HomeMy WebLinkAboutYakutat Wave Energy Conversion App
November 10, 2008
Renewable Energy Grant Fund
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
Re: Yakutat Power – Renewable Energy Fund Grant Application – Letter of Commitment
Application Review Committee:
Yakutat Power is pleased to submit the attached application for a Renewable Energy Fund Grant
for a Wave Energy Conversion (WEC) Project, an eligible renewable energy project as defined
under HB 152. Yakutat Power is authorized by the Regulatory Commission of Alaska to provide
power to the community of Yakutat under Certificate of Public Convenience and Necessity,
CPC&N No. 53.
The attached Application documents and describes the proposed WEC project. The total
estimated cost of design, permitting, construction, and development and testing for the pilot plant
is $6,944,000. The estimated fuel savings as a result of this project is 85,000-gallons starting in
year 4. Yakutat Power commits to this project a cash Match of up to $44,000.
Yakutat Power strives to keep electric costs as low a possible by maximizing operating
efficiencies and reducing operating costs. This project will provide a significant improvement
toward meeting this continued goal, and will greatly benefit the community of Yakutat.
Yakutat Power welcomes and fully supports this opportunity to work with the Alaska Energy
Authority to implement this innovative wave energy conversion project, and requests the Review
Committee carefully review the merits of this application.
We welcome your review and evaluation of our proposal, and look forward to working with you
on this project. If you have any questions about this project, please feel free to contact me at
(907) 784-3242
Sincerely,
Scott Newlun General Manager
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 24 9/2/2008
Application Forms and Instructions
The following forms and instructions are provided for preparing your application for a
Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html
The following application forms are required to be submitted for a grant recommendation:
Grant Application
Form
GrantApp.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet.doc Summary of Cost information that should be addressed
by applicants in preparing their application.
Grant Budget
Form
GrantBudget.xls A detailed grant budget that includes a breakdown of
costs by task and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget
Form Instructions
GrantBudgetInstr.pdf Instructions for completing the above grant budget form.
• If you are applying for grants for more than one project, provide separate application
forms for each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project, provide 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.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
• Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 24 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Yakutat Power
Type of Entity:
Certificated Electric Utility
Mailing Address
Yakutat Power
PO Box 129
Yakutat, AK 99689
Physical Address
Yakutat Power
#1 Forest Hwy.
Yakutat, AK 99689
Telephone
(907) 784-3242
Fax
(907) 784-3922
Email
yakpower@ptialaska.net
1.1 APPLICANT POINT OF CONTACT
Name
Scott Newlun
Title
General Manager
Mailing Address
Yakutat Power
PO Box 129
Yakutat, AK 99689
Telephone
(907) 784-3242
Fax
(907) 784-3922
Email
yakpower@ptialaska.net
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 3 of 24 9/3/2008
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.
Yakutat Power is pleased to propose a four-phase Wave Energy Conversion (WEC) pilot demonstration
project to the Alaska Energy Authority (AEA) Renewable Energy fund (REF). Alaska has more than 50%
of the wave energy resource (about 1,200 TWhr/year) of the entire United States of America off its shores
(and that is excluding the Bering Seas to the north of the Aleutian Islands). Yakutat Power believes that
wave energy will play an important role in meeting the energy needs of the State of Alaska, and this
project proposes to be an early adopter and evaluator of this emerging technology.
Wave Energy Conversion (WEC) describes the conversion of kinetic and potential energy in ocean waves
to electricity. Wave energy occurs due to movement of water near the surface of the sea. Waves are
formed by winds blowing over the water surface, which imparts kinetic energy relative to the speed and
duration of the wind, distance of sea it blows over, water depth, sea bed conditions and interactions with
the tides.
The goal of this four-phase WEC Pilot Demonstration Project is to conduct in-water testing and
evaluation of WEC technology that could be used in a future commercial-scale WEC power plant for the
City of Yakutat or anywhere else along the coast of Alaska. This will enable Yakutat Power to make an
informed evaluation if wave energy should be included in its energy portfolio.
The specific objective of the Phase I Reconnaissance and Phase II Feasibility Analysis is to evaluate and
assess in detail the technical, economic, financial, environmental and operational viability of a WEC
project. This process will support the decision to proceed to the Phase III Final Design and Permitting. As
an indication of our level of commitment to this technology, Yakutat Power has funded Phase I and II,
which is currently in process and will be completed in early 2009.
The specific objective of Phase III Final Design and Permitting is to conduct all work necessary to
complete engineering design, conduct baseline environmental studies and submit all license applications
required for a pilot wave energy demonstration plant offshore Yakutat.
The specific objective of Phase IV is to implement the technology in the actual environment near Yakutat
to obtain real operational experience, environmental, performance and other data gathering and
evaluation/analysis.
Results of this project could open up the possibility of more of wave energy conversion plants at many
sites in Alaska.
We expect that AEA’s involvement in funding and program oversight of this innovative wave energy
feasibility study will afford multiple benefits to the state, including:
• diversifying the energy supply portfolio with an indigenous, clean, renewable and sustainable
electric generation technology
• reducing dependence on dwindling fossil fuels
• reducing greenhouse gas emissions and carbon footprint
• creating jobs in Alaska and improving the State’s economy
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 24 9/3/2008
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.
Yakutat Power is located in Yakutat, Alaska. The City and Borough of Yakutat has a population of 631,
and is located at the mouth of Yakutat Bay along the Gulf of Alaska, 225 miles northwest of Juneau and
220 miles southeast of Cordova. Yakutat receives monthly barge service during the winter and more
frequent service during summer. Yakutat is equipped with two jet-certified runways and receives jet
service daily. The U.S. Forest Service and the National Park Service have offices in Yakutat. This project
will investigate the conversion of readily available wave energy with the long term goal of integrating the
resource into the Yakutat Power electric grid. Direct beneficiaries of this project include all Yakutat
Power electric service customers.
Yakutat Power will be the Grantee under the Renewable Energy Fund grant. Yakutat Power has teamed
up with the engineering firm of Alaska Energy and Engineering, Inc. (AE&E) ) and Electric Power
Research Institute (EPRI). AE&E also brings to the team the geotechnical firm of Duane Miller
Associates, LLC.
EPRI is a non-profit, public-benefit organization leading innovation in strategic areas of electricity
technology through public-private partnerships. Over the past four and half years, EPRI has performed
techno feasibility studies for offshore wave and tidal energy conversion; wave energy in 2004 and tidal in
2005 and early 2006. The wave energy work evaluated the application of linear attenuators and
oscillating water columns to convert the potential and kinetic energy in ocean waves to electricity. The
wave energy feasibility studies, for good sites, made a compelling case for investing in projects using this
technology to diversify our energy supply portfolio. The case made was so compelling that within a year
of the completion of the EPRI feasibility studies, approximately 10 applications for preliminary permits
were filed by private investors to the FERC for wave power plants in Oregon and Northern California.
AE&E is an Alaska-owned, Anchorage-based firm incorporated in 1993 specifically to provide design
and project management services for rural energy projects. AE&E has built its reputation on the ability to
provide practical design solutions and hands-on construction support to effectively meet the challenges of
rural Alaska. We have fostered excellent working relationships with permitting and regulatory agencies,
which ensures that our projects comply with current interpretation of state and federal regulations. The
engineering staff of AE&E has extensive experience designing and constructing projects in remote sites
throughout the state with particular emphasis in western Alaska. Our primary field of expertise is electric
power generation and distribution, rural fuel storage and handling facilities, and energy systems
integration. AE&E has a long history of successful energy-related projects throughout Alaska, and has
worked with Yakutat Power on several energy-related projects dating back to 1991.
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 estimated cost for the pilot project is $6,944,000. Of this amount, Yakutat Power has provided a
project match for the EPRI Phase I & II Feasibility Study in the amount of $44,000. The balance
requested for this project from the Renewable Energy Grant Fund is $6,900,000.
There are a variety of sources of capital that may be available for this project, including Department of
Agriculture, Rural Utilities Service grants and loans, Denali Commission funding, private financing and
commercial loans. However, due to the infancy of this promising technology, Yakutat Power is requesting
full funding from the Renewable Energy Fund grant program for this project.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 24 9/3/2008
Yakutat Power WEC Budget
PHASE I & II. RECONNAISSANCE & FEASIBILITY STUDY
EPRI Yakutat WEC Feasibility Study Report (est'd 4/09) $44,000
PHASE I & II TOTAL $44,000
PHASE III. FINAL DESIGN & PERMITTING
Phase III Engineering, Permitting and Project Management $400,000
EPRI Phase III Consulting $150,000
Phase III Contingency @ 15% $82,500
PHASE III TOTAL $632,500
PHASE IV. CONSTRUCTION, COMMISSIONING, OPERATION & REPORTING
Phase IV Engineering and Project Management $200,000
EPRI Phase IV Consulting & Long Term Monitoring $250,000
Installation of Pilot WEC Device (500kW @ $7000/kW) $3,500,000
Submarine Cable Installation (1-mile @ $1.5 million/mile) $1,500,000
Phase IV Contingency @ 15% $817,500
PHASE IV TOTAL $6,267,500
PROJECT TOTAL $6,944,000
Less Local Match Funds ($44,000)
TOTAL GRANT REQUEST $6,900,000
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.
Financial/economic benefits
The EPRI feasibility study will evaluate the likely financial benefits that will accrue from this project in
terms of simple payback period for the remote distribution grid application. This payback period is the
period of time that the revenues from the WEC plant, at an avoided cost of diesel fuel (currently at 32
cents/kWh) will payback the initial capital and operation and maintenance cost of the plant. The economic
benefit of an annual 85,000-gallon fuel reduction at today’s fuel price of $4.71/gallon equates to over
$400,000/year in fuel savings
Other benefits to Alaskan public …
The most significant benefit to the Alaska public will be the testing and development of a viable electric
energy technology, which may substantially reduce the cost of power in other remote coastal areas of
Alaska. Additional benefits include the use of an emission-less renewable energy source and community
economic development as the installation, operation and maintenance will create jobs
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.)
$ 6,944,000
2.5.2 Grant Funds Requested in this application. $ 6,900,000
2.5.3 Other Funds to be provided (Project match) $ 44,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 6,944,000
2.5.5 Estimated Benefit (Savings) $ 400,350/year
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.)
refer to above paragraph
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 24 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.
Scott Newlun, Yakutat General Manager, will be the Grant Manager. He will be the single point of
contact with AEA and will execute all grant, contractual and administrative responsibilities. Mr. Newlun
has 20 years of experience in the electric power generation field. He is skilled in tracking grants,
communications, and in his ability to deal smoothly and professionally with executive officers, upper
management, employees, vendors, and customers in day-to-day and occasionally adverse situations.
Mr. Roger Bedard, EPRI will be the Project Manager. Mr. Bedard will have overall responsibility for
the technical, schedule and financial success of the overall project. He will also be the primary point of
contact for liaison with Yakutat Power Stakeholders. Mr. Bedard will also be responsible for assuring
Yakutat Power’s satisfaction with the process and end product of the project. The techniques that Mr.
Bedard will employ to keep the project on track are the classic project management actions of planning,
assessing actual performance against planned performance and applying corrective action when
necessary. The structured approach for defining, implementing and managing the project will use a work
breakdown structure, resource requirements and responsibilities plan, written risk mitigation planning,
and milestone/schedule/cost performance tracking. Lastly, as project manager, he is responsible for
assuring that sufficient programmatic and technical project discussions take place in order that
expectations are correctly communicated, issues are resolved and project team members are empowered.
These discussions are conversations and meetings between project and technical management and others
as necessary and take place in all elements of the project both formally and informally.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
The following Gantt chart schedule is for the pilot demonstration plant project
TASK IV.2. REMOTE GRID OPERATIONS
TASK IV.3. MAINTENANCE
TASK IV.4. PERFORMANCE VERIFICATION
MANEGEMENT AND REPORTING
Milestones/ Deliverables
Kickoff Meeting
Annual Progress Report
Mid Term Review Meeting
Stage Gate #1 - Proceed to Phase IV
Final Report
Final Briefing
CONTRACT START
TASK IV.1. CONSTRUCTION
Year 3Year 1 Year 2 Year 4PROJECT GANNT CHART
TASK III.3. DETAILED DESIGN
PHASE IV CONSTRUCT & OPERATION
TASK III.4. FINAL DESIGN
TASK III.3. ENV STUDIES & PERMITTING
TASK III.2. SITE MEASUREMENTS
PHASE III DESIGN AND PERMITTING
TASK III.1. WEC PROVIDER SELECTION
PHASE I and II - RECONNAISSANCE AND
FEASIBILITY STUDY
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 24 9/3/2008
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Key milestones are (see Gantt chart above for schedule)
1. Complete Phase I and II Reconnaissance and Feasibility Study.
2. Decision gate for proceeding from Phases I and II to Phase III Final Design and Permitting.
3. Kickoff Meeting for presenting a detailed Phase III project implementation plan and assuring
mutual expectations among project participants.
4. Decision Gate for proceeding from Phase III Final Design and Permitting to Phase IV
Construction and Operations.
5. Completion of construction and beginning of operations.
6. Completion of operations.
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.
Yakutat Power has teamed with the engineering firm of Alaska Energy and Engineering, Inc. for system
integration, design, permitting, and construction management of the project, and has assembled a highly
qualified, experienced, and multidisciplinary team of personnel to implement this proposed project. The
team has the breadth and depth of both technical and managerial skills and experience and are uniquely
qualified to successfully carry out this project. Locally available labor and contractors will be used to the
extent practicable. All major purchases and construction contracts will be in accordance with Yakutat
Power procurement policies.
In addition to the Grant Manager and Project Manager annotated in Section 3.1, our team includes the
following personnel, contractors, equipment and services. Yakutat Power will be the single point of
contact and will execute all grant, contractual, and administrative responsibilities. EPRI will serve as
Project Manager and WEC technical consultants. AE&E will provide all design, permitting, system
integration, and construction management.
Electric Power Research Institute
Roger Bedard, M.E., EPRI, will serve provide WEC Technical Consulting. He has more than 40
years of engineering R&D experience, focused recently on emerging energy systems. He will work with
the Project Manager to bring his and EPRI’s expertise in renewable energy, wave and in-stream river and
tidal power, to the team. He has been the EPRI Ocean Energy leader since 2004 and managed the 2005-
2006 U.S. Wave Energy Feasibility Study as well as the ongoing WEC study in Yakutat. His EPRI Ocean
Energy Program has accelerated the deployment and commercial development of in-stream and WEC
renewable resource technologies. He and its engineers together have published more than 18 public
reports on various aspects of tidal energy conversion, including resource assessments, conceptual design
studies, environmental effects, cost and economics.
Mirko Previsic, P.E., EPRI/re-vision LLC, will provide WEC Technical Consulting from his 10
years of experience with the design, evaluation and optimization of renewable power generation systems,
theoretical modeling, resource assessments, feasibility studies, and environmental impact studies with an
emphasis on wave and tidal power conversion. He has had primary technical responsibility in many high-
profile studies of wave, tidal and river-in-stream power conversion for various state and federal
government agencies, research institutes, technology development companies and utilities. He is the
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 24 9/3/2008
Technology Lead in WEC projects for EPRI Ocean Energy programs and is instrumental in the baseline
WEC study at Yakutat.
Alaska Energy & Engineering, Inc.
Steven J. Stassel, P.E., AE&E president, will serve as the Lead Engineer/Environmental
Permitting. He will work with the Project Manager to commit essential engineering disciplines to ensure
a successful project. Mr. Stassel will oversee all technical work and coordinate the efforts of our team to
ensure the efficient and cost effective production of project designs. He has more than 21 years of
engineering experience, including rural Alaska energy projects in more than 125 communities. He has
been responsible for permitting and fulfilling all regulatory and environmental compliance requirements
(Wetlands, Flood Mitigation, Coastal Zone, NEPA Environmental review) and state and federal agency
coordination. He has successfully permitted more than 40 energy-related projects in rural Alaska.
John Dickerson, EIT, AE&E, will be the lead Designer/Construction Manager. He has more than
25 years of Alaska construction, engineering, project management, and business management experience.
For the past nine years, he has served as project engineer for the design and construction of over $25
million worth of rural power system and fuel storage projects in Alaska communities. Responsibilities
have included site investigations, design, drafting, cost estimation, procurement, logistics, and
construction management. As a design engineer, Mr. Dickerson has prepared construction documents for
heating, ventilation, plumbing, refrigeration, fuel storage and ASME B31.3 process piping systems for a
range of commercial and industrial facilities.
Duane Miller Associates, LLC
Duane L. Miller, P.E., DMA, will provide Geotechnical Services as a subconsultant to AE&E. He
has more than 36 years of experience as a geotechnical engineer on a variety of projects onshore and
offshore in Alaska, California, and Guam. He has special training and experience in arctic engineering,
engineering geology, and coastal and earthquake engineering. Mr. Miller has provided geotechnical
engineering services on architectural, civil, mining, petroleum, and military projects across Alaska since
1973 and has worked extensively with the Authority and AE&E.
WEC technology provider – will be selected using a competitive RFP process based on site
specific data for Yakutat.
Our proposed organization chart (below) for this project introduces and identifies key members of our
team and shows the lines of authority. Each engineering discipline is led by a professional engineer
registered in the State of Alaska. All engineering documents will be stamped by Alaska registered
engineers. Refer to Appendix A for resumes of key personnel.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 24 9/3/2008
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Alaska Energy and Engineering is in communication with AEA staff on almost a daily basis on a variety
of active projects. The Authority Project Manager will be kept up to date on the WEC pilot project status
by periodic email and/or verbal status reports, in addition to written quarterly reports that will be
submitted by the Yakutat Power Grant Manager. Periodic reports will provide general information
regarding project status and any unforeseen circumstances that need to be resolved. The quarterly reports
from the Grant Manager will include specific information on project completion status vs. project
schedule; project labor reports – including hours, rates and costs; and current project expenditures relative
to budgeted project costs.
In addition to regular email updates and quarterly reports, we also propose to conduct a minimum of four
briefings:
• an initial kickoff briefing of the detail project implementation plan,
• a mid term review at the completion of the Phase II Pilot Project,
• a review at completion of final design and permitting,
• and a final briefing of all project results.
AE&E has provided design and construction support services on over 80 energy infrastructure-related
projects throughout Alaska over the past 15-years. Our long-term working relationship with the Authority
assures well-tested monitoring methods and seamless channels of communication.
3.6 Project Risk
Discuss potential problems and how you would address them.
The risk associated with this project to develop emerging WEC technology will be mitigated by
implementing a risk identification and mitigation program for the duration of the project. At this proposal
stage, the primary risks and our proposed mitigation plan is as follows:
1. Risk of increased project cost – the cost estimate to construct and operate the commercial plant is
currently at the preliminary design stage of development. There is a risk that the cost estimate
will increase during the final design and permitting stage of development. This risk will be
mitigated by the development and testing performed during the Pilot Project phase, by deferring
selection of a WEC technology provider until the final Phase IV, and by developing a concise and
specific RFP solicitation for selecting the final technology provider.
2. Risk of measurable environmental affects – As WEC technology is emerging; there is currently
uncertainty about interactions between the WEC equipment and the environment in which they
are generating electricity. The primary purpose of a pilot plant is to gain technical, environmental,
and commercial confidence in a technology.
There are additional elements of risk that arise in any rural Alaska construction project; however, the risk
associated with this project is well managed. A highly competent team of professionals has been
assembled with the skills and motivation necessary to see this project through to successful completion.
The project has been devised to proceed in distinct phases, with carefully planned go/no go decision
intervals. In the event that the pilot project is deemed unsuccessful, or Yakutat Power changes its
direction or power production needs, the latter phases of the project may be postponed or cancelled with
little additional risk.
Yakutat Power understands the potential risks from this project, but seeks to be an early adopter of WEC
technology to realize the benefit of reduced diesel fuel consumption by utilizing a readily available
renewable resource. Demonstration of increased cost certainty and minimal environmental effects of this
technology at Yakutat will benefit many remote coastal villages in the state of Alaska. Yakutat is willing
to accept these risks.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 24 9/3/2008
SECTION 4 – PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA. The level of information will vary according to phase of the project you propose to
undertake with grant funds.
• If you are applying for grant funding for more than one phase of a project provide a plan and
grant budget for completion of each phase.
• If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
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.
Yakutat is located along the rugged Alaskan Gulf Coast between Sitka and Cordova. Bounded by the Gulf
of Alaska on the South, nearly impenetrable mountains to the North, and coastal glaciers to the East and
West, Yakutat is remote. There are no roads leading into or out of Yakutat. All commerce and access must
occur via air or sea.
Wave Energy
Yakutat has an excellent wave energy climate. Archival measurements are available from a number of
NDBC and other wave measurement buoys. Preliminary analysis based on NDBC data from a prior
assessment indicates the average annual wave power density is about 34kW/m near Yakutat. The wave
power densities are higher in the winter than in the summer, due to seasonal storms, indicating a good
match between higher winter electric loads and WEC device power output.
The EPRI Reconnaissance and Feasibility study will further investigate and quantify available wave
energy data to be used for siting the pilot project.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 11 of 24 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 Yakutat Power plant generation equipment consists of four diesel generator sets (gensets) with a
total generation capacity of 4,000 kW. The generation system is a 4160-volt wye three-phase system. All
generators operate at 1200 RPM.
• Genset #1 a new CAT 3516B rated at 1322 kW
• Genset #2 is a CAT 3512B rated at 880 kW.
• Genset #3 is a CAT 3508B rated at 600 kW.
• Genset #4 is a CAT 3516 rated at 1200 kW.
The new 3516B is the primary genset. The 3512B and 3508B gensets operate on an as needed when the
electric load exceeds the 3516B capacity, and when the 3516B is down for maintenance. The 3516 is
nearing the end of its useful life and is used sparingly.
The power plant has two separate cooling systems both with heat recovery capability. The 3516B and
3512B are on one common cooling loop, and the 3508B and the 3516 are on a separate cooling loop. Both
cooling loops are 5-inch diameter welded steel piping with flanged butterfly valves, an AMONT valve,
plate heat exchanger and a single radiator.
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.
The existing resource is diesel fuel. Fuel is delivered to Yakutat via barge year round and stored in bulk
at the Delta Western tank farm. Fuel is delivered by truck to Yakutat Power, local businesses, and
residents.
Yakutat Power made a major investment in 2007 to replace an antiquated CAT 3412 with the new 3516B,
to increase the plants rated kW capacity. A heat recovery system was installed in the early 1990s and
provides heat to the Yakutat school complex nearby. Virtually all heating of the school complex is
provided by the Yakutat power plant heat recovery system.
The displacement of diesel fuel with wave energy will reduce the total fuel throughput of the Delta
Western fuel terminal. It is not anticipated that the reduction in Yakutat Power’s diesel fuel use will have
an appreciable impact on the Delta Western facility.
The proposed WEC project will displace diesel fuel but will not replace the diesel generation capacity. The
WEC system will be sized to provide sufficient energy for a base load of the community and diesel
generation will be used for load following and to meet peak loads.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Yakutat Power uses approximately 400,000 gallons/year of diesel fuel to provide 6,600,000 kWh of
electricity annually to customers in the city and borough of Yakutat. The pilot project will be sized at 500
kW and is expected to have a 30% capacity factor, resulting in an annual electric production of about
1,182,600 kWh/year – based on 90% availability. This electric production will reduce diesel fuel
consumption by approximately 85,000 gallons/year.
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4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Delivery methods
This proposed project encompasses the following four (4) phase program as formulated by the Alaska
Renewable Energy Fund (REF) Grant Application
Phase 1 - Reconnaissance A preliminary feasibility study that will ascertain
whether a feasibility study is warranted.
Phase II – Feasibility Analysis, Resource
Assessment, Conceptual Design
Detailed evaluation intended to assess technical,
economic, financial and operational viability and
to narrow focus of final design and construction.
Phase III – Final Design and Permitting Project configuration and specifications that
guide construction. Land use and resource
permits and leases required for construction.
Phase IV – Construction, Commissioning,
Operation and Reporting
Completion of project construction and beginning
of operations. It also includes follow-up O&M
reporting requirements.
The Electric Power Research Institute (EPRI) reconnaissance and feasibility study phases will be completed by
spring 2009.
In summary, this renewable energy project includes the following categories of activities:
1. Reconnaissance and feasibility studies.
2. Detailed site studies to support pilot plant design and permitting (high resolution bathymetry,
$geotechnical studies, cable route evaluation, localized wave height and velocity measurements, etc.).
3. Competitive selection of WEC technology and vendor.
4. Plant design and construction planning to include:
Number/size/location/layout of device(s)
Adaptation of technology to site conditions
Plant engineering design
Grid interconnection plans
Construction management and team organization
Construction drawings and bills of materials
Construction budget and timeline development
5. Environmental baseline study plan development and execution, performance/environmental monitoring
plan development, consultation/outreach, and completion of all federal/state/local permitting and
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construction license applications.
6. Construction and commissioning.
7. Operation and maintenance.
8. Project management and reporting.
Phase I Reconnaissance and Phase II Feasibility Study phases are nearly complete.
(This effort has been funded by Yakutat Power and is currently underway. Estimated completion is Spring 2009)
The objective of these phases is to perform a feasibility study of applying wave energy conversion (WEC)
technology for generating electricity for the city of Yakutat, Alaska.
The objective will be achieved through an approach that (1) selects a site location area at about 50-60 meter
depth outside of the Yakutat consistent with laying a submerged cable into the City of Yakutat for
interconnection to the local distribution grid, (2) characterizes and models an existing WEC device, (3) creates a
conceptual WEC plant design, evaluates performance, cost and economics. Phase I and II will consist of the
following five (5) tasks which are described in the following paragraphs:
Task I.1. Site Survey and Selection
Task I.2. Device Characterization and update of existing integrated device model
Task II.1. Preliminary Design, Performance Estimate, Cost Estimate
Task II.2. Economics Assessment
Task II.3. Grid Integration
Project Management and Reporting
Task I.1. Site Selection
EPRI shall evaluate the wave energy climate offshore Yakutat at a 50-60 meter depth. The site location for the
feasibility study will be a tradeoff between distance from shore, distance to the electrical interconnection point,
and distance from the port infrastructure. Shipping navigation lanes and other areas of conflicts of sea space will
be avoided. The selection shall be jointly selected and agreed to by EPRI and Yakutat Power. The evaluation
work shall include gathering existing data (no new measurements will be taken as part of this desk study) on the
wave energy resource from NOAA data buoys and any other sources known to Yakutat Power, the shoreline
grid electrical distribution infrastructure and the port infrastructure. Due to the high cost of submarine cabling, it
has been assumed for this application that the pilot project location will be located no further than 1-one mile
from the shore electrical interconnect. Site selection will carefully evaluate economic tradeoffs between reduced
cable costs vs. increased wave power density and available capacity factor.
Task I. 2. Device Characterization
EPRI shall use its existing integrated model (a generic Pelamis wavepower conversion device), which was
established in 2005 and update it with more recent cost and performance data, which has become available since
then. The EPRI integrated modeling approach allows to scale emerging technologies to the target site and
provide a solid understanding of the technical constraints, performance and cost of a plant installed at the site of
interest. Because of the remote nature of the site, a specific focus will be given to operational considerations at
the site.
The following illustration shows an example of the elements of such an integrated model.
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Task II.1. Preliminary Design, Performance and Cost Estimate
EPRI shall perform a preliminary design, use the generic power curve for a linear attenuator WEC to determine
annual electricity produced and perform an independent estimate of the performance of plant installed and
operation and maintenance cost evaluation. EPRI will use the approach depicted in the following figure and the
list of the following activities:
• Analyze available hourly/daily/monthly/yearly wave power.
• Analyze the efficiency of the wave energy conversion capture device as a function of wave
significant height and energy period and determine hourly/daily/monthly/yearly captured power.
• Analyze the efficiency of the conversion power chain and determine hourly/daily/monthly/yearly
power output of the wave power device.
• Estimate the availability of the system and the actual estimated hourly/daily/monthly/yearly power
output.
• Estimate the capital cost construction, equipment procurement, installation, check out (detailed
design and permitting are excluded as we are unable to estimate these costs).
• Estimate the annual operating and maintenance cost, with a unique focus on the operational
considerations for such a remote site.
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EPRI will size the wave pilot power plant for Yakutat to provide the greatest economic benefit, taking into
account capital and construction costs. The performance of the plant in terms of annual electricity produced
(AEP) will be calculated. The plant capital cost and the plant yearly operation and maintenance (O&M) cost
will be estimated.
Task II.2. Economic Assessment
EPRI will calculate the simple payback period (SPP) for the wave power plant. The SPP is the number of
months (or years) it takes before the accumulated value of the revenues from the sale of electricity equals the
capital cost and the yearly operating and maintenance cost of the plant.
The value of electricity revenues is the avoided cost. The avoided cost of electricity has been specified by
Yakutat power as 35 cents/kWh in 2008 dollars. The O&M cost of a diesel genset is 2-5 cents/kwh, but we will
conservatively assume initially that maintaining diesel genset spinning reserves will provide no O&M savings.
The following assumptions about escalation of costs will be made:
Escalation of O&M cost = 3% per year
Escalation of Revenue Prices (i.e., the price of diesel fuel) = 8% per year
The approach for determining the simple payback period given the parameters described above is
Site
Selection
Available
Wave Power
Captured
Wave Power
Maximum
Annual Output
Actual Annual
Output
Payback
Period
El t i it
Device
Selection
Wave Power Resource
Capture Efficiency
Power Chain
Efficiency
Availability
O&M Costs
Capital Costs
Avoided
Costs
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\
Task II.3. Storage and Grid Integration
The storage/grid integration issue is that Yakutat has a baseload electricity demand of 500 kW base and a peak
electricity demand of 1.4 MW. A renewable power plant, supplying electricity to the Yakutat grid will likely be
very limited in capacity because the electrical load will always need to use all the electricity of the renewable
power system, resulting in a low threshold of renewable penetration into the grid network. EPRI shall address
this issue by evaluating the use of energy storage and electric resistance heat to increase the percentage of
electricity that can be supplied by wave energy in this isolated electrical grid network. The approach will take
detailed load data and evaluate how the electrical load of the community and the electrical generation from the
wave power conversion plant can be integrated to allow for a substantial amount of electricity to be provided by
wave energy. Different energy storage options will be evaluated for their applicability to this particular
application and sized to match supply and demand.
Project Management and Reporting
EPRI reporting will consist of 1) monthly status and progress reports and 2) a final summary technical report
that will summarize the site and device characterizations and the preliminary design, performance analysis, cost
estimates and the economics assessments.
The monthly progress reports will describe progress during that reporting period; difficulties encountered
during the reporting period, plans for the next reporting period including plans to overcome any difficulties and
will include a statement from the project manager setting forth the cost of the work during the reporting period.
Monthly reports will be sent in an email format.
The final report will include a description of all methods, analysis and results from the project. A draft final
report shall be submitted for Yakutat Power’s review prior to publication of the final report on the EPRI public
website (unless Yakutat desires to keep this report confidential to the company).
Phase III – Final Design and Permitting Requirements
Building on information gathered in Phase I and II, Yakutat Power shall establish the project configuration and
specifications that will be used to guide construction, refine project cost estimates, finalize business plans, and
obtain land use and resource authorizations required for construction. Work shall address the information and
tasks below.
Task III.1. Selection of WEC Technology Developer(s)
Yakutat Power shall prepare a requirements specification and solicitation package for a WEC system (including
Capital Cost
O&M Cost
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the moorings and optional subsea cable and grid interconnection equipment). Yakutat Power will provide the
bidders a choice of two interconnection options: 1) to a Yakutat Power socket installed on the sea bed or 2) at
the distribution substation. This specification and solicitation will be sent to all known WEC technology
providers (e.g., Ocean Power Technology, Finavera, OceanLinx, Pelamis, etc). Proposals will be evaluated and
a WEC technology develop partner(s) selected.
Task III.2. Site Measurements
The objective of this task is the successful completion of all site measurements required for developing the pilot
plant detailed design and construction plan. This will include the following elements:
Yakutat Power will work with the selected WEC technology developer(s) to develop the appropriate
scope of work for site studies to support WEC plant and device foundation design and deployment
methods. These studies may include detailed bathymetrical measurements, geotechnical measurements,
acoustic Doppler current profiler (ADCP), cable routing and shoreline evaluation.
Yakutat Power will prepare the necessary specifications and solicitations to select team members to
conduct the work described above.
Yakutat Power will evaluate proposals in response to solicitations and select those contractors best
suited to support the project requirements.
Selected contractors will conduct planned studies in accordance with developed specifications and
scopes of work.
Yakutat Power will work with the selected WEC technology provider to establish site measurement
requirements. Yakutat Power will review all currently available marine geological and bathymetric survey data
for the plant site and will develop a plan to collect additional necessary data. It is anticipated that measurement
techniques will include the following: surface grab samples, multi-beam side scan sonar imaging, underwater
photography, and ADCP and current modelling. Some core-sampling may be necessary as well as some sub-
bottom profiling to identify and measure various sediment layers that exist below the sediment/water interface.
The choice of geotechnical survey method depends largely on the foundation type for the device to be
installed. Wherever possible, acoustic technology will be leveraged to reduce overall cost and map out a
broad area. Some core-sampling may be necessary, however, to validate seabed composition data and to get
detailed, site-specific properties before actual installation.
Detailed wave measurements will be conducted in the final location(s) chosen for WEC deployment. These
measurements will inform device and plant design/layout, and also be used to further refine the model
already begun in Phase I and II. This model will be used to predict and evaluate the performance of WEC
devices, as well as to inform the Task 3 environmental studies and permitting activities.
The final product of this task is the completion of all necessary site measurements required for completing the
pilot plant detailed design and construction planning.
Task III.3. Environmental Studies and Permitting
The objective of this task is to provide for all necessary environmental study plans and outreach/consultation to
obtain required permits to support the pilot plant. This will include the following elements:
Development of an appropriate baseline environmental study plan
Regulatory agency and stakeholder outreach and consultation
Development of the solicitation and specifications to bid execution of study plan elements
Execution of all required baseline study plans
Development of the plant operations environmental monitoring plan
Preparation and submittal of all required permit applications
As part of this project, Yakutat Power will collaborate closely with both the state and local marine working
groups to develop an appropriate environmental baseline study plan which fully supports all permitting
requirements. Yakutat Power will also prepare an appropriate environmental monitoring plan ready for
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implementation coincident with the beginning of site construction preparation in the next phase of the project.
An environmental framework will be developed to define the information needed for a baseline assessment of
conditions, as well as the requirements for an optimum long term monitoring program.
Execution of the baseline environmental study plan elements will likely require multiple subcontractors with
specialized marine biology and habitat expertise. Yakutat Power will work with the WEC technology developer
and the marine engineer contractor to develop specifications and competitive RFPs to achieve the baseline study
plan goals.
Potential project impacts and associated studies are shown in the table below:
Yakutat Power will also execute a comprehensive communications plan. This effort will reach out to a diverse
array of stakeholders including the general public, Alaska Natives, environmental groups, recreationalists,
state/federal/local agencies, and other key stakeholders. Yakutat Power shall conduct outreach workshops/
meetings to inform key stakeholders of wave energy conversion and feasibility studies being conducted, and to
solicit the feedback and concerns of these stakeholders.
Lastly, Yakutat Power will prepare and submit all necessary federal, state, and regional permit applications
necessary for construction of the project.
The final product of this task is the completion and execution of the environmental baseline study plan,
development of the environmental monitoring study plan, and the preparation and submission of all necessary
permit applications.
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Task III.4. Detailed Design
The objective of this task is to complete all engineering design work required to both build the pilot
demonstration plant and to describe the system sufficiently to support all regulatory/permitting requirements.
This will include the following elements:
Yakutat Power will work with the selected WEC technology developer(s) to scope the size and scale of
the plant given expected financial resources, project objectives, and stakeholder feedback.
Yakutat Power and the WEC technology developer will work with the selected marine contractor to
develop specific plans for:
• Plant location and layout
• Mounting options will be identified and evaluated
• Grid interconnection plans
• Construction management and team organization
• Construction drawings and bills of materials
• Construction budget and timeline development
• Plant deployment
Yakutat Power will subcontract to the WEC technology developer to perform device optimization design.
Devices that are being considered for implementation will need to be optimized for the specific wave
conditions at the site. The resulting data will then feed directly into subsequent design and permitting
processes. This data can also be used in further technology evaluation programs and will provide critical
data for decision-making tools. It will also facilitate the ongoing efforts to reduce manufacturing and
operations costs.
Yakutat Power will perform grid interconnection studies (i.e., from cable landing point to the substation) to
identify the ideal overland cable route. In addition, distributed generation interconnection standards shall be
reviewed for applicability. Yakutat Power will coordinate high-level generator interconnection and facilities
studies to identify interconnection costs and schedules.
The final product of this task is an engineering package of sufficient detail to enable construction of the WEC
pilot plant including the bill of materials, fabrication drawings, equipment procurement specifications, assembly
drawings, and deployment plan/schedule.
Phase IV – Construction and Operations
The purpose of the construction phase is to construct and commission the project, begin operations, and provide
follow-up reports on operations and maintenance for a specific period of time to document the program’s
impact on the community. Grantees are expected to cover all costs of operations and maintenance in compliance
with their operational and business plans developed in Phase III. The construction phase will address the
information and tasks below.
Task IV.1. Construction
The objective of this task is to complete all construction work and successfully perform check-out testing to
demonstrate that the plant is ready to be turned over to the operational personnel.
The necessary work includes, but is not limited to, the following items:
• Site preparation
• Procurement of equipment (device, cables, grid interconnect equipment, etc) and materials (cement,
reinforcement bars, etc) and shipment to the job site
• Field construction and installation, startup and checkout
• Construction management
• Operation and evaluation implementation planning
• Refine cost estimate for subsequent phases
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Task IV.2. Operations
The objective of this task is to gain a minimum of 18 months of operational experience and evaluation results of
the plant when connected to the Yakutat Power grid with a diesel providing load following. Operational
experience will encompass determination of items such as kWh produced, capacity factor, reliability,
maintainability and availability (RM&A and O&M costs. Evaluation results will include assessments of plant
efficiency as a function of plant rating, turbine efficiency as a function of wave amplitude and frequency and
O&M costs as a function of O&M processes. The electricity shall displace the use of diesel fuel.
Operations also includes the environmental monitoring program that will be defined in collaboration with the
regulatory agencies and the stakeholders in Phase III.
Task IV.3. Maintenance
The objective of this task is to perform preventive maintenance per the manufacturer instructions, and corrective
maintenance as needed.
Task IV.3. Independent Performance Verification
The objective of this task is to perform a verification of the WEC system performance (instantaneous power,
energy delivered, reliability, availability, etc). This task will be performed by an independent contractor. A test
protocol and plan will be prepared specifying the measurement instruments required, the test plans, and the type
of results to be gathered. Prior to testing, a test procedure will be developed. The independent contractor shall
prepare a report of all findings
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.
Due to the high cost of submarine cabling, we expect the feasibility study will result in a plant well within the 3
mile limit such that the sea bed belongs to the State of Alaska. Appropriate rights to the plant area will be
secured from state and federal agencies prior to implementation of the pilot project.
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
If appropriate following the feasibility study, an application for a FERC hydrokinetic license will be filed by the
City and Borough of Yakutat in order to hold first exclusive right to develop the resource throughout the Phase
II and IV period. FERC has been notified of this possibility and in the meantime, has agreed to notify Yakutat
Power if any other developer/investor applies for such a preliminary permit.
Permits required to construct and operate the WEC plant will be obtained during the proposed Phase III of the
project
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will be
addressed:
• Threatened or Endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
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• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
Given proper care in siting, design, construction and operations, we believe that WEC power will have a
minimal environmental impact and be one of the more benign ways to generate electricity.
AE&E has provided NEPA project level environmental permitting on over 40 energy related projects
throughout Alaska during the past 10 years. Our understanding of the NEPA process and potential
environmental impacts of our projects allows us to mitigate possible negative affects early in the design stage.
The environmental and sea bed issues will be addressed as part of the permitting process.
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
The cost information provided in this application is based on an assumed 500 kW WEC pilot project located
within one mile of the shoreside electrical interconnect. This data will be updated in Spring 2009 when EPRI
has completed the Phase I&II reconnaissance and feasibility study for Yakutat.
Total anticipated project cost: $6,944,000
Design / Permitting / Project Management: $1,150,000
500 kW WEC (installed cost) $4,025,000
Submarine Cable (1-mile, maximum): $1,725,000
Requested grant funding: $6,900,000
Applicant matching funds –
loans, capital contributions, in-kind: $ 44,000
Identification of other funding sources: Operating Budget
Projected capital cost of renewable energy system: $6,944,000
Projected development cost of renewable energy system: to be determined
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by the
applicant.
• Total anticipated project cost for this phase
• Requested grant funding
The O&M costs for a remote WEC project are as yet unknown because currently there are no commercial scale
WEC projects in operation. The goal of this grant proposal is to implement the pilot project to ferret out real
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costs based on remote Alaska application. Although the specific costs associated with operating and
maintaining a WEC plant are unknown, the AE&E team has continually demonstrated its ability to implement
innovative technologies throughout rural Alaska that are highly cost effective and that result in low O&M costs.
A significant component of the pilot project is to confirm that the benefits of this renewable resource are not
discounted due to poor reliability and high operational costs.
Real O&M costs obtained during the pilot project will be incorporated into the business plan at Phase III and
will weigh heavily in the decision whether or not to expand the pilot project to full commercialization.
Due to the high costs of R&D in rural Alaska, all activities related to it being a pilot plant including operation,
testing, and evaluation will be funded through the Renewable Energy grant.
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
Yakutat Power is the electric utility and project operator; therefore, there will be no power purchase agreement.
Due to the infancy of this technology and many unknowns yet to be determined during the pilot project, the cost
of power from WEC technology is unknown.
Yakutat is a remote isolated grid. Yakutat Power is both the electric utility and project operator; therefore, no
power purchase agreement is required. The energy generated by the WEC pilot demonstration plant will
displace diesel fuel. The cost savings to the citizens of Yakutat is the cost of the diesel fuel displaced less the
ongoing operation and maintenance of the WEC plant. The bus bar cost for electricity from this project will be
determined during the pilot project investigation and compared to the current diesel fuel bus bar cost of
$.385/kWh.
A simple payback period calculation will be made at the completion of Phase II Feasibility Study
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or sources your
numbers are based on here.
The cost worksheet is submitted as Appendix B.
4.4.5 Business Plan
Discuss your plan for operating the completed project so that it will be sustainable. Include at a
minimum proposed business structure(s) and concepts that may be considered.
Yakutat Power will be owner of the WEC project. Yakutat Power is a sustainable electric utility that is
certificated by the Regulatory Commission of Alaska. Yakutat Power will use its utility staff and assets to
maintain, operate, and sustain the WEC project.
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4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
The EPRI Phase I&II feasibility study will perform a simple payback period calculation for the pilot scale
plant for the remote Yakutat grid scenario at a rated capacity of about 500 kW
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
The Yakutat pilot project will advance the technical design, permitting, and environmental knowledge of
WEC for use by other coastal Alaskan communities considering this form of renewable energy. The
project will also boost the expertise of the industry and potentially reduce manufacturing and operations
costs.
Economic benefits
The estimated annual fuel displacement from a 500kW pilot scale project is 85,000 gallons/year. This
equates to approximately 1,700,000 gallons over a twenty-year anticipated useful life of the project. The
anticipated cost savings to the electric utility based on reduced diesel fuel use is $8,007,000 over a 20-
year period based on the current fuel cost of $4.71/gallon.
Non-economic benefits
There are no known tax credits or other subsidies for a project of this type.
Non-economic benefits to Alaskans include the reduction in diesel exhaust emissions realized by using
renewable wave energy, short term job creation during testing and construction, as well as improved long
term viability of Yakutat Power.
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
Provide a narrative summary regarding funding sources and your financial commitment to the project.
Total estimated project cost is $6,944,000. The grant request is for $6,900,000. Yakutat Power will
provide a cash match in the amount of $44,000 for the EPRI Phase I&II Reconnaissance Level and
Feasibility study. Refer to Grant Budget worksheet in Appendix C
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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 form 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 Scott Newlun
Signature
Title General Manager
Date November 10, 2008
APPENDIX A
PROJECT RESUMES
APPENDIX B
COST WORKSHEET
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1
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. 34 kW / meter +/- wave power density
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation
a) Basic configuration (if system is part of the railbelt grid, leave this section blank)
i. Number of generators/boilers/other 4 Gensets
ii. Rated capacity of generators/boilers/other 4000 kW
iii. Generator/boilers/other type Diesel
iv. Age of generators/boilers/other 1990’s to 2007
v. Efficiency of generators/boilers/other 14.6 kWh / Gallon
b) Annual O&M cost
i. Annual O&M cost for labor $655,148
ii. Annual O&M cost for non-labor $570,459
c) Annual electricity production and fuel usage (fill in as applicable)
i. Electricity [kWh] 6,600,000 kWh
ii. Fuel usage (if system is part of the Railbelt grid, leave this section blank
Diesel [gal] 400,000 gallons
Other -
iii. Peak Load 1328 kW
iv. Average Load 760 kW
v. Minimum Load 550 kW +/-
vi. Efficiency 14.6 kWh / Gallon
vii. Future trends Up to 85,000 Gallons / Year Reduction in Diesel Fuel Use
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] -
ii. Electricity [kWh] -
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association,
Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric
Association and Anchorage Municipal Light and Power.
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2
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 500 kW peak @ 30% capacity factor
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu] -
ii. Electricity [kWh] 1,182,600 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 $6,994,000
b) Development cost To be determined
c) Annual O&M cost of new system To be determined
d) Annual fuel cost -
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 85,000 Gallons
ii. Heat -
iii. Transportation -
b) Price of displaced fuel $4.71 / Gallon (Weighted Average)
c) Other economic benefits -
d) Amount of Alaska public benefits Test Bed Facility for Statewide Applicability
6. Power Purchase/Sales Price
a) Price for power purchase/sale -
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 To be determined
Payback To be determined
APPENDIX C
GRANT BUDGET
Alaska Energy Authority ‐ Renewable Energy FundMilestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1 ) Phase 1 ‐ 2 Reconnaissance & Feasibility Study$44,000 $44,0002) Phase 3 Final Design & Permitting $632,500 $632,5003) Phase 4 Construction, Commissioning, Operation & Reporting $6,267,500 $6,267,500$0 $6,900,000 $44,000 $0 $0 $6,944,000Milestone # or Task #BUDGET CATAGORIES:1 2 3 TOTALSDirect Labor and Benefits$0Travel, Meals, or Per Diem$0Equipment$0Supplies$0Contractual Services $44,000 $632,500 $517,500 $1,194,000Construction Services$5,750,000 $5,750,000Other Direct Costs$0TOTAL DIRECT CHARGES $44,000 $632,500 $6,267,500 $6,944,000RFA AEA09-004 Budget Form
ALASKA ENERGY ENGINEERING YAKUTAT WEC
COST ESTIMATE SUMMARY
NOVEMBER 10 , 2008
PHASE I & II. RECONNAISSANCE & FEASIBILITY STUDY
EPRI Yakutat WEC Feasibility Study Report (est'd 4/09) $44,000
PHASE I & II TOTAL $44,000
PHASE III. FINAL DESIGN & PERMITTING
Phase III Engineering, Permitting and Project Management $400,000
EPRI Phase III Consulting $150,000
Phase III Contingency @ 15% $82,500
PHASE III TOTAL $632,500
Phase IV Engineering and Project Management $200,000
EPRI Phase IV Consulting & Long Term Monitoring $250,000
Installation of Pilot WEC Device (500kW @ $7000/kW) $3,500,000
Submarine Cable Installation (1-mile @ $1.5 million/mile) $1,500,000
Phase IV Contingency @ 15%$817,500
PHASE IV TOTAL $6,267,500
PROJECT TOTAL $6,944,000
Less Local Match Funds ($44,000)
TOTAL GRANT REQUEST $6,900,000
PHASE IV. CONSTRUCTION, COMMISSIONING, OPERATION & REPORTING
B-1
APPENDIX D
ELECTRONIC COPY OF APPLICATION
(REFER TO ENCLOSED DISC)
APPENDIX E
RESOLUTION & SUPPORTING LETTERS
APPENDIX F
TECHNICAL DATA
EPRI PRELIMINARY ASSESSEMENTWave Data of NDBC Buoy near YakutatStation ID Station Name Longitude Latitude Water DepData YearsDirectionaAverage Power Density46083 Fairweather Gro 58.24N 137.99W 137m 2001-2006 No 34.5 kW/mJan 60.62 32.36 47.29Jan 46.75673Feb 35.43 79.22 66.16Feb 60.27Mar 34.03 56.40 32.00Mar 40.81Apr 25.77 29.98 29.77Apr 28.51May 13.99 11.99 19.76May 15.24Jun 9.07 9.09 8.01 10.24Jun 9.10Jul 8.41 7.66 5.90 7.05 7.21 8.30Jul 7.42Aug 12.14 13.06 12.98 6.13 10.56 11.47Aug 11.05Sep 32.05 16.62 23.42 25.03 27.71 23.53Sep 24.73Oct 49.37 38.23 39.33 27.49 50.71 37.85Oct 40.50Nov 53.32 60.63 45.46 68.70Nov 57.03Dec 73.84 50.70 97.35 68.22Dec 72.53Year Avg33.61Ann Avg 34.50High-Level Budgetary Numbers for Subsea Cable ($2007) … may need to be escalated to installation yearRated Capacity: 7.8MVAVoltage Level: 12kVOuter protection: double ArmorLength: 3000mDirectional Drilling for Cable Landing: YesSubsea Cable buried into soft sedimentsSubsea Cable Cost $972,000Directional Drilling $240,000 (Lower 48 cost estimate for 500m directional drilling with 200mm diameter steel conduit through clay… may be very different in AK)Subsea Junction box $200,000 (Budgetary estimate: assumes single wave power unit installed, no step up transformer of multiple unit splicing capabilities)Subsea Cable Installation $1,300,000 (assumes 3km trenched in soft sediments)Total Cost$2,712,000Device CostEPRI Study 2004: $7,000 / kW => Suggest to go for at least 1MW, because single unit size may be more then 500kW. => Budget estimate of $7M