HomeMy WebLinkAbout2 A Banner Wind Project Executive Summary Oct 6 08Harnessing the Wind in Nome Alaska 1
Banner Wind Project
Nome Alaska
Banner Wind LLC
A joint effort between
Bering Straits Native Corporation
and
Sitnasuak Native Corporation
Harnessing the Wind in Nome Alaska 2
1. Executive Summary
Title of Project:Banner Wind Project –Nome Alaska
a. Contacts:Jerald Brown
Vice President, Bering Straits Native Corporation (BSNC)
PO Box 1008
Nome, Alaska 99762
Phone: 907-443-4307 Fax: 907-443-2985
email jbrown@beringstraits.com
Neal Foster
Vice President, Sitnasuak Native Corporation (SNC)
PO Box 905
Nome, Alaska 99762
Phone: 907-443-2632 Fax: 907-443-3063
email nfoster@snc.org
Brian Jackson, P.E.
Principal, Western Community Energy,LLC (WCE)
121 NW Kearney Ave.
Bend, OR 97701
Cell 208-859-1882 Fax 866-903-9951
Email bjackson@westerncommunityenergy.com
b. Size of Project:1.17 MW maximum, 900 kW Nominal
c. Description of Project:
This project provides for the installation of eighteen Entegrity EW-50 wind generators in Nome, Alaska. This
is the first commercial wind farm to be installed in the city of Nome which currently gets 100% of its power
from diesel generation. Nome is a rural community with approximately 3500 residents and is a hub community
which supports many villages in the region.
The installation of this wind power project will provide a rated 900 kW of power with a maximum output of
1,170 kW to the Nome Joint Utility electric grid over a 20 year extendable project timeframe. Instead of selling
the energy at the avoided cost rate allowed by law,the owners of the project have committed to selling the
energy at a fixed or floating price below the avoided cost calculation. The revenues from the wind farm will be
shared equally between Sitnasuak Native Corporation (SNC)and Bering Straits Native Corporation (BSNC).
BSNC has further agreed to dedicate 50% of its profits from this project to development of renewable energy
projects in the villages around Nome.Selling the energy at a rate below avoided costs will provide savings to
the utility to help to lower the energy costs in the Nome area and provide some energy produced locally that is
not dependent on imported oil.If oil prices continue to rise dramatically as they have been, that savings could
be significantly higher than currently projected.Providing for renewable energy projects in villages should help
reduce the dependency on oil in those locations where oil must be flown or barged in and ultimately help reduce
Harnessing the Wind in Nome Alaska 3
energy rates in those locations. The profits from the project which are ultimately distributed to the shareholders
of BSNC and SNC will help provide income to an area where many have very limited incomes.
Overall, this project provides a cash and tax credit based revenue stream,provides jobs and keeps money
working in the community while increasing overall power generation reliability by producing it locally. This is
an excellent demonstration of a commercial opportunity that needs to be eagerly developed.
d. Supports State Rural Development Initiatives
This project ties in directly and supports several key issues with the State Goals. Furthermore, the project is
very timely in that it lines up with the new Administrative Order 238 signed by Governor Palin in Alaska on
September 14, 2007. Besides expanding renewable energy resource programs, the order intends to “promote
aggressive development of renewable energy sources such as geothermal, wind, hydroelectric, tidal, and in-
stream energy.”Furthermore, the governor “is signing a letter that adds Alaska as an observer to the Western
Climate Initiative.”Alaska can demonstrate that wind power generation helps achieve the objectives of the
initiative.
Alaska Energy Authority Stated Mission: Reduce the cost of energy in Alaska.Alaska
Energy Authority (AEA) projects and programs support its mission by 1) providing for the operation and
maintenance of existing Authority-owned projects with maximum utility control, 2) assisting in the development
of safe, reliable, and efficient energy systems throughout Alaska, which are sustainable and environmentally
sound, 3) reducing the cost of electricity for residential customers and community facilities in rural Alaska, and
4) responding quickly and effectively to electrical emergencies.
This wind farm will sell energy below the actual avoided cost and clearly in its own way reduce energy costs
and provide for further development while keeping energy dollars in the community by utilizing a local
renewable wind resource.
e. Project Timeframe
Individuals responsible for overseeing the management of the project are primarily Jerald Brown (BSNC), Neal
Foster (SNC),Brian D. Jackson, P.E. (WCE)and Jim St George (STG).
Timeline Goals & Tasks
MAY 2008 Formalize Equipment Orders BSNC / SNC
SEPTEMBER 2008 Secure Anchors and Foundations
Electrical and Site Work STG
SEPTEMBER 2008 Underground lines and roads NJUS / STG
OCTOBER 2008 Wind Turbine Installation WCE / STG
NOVEMBER 2008 Final Commissioning WCE / Entegrity