HomeMy WebLinkAboutTeller Wind AppAlaska Village Electric Cooperative
Application for Renewable Energy Fund Grant
Alaska Energy Authority
Teller, Alaska
Wind Feasibility Analysis &
Conceptual Design Project
November 11, 2008
Table of Contents
Application
1
Resumes
2
Cost Worksheet 3
Budget Form
4
Authority
5
Supplemental
Materials 6
Tab 1
Grant Application
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 12 10/8/2008
SECTION 1 –APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Village Electric Cooperative (AVEC)
Type of Entity:
Utility
Mailing Address
4831 Eagle Street, Anchorage, AK 99503
Physical Address
Same
Telephone
907-565-5358
Fax
907-562-4086
Email
BPetrie@avec.org
1.1 APPLICANT POINT OF CONTACT
Name
Brent Petrie
Title
Manager, Community Development Key Accounts
Mailing Address
4831 Eagle Street, Anchorage, AK 99503
Telephone
907-565-5358
Fax
907-562-4086
Email
BPetrie@avec.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your application
will be rejected.
1.2.1 As an Applicant, we are:(put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes 1.2.2.Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If a
collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate Yes or No in the box )
Yes 1.2.3.As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes 1.2.4.If awarded the grant, we can comply with all terms and conditions of the attached
grant form.(Any exceptions should be clearly noted and submitted with the
application.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 12 10/8/2008
SECTION 2 –PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility
Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of
renewable energy you intend to use. Refer to Section 1.5 of RFA.
The Alaska Village Electric Cooperative (AVEC)is proposing a Feasibility Analysis, Resources Assessment,
and Conceptual Design (Phase II) project to determine the wind potential in Teller.
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.
AVEC proposes to install a wind meteorological (met) tower and complete geotechnical work to
determine the possibility of installing wind towers in Teller. The work will involve obtaining a letter of
non-objection for placement of the wind tower and geotechnical fieldwork,permitting,purchasing,
transporting,and installing a met tower,studying the wind resource for 1 year,and conducting a
geotechnical investigation to determine the soil conditions and needed engineering at the site.A
conceptual design will be created based on the outcome of the met tower recordings and geotechnical
investigation.
2.3 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project. Include a project cost summary that includes an estimated total cost
through construction.
The total project cost for the project is $123,800 of which $117,610 is requested in grant funds. The
remaining $6,190 will be matched in cash by AVEC. A detail of the costs is:
Task Total
Obtain Site Control/Right of Entry/Permits $7,000
Purchase Met Tower $12,100
Ship Met Tower $3,000
Erect, Monitor, and Dismantle Met Tower $20,700
Complete Geotech Work $65,000
Complete Wind Resource Report $6,000
Complete Conceptual Design $10,000
Total $123,800
The total project costs through construction depend on the outcome of the wind resource study and
geotechnical report; however, an estimate can be made:
Estimated Final Design and Permitting: $210,000.
Estimated Construction and Commissioning: $4,103,000.
Estimated Project Total (including this phase):$4,436,800.
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 3 of 12 10/8/2008
The primary financial benefit from this project would be to determine whether the wind resources are
suited to provide power to the community and to prepare a conceptual design of a wind facility.
There is currently a project underway that will construct an electrical distribution tie line between the
villages of Teller and Brevig Mission.The estimated combined possible displacement of diesel fuel used
for village power generation in Teller and Brevig Mission is over 53,000 gallons at a cost of over
$255,664 annually (at 2008 diesel prices averaged between Teller and Brevig Mission).If the conditions
are suitable and wind turbines are installed, the residents of would benefit from reduced power costs.
Other Benefits to the Alaskan Public:
The anticipated benefits of installation of the wind turbines would be reducing the negative impact of
the cost of energy by providing a renewable energy alternative. This project could help stabilize energy
costs and provide long-term socio-economic benefits to village households.Locally produced,affordable
energy will empower community residents and could help avert rural to urban migration.This project
would have many environmental benefits resulting from a reduction of hydrocarbon use. These benefits
include:
Reduced potential for fuel spills or contamination during transport, storage, or use (thus
protecting vital water and subsistence food sources)
Improved air quality
Decreased contribution to global climate change from fossil fuel use
Decreased coastal erosion due to climate change
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.)
$4,436,800.
2.5.2 Grant Funds Requested in this application.$117,610.
2.5.3 Other Funds to be provided (Project match)$6,190
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3)$123,800
2.5.5 Estimated Benefit (Savings)$255,664
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.)
To be determined, based on
avoided fuel costs.
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.
AVEC will provide overall project management and oversight.AVEC is the electric utility serving Teller.
Brent Petrie, AVEC Project Manager:Brent Petrie will be the primary contact for AVEC.He will work
with selected contractor to provide overall project management and oversight.
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.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 12 10/8/2008
Grant Award Announcement:July 1, 2009
Authorization to Proceed:July 15, 2009
Purchase Met Tower:July 20, 2009
Obtain Site Control/Right of Entry/Permits:September 1, 2009
Ship Met Tower:August 20, 2009
Erect Met Tower:September 7, 2009
Monitor Met Tower Data:September 2009-September 2010
Dismantle Met Tower:September 2010
Select Engineering Contractor:August 3, 2009
Complete Geotech Field Work:September 1, 2009
Complete Geotech Report:November 2, 2009
Complete Wind Resource Report:October 17, 2010
Complete Conceptual Design:November 30, 2010
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Obtain Site Control/Right of Entry/Permits:AVEC proposes to get as much completed in the first year
(2009)of this project as possible. AVEC would work with the current land owner to obtain permission
for placing the met tower and conducting geotechnical work immediately following AEA’s authorization
to proceed. AVEC would also immediately seek approvals from permitting agencies.
Erect Met Tower:The earlier the met tower is collecting data, the earlier AVEC will have the wind
resource data to ascertain the suitability of use this renewable resource. AVEC proposes to erect the
tower immediately following approvals from the landowner and permitting agencies.
Complete Geotech Field Work:In order to understand site conditions early in the process, geotechnical
field work would be conducted immediately following gaining approvals from the land owner and
permitting agencies. The geotechnical report would be completed 60 days later.
Complete Wind Resource Report:The met tower would be monitored to ensure that the wind tower is
functioning properly and that bird diverters are intact. Wind data would be collected for one year.
Complete Conceptual Design:It is likely that preliminary data from the met tower could allow for
conceptual design to be drafted. The final concept design would be completed as soon as possible
following completion of the Wind Resource 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.
AVEC will use a project management approach that has been used to successfully install met towers
throughout rural Alaska: A team of AVEC staff and external consultants.
AVEC staff and their role on this project includes:
Meera Kohler,President and Chief Executive Officer, will act as Project Executive and will
maintain ultimate authority programmatically and financially.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 12 10/8/2008
Brent Petrie,manager of the community development group,will be the project manager.
Together with his group, Brent will provide coordination of the installation of the met tower,
geotechnical work, and conceptual design.The group’s resources include a project coordinator,
contracts clerk, accountant, engineer, and a community liaison.
Debbie Bullock,manager of administrative services,will provide support in accounting,
payables, financial reporting, and capitalization of assets in accordance with AEA guidelines.
An AVEC project manager will lead this project. The project manager will be responsible for:
Obtaining site control/access and permits for the installation of the met tower and geotechnical
work
Selecting, coordinating, and managing the engineering consultant
Communicating with Teller residents to ensure that the community is informed
Contractors for this project would include:
Wind Resource Consultant.AVEC will employ a wind resource consultant who will:
o Supervise the installation of the met tower
o Consult on the operation and maintenance of the tower
o Draft the wind resource report
Engineering consultant.AVEC will employ an engineering consultant who will:
o Select,coordinate,and manage the geotechnical contractor
o Create the wind turbine facility conceptual design
Selection Process for Contractors:The engineering consultant selection will be based upon technical
competencies, past performance, written proposal quality, cost, and general consensus from the
technical steering committee. The selection of the consultant will occur in strict conformity with
corporate procurement policies, conformance with OMB circulars, and DCAA principles.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
AVEC will assign a project manager to the project. The project manager will work closely with the
engineering consultant to ensure adherence to the project schedule and budget. Weekly and monthly
project coordination meetings will be held during the first season to track progress of installation of the
met tower and geotechnical work and address issues as they arise.After the met tower is installed,
monthly communication with the project team will be sufficient.The project manager will provide
quarterly reports to AVEC for finalization and submission to the AEA.
3.6 Project Risk
Discuss potential problems and how you would address them.
Site Control/Access and Permitting.As a part of this project site control and permits would be
acquired. This would involve working closely with the community, tribe, and village corporation and
regulatory agencies.
Weather.Weather could delay geotechnical field work; however, an experienced consultant, familiar
with Alaskan weather conditions, would be selected. It unlikely that a delay in the total project schedule
would occur if the field work is delayed. The met tower would be installed to handle the Tellers’winter
weather conditions.The met tower would be monitored to ensure the met tower is up and functioning.
Logistics.Transport of the met tower to Teller would not be difficult, since there is a good dock in the
community.
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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 12 10/8/2008
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.
According to the AEA Alaska high resolution wind resource map, Teller is rated as a class 6 wind regime.
Correlating AVEC’s meterological data from Chevak, which is also in a class 6 wind regime, we expect the
annual wind resource to be 35% of installed wind turbine capacity. The three proposed 100 kW turbines
can be expected to produce an average of 919,800 kWh per year.
Solar power from photovoltaic solar arrays is a potential alternative, but has higher capital cost and
lower resource availability than wind in Teller.
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.
AVEC currently provides power to the communities of Teller and Brevig Mission with diesel generators.
The power plant in Teller includes five generator sets with a combined capacity of 814 kW.Detail of each
generator follows:
Type kW Age
CAT 124 19 years
CAT 156 4 years
CAT 297 14 years
CAT 150 5 years
CAT 87 15 years
The power plant in Teller includes five generator sets with a combined capacity of 818 kW.Detail of each
generator follows:
Type kW Age
DD 207 2 years
DD 314 10 years
CAT 297 5 years
AVEC data indicates that the combined peak demand in Teller and Brevig Mission in 2007 was 411 kW.
Combined average demand over the same period was approximately 203 kW.The power plant in Teller
generated 11.66 kW for each gallon of fuel consumed in 2007 and the power plant in Brevig Mission
generated 13.67 kW for each gallon of fuel consumed in 2007.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any
impact the project may have on existing energy infrastructure and resources.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 12 10/8/2008
Teller and Brevig Mission use diesel and heating oil as the primary energy resources.Combined diesel
fuel consumption for power generation in Teller and Brevig Mission in FY2007 was 140,263 gallons.
If this study finds the wind resource suitable, installation of wind turbines in the community would
decrease the amount of diesel fuel used for power generation.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.
Teller is located on a spit between Port Clarence and Grantley harbor. Brevig Mission is located 5 miles
northwest of Teller at the mouth of Shelman Creek.Average temperatures range from -9 to 57°F.Thirty
seven percent of the population is below the poverty line; the median household income is $23,000 —
less than half of the State’s median household income of $59,036.
The combined electricity consumption in Teller and Brevig Mission in 2007 was 1,775,932 kW.The load
of is highest during the winter months, with the bulk of electricity consumed by residences and the
school.If this study finds that winds are suitable,the addition of wind turbines to the electric generation
system could reduce the amount of diesel fuel used for power generation and for heating.
Both Teller and Brevig Mission are classified as isolated villages, relying on air transportation for delivery
of medical goods and transport of sick or injured individuals.Reliable electric service is essential to
maintaining vital navigation aids for the safe operation of aircraft.Runway lights, automated weather
observation stations, VASI lights,DME’s and VOR’s are all powered by electricity.
Emergency medical service in both villages is provided in a health clinic by a health aide.Medical
problems and emergencies must be relayed by telephone or by some other communication means for
outside assistance.Operation of the telephone system requires electricity.Reliable telephone service
requires reliable electric service.
Like all of Alaska,Teller and Brevig Mission subject to long periods of darkness.Reliable electric service is
essential for the operation of home lighting, streetlights,and security lighting.Outside lighting ensures
the safety of children.
Teller is a traditional Kawerak Eskimo community. Brevig Mission is predominantly Inupiat Eskimo. Both
villages rely on subsistence activities.Subsistence foods, including fish,moose,beluga whales,seals,and
reindeer are gathered and stored in refrigerators and freezers.Refrigeration is essential for the
extended storage of perishable food stuffs, and reliable electric service is essential for proper freeze
storage of food.
Sources:Alaska Community Database.
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
Alternative Energy Technology.AVEC plans to conduct a Feasibility Analysis, Resources Assessment, and
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 12 10/8/2008
Conceptual Design to assess the possibility of using wind power in Teller. If the wind resource proves
suitable, wind turbines would be installed.
Optimum installed capacity/Anticipated capacity factor/Anticipated annual generation.The purpose
of this work is to gather background information to plan a future alternative energy facility.The capacity
is unknown at this time.
Anticipated barriers.The potential barriers to success of this project include site access and permitting
and weather.The barriers are minor and do not pose a threat to the completion of this project, tasks
which must be accomplished.
Basic integration concept/Delivery methods.Conceptual design, to be completed as a part of this
project, would detail how power from a wind turbine would be integrated and delivered into the existing
system. If the wind is suitable for development, the turbines will interconnect with the power plant. It is
expected that wind-generated electrical energy will be delivered via the existing electrical distribution
grid.
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 proposed location of the met tower and geotechnical work would occur at a location determined by
additional work and discussions with the communities.
To obtain permission to place met towers and complete geotech work, AVEC would travel to community
immediately following the Authorization to Proceed from AEA. AVEC would discuss the project with
community members and representatives from the City of Teller, the Native Village of Teller, and the
Teller Village Corporation.
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
Consultation with the U.S. Fish and Wildlife Service in compliance with the Endangered Species Act will
be required to install the met tower. AVEC will work with the agency to ensure that the requirements of
the Act are met, while allowing for the success of the project.
An U.S. Army Corps of Engineers Wetlands Permit may be needed for the geotechnical work.The Corps
has a “Nationwide Permit” for survey work, including geotech field work. This permit usually takes no
more than three weeks to obtain.
(Because a Corps’ Nationwide Permit exists, a State of Alaska Department of Natural Resources, Division
of Coastal and Ocean Management Coastal Project Questionnaire and Enforceable Policies Consistency
Determination is not needed.)
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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 12 10/8/2008
Visual, aesthetics impacts
Identify and discuss other potential barriers
The purpose of this work is to gather background information to plan for future wind turbines.A met
tower would be installed, and geotechnical field work would be completed. As stated above, compliance
with the Endangered Species Act would be needed. Also a U.S. Army Corps of Engineers Wetlands
Nationwide Permit could be needed to conduct geotechnical work, depending on if the work is within
wetlands.Further work to comply with other environmental laws, including the National Environmental
Policy Act (if federal funding is sought for construction), the Clean Water Act (for work in wetlands), and
the National Historic Preservation Act,would be conducted during the next stage of development, if the
wind resource is suitable for moving forward with the installation of turbines.
AVEC would obtain permission to place the met tower and conduct geotechnical fieldwork from the land
owner as a part of this project. Further work to obtain a long term lease would be needed if the study
finds that the wind turbines are feasible.
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
AVEC plans to conduct a Feasibility Analysis/Resources Assessment to assess the possibility of using wind
power in the Teller and Brevig Mission power plant. AVEC also plans on doing the Final Design and
Permitting.This work will cost $123,800.AVEC requests $117,610 from AEA. AVEC will provide $6,190
as an in-kind contribution.
If the wind resource proves suitable, the next phase of this project would be Final Design and Permit ting
(Phase III). Although it is difficult to determine without an assessment of the resource and what type,
size, and number of turbine would be needed, AVEC expects that Final Design and Permitting would cost
$210,000. AVEC would provide a 5% in-kind match ($10,500).It is possible that the funding for this work
could come from the AEA Renewable Energy Program, the Denali Commission, a USDA Rural Utility
Service program, or another grant program.
The final phase of this project would be Construction and Commissioning (Phase IV). AVEC estimates
that this phase could cost $4,421,700, assuming installation of three Northwind 100 wind turbines. AVEC
would provide a 10% cash match ($410,300).It is possible that the funding for this work could come
from the AEA Renewable Energy Program, the Denali Commission, a USDA Rural Utility Service program,
or another grant program.
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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 12 10/8/2008
Requested grant funding
The met tower would require monthly monitoring and data management. It is expected that this will
cost $700.The cost will be funded by this grant award.
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
AVEC, the existing electric utility serving Teller and Brevig Mission,is a member owned cooperative
electric utility and typically owns and maintains the generation, fuel storage, and distribution facilities in
the villages it serves.
Teller includes 87 households and community facilities including a health clinic and a school.Brevig
Mission includes 76 households and community facilities, including a health clinic,school, and water
treatment plant, which purchase power from AVEC.
At this point in project development, the potential power price and rate of return on the project is
unknown.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Please see attachment.
4.4.5 Business Plan
Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum
proposed business structure(s) and concepts that may be considered.
The wind turbines, if feasible,would be incorporated into AVEC’s power plant operation. Local plant
operators provide daily servicing. AVEC technicians provide periodic preventative or corrective
maintenance and are supported by AVEC headquarters staff,purchasing,and warehousing.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your recommendation
for additional project development work.
According to the AEA Alaska high resolution wind resource map,Teller is rated as a class 6 wind regime.
This designation indicates that the potential for beneficial use of wind as an energy resource in the
community is superb.Possible community growth,along with significant increases in the delivered cost
of diesel fuel,make this local resource a timely candidate for evaluation for a feasibility analysis and
conceptual design.
SECTION 5–PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings, and how the people
of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy
project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA
tariff, or avoided cost of ownership)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable energy
subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 11 of 12 10/8/2008
Potential Fuel Displacement:The possible displacement of diesel fuel used for village power generation
in Teller currently totals over 140,263 gallons per year at a cost of over $676,807.Much greater amounts
of displaced fuel are possible if electric heating is used to displace heating fuel.The estimated amount of
fuel displacement for this project is 53,000 gallons at a savings of over $255,664 annually (based on 2008
fuel costs).
Anticipated annual revenue/Potential additional annual incentives/Potential additional annual
revenue streams.Because this project is in the feasibility and concept design stage, revenue and
incentives are unknown.
Non-economic public benefits.If wind energy is feasible in Teller and wind turbines are installed in the
community, energy costs could stabilize and long-term socio-economic benefits could result.Wind
power would have many environmental benefits resulting from a reduction of hydrocarbon use,
including reduced potential for fuel spills or contamination, improved air quality, and decreased
contribution to global climate change from fossil fuel use.
SECTION 6 –GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources, how much
is requested in grant funds, and additional investments you will make as an applicant.
Include an estimate of budget costs by tasks using the form -GrantBudget.xls
The total project costs through construction depend on the outcome of the wind resource study and
geotechnical report as well as construction year and market conditions; however, an estimate can be
made:
Estimated Final Design and Permitting:$210,000.
Estimated Construction and Commissioning: $4,103,000.
Estimated Project Total (including this phase): $4,436,800.
Over the past 5 years, AVEC and our wind consultant have traveled to the community a number of times
to investigate possible sites for a met tower and turbines. These visits involved meeting with the
community to discuss the project. Approximately $10,000 has been spent on this effort.
The total project cost for this phase of the project is $123,800 of which $117,610 is requested in grant
funds. The remaining $6,190 will be matched in cash by AVEC. A detail of the costs is:
Task State Funds AVEC In-Kind Match Total
Obtain Site Control/Right of
Entry/Permits $6,650 $350 $7,000
Purchase and Ship Met Tower $14,345 $755 $15,100
Erect, Monitor, Dismantle Met Tower $19,665 $1,035 $20,700
Complete Geotech Work $61,750 $3,250 $65,000
Complete Wind Resource Report $5,700 $300 $6,000
Complete Conceptual Design $9,500 $500 $10,000
Total $117,610.00 $6,190.00 $123,800.00
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 12 of 12 10/8/2008
AVEC expects to following future funding scenario for future project phases.
Future Phases Alternative Funds
AVEC In-Kind
Match Total
Estimated Final Design and Permitting $189,000 $21,000 $210,000
Estimated Construction and Commissioning $3,692,700 $410,300 $4,103,000
Total $3,881,700 $431,300 $4,313,000
Tab 2
Resumes
Tab 3
Cost Worksheet
Renewable Energy Fund
Application Cost Worksheet
Please note that some fields might not be applicable for all technologies or all project
phases. 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. 1,051,000
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Windspeed
2. Existing Energy Generation
a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other Teller: 124 kW, 156 kW, 297 kW, 203 kW, 87 kW
Brevig Mission: 207kW, 150 kW, 297 kW
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other Teller: 20, 20, 3, 20, 20 years respectively
Brevig: 2, 14, 8 years respectively.
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 $170,000 (labor and non-labor) per power plant
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] 1,775,932 kWh
(Teller 821,031 kWh and Brevig Mission 954,901 kWh in 2007)
ii. Fuel usage
Diesel [gal] 140,263 gallons
(Teller:70,411 gals Brevig Mission: 69,852 gals)
Other
iii. Peak Load 401 kW
(Teller: 192 kW Brevig Mission: 219 kW)
iv. Average Load 203 kW
(Teller: 94 kW Brevig: 109 kW)
v. Minimum Load
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 AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1
Renewable Energy Fund
vi. Efficiency 12.66 kWh per gallon
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
3. Proposed System Design
a) Installed capacity 300 kW
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 919,800 kWh
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
4. Project Cost
a) Total capital cost of new system
b) Development cost
c) Annual O&M cost of new system
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 72,654
ii. Heat
iii. Transportation
b) Price of displaced fuel $350,471
c) Other economic benefits
d) Amount of Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.58
Payback 12.66 years (simple)
Tab 4
Grant Budget Form
Alaska Energy Authority ‐ Renewable Energy FundTeller Wind Feasibility ProjectBUDGET INFORMATIONBUDGET SUMMARY:Milestone or TaskFederal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1. Obtain Site Control/Right of Entry/Permits$6,650.00$350.00$7,000.002. Purchase and Ship Met Tower$14,345.00$755.00$15,100.003. Erect, Monitor, Dismantle Met Tower$19,665.00$1,035.00$20,700.004. Complete Geotech Work$61,750.00$3,250.00$65,000.005. Complete Wind Resource Report$5,700.00$300.00$6,000.006. Complete Conceptual Design$9,500.00$500.00$10,000.00TOTALS$117,610.00$0.00 $6,190.00$0.00 $123,800.00Milestone # or Task #BUDGET CATAGORIES:123456TOTALSDirect Labor and Benefits$350.00 $755.00 $1,035.00 $3,250.00 $300.00 $500.00 $6,190.00Travel, Meals, or Per Diem$0.00Equipment$0.00Supplies$0.00Contractual Services$6,650.00 $14,345.00 $19,665.00 $61,750.00 $5,700.00 $9,500.00 $117,610.00Construction Services$0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES$7,000.00 $15,100.00 $20,700.00 $65,000.00 $6,000.00 $10,000.00 $123,800.00RFA AEA09-004 Budget Form
Tab 5
Delegation of Authority
Tab 6
Supplemental Materials
AEA Wind Resource Map of Alaska
Teller HOMER Analysis
Pacific Ocean
Nome
Sitka
Kenai
Homer
Craig
Juneau
Palmer
Barrow
Haines
Kodiak
Valdez
Seward
Bethel
Cordova
Kotzebue
Sterling
Wrangell
Unalaska
Fairbanks
Anchorage
Ketchikan
North Pole
Dillingham
Petersburg
Metlakatla
170°0'0"W175°0'0"W
165°0'0"W
165°0'0"W
160°0'0"W
160°0'0"W 155°0'0"W
155°0'0"W
150°0'0"W
150°0'0"W
145°0'0"W
145°0'0"W
140°0'0"W
140°0'0"W
135°0'0"W 130°0'0"W 125°0'0"W 120°0'0"W
48°0'0"N50°0'0"N50°0'0"N66°0'0"N68°0'0"N70°0'0"N52°0'0"N52°0'0"N54°0'0"N54°0'0"N56°0'0"N56°0'0"N58°0'0"N58°0'0"N60°0'0"N60°0'0"N62°0'0"N62°0'0"N64°0'0"N64°0'0"N72°0'0"N74°0'0"N46°0'0"N205000
205000
455000
455000
705000
705000
955000
955000
1205000
1205000
1455000
1455000
1705000
1705000
1955000
1955000
2205000
22050005455000 54550005705000570500059550005955000620500062050006455000645500067050006705000695500069550007205000720500074550007455000770500077050007955000795500082050008205000Projection: UTM, Zone 4N, WGS84
Spatial Resolution of Wind Resource Data: 200m
This map was created by TrueWind Solutions using the MesoMap system and
historical weather data. Although it is believed to represent an accurate overall
picture of the wind energy resource, estimates at any location should be
confirmed by measurement.
Key to Features
!(City
Road
Railroad
River / Stream
Federal Land
State / Local Park
Borough / Census Boundary
Urban Area
Waterbody
State Background
Canadian Province
Wind Resource of AlaskaWind Resource of Alaska
Power Density at 50 m
NREL Class W/m2
1- < 100
1+ 100 - 200
2 200 - 300
3 300 - 400
4 400 - 500
5 500 - 600
6 600 - 800
7 > 800 ±
0 170 340 510 68085
Kilometers
0 90 180 270 36045
Miles
System Report - TellerBrevigMissionSimulation.hmr
System architecture
Brevig Mission 1207 kW
Brevig Mission 2314 kW
Brevig Mission 3297 kW
Teller 1 124 kW
Teller 2 156 kW
Teller 3 297 kW
Teller 4 150 kW
Teller 5 87 kW
Cost summary
Total net present cost $ 5,874,258
Levelized cost of energy $ 0.261/kWh
Operating cost $ 459,524/yr
Net Present Costs
Component Capital Replacement O&M Fuel Salvage Total
($) ($) ($) ($) ($) ($)
Brevig Mission 1 0 0 0 2,765,994 0 2,765,994
Brevig Mission 2 0 0 0 326,753 0 326,753
Brevig Mission 3 0 0 0 2,781,514 0 2,781,514
Teller 1 0 0 0 0 0 0
Teller 2 0 0 0 0 0 0
Teller 3 0 0 0 0 0 0
Teller 4 0 0 0 0 0 0
Teller 5 0 0 0 0 0 0
System 0 0 0 5,874,261 0 5,874,261
Annualized Costs
Component Capital Replacement O&M Fuel Salvage Total
($/yr) ($/yr) ($/yr) ($/yr) ($/yr) ($/yr)
Brevig Mission 1 0 0 0 216,375 0 216,375
System Report - TellerBrevigMissionSimulation.hmr file:///C:/DOCUME~1/CMCLAU~1/LOCALS~1/Temp/TellerBrevigMis...
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Brevig Mission 2 0 0 0 25,561 0 25,561
Brevig Mission 3 0 0 0 217,589 0 217,589
Teller 1 0 0 0 0 0 0
Teller 2 0 0 0 0 0 0
Teller 3 0 0 0 0 0 0
Teller 4 0 0 0 0 0 0
Teller 5 0 0 0 0 0 0
System 0 0 0 459,524 0 459,524
Electrical
Component Production Fraction
(kWh/yr)
Brevig Mission 1 821,561 47%
Brevig Mission 2 100,862 6%
Brevig Mission 3 835,807 48%
Teller 1 0 0%
Teller 2 0 0%
Teller 3 0 0%
Teller 4 0 0%
Teller 5 0 0%
Total 1,758,230 100%
Load Consumption Fraction
(kWh/yr)
AC primary load 1,758,207 100%
Total 1,758,207 100%
System Report - TellerBrevigMissionSimulation.hmr file:///C:/DOCUME~1/CMCLAU~1/LOCALS~1/Temp/TellerBrevigMis...
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Quantity Value Units
Excess electricity 22.1 kWh/yr
Unmet load 0.0164 kWh/yr
Capacity shortage 0.00 kWh/yr
Renewable fraction 0.000
Brevig Mission 1
Quantity Value Units
Hours of operation 5,809 hr/yr
Number of starts 1,411 starts/yr
Operational life 17.9 yr
Capacity factor 45.3 %
Fixed generation cost 4.72 $/hr
Marginal generation cost 0.230 $/kWhyr
Quantity Value Units
Electrical production 821,561 kWh/yr
Mean electrical output 141 kW
Min. electrical output 20.7 kW
Max. electrical output 207 kW
Quantity Value Units
Fuel consumption 216,375 L/yr
Specific fuel consumption 0.263 L/kWh
Fuel energy input 2,129,126 kWh/yr
Mean electrical efficiency 38.6 %
Brevig Mission 2
Quantity Value Units
Hours of operation 330 hr/yr
Number of starts 297 starts/yr
Operational life 62.1 yr
Capacity factor 3.67 %
Fixed generation cost 7.16 $/hr
Marginal generation cost 0.230 $/kWhyr
Quantity Value Units
Electrical production 100,862 kWh/yr
System Report - TellerBrevigMissionSimulation.hmr file:///C:/DOCUME~1/CMCLAU~1/LOCALS~1/Temp/TellerBrevigMis...
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Mean electrical output 306 kW
Min. electrical output 297 kW
Max. electrical output 314 kW
Quantity Value Units
Fuel consumption 25,561 L/yr
Specific fuel consumption 0.253 L/kWh
Fuel energy input 251,518 kWh/yr
Mean electrical efficiency 40.1 %
Brevig Mission 3
Quantity Value Units
Hours of operation 3,744 hr/yr
Number of starts 1,209 starts/yr
Operational life 1.28 yr
Capacity factor 32.1 %
Fixed generation cost 6.77 $/hr
Marginal generation cost 0.230 $/kWhyr
Quantity Value Units
Electrical production 835,807 kWh/yr
Mean electrical output 223 kW
Min. electrical output 97.8 kW
Max. electrical output 297 kW
Quantity Value Units
Fuel consumption 217,589 L/yr
Specific fuel consumption 0.260 L/kWh
Fuel energy input 2,141,072 kWh/yr
Mean electrical efficiency 39.0 %
Teller 1
System Report - TellerBrevigMissionSimulation.hmr file:///C:/DOCUME~1/CMCLAU~1/LOCALS~1/Temp/TellerBrevigMis...
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Quantity Value Units
Hours of operation 0 hr/yr
Number of starts 0 starts/yr
Operational life 1,000 yr
Capacity factor 0.00 %
Fixed generation cost 9.92 $/hr
Marginal generation cost 0.250 $/kWhyr
Quantity Value Units
Electrical production 0.00 kWh/yr
Mean electrical output 0.00 kW
Min. electrical output 0.00 kW
Max. electrical output 0.00 kW
Quantity Value Units
Fuel consumption 0 L/yr
Specific fuel consumption 0.000 L/kWh
Fuel energy input 0 kWh/yr
Mean electrical efficiency 0.0 %
Teller 2
Quantity Value Units
Hours of operation 0 hr/yr
Number of starts 0 starts/yr
Operational life 1,000 yr
Capacity factor 0.00 %
Fixed generation cost 12.5 $/hr
Marginal generation cost 0.250 $/kWhyr
Quantity Value Units
Electrical production 0.00 kWh/yr
Mean electrical output 0.00 kW
Min. electrical output 0.00 kW
Max. electrical output 0.00 kW
Quantity Value Units
Fuel consumption 0 L/yr
Specific fuel consumption 0.000 L/kWh
Fuel energy input 0 kWh/yr
System Report - TellerBrevigMissionSimulation.hmr file:///C:/DOCUME~1/CMCLAU~1/LOCALS~1/Temp/TellerBrevigMis...
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Mean electrical efficiency 0.0 %
Teller 3
Quantity Value Units
Hours of operation 0 hr/yr
Number of starts 0 starts/yr
Operational life 1,000 yr
Capacity factor 0.00 %
Fixed generation cost 23.8 $/hr
Marginal generation cost 0.250 $/kWhyr
Quantity Value Units
Electrical production 0.00 kWh/yr
Mean electrical output 0.00 kW
Min. electrical output 0.00 kW
Max. electrical output 0.00 kW
Quantity Value Units
Fuel consumption 0 L/yr
Specific fuel consumption 0.000 L/kWh
Fuel energy input 0 kWh/yr
Mean electrical efficiency 0.0 %
Teller 4
Quantity Value Units
Hours of operation 0 hr/yr
Number of starts 0 starts/yr
Operational life 1,000 yr
Capacity factor 0.00 %
Fixed generation cost 12.0 $/hr
Marginal generation cost 0.250 $/kWhyr
System Report - TellerBrevigMissionSimulation.hmr file:///C:/DOCUME~1/CMCLAU~1/LOCALS~1/Temp/TellerBrevigMis...
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Quantity Value Units
Electrical production 0.00 kWh/yr
Mean electrical output 0.00 kW
Min. electrical output 0.00 kW
Max. electrical output 0.00 kW
Quantity Value Units
Fuel consumption 0 L/yr
Specific fuel consumption 0.000 L/kWh
Fuel energy input 0 kWh/yr
Mean electrical efficiency 0.0 %
Teller 5
Quantity Value Units
Hours of operation 0 hr/yr
Number of starts 0 starts/yr
Operational life 1,000 yr
Capacity factor 0.00 %
Fixed generation cost 6.96 $/hr
Marginal generation cost 0.250 $/kWhyr
Quantity Value Units
Electrical production 0.00 kWh/yr
Mean electrical output 0.00 kW
Min. electrical output 0.00 kW
Max. electrical output 0.00 kW
Quantity Value Units
Fuel consumption 0 L/yr
Specific fuel consumption 0.000 L/kWh
Fuel energy input 0 kWh/yr
Mean electrical efficiency 0.0 %
System Report - TellerBrevigMissionSimulation.hmr file:///C:/DOCUME~1/CMCLAU~1/LOCALS~1/Temp/TellerBrevigMis...
7 of 8 11/8/2008 7:00 PM
Emissions
Pollutant Emissions (kg/yr)
Carbon dioxide 1,210,078
Carbon monoxide 2,987
Unburned hydocarbons 331
Particulate matter 225
Sulfur dioxide 2,430
Nitrogen oxides 26,652
System Report - TellerBrevigMissionSimulation.hmr file:///C:/DOCUME~1/CMCLAU~1/LOCALS~1/Temp/TellerBrevigMis...
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