HomeMy WebLinkAboutKwig Installation of 5 WindTurbines Puvurnaq Power Company App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 42 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 42 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Kwig Power Co.
Type of Entity:
Elecric Utility
Mailing Address
c/o Native Village of Kwigillingok
P.O. Box 50
Kwigillingok, AK 99622
Physical Address
Kwigillingok
Telephone
907 588 8626
Fax
907 588 8429
Email
kwkadmin@starband.net
1.1 APPLICANT POINT OF CONTACT
Name
William Igkurak
Title
Utility Director
Mailing Address
c/o Native Village of Kwigillingok
P.O. Box 50
Kwigillingok, AK 99622
Telephone
907 588 8626
Fax
907 588 8429
Email
wmigkurak@att.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
or
No
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
or
No
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
or
No
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 42 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.
This is a community high penetration wind-diesel smart grid construction
project.
2.2 PROJECT DESCRIPTION
Provide a one paragraph description of your project. At a minimum include the project location,
communities to be served, and who will be involved in the grant project.
The work plan consists of the installation, control and integration of five
major components:
1. Five Wind Matic 17-S Wind turbines on 80 foot lattice towers,
2. Diesel Station upgrade
3. Energy recovery boiler at the washeteria for frequency control
4. Smart metering system
5. 20 Thermal Stoves in residents of village elders
The wind turbines will be installed 300 foot apart on pile foundations, and connected via
individual three phase transformers to the existing power lines with buried armored cable.
Connections between the turbines will be via buried armored cable. A fiber optic cable will be
buried along side the power cable to provide a communications link with the powerplant. The
US FWS has expressed and interest in keeping overhead transmission to a minimum, to reduce
any potential hazards to passing migrating birds.
The energy from the turbines will be integrated into the diesel power systems. Three methods
will be used:
1. power electronics connected with a heat recovery boiler for frequency control
2. adaptations to diesel generators to enable low load operation
3. an integrated control system that operates both the wind turbine and diesel generators in a
coordinated manner with ceramic thermal storage located in the residents of village elders.
Two existing gensets will be modified to operate at low loads and low fuel consumption for
extended periods of time. The main features of the conversion will consist of the addition of a
boiler and boiler grid interface to provide reverse power protection to absorb wind gusts when
operating at near zero kW, and to increase operating temperatures to eliminate cylinder glazing
and wet stacking.
The Smart Grid consists of a network of advanced meters, which receive information about the
availability of green, or excess wind energy and make this energy available to the community at
reduced rates, and enable devices to capture this energy. The meters communicate wirelessly,
provide a user interface for customers, and account for energy sold at different rates. The
meters can be programmed for prepayment. The Smart Grid enables 25 thermal storage
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 42 9/3/2008
devices that are located in the homes of 25 village elders, and these stoves capture and store
excess wind energy for later use. The stoves will be installed in 1/3 of the homes in the
community. The Smart Metering and the stoves create a system that allows wind energy to be
sold as heat for ½ the cost of diesel heating.
This is picture of the wind site in Kwigillingok.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 42 9/3/2008
2.3 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature
and source of other contributions to the project. Include a project cost summary that includes
an estimated total cost through construction.
This a request for $1.6 million from the Renewable Energy Fund. These funds will be matched by $1.6
million in cash from the community.
Phase #1 – Engineering
PHASE #1 TOTAL: $ 400,000
Phase #1 – Construction
PHASE TOTAL $ 2, 539,759
Phase #2
Thermal Storage and Smart
Metering
$ 305,074
Phase #1 – Reporting & Evaluation
Village Energy Information System
PHASE TOTAL: $ 40,000
PROJECT GRAND TOTAL: $ 3,284,833
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 42 9/3/2008
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.
The project offers three direct benefits to the community
1. Fuel savings to the utility of $160000 annual
2. Increased revenues to the utility of thermal electric sales $40,000 annually
3. Reduced heating costs to 20 homes, of $40,000 annually
2.5 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project’s total costs and benefits below.
2.5.1 Total Project Cost
(Including estimates through construction.)
$3,200,000
2.5.2 Grant Funds Requested in this application. $1,600,000
2.5.3 Other Funds to be provided (Project match) $1,600,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $3,200,000
2.5.5 Estimated Benefit (Savings) $ 3,000,000
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.)
$ 250,000 annual
minimum benefit to the
community
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 42 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.
The Project Manager will be William Igkurak of Kwig power company. He will be, assisted by Dennis
Meiners of Intelligent Energy Systtems, LLC, he will be coordinating subcontractors and the overall
system designs.
Mr. Igkurak is the Chief Administrative Officer of the village owned electric utility, and president
of the local Qemertalek Village Corporation, and board member of the Calista regional
corporation. He manages the power system operations.
Project supervision: Dennis Meiners of Intelligent Energy Systems,
The project engineer is Dale Letourneau, P.E.
Doug Riffle: metering, monitoring and web based support tools, systems engineer with
Intelligent Energy Systems.
Power system Control and integration; Gavin Bates of Powercorp, and through the Anchorage
office. The wind turbines and power system have advanced remote diagnostics capability.
These components can be monitored and controlled via phone modem or Ethernet connection
without the need for special software, through the use of Anyview visualization software.
Wind Turbine training and support is by Roger Tuck of Tuck Enterprises, who is an experienced
wind turbine operator, electrician and maintenance instructor.
Construction of the system will be managed by STG Inc.
There are several opportunities to sell the environmental benefits of this project as “Green
Tags.” An offer has been made by NativeEnergy to buy the green tags for $10,000 per turbine
once the project is constructed. The revenues from these sales will go into an escrow account
for operations and maintenance.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 42 9/3/2008
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
The construction schedule for this project is summarized in the tables below. Construction is
scheduled to begin at freeze up. Existing funds are adequate to install 3 17-S Windmatic Wind
turbines, the powerline. Additional funds are required to properly incorporate the powerplant
system, add two more 17-S turbines and complete the metering and thermal stove upgrades.
If funding is approved turbines and foundation materials can be purchased and delivered to
each site for installation this winter. Control and integration work will be completed between
March and September 2009. This project is being coordinated with other work in the community
for which a crane and other heavy equipment has been mobilized, and in conjunction with the
Chaninik wind group projects in Kong, Kwig, Kipnuk and Tuntatuliak.
Phase #1 - Engineering and Permitting
Site Selection Completed
Site Control and Permitting Underway, anticipated completion Dec 1,
2008
Surveying of wind turbines To be completed one month after
installation, April 2009
Geotechnical Investigation Completed in Kong, Kipnuk, and
Tuntatuliak. Ice lens locations in Kwig
coincident with turbine installation,
February 2009.
Foundation Design and Civil Work Completed
As Built System Drawings Underway completed November 2008
Revised Electrical Drawings Under way completed November 2008
Mechanical Drawing Underway completed December 2008
Integration and Communications Underway, completed December 2008
Phase #2 – Construction
Materials Delivery, turbines, piling, power
cables, poles, cross arms, etc.
October 2008, Kong,
Kwig, Kipnuk. In
Tuntatuliak, July 2009
Additional Wind Turbine ( 10 weeks
delivery to Anchorage)
January /February to
Kong 2009
Install Powerline to Site and Install Wind
Turbines, includes driving pile and setting
turbines, and transformers
February through
March 2009
Communications to wind site March 2009
Control Systems Upgrades February through May
Dynamic Grid Interface and boiler April through June
Metering system, Procure and install January through July
2009
Thermal stoves, delivered and installed June thru August 2009
Barge charter to Kongiganak October 15, 2006
Unload and winterize equipment November 1, 2006
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 42 9/3/2008
Phase #2B - Construction Support
Operator Training, wind turbines Underway, started
August 2008
Wind System Start up Kong March 1- March 30,
2009
System commissioning and training Kong April 1- April 30, 2009
Metering System implemented Kong May – June 2009
Thermal Stoves Kong July – September 2009
Wind System Start up Kwig May 1- May 15th, 2009
Metering System - Kwig June –July 2009
Thermal Stoves Kwig August- September
2009
System Start up Kipnuk June 1 thru July 1 2009
Metering System –Kipnuk July –August 2009
Thermal Stoves- Kipnuk September – October
2009
System Start up Tuntutuliak August 1 through
Metering System –Tuntutuliak June –July 2009
Thermal Stoves- Tuntutuliak September – October
2009
Daily Monitoring begins July 2009
Phase #3 Evaluation
Evaluation Begins, base line
documentation
Underway, began
August 2008
First Quarterly report December 15, 2008
Second quarterly report April 20, 2009
Third quarterly report July 20, 2009.
Fourth quarterly report November 20, 2009
Project Close out March 20, 2010
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Key milestones include:
Making winter construction schedule 2009.
Completing installation of turbines, by April 2009
Installation of control and integration upgrades, June 2009
Installation of Smart Grid System, August 2009
These will be met with specific 6 specific milestones
1. Design: Complete December 2008
2. Turbine supply and delivery October 2008 and February 2009
3. Turbine and powerline installation: March/April 2009
4. Powersystem integration and smart grid April through August 2009
5. Commissioning and support May 2009 through May 2010
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 42 9/3/2008
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.
Kwig Power company is a locally owned electric utility, owned by the Native Village of
Kwigillingok. has a 5 member Board of Directors to manage and operate the public electric
utility. The KPC Board of Directors hires a General Manager to act as the chief administrative
officer of the utility. The utility is operated from a fund separate from the general fund of the
village.
Proposed Suppliers and Subcontractors, a description of their qualifications and experience of
the staff and firms.
Intelligent Energy Systems:
Dennis Meiners, project coordination
IES is supported by the following engineers and technicians
Albert Sakata P.E Electrical Engineer
Dale LeTourneau, Electrical Engineer
Doug Riffle, Industrial Controls, Communications and Metering Applications Engineer
Mari Shirazi, P.E. Onsite project engineer
Powercorp Alaska: Controls and integration, engineering, supply, install, commission and
support
Gavin Bates, system engineer, Russell Cahill, electrical technician and Erin MacLarnon, office
manager
Construction:
STG Inc: Contact Dave Meyers, P.E, and Jim St. George
Powercorp Operational Capability
CLIENT PROJECT TECHNICAL DETAILS DATE VALUE
AEA Golovin Powercorp Control System 2004 $190K
Australian
Antarctic
Division
Mawson Wind Diesel
Project
3 X Enercon E40/600kW wind
turbine generators and
Powercorp Boiler Grid Interface,
Powercorp Control System
2003 $2.3m
Cape Flattery
Mine
Cape Flattery Silica
Mine
Supply, installation and
commissioning of Powercorp’s
Control System
1994
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 11 of 42 9/3/2008
Department of
Transport and
Regional
Services
Home Island, Cocos
(Keeling) Islands Wind
Diesel Project
4 X 20kW Westwind wind turbine
generators, Powercorp Control
System
2004 TBA
Kimberley
Regional Service
Provider
Yiyilli Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
1996
Power and Water
Corporation
Areyonga Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1993
Borroloola Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1999
Bulla Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
2003
Bulman Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
1995
Croker Island Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1992
Daly Waters Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2002
Docker River Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1991
Haasts Bluff Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2001
Harts Range Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2002
Hermannsburg Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2002
Imampa Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
Kalkaringi Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2001
Lake Nash Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1996
Maningrida Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2002 $200k
Maryvale Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2002
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 12 of 42 9/3/2008
Milikapiti (Snake Bay)
Power Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1996
Minyeeri Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
1998
Mount Liebig Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1992
Napperby Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1990
Nguiu (Bathurst Island)
Power Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2003 $200k
Ngukurr Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
2002
Numbulwar Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1996
Nyirripi Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
1990
Palumpa Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
1995
Papunya Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
1998
Pirlangimpi (Garden
Point) Power Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1997
Port Keats Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
1996
Ramingining Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2003
Tara Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
2003
Ti Tree Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
1997
Willowra Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
1992
Yarralin Power Station Supply, installation and
commissioning of Powercorp’s
Control System.
2000
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 42 9/3/2008
Yuendumu Power
Station
Supply, installation and
commissioning of Powercorp’s
Control System.
2002
Sabah Electricity
Board
Carabau Power Supply
System
Supply, installation and
commissioning of Powercorp’s
Control System including
adaptation for hydro capabilities.
1992
Kundasang Power
Supply System
Supply, installation and
commissioning of Powercorp’s
Control System.
1992
Ranau Power Supply
System
Supply, installation and
commissioning of Powercorp’s
Control System including a
500kW battery inverter system
1992
Stanwell
Corporation
Windy Hill Wind Farm 20 X Enercon E40/600kW wind
turbine generators
2000 $20m
Tarong Energy Mount Millar Wind
Farm
38 X Enercon E66/1.8MW wind
turbine generators
2004 $15m
Western Power
Corporation
Albany Wind Farm 12 X Enercon E66/1.8MW wind
turbine generators
2001 $45m
Bremmer Bay Wind
Diesel Project
1 X Enercon E40/600kW wind
turbine generator, Powercorp
Control System, civil works
2004 TBA
Denham Wind Diesel
System & Showcase
Projects
3 X Enercon E30/230kW wind
turbine generators
2003 $2.6m
Esperance Wind Diesel
Project
6 X Enercon E40/600kW wind
turbine generators, Powercorp
Control System
2003 $8.3m
Hopetoun Wind Diesel
Project
1 X Enercon E40/600kW wind
turbine generator, Powercorp
Control System, civil works
2004 TBA
Rottnest Island Wind
Diesel Project
1 X Enercon E40/600kW wind
turbine generator, Powercorp
Control System, civil works
2004 TBA
STG, Inc.
In 1996, St. George Construction was incorporated as STG, Inc. Since incorporation, STG has
become a prevalent bulk fuel systems and power generation facility contractor in Interior and
Western Alaska. Pile foundations, a component of most bulk fuel tanks facilities and power
systems, have become a niche for STG.
Additionally, STG has expanded to become United Utilities preferred contractor for their “Delta
Net Project”, which involves the installation of communication towers and related equipment
throughout the Yukon Kuskokwim Delta. STG has achieved this preferred status by
demonstrating competitive rates and the ability to perform in remote locations with extreme
logistical challenges.
STG maintains a fleet of state of the art, late model equipment. This equipment includes, but is
not limited to the following:
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 14 of 42 9/3/2008
Year Make Model Description
2004 Kobelco CK1600 160 Ton Crane with 200 ft. main & 100 ft. jib
2003 APE D2532 Diesel pile driving hammer
2004 Ford F-350 Crew cab 4x4 Pickup
2001 Caterpillar 960F Front-end Loader w/Forks
2002 Caterpillar 320LC Excavator
2005 Caterpillar 287B Multi-terrain loader
2004 JLG JLG 660 Tracked Manlift
2003 Miller Welder
2003 Trimble GPS Survey Equipment
The STG team has developed and maintains the capacity to manage our projects through a set
of key deliverables to ensure appropriate management of our jobs through their complete life
cycle. These are as follows:
• Provision of a quality project at a fair and reasonable price
• Timely delivery within budget
• Safe and professional performance on all work
• Positive relationships with clients to ensure that project deliverables are met
• New modern equipment that results in high productivity
• State of Alaska Professional Land Surveyor (Reg. 10192) on staff with modern Trimble
GPS equipment
STG Relevant Project Experience
Renewable Energy Systems
STG specializes in the installation of renewable energy
systems in rural Alaskan communities. These systems have
included both wind generation and waste heat recovery
systems. STG has installed 6, and is currently installing 3,
wind generators and 10 waste heat recovery systems for
Alaska Village Electric Cooperative. These wind generators,
consisting of both AOC 15/50's and Northern Power's
Northwind 100 wind turbines, are integrated with the onsite
diesel generation systems. The waste heat recovery system
captures the waste heat from the generators and also provides
a dump load source for the wind generators during times of
high winds and low village load demands. The recovered
waste heat and excess wind energy is used to heat various
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 15 of 42 9/3/2008
facilities within the communities.
Power Distribution
STG has completed several power distribution projects in
Western Alaska for Alaska Energy Authority, Alaska Village
Electric Cooperative and United Utilities, Inc. The projects
have consisted of both direct bury poles and poles installed on
pile foundations. Terrain has varied from across tundra to
mountainous steep slopes.
Foundations
STG has emerged as the prevalent pile foundation contractor
in the Interior and Western Alaska. STG's experience
includes installation of driven and drilled steel piles,
thermopiles, helical anchors and piles, concrete foundations
and rock anchors. STG has the specialized equipment
necessary for installing foundations in extremely remote and
logistically challenging locations.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 16 of 42 9/3/2008
Civil Construction
STG utilizes the newest, state-of-the-art, late-model equipment to execute
civil construction. We have the ability to perform any concrete, demolition,
earthwork, utilities, drilling/blasting and crushing/screening jobs. These
projects are generally performed in conjunction with our other work. However,
we have executed several "stand-alone" civil projects, as well.
Power Plants
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 17 of 42 9/3/2008
STG has constructed over twenty diesel power generation
facilities (power plants) throughout Western Alaska for both
Alaska Energy Authority and Alaska Village Electric
Cooperative. These power plants, which range in size from
100 to 1,500 kilowatts, generally consist of modular units
with either gravel pad or pile foundations.
List and Describe Briefly the Most Significant Projects Performed by the organization in the past
for projects similar to that proposed.
UUI DELTANET BROADBAND Phase 1 Completed 2006
(235’ Tower – Microwave Telecommunications)
We made Agreements with United Utilities, Inc. (UUI) to install a three phase line
to the wind farm site. Construction costs to the wind farm site will be shared by
UUI and PPC.
AEA-RPSU RURAL POWER SYSTEM UPGRADE Completed 2003
System online 4/05. (Heat Recovery to washeteria with the system)
Note: Heat recovery to the nearby high school facility also possible.
AEA- BF BULK FUEL CONSTRUCTION Completed 2001
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 18 of 42 9/3/2008
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Project budget and status reports
Monthly status reports
Web based monitoring
3.6 Project Risk
Discuss potential problems and how you would address them.
The control methods and system components selected for this project have been proven. The
only product development work which needs to be completed is linking the supervisory
controller signals to the metering system. This development is underway, and will accomplished
either with and on-site server at each powerhouse, or through powerline carrier and mini-
recievers through the powerplant supervisory controller.
The primary project risk is in sorting out all the little problems that will occur after commissioning
and through the break in and training period. A full time qualified project engineer will be
assigned to the Chaninik Wind Group from January 2009 through June of 2010.
The other issues that must be addressed is the use of available wind energy for home heating.
The system now calls for rotation of meters on a first in first out basis, and a repriortizing of the
availability of excess wind energy on a daily basis.
SECTION 4 – PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements 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.
Kwigillingok is located 8 miles from the community of Kongiganak. One year of 30 meter onsite
data was available and can be downloaded from the Alaska Energy Authority Website. The
Kong site was selected by wind resource experts from the National Renewable Energy
laboratory to provide a monitoring location which would provide regionally valuable data. The
AEA website provides a complete wind resource assessment report.
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www.akenergyauthority.org/programwindresourcedata.html.
The results of the wind resource evaluation indicate an outstanding wind resource with an
average wind speed is 7.78 m/s, and with the power distribution well suited for the capture of
wind energy.
The AEA report gives an annual average temperature of 1.4°C, which at sea level corresponds
to an air density of 1.286 kg/m³. The data was analyzed in the Homer model to and compared
with the power curves of various candidate wind turbines.
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.
A new diesel powerplant at Kwig came on line in the Fall of 2005. At that time an analysis was
made of the plant fuel consumption to establish a usage base case and to estimate future loads.
The electric load data is displayed in the tables below and the following figure provides a profile
of the loads which were used for this analysis.
The load above includes an expected 15% load increase due to the new school which will be
completed in 2010. This figure shows ten year the average load is estimated to grow from 107
kW (2003) to 175 kW, or 4188 kWh/day 2010.
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Month
2003 Ave
Load
2008 Ave
Load
2010 Ave
:Load,
(est)
(kW) (kW) (kW)
Jan 129 182 207
Feb 127 185 209
Mar 131 182 208
Apr 96 147 167
May 82 127 147
Jun 82 123 141
Jul 82 120 125
Aug 83 125 127
Sep 97 144 155
Oct 117 169 194
Nov 117 172 195
Dec 139 195 220
Ann kW 107 156 175
Ave kWh/d 2568 3744 4188
This table describes the estimated increase in demand by sector through 2015.
Estimated Electric Demand of Future Facilities in kW
Month
Residential
Sector
Public
Water
System Airport School Other Estimate
Jan 18 10 2 35 13 207
Feb 18 13 2 35 13 209
Mar 17 10 2 35 13 208
Apr 15 10 3 30 12 167
May 14 9 2 28 12 147
June 14 7 2 25 11 141
July 14 6 1 10 11 125
Aug 15 6 2 10 12 127
Sept 17 7 2 20 13 155
Oct 17 8 2 35 14 194
Nov 18 9 2 35 14 195
Dec 18 11 2 35 14 220
Ave 16 9 2 28 13 175
Annual
kWhrs
142,935
77,953
16,839
243,090
111,833 1,528,772
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Diesel Generation
The generation system consists of four diesel generators made up of John Deere diesel
engines driving Marathon Electric "MagnaPlus" Synchronous AC Generators w/ Marathon
Electric DVR 2000E Digital Regulators.
The ratings are as follows:
Generator 1: Model 433PSL6216, KW 235, KVA 294, AMPS 354
Engine- John Deere, Model RG6125A014622
Generators 2 & 3: Model 432PSL6210, KW 190, KVA 238, AMPS 286
Engines- John Deere, Model RG6081A163661
Generator 4: Model 431PSL6206, KW 140, KVA 175, AMPS 210
Engine- John Deere, Model RG6068HF250
Table 2 –Generator Assumptions
Generator
Capital
Cost
($)
Replacement
Cost
($)
O&M
Cost
($/hr)
Lifetime
(hrs)
Min.
Load
Ratio
Fuel
Curve
Intercept
(L/kWh)
Fuel
Curve
Slope
(L/kWh)
JD 235 kW 0 144,000 8.80 80,000 5%*0.04 0.25
JD 190 kW 0 117,000 7.60 80,000 5%*0.04 0.25
JD 140 kW 0 86,000 6.60 80,000 40%0.05 0.25
The addition of powerelectronics, heat recovery and new controls will enable the two generators
to operate efficiently at low loads. These modifications and the wind turbine outputs were
modeled in HOMER (www.nrel.gov/homer) to arrive at an estimate of fuel savings.
A fuel price of $3.80 per gallon was used. (Fuel price: $3.80/gal = $1.00/L.) Current fuel price
2008 delivery, $4.66 per gallon.
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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.
All Diesel, supplemented by sporadic drift wood availability in the springtime. Driftwood is collected
and used for heating when available.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
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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
High Penetration Wind Diesel Smart Grid
This proposed system provides a scalable village power system architecture, which can be
expanded to incorporate more wind, pv, and thermal storage to each home. The current system
includes:
five 90 kW Windmatic S-17 wind turbines,
wind diesel control and integration upgrades
heat recovery boilers located in the washeteria and school controlled by
electronic boiler interface and integrated with the wind system.
twenty thermal storage heaters will be placed in the city and utility offices, the
head start preschool, the clinic, the homes of 20 village elders.
a smart metering system
Below is a diagram of the proposed system. This diagram, contains two future elements, the
solar panels, and distributed residential energy storage. These two components are shown only
to indicate the extent of the system potential.
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The project design offers a very simple and reliable wind diesel architecture, which will achieve
40% fuel saving at the electric utility, and 20% of the fuel requirements of the community.
Wind Turbines:
Two candidate wind turbines were primarily considered for this project, these are: The Northwind
100 and the Windmatic S-17. An analysis using both turbines was made for cost effectiveness.
The comparative economic feasibility favors the use of multiple Windmatic turbines, primarily
due to the additional expenses incurred to install the Northwind 100 in a warm permafrost area
such as Kong.
These turbines were selected for performance and availability. Three 17S Windmatic turbines
have been purchased and have been shipped to the project site. Additional turbines could be
purchased and delivered for construction this winter. Construction using the Northwind 100
would be delayed until winter construction season 2010. The 17S is available and parts and
service are common, with most components available in Anchorage or Seattle. The Windmatic is
available from Scientia Wind Services, Palm Desert California.
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Cost estimates for the installation of each turbine were developed after geotechnical
investigations and load analysis, and are summarized in Table 3. Installation costs estimates
were developed for both types of turbines. Gross annual estimated energy production for each
turbine was arrived at through comparison of power curves and wind resource information using
HOMER. The results are summarized in Table 4. A 15-year investment horizon and a 5%
nominal interest rate were used for economic analysis. These are the same investment
guidelines as proposed in the Alaska Rural Energy Plan, April 2004.
Table 3 – Wind Turbine Assumptions
Per-Turbine Costs Associated Costs
Turbine Model
Rate
d
Pow
er
(kW)
Hub
Heig
ht
(m)
Lifeti
me
(yr) Capital Replacem
ent O&M
Power
Plant
Retrofit*
Line
Extensi
on
Windmatic 17s 90 24.4 15 $ $ 150,000 $ $ 90,000
Northwind 100 30 20 $ $ 350,000 $ $ 90,000
Table 4 – Wind Turbine Energy Production
This modeling was done on
representative 25 meter
towers, at constant air
density and wind shear.
Blade extensions and
taller towers can be used to
increase the output of both wind turbines. The AEA report estimates NW100 number is 313
MWh, which is 10% higher than our number of 282 MWh. This is a conservative estimate for
both turbines, and represents an accurate comparison.
Five wind turbines with a rated output of 90 kilowatts for a total rated output of
450 kW, are paired with multiple diesel options of 235 which are able to parallel and operate at
low load.
The supervisory control system would operate the two gensets in frequency control modes, and
the other two generator sets would remain in their original condition and operate in set point
mode. In period of low winds the additional wind turbines would enable the utility to operate at
high penetration levels, efficiently servicing the electrical load. As wind increases, which is
frequently at night most of the winter, excess wind energy would be diverted to thermal stoves
located in community facilities and residences. This excess wind or “ green” energy would be
made available to customers at a reduced rate, however, since most of this energy would be
created at night in the wintertime.
Wind-diesel Integration
The goal of this project is to provide a cost effective higher penetration system to significantly
minimize diesel fuel usage. In all high penetration applications, close generation, load controls
and the ability to stabilize the grid are key features. The controls must not only trigger diesel
generators to start and stop, but must also issue power set points for each component in the
Wind Turbine
Annual
Energy
Production
(kWh/yr)
Capacity
Factor
(%)
Hours of
Operation
(hrs/yr)
Windmatic 17S - 90
kW 225,000 30.2 7,373
Northwind
NW100/19 282,000 31.6 7,467
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system and send enable/disable commands to the wind turbines as well as control any demand
managed devices, such as the thermal stoves.
In this application the output of the wind plant is at times oversized to the load. The excess
power is sent over the electrical distribution system to select valuable but thermal storage
devices which are interruptible loads. A fast acting Dynamic Grid Interface is connected to a
boiler in the washeteria. This boiler is connected into the heat recovery system of the
powerplant, and will be used to maintain all diesel generators in a hot and ready to operate
setting. This boiler will be used to capture a limited amount of the excess wind energy and will
be used as the primary energy sink to keep grid frequency from rising. The grid interface
instantaneously absorbs power fluctuations caused changes in turbine output. When coupled to
a low-load generator, which is able to operate efficiently at low loads for long periods of time, the
Dynamic Grid Interface prevents the generator from being driven into reverse power and
supplements reactive power support for the wind turbines.
The power system is managed by a computerized supervisory controller, which monitors all
system parameters and makes decisions based on sub-second time scales to regulate each
component of the wind-diesel system. The supervisory controller tracks the wind and engine
output along with load demand and upon meeting preset criteria for changing conditions,
automatically carries out instructions with safety margins such as selecting, turning engines
on/off, managing heat recovery loads, and shutting wind turbines on and off. When the wind
power is insufficient, the supervisory controller selects and starts the most efficient engine or
combination of engines, brings those engine(s) up to synchronous speed, and commands the
wind turbines to turn off. To achieve significant fuel savings high penetration wind diesel
systems must be able to operate indefinitely at instantaneous wind penetrations of greater than
100%. There are a number of configurations to high penetration wind diesel systems, which are
not covered or compared in this study. However the keys to high penetration reliability remain
the same: control of the diesel station, wind turbines and other components, and a method to
stabilize the grid while reducing diesel loading.
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Figure 3 Wind Diesel System one line diagram.
Wind Turbine Wind Turbine
GS
Diesel Generator
Consumers
Consumers
Heat Recovery/Boiler
Wind Turbine
GS
Diesel Generator
Wind
Diese
controller
FMS
GSS
GSS
GSS
GSS
Low Load
Diesel
Local and
Remote
User
Interface
CanBus
Ethernet
Ethernet/Modem
High Penetration Wind-Diesel
Architecture for Kongiganak, Alaska
Puvurnaq Power Company Created: 9/30/08 Initials: DM.
GS
Diesel Generator
Wind Turbine
All four (5) turbines are
Windmatic s-17's
Wind Turbine
Wind Turbine
Thermal Stoves
Web access
Smart
Meter
This design builds upon the capabilities of the existing power system by using power electronics
and controls to prevent reverse power conditions and fouling conditions during extended low
load operations. The ability to operate a low load, increases the instantaneous proportion of
wind energy, while decreasing fuel usage.
The remote heat recovery boiler will be placed at the washeteria, to recover excess wind energy,
and smart meter enabled thermal energy storage units will be placed in community buildings and
twenty residences. In this configuration, in low winds, the system will operate in a high
penetration mode, with the available wind captured to displace fuel used to generate electricity.
As wind speeds increase greater proportions of wind energy are captured as heat.
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Diesel Retrofit
The main features of diesel operation include: precise fuel management, increased operating
temperatures, special engine monitoring and control, and reverse power protection. This design
proposes to adapt two of the existing gensets, one of the 190 kWe and one of the 225 kWe
machines for low load operation to operate in load following frequency set point mode for parallel
operation with the wind turbines. The control system and power electronics design would allow
either generator to operate in low load, or for the two generators to operate in parallel low load.
The low load units can also operate with the other non-modified gensets in power set point
mode.
Low Load Operation
Under normal conditions, a diesel configured for low load behaves like any other diesel
generator, with the added benefit of very high efficiency.
In all situations, the existing diesel will operate in isochronous mode, attempting to maintain the
nominal frequency of the network.
During periods of low-load or high renewable penetration, the Station Controller can be
programmed to allow the running low-load configured diesels to run down to 5% of their rated
load. During low-load operation, especially with wind turbines, the diesels may be forced to use
its dynamic inverter grid interface to prevent the generator from being pushed into reverse power
operations. Control, fuel management, and injection of additional heat modifications are made so
that normal point of operation can be maintained indefinitely, even with frequent operations of
the grid interface and fluctuations in the wind plant output.
Since the instantaneous total loss of power from multiple turbines is an unlikely event, the
parallel operation of either low load diesel would survive (non-stalling) single step-load is larger
than the loss of two turbines at full output, 130 kW or a similar increase in load from a 5% low
operating threshold.
Heat Recovery Boiler Grid Interface
A remote heat recovery boiler with dynamic response capabilities will be placed at the school.
The Boiler Grid Interface has three distinct roles:
1. To provide a demand managed device, capable of delivering heat to a heating loop in
a complimentary manner to the availability of the wind energy.
2. To provide frequency stabilization through the high speed frequency monitoring and
the rapid adjustment of load from the boiler grid interface.
3. To provide a fully adjustable load with small 100W steps and an adjustable power
factor without inducing damaging harmonics into the power system.
Operation
The temperature controller in the Boiler Grid Interface device monitors the temperature of the
loop and makes requests to the power station master controller for power to maintain the
temperature. The power station master controller sends back a power set-point which the Boiler
Grid Interface is to maintain long-term. This number is based on the amount of uncommitted
wind power available on the system.
If the frequency of the grid moves outside of acceptable limits, the Boiler Grid Interface will
automatically adjust the amount of power it is drawing, based on a sliding linear scale in an
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attempt to maintain control over the frequency. Once the frequency is back within acceptable
limits, the Boiler Grid Interface returns to its original power set-point. If the frequency does not
return within acceptable limits over a period of approximately 2 seconds, the power station
master controller will take additional action (such as modifying the power demand of the Boiler
Grid Interface, starting additional generator sets or disconnecting Demand Managed Devices) to
rectify the situation.
Method of Power Control
The Boiler Grid Interface uses IGBT technology to meet the following competing goals:
1. Fully adjustable 0-100% load control in steps of approximately 0.025%
2. Fast response time, 0-100% in less than 1/180th of a second.
3. Exceptional power quality, with the option to actively improve the voltage waveform at
the expense of maximum load sizing.
The IGBT based technology can offer such fast power control due to its ability to modify the
current draw at any point in the cycle, whether it be mid-cycle or not. This feature also allows the
IGBT based Boiler Grid Interface to draw current at a pre-specified power factor, to attempt to
help the generators support any low power factor loads that may be encountered.
This compares with standard SCR load control technology which offers:
1. Fully adjustable 0-100% load control.
2. Fast response time, 0-100% in 1/60th of a second or so, depending on control
technique.
3. Poor power quality, introducing damaging harmonics into the power system.
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The Smart Grid
The Smart grid is a way combining the various components of the power system to make them
work efficiently together, and to support new services for customers. What is being proposed
here is a simple form of the smart grid, in which the power plant supervisory controller that
controls the diesel engines and the wind turbines communicates with the customer’s electric
meter. The powerplant controller tells the electric meter that there is excess wind available for
sale at a reduce price. The smart electric meter signals various devices, like thermal energy
storage unit to turn on and store wind energy. When low cost wind energy is not available the
meters turn off the heating elements in the stoves. The meters keep track of the two types of
electricity, green only and diesel generated electricity, and provide an in home display so that
customers can keep track of their costs and energy uses. The smarts of the smart grid are in the
software and hardware of the utility meters, the powerplant supervisory controller, and the
thermal stove controllers that allow the devices to intelligently communicate with each other.
The result is a new way of managing rural energy systems, and the creation of new opportunities
to expand the role of wind energy to reduces the dependency on diesel fuel. The next stage in
implementing the Smart Grid will be to add plug in 4 wheelers for local use.
The community will benefit from the Smart Grid in three ways:
1. Lower cost energy as heat and electricity
2. Increased revenues to the utility
3. Ability to store wind energy as heat for later use.
Figure 4 depicts the elements of the Village Smart Grid:
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Electric Thermal Storage
During a windy weeks in the winter a typical home in Kwig uses 30 gallons of heating fuel. The
Electric Thermal Storage (ETS) is the method of capturing excess wind generated electricity as
heat and storing it for use 24 hours a day. An ETS unit, is an insulated metal box, about the
same size as a Toyo Stove, which contains electric heating elements which lie within special,
high-density ceramic bricks. These bricks are capable of storing vast amounts of heat for
extended periods of time. During periods of excess wind energy, a signal from the powerplant
supervisory controller is sent to the metering system. The meters then enable the elements in
the stoves to heat the bricks.
The availability of wind energy coincides with periods of high heating needs and when the power
system has excess energy.
The metering system enables the Thermal storage stoves, and accounts for wind only and diesel
only generation purchases separately. Thus the metering system working with control signals
from the diesel plant insures that customers are not charged diesel generation, and allows the
power company to offer reduced rates or substantial discounts on electricity consumed during
off-peak times. It is these reduced rates that allow ETS to provide considerable savings to
consumers on their energy bills as compared to alternative heating options.
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Metering system
Wind/thermal storage requires a method of notifying the stoves of the availability of low cost
wind energy, and a way to account for the difference in cost of wind versus diesel generated
electricity. This is done through new meters, which will be placed on each home. The
proposed metering platform creates a wireless communications link which provides fully
automated, intelligent two-way communications between the powerplant and each meter.
The advanced meters offer many additional features that will allow the utility to be managed
more effectively, and optimize diesel station operation.
The metering system will consist of 3 collector meters, one at the school, one at the
washeteria/water plant, and the last at the powerhouse. Each residential customer will have a
single-phase meters at their home. These meters will communicate with the data collecting 3
phase meters to create a mesh network. The meters are designed for plug and go capability,
which eliminates programming and simplifies installation. This same metering system has been
selected for use as it has proven to be a best practice management tool for the Alaska Village
Electric Cooperative.
Three of the most important features are:
1. Demand control capability that allows the utility to control thermal storage
devices remotely. Thermal stoves will be enabled for green energy pricing
only when a signal from the utility indicates that an excess of wind energy
is available. The meter can switch devices the stoves on and off
according the amount of excess wind energy available. The meters can
also control other electrical devices such as water heaters and/or
controlling lighting or thermostats.
2. User interface. The meters come with an in-home display device that can
be used to inform the customer about their cost and energy usage. In the
future they can be enabled to enter credit card information to pay bills
directly.
3. Pre payment option; the proposed meters can be configured with a
prepay option, which requires consumers to pay in advance of use. This
feature is requested by small utilities, because it mitigates the financial
risks associated with power sales and reduces embarrassing utility
disconnects, billing disputes and damage to local relationships. When
coupled with the associated user display in each home, the system
improves financial management for both the utility and the customer. The
in-home display allows utility customers to self manage energy use
through real-time, informed decisions about consumption. When combined
with the user interface, most customers are typically very satisfied.
Through smart metering, the utility will:
• Enable time of use and green energy management rate structures
• Activate thermal storage devices when wind is available
• Understand load profiles, and enable demand control schemes
• Fairly and more accurately allocate costs of utility service according to actual
consumption
• Encourage conservation of electricity
• Detect system problems and imbalances
• Lower the cost of utility service to improve profitability
• Recover related costs of utility service to improve revenues
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Wind Turbine brochure:
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The land for the project has been donated by the Village corporation.
4.3.3 Permits
Provide the following informationas 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
See below
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
• Threatened or Endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
Land for the project has been made available by the local village corporation. Funding for this
project is provided by the state and supplemented by local contributions. There is no Federal
money involved, no wetlands are to be filled, there are no endangered species present, there are
no anticipated conflicts or threats to migratory birds, the sites selected are donot represent
hazards to flight operations, and are not located in archeological sensitive areas. After
contacting the USFWS, the FAA and the Corp of Engineers, it is determined that no permits to
construct this project are needed. In each location, the powerlines to the wind turbines will
extended underground from nearby 3 phase power. No power poles will installed and no aerial
transmission lines, which could present a hazard to migrating birds are not being constructed.
The wind turbines will be placed on pile foundations, which will not require any filling of wetlands,
and donot require a Section 404 permit by the Corp of Engineers. It is not anticipated that any of
the Chaninik projects will interfere with or result in the mortalities of any endangered species or
migratory birds. The USFWS, Corp of Engineers, FAA and State permitting agencies have been
contacted. USFWS concerns have requested that powerlines be buried if possible, and to
refrain from using guyed towers, to maintain lattice towers by keeping them free of raven nests.
Preliminary locations were presented to the FAA, and they have requested a final review of the
selected sites, and that the wind turbines be surveyed in, within one month of installation. We
will be providing the USFWS, the Corp of Engineers, the FAA and the Alaska State Division of
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Governmental Coordination. Andrew Grossman has been hired as an environmental consultant
for the Chaninik Wind Group projects. He is retired USFWS and NMFS biologist experienced in
permitting of construction projects in Alaska.
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
Phase #1 – Engineering
Amount
Civil $ 75,000
Environmental $ 15,000
Mechanical $ 40,000
Electrical $ 120,000
Project administration $ 150,000
PHASE #1 TOTAL: $ 400,000
Phase #1 – Construction
Wind Turbines, Tower & Materials
5 each Windmatic 17-S turbines,
installed on pile foundations, with
service platforms, board walk access,
12470 kV powerline and fiberoptic
communication
$ 1,996213
Integration, communications and
control
$ 743,546
PHASE TOTAL $ 2739759 $ 2, 539,759
Phase #2
Thermal Storage and Smart
Metering
$ 305,074
$ 305,074
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Phase #1 – Reporting & Evaluation
Village Energy Information System $ 40,000
PHASE TOTAL: $ 40,000
PROJECT GRAND TOTAL: $ 3,284,833
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
Total project cost is $ 3,200,000.
$1,600,000 in grant funding is being requested.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
• Identification of potential power buyer(s)/customer(s)
• Potential power purchase/sales price - at a minimum indicate a price range
• Proposed rate of return from grant-funded project
Utility will purchase and sell power.
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4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
BUDGET SUMMARY:
Milestone or Task
Federal
Funds
State
Funds
Local
Match
Funds
(Cash)
Local
Match
Funds (In-
Kind)
Other
Funds TOTALS
1. Design $300,000 $300,000
2. Turbine Procure
and ship $1,000,000 $1,000,000
3. Turbine
installlation $300,000 $300,000 $600,000
4. Procure
Integration $1,000,000 $1,000,000
5. Install and
Commission $200,000 $200,000
6. Evaluation and
Support $100,000 $100,000
$3,200,000
Milestone # or Task #
BUDGET
CATAGORIES: 1 2 3 4 5 6
Direct Labor and
Benefits $20,000 $80,000 $800,000 $20,000 $20,000
Travel, Meals, or Per
Diem $10,000 $20,000 $20,000 $20,000
Equipment
Supplies
Contractual
Services $220,000 $1,000,000
Construction
Services $500,000 $180,000 $180,000 $60,000
Other Direct Costs
TOTAL DIRECT
CHARGES $250,000 $1,000,000 $600,000 $1,000,000 $200,000 $100,000
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 37 of 42 9/3/2008
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.
Andrew Crow, from the University of Alaska Anchorage, is working with the Chaninik Group to
develop a regional wind system business plan, based on a cooperative business model. The
primary elements of this plan include utitilizing combined funding from the savings of displaced
diesel fuel to pay for system maintenance, and overall administration. The greater the number of
wind turbines, the more fuel displaced, the more viable the will be the financial strength of the
group.
One of the principles of successful operation will be to create a well paid job in each community to
support the wind system operation, and to create a network of trained operators, one in each
village who can support each other.
A proposed source of funding would be to allocate $.05 per kilowatt hour for wind production to the
operation and support. Each wind turbine will conservatively produce 150,000 kWhrs annually.
This would be $7500/turbine x 5 turbine = $37500 in additional wages to utility personel. Another
$.03 / kWhr would be dedicated to a replacement fund. However, a production bonus would be
paid to the utility personel for any kilowatt hours produced above 200,000 kWhrs per year. This
production bonus would be $.10/kWhrs. This could be as much as $4000 per turbine or $20,000.
The increased cost of turbine operations would be partially paid for through the turbine bonus,
increased non-fuel operating costs provided in the PCE program, and through fuel savings. The
customer would still see a significant decrease in electrical rates, as the current value of kilowatt of
displaced fuel is in the range of $.30/kWhr.
The overall business plan would be administered by the Chaninik Group with the assistance of the
automated meter reading and information technology systems. In each village the system would
be administered through the use of prepaid meters. The business plan in developed will provide a
detailed management and financial plan, and outline utility performance standards.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
The renewable energy fund identified “an adequate, reliable, reasonably priced, and safe supply of
energy necessary for Alaska’s basic infrastructure and economic and technological development. ”
The Renewable Energy Fund is not just about the Benefit Cost Ratio. The three analytical pillars of
finance and investment are; the time value of money, valuation, and risk management. The
allocation decisions made by this fund must be significantly influenced by the importance of
reducing the risk of the eminent collapse of rural Alaska caused by skyrocketing fuel prices. A
fundamental function of this program therefore is to help communities find a way out of this crisis.
The resources of the fund are too small to be scattered without a strategy for multiplying the value
they create. This proposed project addresses the two central issues, reducing risk and creating
value, and accomplishes these objectives in three ways:
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 38 of 42 9/3/2008
First it applies readily available innovation to provide a pathway for all
Alaskans to lower costs
Secondly it includes a method of developing the information needed to
measure progress , and
Most importantly it supports the creation of local institutional infrastructure
through the strengthening of the Chaninik Wind Group which is
necessary to capture and build on the value that is created by these
investments
This project contributes to the common good of all Alaskans in two important ways.
1. It targets the specific problem of using renewable energy to reduce fossil fuels and the cost of
heat, electricity and transportation in rural Alaska. It does this through the development of a Wind
Diesel Village Smart Grid, which can be used to increase efficiency of diesel only grids, and
provides a method implementing widespread cost effective use of renewable energy in rural
Alaska.
2. It moves all of us forward now,,,, not next year, not the year after. This project can be built this
winter and be if full operation by this time next year.
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
Project Savings
Various wind-diesel architectures, and wind systems were considered. Cost savings were
estimating using the Homer Hybrid System (www.nrel.gov/homer) modeling tool and the best
available information. Construction cost estimates were developed based on current construction
practice, component costs and the optimal design as determined by Homer analysis. The results of
this analysis are discussed below, and the low load diesel high penetration architecture using the
Windmatic 17-S wind turbine system is proposed based on cost-effectiveness, simplicity and
operating experience. The load growth is projected to grow at 3% as outlined in the AEA Power
System Upgrade Conceptual Design Study of 2003. A step increase of 30 kW was added to the
baseload in anticipation of the a new school projected to open around 2010.
The HOMER modeling results were used to estimate fuel savings over the life of the project, which
is 20 years. Practical experience indicates that after 15 years more efficient technology and
methods will be available, at which time existing technology will likely be replaced or upgraded.
Fuel Savings:
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 39 of 42 9/3/2008
HOMER results indicate near term, 2008 costs savings with five Windmatic S-17 turbines of
$177,080 per year using the most recent fuel delivery price of $4.66 per gallon, and reductions in
the fuel consumption at the powerplant from 85000 gallons to 47,250 gallons of fuel or
approximately 40%.
In addition to the fuel savings approximately 400,000 kilowatt hours available for heat. Some of
this energy is anticipated to be captured by a heat recovery boiler at the school which is needed for
frequency controls, to and reduce heating fuel usage from 8357 gallons to 5877 gallons. A
remaining 300,000 kWhrs, or a heating fuel equivalent of 9000 gallons, would be sold into the
thermal stoves into the elders residence, for half the cost of heating fuel ($6.25 / gallon, the cost
BTU equivalent to $.20 per kilowatt hour, this energy would be sold as excess wind for $.10/kWhr,
saving 20 homeowners, $2000 annually in their heating costs).
With the current load, the five 17-S Windmatic reduces the generator fuel consumption by 47%, the
school boiler fuel consumption by 35%, and the total fuel consumption by 46% over the existing
system. These levels of proportional savings if achieved would represent significant decrease in
the dependency on diesel fuel. In later years, as the community load grows, the proportion of
displaced fuel using five turbines would drop to 38%. At which time more wind turbine capacity
and thermal storage capacity can be added.
The economic benefits to the community can be
quantified in three ways;
Annual utility fuel saving $ 160,000
Increased energy sales to utility
School/Washeteria boiler (2400 gallons @ $3.00/gal) $ 7,200
Sales from thermal stoves $ 40,000
Home owner savings $ 40,000 ( community benefit)
Annual financial benefit to the community $ 241,200
Table 1 – Projected Fuel Savings in Kwigillingok 2015
Power Plant Excess kWhrs
# System Description Fuel
Consumptio
n
(gal/yr)
Fuel
Savings
(%)
kWhrs for
heat
Fuel
Savings
(gal eq)
1 Existing system 124378 n/a n/a n/a
2 Add 3 17-S, retrofit 84776 31.8 72,928 2253
3 Add 4 17-S, retrofit 75673 38.9 185,584 5714
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 40 of 42 9/3/2008
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
20
40
60
80
Thermal (kW)Monthly Average Thermal Production
John Deere 235
John Deere 190
John Deere 140
Boiler
Excess Electricity
Cost benefit
Cost of improvements $ 3,200,000
Less cash match $ 1, 600,000
Total Cost of Grant Request $ 1,00,000
Present Value of cash savings, 5%, 10 years
($241,200/yr)
$ 3,000,000
Benefit to cost ratio 1.8
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.
$ 1. 6 million dollars is available as a cost match to put toward this projects.
$ 1. 6 million in matching funds is being requested to finish this project.
It will never be more cost effective than now to build this project, as the equipment and personnel are
mobilized for construction to begin in March 2009/
BUDGET SUMMARY:
Milestone or Task Federal
Funds
State
Funds
Local
Match
Funds
(Cash)
Local
Match
Funds (In-
Kind)
Other
Funds
TOTALS
1. Design $300,000 $300,000
2. Turbine Procure and
ship
$1,000,000 $1,000,000
3. Turbine installlation $300,000 $300,000 $600,000
4. Procure Integration $1,000,00
0
$1,000,000
5. Install and Commission $200,000 $200,000
6. Evaluation and $100,000 $100,000
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 41 of 42 9/3/2008
Support
$3,200,000
Milestone # or Task
#
BUDGET CATAGORIES: 1 2 3 4 5 6
Direct Labor and Benefits $20,000 $80,000 $800,000 $20,000 $20,000
Travel, Meals, or Per
Diem
$10,000 $20,000 $20,000 $20,000
Equipment
Supplies
Contractual Services $220,000 $1,000,00
0
Construction Services $500,000 $180,000 $180,000 $60,000
Other Direct Costs
TOTAL DIRECT CHARGES $250,000 $1,000,00
0
$600,000 $1,000,000 $200,000 $100,000
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 42 of 42 9/3/2008
SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4
B. Cost Worksheet per application form Section 4.4.4
C. Grant Budget Form per application 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
William Igkurak
Signature Original to follow
Title Utility Manager
Date October 8, 2008