimate for both turbines, and represents an accur ate comparison. Wind-Diesel Integration The goal of this project is to provide a cost-effective ly minimize diesel fuel usage. I n this application the output of the wind plant is designed to be often oversized to the load. The excess wind power will be sent over the electrical distribution system to thermal storage devices loc ated throughout the community. These devices are interruptible loads , which operate only in periods of excess wind. Grid stability is achieved through application of diesel generators for low load operation, in combination with controllable load and fast acting power electronics interfaces for frequency control and reactive power support. The use of these components will be optimized by the use of an advanced control system will coordinate monitor the system and dispatch diesel generators for optimal operation, issuing power set points and enabling/disabling commands for the wind turbines and the smart grid components. The Tuntutuliak powerplant is to o far from other public facilities to be connected into the heat recovery system of the powerplant. So a remote heat recovery boiler with a fast acting dynamic grid interface is connected to the heating system in the school. The boiler with the grid interface will act as a shock absorber, instantaneously reacting to power fluctuations caused changes in wind turbine output or electrical load conditions. When coupled to an efficient precisely controlled diesel generator, which is able to operate efficient ly at low loads for exte nded periods of time, the the boiler grid interface prevents the on-line generator from being driven into reverse power, while supplementing reactive power support for the wind turbines. The power system is managed by a computerized supervisory control system, which monitors all system parameters and makes decisions based on sub-second time scales to regulate each component of the wind- diesel system. The supervisory controller tracks the wind and engine output along with load demand and upon meeting preset criteria automatically carries out instructions to optimize the system. When the wind power is insufficient, the supervisory controller selects and starts the most efficient engine or combination of engines, brings those engine(s) up to speed, and commands the wind turbines to turn off. To achieve significant fuel savings high penetration wind diesel systems must be able to operate indefinitely at instantaneous wind penetrations of greater than 90%. Wind Turbine Annual Energy Production (kWh/yr) Capacity Factor (%) Hours of Operation (hrs/yr) Windmatic 17-S 90 kW 225,000 30.2 7,373 Northwind NW100/19 282,000 31.6 7,467 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 23 of 39 9/3/2008 Wind-Diesel System Diagram: Wind Turbine Wind Turbine GS Diesel Generator Consumers Consumers Heat Recovery/Boiler Wind Turbine GS Diesel Generator Wind Diese controller FMS GSS GSS GSS GSS Low Load Diesel Local and Remote User Interface CanBus Ethernet Ethernet/Modem High Penetration Wind-Diesel Architecture for Kongiganak, Alaska Puvurnaq Power Company Created: 9/30/08 Initials: DM. GS Diesel Generator Wind Turbine All four (5) turbines are Windmatic s-17's Wind Turbine Thermal Stoves Web access Smart Meter This design builds upon the capabilities of the existing power system by using power electronics and controls to prevent reverse power conditions and fouling conditions during extended low load operations. The ability to operate a low load, in creases the instantaneous proportion of wind energy, while decreasing fuel usage. The remote heat recovery boiler will be placed at the school or washeteria, to recover excess wind energy. The smart meter enabled thermal energy storage units will be placed in community buildings and thirty (30) residences. In this configuration, in low winds, the system will operate in a high penetration mode, with the available wind captured to displace fuel used to generate electricity. As wind speeds increase greater proportions of wind energy are captured as heat. Diesel Retrofit Improvements to the diesel plant are underway to increase the reliability and efficiency of diesel operation. Two new 235 kWe gensets are being installed. The control system and power electronics design would allow either generator to operate in low load, or for the two generators to operate in parallel low load. The low load units can also operate with the other non-modified gensets in power set point mode. During low -load operation, especially with wind turbines, the diesels may be forced to use their dynamic inverter grid interface to prevent the generator from being pushed into reverse power operations. Control, fuel management, and injection of additional heat modifications are made so that normal point of operation can be maintained indefinitely, even with frequent operations of the grid interface and fluctuations in the wind plant output. Since the instantaneous total loss of power from multiple turbines is an unlikely event, the parallel operation of either low load diesel would survive (non-stalling) single step-load is larger than the loss of two turbines at full output, 130 kW or a similar increase in load from a 5% low operating threshold. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 24 of 39 9/3/2008 Heat Recovery Boiler Grid Interface A remote heat recovery boiler with dynamic response capabilities will be placed at the school. The Boiler Grid Interface has three distinct roles: 1. To provide a demand-managed device, capable of delivering heat to a heating loop in a comple mentary manner to the availability of the wind energy. 2. To provide frequency stabilization through the high speed frequency monitoring and the rapid adjustment of load from the boiler grid interface. 3. To provide a fully adjustable load with small 100W steps and an adjustable power factor without inducing damaging harmonics into the power system. Operation The temperature controller in the Boiler Grid Interface device monitors the temperature of the loop and makes requests to the power station master controller for power to maintain the temperature. The power station master controller sends ba ck a power set-point which the boiler grid interface is to maintain long- term. This number is based on the amount of uncommitted wind power available on the system. If the frequency of the grid moves outside of acceptable limits, the boiler grid interface will automatically adjust the amount of power it is drawing, based on a sliding linear scale in an attempt to maintain control over the frequency. Once the frequency is back within acceptable limits, the boiler grid interface returns to its original power set-point. If the frequency does not return within acceptable limits over a period of approximately 2 seconds, the power station master controller will take additional actio n (such as modifying the power demand of the boiler grid interface, starting additional generator sets or limiting thermal stove energy to rectify the situation. Electric Thermal Storage A survey of fuel usage was initiated in Tuntutuliak, while the study is not yet complete, results indicate that during the winter months in Tunt utuliak an average home used 750 gallons of heating fuel. Heating fuel is currently sold for $6.80 to $8.00 per gallon. Residential heating fuel is the single largest component of a rural resident's budget. Electric Thermal Storage (ETS) is the method of capturing excess wind-generated electricity as heat and storing it for use when needed and providing it at a cost equivalent to $2.60 per gallon of diesel. This project will offer or about 1/3 the cost of diesel heating fuel. An ETS unit is an insulated metal box, about the same size as a Toyo Stove, which contains electric heating elements which lie within special, high-density ceramic bricks. These bricks are capable of storing vast amounts of heat for extended periods of time. During periods of excess wind energy, a signal from the powerplant supervisory controller is sent to the metering system. The meters then enable the elements in the stoves to heat the bricks. . The availability of wind energy coincides with periods of high heating needs and when the power system has excess energy The wind load profile indicates that the ETS units could be placed on an 8 to 10 hour evening charge schedule which would be supplemented in periods of high wind. An individual room heating unit can both produce and store up enough energy on an 8 plus 2 charge schedule to output 12 to 20,000 (or more) BTUs/ per hour per unit, 24 hours per day. The application of the ETS is similar to that of a Toyo Stove except the ETS does not require a fuel tank and instead requires only an electrical connection. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 25 of 39 9/3/2008 The pictures below present and exterior and interior view of a room unit.. The dimensions are 58 inches in length, 24.5 inches in height, and 10.5 inches in depth, and when filled with heat charge bricks each unit weighs 690 lbs. The room units (shown above) are non-ducted and are designed to heat the room or area into which they are placed. These heaters can be used in new construction applications or as a retrofit or supplement to an existing heating system, and only require an electrical connection to operate. Stored heat is circulated evenly and quietly by a fan inside the unit as the room thermostat calls for heat. Individual units are easy to operate and requires very little maintenance Metering system Wind/thermal storage requires a method of notifying the stoves of the availability of low cost wind energy, and a way to account for the difference in cost of wind versus diesel generated electricity. This is done through new meters, which will be placed on each home. The proposed metering platform creates a wireless communications link which provides fully automated, intelligent two-way communications between the powerplant and each meter. The advanced meters offer many additional features that will allow the utility to be managed more effectively, and optimize diesel station operation. The metering system will consist of 3 collector meters, one at the school, one at the washeteria/water plant, and the last at the powerhouse. And 92 single -phase residential meters. These meters will communicate with the data collecting 3 phase meters to create a mesh ne twork. The data is communicated back to a computer in the powerplant, which is linked to a computer at the utility office and back up through connection to an internet based web server. The meters are designed for plug and go capability, which eliminates programming and simplifies installation. This same metering system has been selected for use as it has proven to be a best practice management tool for the Alaska Village Electric Cooperative. However the meters in Tunt will each have a user interface in each home so that a customer can monitor energy usage, and the option to use the meter in a pre-pay configuration. The meters will enable a relay on the ETS to turn on or off. Three of the most important features are: 1. Demand control capability that all ows the utility to control thermal storage devices remotely. Thermal stoves will be enabled for green energy pricing only when a signal from the utility indicates that an excess of wind energy is available. The meter can switch devices the stoves on and off according the amount of excess Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 26 of 39 9/3/2008 wind energy available. The meters can also control other electrical devices such as water heaters and/or controlling lighting or thermostats. 2. User interface. The meters come with an in -home display device that can be us ed to inform the customer about their cost and energy usage. In the future they can be enabled to enter credit card information to pay bills directly. 3. Pre payment option; the proposed meters can be configured with a prepay option, which requires consumers to pay in advance of use. This feature is requested by small utilities, because it mitigates the financial risks associated with power sales and reduces embarrassing utility disconnects, billing disputes and damage to local relationships . When coupled with the associated user display in each home, the system improves financial management for both the utility and the customer. The in -home display allows utility customers to self manage energy use through real- time, informed decisions about consumption. When combined with the user interface, most customers are typically very satisfied. Through smart metering, the utility will: · Enable time of use and green energy management rate structures · Activate thermal storage devices when wind is available · Understand load profiles, and enable demand control schemes · Fairly and more accurately allocate costs of utility service according to actual consumption · Encourage conservation of electricity · Detect system problems and imbalances · Lower the cost of utility service to improve profitability · Recover related costs of utility service to improve revenues Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 27 of 39 9/3/2008 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 for the project has been donated by the Village corporation (see below). Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 28 of 39 9/3/2008 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 potential barriers to the project's use of Alaska state funds have been identified. The construction of the wind and power project will require some of the following review and/or permitting, 1. Coastal Project Questionnaire Because Tuntutuliak is located in a coastal zone, the project requires submittal of a Coastal Project Questionnaire to the State of Alaska, Department of Natural Resources (DNR). The DNR coordinates review of the questionnaire by various state agencies and assists in identifying required permits pertinent to the project. The standard review spans about a 30- day period. 2. Fire Marshall Plan Review The construction of the new power generating facilities will require submittal of a complete set of construction documents to the State of Alaska, Department of Public Safety, Division of Fire Protection (Fire Marshal) for plan review and approval. The State Fire Marshall then issues a Plan Review Certificate to verify compliance with adopted Building, Fire, and Life Safety codes. Final stamped drawings must be submitted along with the application fee for project review. A minimum of one month is anticipated before comments may be received from the Fire Marsha ll. 3. Alaska Department of Transportation If the construction of a tie -in to the existing electrical distribution system falls within an existing Department of Transportation (DOT) right-of -way, a utility permit from the DOT will be required. 4. Alaska Department of Environmental Conservation Review The Alaska Department of Environmental Conservation (ADEC) regulates the operation of diesel power generation facilities by a consistency review process. The Application for the Pre-Approved Limit Diesel Generation Facility must be submitted prior to the facility startup, provided that the nitrogen dioxide emissions do not exceed 100 tons/year. The review is set up to accommodate future growth of a power plant, provided that the growth is requested during the initial application, and it does not exceed the 100 ton/year on nitrogen oxide emissions. Power plants which fall into the sizes necessary for Alaska villages will not exceed the 100 ton/year level. The addition of the Win d System will significantly reduce the emissions of harmful air pollutants. 5. Regulatory Commission of Alaska Certification The Regulatory Commission of Alaska (RCA) regulates public utilities by certifying qualified providers of public utility and pip eline services and facilities at just and reasonable rates, terms, and conditions. This keeps rates as low as possible while allowing the utility to earn a fair return. The commission also determines the eligibility and the per kilowatt-hour support for electric utilities under the Power Cost Equalization program. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 29 of 39 9/3/2008 6. State Historic Preservation Office The State Historic Preservation Office (SHPO) is required, under Section 106 of the National Historic Preservation Act, to review any state of federally funded project for potential of disturbing cultural resources. 7. Federal Requirements · U.S. Fish and Wildlife Service The U.S. Department of the Interior Fish and Wildlife Service will require that any construction project be reviewed for impact to endangered species. The Fish and Wildlife Service has been consulted with respect to this project, and has requested further review due to the known presence of listed species and/or designated critical habitat in the action area, or to the suspected presenc e of listed species in the vicinity of the action area. Because of the absence of federal funds , no formal consultation is required. · U.S. Army Wetlands Permit Projects that disturb or place fill material on existing soil requires a request for a wetlands determination from the U.S. Army Corps of Engineers and, if found to be wetlands, application for a Department of the Army Permit must be submitted for, and granted, before construction begins. · Federal Aviation Administration Review Projects located le ss than 5 miles from a runway or airport, such as this Wind System, should complete Form 7460-1, “Notice of Proposed Construction or Alteration,” and submit all necessary elevation and height of structure information to the Federal Aviation Administration (FAA), Alaska Region, prior to construction. The FAA reviews the plans and determines whether the construction of the project will present a hazard to air traffic in the vicinity. The FAA is very responsive and typically provide s project determinations within one week of the completed form submittal. · Bureau of Indian Affairs If the construction of a tie -in to the existing electrical distribution system falls within an existing right-of -way through Native allotment(s), a permit from the Bureau of Indian Affairs (BIA) will likely be required. · Federal Regulatory Commission If the construction of a tie -in to the existing electrical distribution system falls within an existing right-of -way through federal lands, a utility permit from the Federal Energy Regulatory Commission (FERC) may be required. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 30 of 39 9/3/2008 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 ar eas · Archaeological and historical resources · Land development constraints · Telecommunications interference · Aviation considerations · Visual, aesthetics impacts · Identify and discuss other potential barriers In analyzing potential environmental and land issue s, it is important to note that: 1) The land for the project has been selected by the local village corporation, and there is no Federal money involved. 2) No significant filling of wetlands is anticipated. 3) There are no endangered species present 4) There are no anticipated conflicts or threats to migratory birds 5) The sites selected are do not represent hazards to flight operations 6) The sites selected are not located in archeologically sensitive areas After contacting the USFWS, the FAA and the Corp of Engineers, it has been determined that no permits to construct this project are needed. In each location, the powerline to the wind turbines will be extended underground from nearby 3 phase power. No power poles will be installed, and no aerial transmission lines, (which could present a hazard to migrating birds ) are being constructed. The wind turbines will be placed on pile foundations, which will require the construction of minimal filling of wetlands, and don’t require a Section 404 permit by the Corp of Engineers. It is not anticipated that any of the Chaninik projects will interfere with or result in the mortalities of any endangered species or migratory birds. The USFWS, Corp of Engineers, FAA and State permitting agencies have been contacted. USFWS concerns have requested that powerlines be buried if possible, to refrain from using guyed towers, and to maintain lattice towers by keeping them free of raven nests. Preliminary locations were presented to the FAA, and they have requested a fin al review of the selected sites, and that the wind turbines be surveyed within one month of installation. We will be providing all necessary information to the USFWS, the Corp of Engineers, the FAA and the Alaska State Division of Governmental Coordinatio n. Andrew Grossman has been hired as an environmental consultant for the Chaninik Wind Group projects. He is a retired USFWS and NMFS biologist experienced in permitting of construction projects in Alaska. Land for the project has been made available by the local village corporation. Funding for this project is provided by the state and supplemented by local contributions. There is no Federal money involved, no wetlands are to be filled, there are no endangered species present, there are no anticipated conflicts or threats to migratory birds, the sites selected do not represent hazards to flight operations, and are not located in archeological sensitive areas. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 31 of 39 9/3/2008 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 Project Costs Furnish and Install Wind Turbines $1,966,000 Integration, Control and Stabilization $ 646,000 Heat Recovery, Storage , Metering and Management $ 358,000 Project Engineering and Management and Support $ 390,000 Project Cost $ 3,360,000 Cash Match From Utility $ 1,600,000 Grant Funds Requested $ 1,760 ,000 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 Operations Maintenance and Repair Cost Estimates; Control System: The control system and metering systems come with a two year maintenance contract and an extended warranty is available for a fee of $1000 per month. The local operators will be trained to use the control and integration system. Typically automated operation reduces the local labor burden. Wind Turbines: The wind system is estimated to operate 350 days or 50 weeks per year with 2 weeks of scheduled maintenance. Service and maintenance agreements as well as loss or damage insurance is available from the manufacturer, and the cost of the turbine includes a 24 month service agreement. The terms of these agreements are negotiated at the time of purchase, and include many options which range from complete coverage and performance guarantees. A budget of $2000 per year per turbine, or $.02/kWhr per year is set aside for major repairs. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 32 of 39 9/3/2008 The cost of the turbine includes one week of factory training for two local operators, and one week on site training. The turbines have advanced diagnostic package with remote diagnostics which enable full time monitoring, remote programming and remote technic al assistance. The wind turbine s should receive 2 hours per week and 120 hours per year of scheduled maintenance allocated per turbine. 2 hours per week per year = 100 hours 2 men x 40 hour s annual maintenance = 80 hours Unplanned maintenance = 20 hours Total manhours per 5 turbine s @ 200 hours = 1000 man hours Cost of maintenance materia ls: Set aside for repairs and materials = $ 2000/year Estimated maintenance cost = $ 6000 per machine per yr Increase in local employment = $ 20,000 Current local wages for powerplant operators are $16 per hour, with no benefits. The project proposes to pay the operators $18/hour and increasing hours based on the production of energy from the turbines. This project proposes to install a total of 5 turbines, with a combined output of over 1,000,000 kWhrs. Local Turbine Maintenance: Maintenance can be divided into three categories, routine, unscheduled and scheduled. Routine maintenance is required to maximize performance, maintain safety, and ens ure a full operating life of each turbine . An estimate of the cost of annual and 10 year maintenance is provided below This installation cost estimates include a cost for specialists to be brought in for the first year to perform these functions, and provide additional on-s ite specialized training to local personnel. This estimate includes setting aside an amount annually for extended and unscheduled maintenance. Excluding major component inspections and replacements, the following maintenance schedules generally apply to each turbine. Weekly and Monthly Inspections: · Visually inspect turbine and site for obvious problems · Record meter and run time readings · Inspect for loose fasteners Bi-Annual Inspections and Service: · Inspect and torque all fasteners, lubricate, and check all points, replace sensors and wear items as needed. · Readjust and recommission the machine. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 33 of 39 9/3/2008 10 year inspections: Every 10 years the wind turbines should be thoroughly inspected. Particular attention should be paid to the blades. Most manufacturers recommend that the blades be removed and deflection tested for integrity and strength. This exercise can be conducted using a tower attached jib crane. Each blade would be removed and lowered to the ground, where the blades would be placed in a jig and tested for deflection. At this time the blades would be either replaced, resurfaced, and repaired as needed. Repair and replacement fund for failure of major components. An annual replacement account will be set aside to replace major components on the turbine. This set aside account would be based on an annual production estimate of $.02/kWhr. This amount could be readjusted based on rising costs and the comparable cost of fuel. Metering Systems; The metering system comes with two year maintenance and technical assistance agreement which includes: Installation and training of onsite personnel. Hardware maintenance agreements are available on the hardware. Local personnel will be required to deal with c A maintenance fee of $ 1 per meter per month is set aside for additional maintenance. Estimated no increase or decrease in operating costs as meters donot require manual readings or shut off. Thermal Storage Units: The Electric Thermal Storage is a simple technology whereby wind generated electricity can be stored as heat so that it can be used for heating 24 hours per day. The ETS units are highly reliable, and typically operate for many years without little more than cleaning. An annual set aside of $50 per unit per year is a reasonable figure. Training is provided both at the factory and in the field by factory personnel. Most components that are likely to fail such as the blower fan or controller, are modular and replacement parts can be mailed and can be easily replaced by the home owner. Estimated O& M Costs: Wind Turbines = $ 30,000 Thermal Stoves = $ 1,750 Metering Estimated increase in operating = $ 31,750 Increased local employment = $ 20,000 Net decrease in benefits = $ 11,750 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 34 of 39 9/3/2008 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 Utility will purchase and sell all the power generated. Customers are requesting thermal storage room heater, which will offer lower heating fuel costs. Excess electricity will be sold as heat for 50% of the cost of diesel fuel. It is estimated that this cost will be between $.10 and $.15/kWhr. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 35 of 39 9/3/2008 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be susta inable. Include at a minimum proposed business structure(s) and concepts that may be considered. The University of Alaska Anchorage, is working with the Chaninik Group to develop a regional wind system business plan, based on a cooperative business model. The primary elements of this plan include utilizing combined funding from the savings of displaced diesel fuel to pay for system maintenance, and overall administration. The greater the number of wind turbines, the more fuel displaced, the more viable will be the financial strength of the group. One of the principles of successful ope ration will be to create a well-paid job in each community to support the wind system operation, and to create a network of trained operators, one in each village who can support each other. The overall business plan would be administered by the Chaninik Group with the assistance of the automated meter reading and information technology systems. In each village the system would be administered through the use of prepa id meters. The business plan in developed will provide a detailed management and financial plan, and outline utility performance standards. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. It will never be more cost effective than now to build this project, as the equipment and personnel are mobilized for cons truction to begin in June 2009. There are no other low cost alternatives for reducing dependency on fossil fuels. Because of the ability to manage the energy wisely with the smart grid and capture and store excess wind energy this project represent a scalable solution to reducing village energy costs. This project contributes to the common good of all Alaskans in two important ways. 1. It targets the specific problem of using renewable energy to reduce fossil fuels and the cost of heat, electricity and transportation in rural Alaska. It does this through the development of a Wind Diesel Village Smart Grid, which can be used to increase efficiency of diesel only grids, and provides a method implementing widespread cost effective use of renewable energy in rural Alaska. 2. This project can be completed in the next 12 months, and operational next winter. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 36 of 39 9/3/2008 SECTION 5– PROJECT BENEFIT Explain the economic and public bene fits 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. gr een 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 Proposed System Generation Summary Production Fraction Fuel Fuel Savings Component (kWh/yr) gallons Dollars AC primary load, Annual All diesel fuel estimate 1,496,497 100% 137,456 $637280 Wind turbines ( 5 each, Windmatic 17-S) 1,198,576 59% JD 235 91,604 4% 8928 $44,640 John Deere 190 599,420 29% 57815 $289,075 John Deere 125 158,123 8% 16775 $ 83,875 Total 2,047,722 100% (53938) ($ 219,690) Excess thermal energy 232,725 kWh/yr 7023 $ 35,115 Excess electricity 551,226 kWh/yr 16,636 $133,093 Estimated Annual Fuel Savings 77597 Net Savings $387,898 Note: Powerplant efficiency, estimated Homer modeling, AEA load profile estimates , 133,000 Btu/gallon diesel fuel, with conversion efficiency of 85% thermal, = 113,050 recoverable heating value. 3412 Btu/kWhr@ 100% efficient electrical. Commercial heating fuel @ $5.00/ gallon, residential heating fuel @ $ 8.00 /gallon Project Savings Cost savings were estimating using the Homer Hybrid System (www.nrel.gov/homer) modeling tool and the best available information. Construction cost estimates were developed based on current construction practice, component costs and the optimal design as determined by Homer analysis. The load growth is projected to grow at 3% as outlined in the AEA Power System Upgrade Conceptual Design Study of 2003. The HOMER modeling results were used to estimate fuel savings over the life of the project, which is 20 years. Fuel Savings : HOMER results indicate an annual costs savings in 2015 from displaced fuel used for power generation of 53938 gallons using five Windmatic S-17 turbines. At $ 5.00 per gallon this represents a annual savings of $219,690. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 37 of 39 9/3/2008 In addition to the fuel savings , approximately 551,228 kilowatt hours would be available as wind generated heat. Some of this energy is anticipated to be captured by a waste hea t recovery system which will serve the fisheries and utility maintenance buildings, proposed for location near the powerplant. 7000 gallons of fuel equivalent heat would be availa ble for this use. The 550000 kWhrs of wind generated electricity would be sold into the thermal stoves for half the cost of heating fuel (at $ 8.00 / gallon, the cost BTU equivalent to $133,093 which would be sold for $ 55,000, at $.10/kWhr, saving 35 facilities, $2200 annually in their heating costs). Summary of Community Benefits Utility Fuel Savings = $ 219,690 16,636 gallons of diesel in residential at $ 8.00 = $ 133,093 7,000 gallons in public facility recovered heat = $ 35,115 Increased O&M costs = $ (31,750) Increased Revenues to Utility in kWhrs sales to heat = $ 55,000 Home Owner reduced heating fuel costs = $ 77,000 Increased local employment benefit = $ 20,000 Net Community Benefit (Annualized) = $ 508,148 Net present value 3%,20 years 3,360,000 principle = $ 4,157 ,757 Estimated Total Benefits (per year) = $ 508,148 Cost benefit Cost of improvements $ 3,360,000 Less cash match $ 1, 600,000 Total Cost of Grant Request $ 1,760,000 Present Valu e of cash savings, 3%, 20 years ($241,200/yr) $ 4,1 97,757 Benefit to cost ratio 1.25 Project Costs Furnish and Install Wind Turbines $1,966,000 Integration, Control and Stabilization $ 646,000 Heat Recovery, Storage , Metering and Management $ 358,000 Project Engineering and Management and Support $ 390,000 Project Cost $ 3,360,000 Cash Match From Utility $ 1,600,000 Grant Funds Requested $ 1,760 ,000 SECTION 6 – GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 38 of 39 9/3/2008 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 Provide a narrative summary regarding funding sources and your financial commitment to the project. $ 1. 6 million dolla rs is available as a cost match to put toward this projects. $ 1. 754 million in matching funds is being requested to finish this project. BUDGET SUMMARY: Milestone or Task Federal Funds State Funds Local Match Funds (Cash) Local Match Funds (In- Kind) Other Funds TOTALS 1. Design & Manage $290,000 $290,000 2. Furnish Turbines $800,000 $832,000 $1,632,000 3. Integration and Control $346,000 $100,000 $446,000 4. Heat Recovery & Metering $224,000 $134,000 $358,000 5. Install and Commission $340,000 $200,000 $540,000 6. Evaluation and Support $50,000 $44,000 $94,000 $1,760,000 $1,600,000 $3,360,000 Milestone # or Task # BUDGET CATAGORIES:1 2 3 4 5 6 Direct Labor and Benefits $20,000 $80,000 $24,000 $100,000 $10,000 Travel, Meals, or Per Diem $10,000 $20,000 $20,000 $20,000 $20,000 Equipment $1,632,000 $180,000 $40,000 Supplies Contractual Services $260,000 $200,000 $134,000 $300,000 $44,000 Construction Services $146,000 $80,000 $20,000 Other Direct Costs TOTAL DIRECT CHARGES $290,000 $1,632,000 $446,000 $358,000 $540,000 $94,000 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 39 of 39 9/3/2008 SECTION 7 – 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 fo rm Section 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant’s governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application - authorizes the individual named as point of contact to represent the applicant for purposes of this application - states the applicant is in compliance with all 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 Carl Andrew Signature Original to follow Title Utility Manager Date November 6, 2008