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Home My WebLink AboutUmnak Wind-Diesel and Jacket Heat Recovery App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 18 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 18 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Umnak Power/ Nikolski IRA Council Type of Entity: Tribally Owned Electric Utility Mailing Address Po Box 105 Nikolski, AK 99638 Physical Address Nikolski, Umnak Island AK Telephone 907-576-2220 Fax 907-576-2220 Email Iko.tribe@hotmail.com Point of Contact Name Everette Anderson Title Business Development/Corporate Relations Specialist Mailing Address 5470 Shilshole Ave. NW, Suite 430 Telephone 206.369.5952 Fax 206.782.1721 Email eanderson@apicda.com 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) 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 X A governmental entity (which includes tribal councils and housing authorities); Y 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 ) Y 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. Y 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 18 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 construction project with three parts. We will integrate an existing Vestas V15 65 kW wind turbine with an existing diesel powerhouse. To absorb excess power, remote thermal nodes will be installed and integrated with existing boiler systems at the Nikolski School and Ugludax Lodge. A waste heat recovery system will be installed in the diesel plant and connected to the nearby Community Center. 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. This medium penetration wind-diesel and jacket heat recovery project is located on Umnak Island, approximately 100 miles west of Unalaska/Dutch Harbor. The community of Nikolski will be directly served by this project. In addition, the community of pilots and passengers who make international flights over this area will benefit greatly. A communications gap, long a problem for international flights, was recently remedied by the installation of communications equipment in Nikolski by the FAA. The Nikolski IRA Council, Chaluka Corporation, the management of Umnak Power, TDX Power and the Aleutian Pribilof Island Community Development Association/APICDA will be involved in ensuring this project succeeds. 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 total cost for this construction project is $451,030. The amount of funds requested from the Renewable Energy Fund for this project is $409,530. APICDA will provide room and board at the Ugludax Lodge for a crew of 5 for 14 days and a second crew of two for 7 days, an in-kind donation worth $21,000. The Alaska Building Science Network has dedicated $10,000 towards the heat recovery system. The Nikolski IRA will provide local labor for all tasks and donate fuel for the heavy equipment, a donation worth $8,500. The Nikolski Fisherman’s Association will provide the necessary heavy equipment and an operator for a donation worth $2,000. 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 18 9/3/2008 The community will see immediate fuel savings which will enable the utility to hedge against rising fuel costs and to conserve their precious fuel supply. Once the wind turbine has been integrated into the system, preliminary findings indicate that there could be up to 10,248 gallons of fuel saved at the power plant. This is worth $62,000 at 2008 prices. Through thermal load distribution the Nikolski School and Ugludax Lodge will receive the added benefit of residual heat displacement, further minimizing the need for 5,252 gallons of diesel fuel worth $31,775 at 2008 prices. This is a total annual savings of $93,775 for fuel annually. Reduced use of the larger diesel at the power plant will save on oil changes and maintenance costs at the plant. How much is yet to be determined. Much depends on the power demands of FAA’s newly installed equipment, which has yet to establish a history of usage. Completing the wind-diesel project in Nikolski will benefit the community with added peace of mind that the possibility of another fuel crisis is reduced. And in the event of another fuel crisis, directing all fuel supplies to the power plant will also provide for three large community buildings to have heat. International air traffic will benefit from this project because the FAA communications equipment requires reliable power. The wind-diesel system proposed by TDX Power will be more sustainable than the current diesel only system. 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.) $ 451,030 2.5.2 Grant Funds Requested in this application. $ 409,430 2.5.3 Other Funds to be provided (Project match) $ 41,600 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 451,030 2.5.5 Estimated Benefit (Savings) $ 94,000 annually 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.) $ 94,000 fuel saved benefits entire community 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. John Lyons, Operations Manager for TDX Power, will be the Project Manager. John’s Resume is attached to this application. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 18 9/3/2008 attachment with a summary of dates below.) Late January – early February 2009 Indoor work (Tasks 1 - 3 listed below) May 2009 Outdoor work (Task 4 listed below) While it would be more cost effective to do all the planned work in one site visit, it will not be possible to do the trenching to hardwire the thermal nodes in the winter with frozen ground. It is possible, however, to utilize the wind turbine without the thermal nodes being connected. The controls can be programmed with a maximum kW production output set point which will then apply the turbine brakes when that output is exceeded. Although doing the project in two phases is not the preferred option, the need to displace diesel is so great in this location that the added cost for two trips out is warranted by the savings in diesel from adding wind energy to the generating mix as soon as possible. The second trip out also provides an opportunity for John Lyons to do a follow up inspection of the turbine after it has been running for 3 months. TASK J F M A M 1. Waste Heat Recovery System a. Install jacket heat recovery system in powerplant x x b. Install baseboard heat plumbing in Community Center x x c. Connect heat recovery system to Community Center x x 2. Wind Turbine Integration a. Add and modify control switchgear in diesel plant x x b. Add communications link to wind turbine x x c. Add communications link to school x x d. Add communications link to lodge x x 3. Thermal Node Installation a. Install thermal node at school x x b. Install thermal node at Lodge x x 4. Hardwire thermal nodes a. Dig trench and hardwire school to power plant x b. Dig trench and hardwire lodge to either power plant or wind turbine transformer x 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. TDX Power, in concert with the Native Village of Nikolski and APICDA’s management team will use its own personnel to manage and implement virtually every aspect of the proposed Nikolski project scope. TDX Powers’ management team has a long record of power industry accomplishment in Alaska, the lower 48 and internationally. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 18 9/3/2008 Nick Goodman, CEO, manages TDX Power, its subsidiaries and its operations on a daily basis. With 10 years experience in wind, hydro and fossil generation development and facilities management, Goodman is a well known participant in the Alaska power markets and a featured energy conference speaker. He is TDX Power’s primary representative in its associations with the Company’s customers, suppliers, banks, auditors, regulatory agencies and energy institutions such as the US Department Of Energy (USDOE), the Alaska Industrial Export and Development Authority (AIDEA), AEA, the Alaska Rural Electric Cooperative Association (ARECA) and the Alaska Department of Environmental Conservation (ADEC). The Company’s chief operations officer, John Lyons, served 20 years as the Alaska Village Electric Cooperative’s operations manager prior to joining TDX. He has designed, built and managed the operations of over 100 energy plants in remote Alaska. As well as the primary operations manager of TDX Power’s regulated electric utilities, Lyons is directly responsible for the operations and high availability record of the Saint Paul wind/diesel facility. He will play a very key and hands on role in the implementation of the wind project at St. George. TDX Power’s chief design engineer, William Scott, provides the detailed engineering and modeling associated with all of the Company’s utilities, projects and consulting contracts. He is a Registered Professional Engineer with 35 years experience in power generation, and an acknowledged authority in renewable as well as fossil fueled reciprocating and rotating prime mover technology and thermodynamic cycles. Controlled Power designed the existing controls in the Nikolski Diesel Plant. The firm is well known to the AEA and designs the controls for many, if not all, AEA led power plant upgrades in rural Alaska. John Lyons has already spent many hours working with Mike Dizard from Controlled Power to design the modifications to the diesel controls and the additional controls needed to integrate wind energy. Controlled Power will do the modifications and construct the new panel for wind controls at their Washington offices and will do the on-site programming required to get the project up and running. Connie Fredenberg is Special Projects Manager for TDX Power and APICDA’s Winter Caretaker for Ugludax Lodge. Connie came to this project directly from her former position at the Aleutian Pribilof Islands Association, where she spearheaded the beginnings of this project. During her time at the Lodge this winter Connie will be available to assist TDX Power and Umnak Power with project oversight. Connie also volunteers at Umnak Power with utility management while staying at the Lodge. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. TDX Power and APICDA will be monitoring the project closely with the community. TDX Power is already under contract with Umnak Power to provide oversight for the existing diesel plant. The Nikolski power plant operator has an established weekly call schedule with John Lyons. The plant logs are faxed to John Lyons weekly prior to the scheduled call. This has proven a very satisfactory and beneficial practice and will be continued with the addition of the wind turbine, thermal nodes, and waste heat recovery system. APICDA maintains a close relationship with the community on many levels and has a vested interest in monitoring the progress and sustainability of this project. TDX Power will provide regular detailed reports to the AEA on the progress of this construction project with assistance from the Ugludax Lodge’s winter caretaker, who also works for TDX Power. 3.6 Project Risk Discuss potential problems and how you would address them. The number one problem this project will face is the infamous Aleutian weather. Weather rules in Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 18 9/3/2008 Nikolski. It controls what gets on or off the island and when. Severe weather controls when work can or cannot take place. TDX Power’s roots are in the Aleutian Islands, though, and the company has learned to adapt. Shipments of materials will be sent well in advance of the work crew. On island personnel will inventory and report when all materials have arrived. Then, and only then, will the crew mobilize for travel to the site. We have included a contingency fund in our budget to cover travel delays. It is best to count on travel delays and then be pleasantly surprised when they don’t happen, rather than caught off- guard and unprepared when they do. Local equipment failure is always a problem in remote isolated locations because there is no opportunity to acquire parts for repairs in a timely manner. This project requires a minimal, but critical, amount of trenching. At this time there is a piece of equipment on island that can accomplish this task which is in good working order. Prior to mobilizing the crew to do the work in Phase II we will contact personnel on island to ascertain what, if any, spare parts might be best to have in hand upon arrival. 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. This is a Phase IV Construction project designed to exploit a Class 7 wind resource for electric and heating purposes and to take advantage of the jacket heat from a diesel plant 15 feet from the Community Center. Making use of jacket water heat should be a requirement on every new power plant. To waste heat is a crime in this day and age. Retrofitting this diesel plant to include a waste heat recovery system and benefit a building only 15 feet away is a most sensible thing to do. A Wind Resource Report was completed by Doug Vaught for the AEA on data collected from 12/11/05 through 3/13/07. To quote the report, “Nikolski has superb potential for wind power development with Class 7 wind power density, moderate wind shear, bi- directional winds and low turbulence.” The entire village was involved in studying their wind resource. Students from grades 1- 12 monitored the site and studied KidWind curriculum. Elders watched out their kitchen windows with purpose to note avian activity around the met tower. The community is 100% behind developing their most abundant natural resource and reducing their dependence on imported fuel. There are other renewable energy resources available to Nikolski. Multiple significant Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 18 9/3/2008 geothermal resources are found on Umnak Island, but they are inconveniently located and would be far too expensive to develop for the current small local needs. There is a stream that never freezes flowing right through the village. But this is a productive salmon stream and the local population is unwilling to risk this close supply of fish to develop even a small hydropower project. Nikolski has a relatively new tank farm with adequate storage for diesel and gas, but getting liquid fossil fuels to this location is expensive, logistically challenging, and sometimes nearly impossible. Displacing as much of the imported fuel now used for making electricity and heat is the number one energy priority for Nikolski. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The existing power plant was commissioned by the AEA in May of 2006. There are two John Deere diesel gen-sets in operation at this time: one 71 kW and one 37 kW. The alternator on the 37 kW gen-set was increased in frame size and rating to 50 kW in November 2007 to replace a failed alternator. The diesel plant’s generation efficiency meets the PCE required 10 kWh/gal. sold each month. There are currently no provisions for waste heat recovery at this plant. In July of 2007 TDX Power, with funds from a USDA/RUS grant and the Aleutian Pribilof Islands Community Development Association, installed a Vestas V15 65 kW wind turbine. This is a used turbine that was refurbished by Halus, a well known turbine re- manufacturer located in San Francisco, CA. The turbine is wired up to the diesel plant, but not connected. The controls in the diesel plant require modification in order to integrate the energy from the wind turbine. 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. Currently Nikolski uses diesel fuel for both electric generation and heat. Most homes, businesses, and community facilities have boilers and baseboard heat. Four homes and the Lodge have working woodstoves that can utilize a significant driftwood resource. The integration of the wind turbine with the diesel plant, even in a low to medium penetration configuration, will displace significant amounts of diesel. In 2007 the power plant generated 290,599 kWh’s and used 25,548 gallons of fuel. According to the Wind Resource Report, even at a conservative estimate of 89% availability the Vestas V15 could produce 236,380 kWh/yr. and potentially displace 19,698 gallons of fuel at the power plant. Bill Scott, using software he developed, has a more conservative estimate for diesel displaced at the power plant but includes diesel displaced for heat. He estimates an annual savings of 10,248 gallons at the plant and 5,252 gallons displaced for diesel heat at the Nikolski School and Ugludax Lodge. The overall reduction in diesel fuel use will provide a cushion of time when fuel deliveries Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 18 9/3/2008 are delayed - either by weather or by the business decisions of fuel delivery services. Prolonging the time between required fuel deliveries by integrating wind energy into the generation mix will reduce the potential for disruptions in service for power, heat, and the communications equipment that rely on these services. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Nikolski has experienced an energy crisis caused by delayed fuel deliveries in both of the past two winters. This community understands the dangers of relying on an imported fuel. Last winter was particularly difficult. The fuel tanks were nearly dry many times awaiting the next ten barrels to come by plane or fishing boat before the fuel barge finally arrived in June. Residential customers in Nikolski are skillful at conserving electricity. Pre-pay meters, the ultimate conservation educational tool, were installed by Umnak Power in March of 2007. Residential customers rarely pass the 500 kWh usage subsidized by PCE. Commercial customers are conservative because of the high cost of energy with no PCE subsidy available to them. During the winter of 07/08 the community worked well together to keep the village load below 25kW so the power plant could stay on the smallest generator and conserve the most fuel. Laundry and cooking was staggered so as not to use too much power at any one time. The school and the lodge are the two biggest electric consumers for Umnak Power. And they are the biggest consumers of diesel for heat. Supplementing the power and heat for these two customers will greatly reduce the fuel requirements for the community. Retrofitting the diesel plant to divert waste heat to the Community Center is a perfect match. This is a large facility that could provide a warm shelter for the entire community if a fuel crisis once again forces residents to choose between diesel for electricity or heat. The FAA completed a new communications equipment installation in early July of this year. This equipment fills a void in communications for international air traffic between Asia and North America. This equipment requires significant reliable power. The installation was approved at this location by FAA under the assumption that the wind- diesel system proposed by Umnak Power and TDX Power would supply their needs. A letter included with this application from FAA states their needs and expectations. Completing the final phase of the Nikolski Wind-Diesel Project will benefit the residents and businesses of Nikolski by providing a stable supplemental source of fuel for power. Displacing diesel on all fronts is the goal of this project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 18 9/3/2008 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 The proposed project will integrate the existing Vestas V15 65 kW wind turbine with the existing Nikolski power plant in what is considered a low to medium penetration scheme. A diesel generator is required to be on-line at all times. Although TDX Power considers high penetration the preferred integration mode for wind energy, such complex technology is not recommended for this remote location. The Wind Resource Report estimates a 40.4% capacity factor for a V15 in this wind regime. Bill Scott estimates the wind turbine will produce 262,000kWh/year, near the high end of predictions by Doug Vaught in the Wind Resource Report. In the proposed integration scheme, the PLC control network will extend from the powerhouse switchgear to the wind turbine over the Ethernet radio link. The radio frequency Ethernet link was installed during the turbine construction period. The existing computer server will be used to connect to the wind turbine controller for monitoring and troubleshooting using the software supplied by Halus. The start stop controls signals will be via the PLC discrete I/O over the Ethernet link A PLC node will be added at the wind turbine consisting of a micro PLC with processor and I/O to start, and stop the wind turbine, and monitor the on-line status. This extension will include an enclosure, the PLC, five port Ethernet switch, power supply, and control power transformer. The enclosure will be mounted next to the existing wind turbine controller enclosure. All power and energy produced and consumed by the wind turbine, and load banks used for control, will be monitored at the diesel generator switchgear, and will be displayed at the switchgear HMI panel. The HMI panel will require a degree of programming to set-up a new GUI for the turbine operator interface. The wind turbine controller data will be available locally and remotely over the same Ethernet link using the computer server located at the diesel generator switchgear running the software provided by Halus Power Systems. The Wind turbine controller data will not be available to the PLC network for display at the switchgear HMI. To integrate the WTG controller into the existing PLC network would require development of a communications protocol driver to populate the OPC data base in the local server, and send the data to the PLC network. When the need arises to move to a high penetration scheme further development in the communications and control protocols will be required. The Halus wind turbine controller replaces the older Vestas V15 controller and includes Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 18 9/3/2008 power factor correction capacitors that are staged in two steps of 20kVar each when the turbine is put on line. User definable control of the capacitors includes delay time in seconds for connecting the capacitors after the generator has been disconnected (to allow for discharging of capacitors). Voltage stability should not be a problem using the 37kW diesel generator as the lead machine. If power factor correction becomes a problem at low wind turbine loads, we could use the local WTG PLC to do more sophisticated control of the correction capacitors other than time delay staging. The diesel generator power factor to a degree could be highly variable, but the generator will be lightly loaded, so heating of the generator should not be a problem. Note: The generator alternator on the smaller rated genset was increased in frame size and rating to 50kw in November 2007 to replace a failed alternator. Options for controlling and limiting turbine output. Controlling and limiting turbine output can be accomplished via existing Vestas braking system and the dispatch of thermal nodes. Turbine output can be regulated a couple of ways. Setting a max kW production output set point and applying the turbine brakes or by establishing remote thermal nodes to absorb energy. Limiting turbine output by applying the Vestas braking system is the simplest in terms of application and costs but could be a concern because of the cycling in the braking system and the dependence of relying on repetitive braking actions for the long term control. If the braking system should fail, a shutdown would be uncontrolled relying on the secondary means of shut down via the turbine blade tip-brakes which deploy at over speed. This method is not recommended as a normal means of control. The application of thermal receptors to absorb the excess wind turbine generated energy while more costly has the advantage of allowing the turbine to operate through its full rated output. Establishing discrete thermal nodes at selected locations such as the lodge and/or the school. A secondary advantage of the thermal nodes could be considered for a fuel use off-set at those locations. This is the preferred method. Thermal receptors (Load Banks) are proposed to be integrated into the existing school boiler system and the lodge boiler system or some combination depending on available funding. Each thermal node will be controlled from the power plant PLC dispatching excess wind energy with the first priority to dispatch energy to meet the community electric demand. Proposed Generator Switchgear Additions: Add a turbine control section to the end of the existing generator control switchgear. The new section will be bolted to the end of the switchgear, and bussed to the switchgear bus. The section will include: 1. Three molded case circuit breakers rated 150 Amp, 480 vac, 3 phase. Auxiliary contacts and 24VDC shunt trip. Note: Node 2 is intended to be remote from the buss but includes a local feeder connect/disconnect for future thermal feed if required. Wind turbine feeder. Load bank feeder (Node 1). Load bank feeder (Node 2). 2. Current transformers, nine, rated 100:5 amp, instrument grade. 3. Three electronic power meters with analog outputs and data communications. 4. Communications equipment for communications link to the wind turbine. 5. PLC input / output node connected to the existing PLC. Analog inputs for power monitoring, and analog outputs for control of the load bank. Discrete inputs for breaker status and outputs for breaker control. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 18 9/3/2008 Communications addition. Communications link to the wind turbine: 1. Ethernet link via radio modem using 2400 -2483.5 MHz. 1 Watt RF output. Unlicensed, spread spectrum. 2. Fixed base directional antennas range 5 miles, line of sight. 3. Ethernet switch at the wind turbine. Communications link to the lodge: 1. Ethernet link via radio modem using 2400 -2483.5 MHz. 1 Watt RF output. Unlicensed, spread spectrum. 2. Fixed base directional antennas range 5 miles, line of sight. 3. Ethernet switch at the lodge thermal node. Load bank addition. Thermal Node 1- School and Thermal Node 2 – Lodge. Integration of Node #1. 1. Self contained Simplex, water cooled load bank rated 64 kW, at 480, 3 phases. 2. Five load steps, four rated 10kW each, contactor controlled. One step rated 24kW SCR controlled. 3. Integral control based on 4-20mA signal input. 4. Input water flow switch. 5. Output water temperature transmitter. 6. Local power disconnects. 7. Control power derived from the primary side of the disconnect. 8. Status and control conductors to be hard wired between load bank Thermal Node #1 – School and power plant buss. 9. Plumbed with isolation to existing heating/boiler system. Integration of Node #2. 1. Self contained Simplex, water cooled load bank rated 37 kW, at 240, single phase. 2. Three load steps, two rated 10kW each, contactor controlled. One step rated at 17kW SCR controlled. 3. Integral control based on 4-20mA signal input. 4. Input water flow switch. 5. Output water temperature transmitter. 6. Remote power disconnects and user circuit breaker disconnect. 7. Control power derived from the primary side of the disconnect. 8. Electrical connection options include: Upgrade the existing single phase transformer located adjacent to the lodge or add a second 37 kva pad mount transformer to feed the thermal receptor. The KWH thermal will be recorded by a separately installed Form 2S meter. The second option is a tie-in from the 75 kva three phase 480 volt wind turbine transformer. This approach would require adding Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 18 9/3/2008 disconnects and conductor between the turbine and the lodge, and a step-down 480/240 vac transformer at the lodge. 9. Remote controlled contactor and communications equipment for communications link to the lodge thermal receptor from the power plant including PLC input / output node connected remotely to the existing PLC. Analog inputs for power monitoring, and analog outputs for control of the load bank. 10. Plumbed with isolation to existing heating/boiler system. Wind turbine interface. 1. Communication via established radio frequency modem. 2. PLC I/O node for start / stop control and status inputs for on-line and alarm. 3. Ethernet switch. 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. There are no existing land ownership issues and access to the project has been secured. 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 The following agencies have been contacted and have given their approval regarding this project: FAA SHPO Department of Defense USFWS Chaluka Corporation A Finding of No Significant Impact has been issued. Documentation regarding this finding is included with this application. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 18 9/3/2008 • Identify and discuss other potential barriers There are no existing environmental issues associated with this project. 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 total cost of this medium penetration wind-diesel system with thermal nodes at the school and Ugludax Lodge and a waste heat recovery system to the Community Center will come to $1,159,505. This final phase of the project will cost $451,030. This application for $409,530 is to complete the integration of the wind turbine, install the thermal nodes, and install the waste heat recovery system from the diesel plant to the community center. The remainder of the cost for this phase of the project will be covered by a $21,000 in-kind donation of room and board for the work crew, a $2,000 in-kind donation of trenching equipment and an operator, and a $7,800 in-kind donation of labor for construction and $700 fuel donation from the Nikolski IRA. Alaska Building Science Network has dedicated $10,000 towards the waste heat recovery system. For this phase the capital costs are expected to be $273,015 and development costs will be $178,015. To date the project has included funding from USDA/RUS of $474,475 and the Aleutian Pribilof Island Community Development Association of $134,000. These funds reflect the construction of a road to the site, design of a tilt-up tower, refurbishing and shipping the wind turbine, installing the wind turbine, running the cable from the turbine to the power plant, and a study of the necessary modifications to the existing diesel plant controls for integrating the wind energy and controlling the excess electricity to thermal nodes. Capital costs for the entire project are estimated at $486,750 and development costs at $672,755. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 18 9/3/2008 The first year of operations is expected to cost an additional $6,000 for O&M at Umnak Power because of the cost for an inventory of spare parts. Umnak Power already has an O&M oversight agreement with TDX Power. Little change is anticipated in the cost of this monthly oversight and the Nikolski IRA is prepared to cover these costs. For years 2 through 4 an additional $3,500 will be budgeted for O&M. The sale of green tags is anticipated to bring in at least $1,000 annually at the current price. This, in addition to anticipated fuel savings will more than adequately cover the added O&M costs. There are no costs associated with O&M requested with this application for funding. Umnak Power is prepared to be responsible for all O&M costs. 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 Umnak Power will add the wind energy from this project to diesel generated power for sale to the residents, community facilities, businesses, and federal facilities in Nikolski. Initially the current rate of $.55/kWh for residential customers and $.75/kWh for all other rate classes will remain in effect. Generating costs and the electric rates will be adjusted as necessary once some historical data is collected. 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. 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. Umnak Power is operated by the Nikolski IRA Council. The Council is well served by CFO Growth Solutions where the same bookkeeper has handled their accounts for the past 5 years. The utility is compliant with all RCA reporting requirements and receives PCE. In March of 2007 Umnak Electric installed pre-pay electric meters to ensure collections and to encourage energy conservation amongst their residential customers. The local utility clerk is competent and understands the system. There have been only minor problems which were quickly remedied. The lead power plant operator and the assistant operator both successfully completed a 5 day O&M training program at the Vestas O&M Center in Portland, OR in May of 2007. John Lyons is prepared to provide tower climbing safety training once the wind turbine is up and running. Funding is already set aside for this training. Umnak Power has a signed maintenance oversight agreement with TDX Power which will be amended to include the wind turbine and related thermal loads. The arrangement with Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 18 9/3/2008 TDX Power includes faxing plant logs to John Lyons weekly, followed by a teleconference between John and the plant operator. The regular contact has proven very beneficial to the Nikolski plant. Parts and supplies are inventoried, accounted for, and ordered in a timely manner. Routine maintenance is done and documented. Plant logs are kept in a notebook in the tribal office. John Lyons makes site visits twice a year for personal inspections of the facility and to make any repairs necessary alongside the plant operator, providing a meaningful training opportunity. 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 economic analysis was performed using information in the Wind Resource Report. Bill Scott has developed his own software, “Down East” which was used to calculate the fuel savings from waste heat recovery and the thermal nodes. His software calculated a more conservative estimate for the number of gallons displaced and his numbers were used in this proposal. Even with his lower estimated savings, the result is significant. Once the system is operational, it will be just as critical to investigate what home owners and businesses can install in their respective building structures to continue to reduce the cost of energy. For instance, further integration of electric powered home heating devices in line with existing diesel fuel fired furnaces may further reduce the need for diesel fuel but more importantly utilize the lower cost electricity produced by the wind turbine. Umnak Power will need to continue to evaluate homes and businesses and identify additional creative energy efficiency solutions such as in-floor heating systems, and hot water heating system via the wind turbine. Furthermore, like many communities, Nikolski should continue to employ weatherization and conservation techniques in order to reduce energy consumption. 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 medium penetration wind-diesel system is predicted to save 10,248 gallons of fuel for electric production and 5,252 gallons of diesel fuel used for heating at the school and the Ugludax Lodge. The price for #1 heating fuel delivered by Delta Western in June of 2008 was $4.47/gallon and #2 diesel for the power plant was $4.37/gallon. For the past two winters emergency fuel has cost up to $10.25/gallon when delivered by ACE cargo or a fishing boat. At the weighted average cost/gallon of $6.05 the savings is $93,775 annually and $1,875,500 over the 20 year expected lifetime of the project. . Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 18 9/3/2008 Consider the first half of the year in 2008, though. Umnak Power paid $10.25/gallon for fuel delivered. Saving 7,750 gallons at that price is equal to $79,438. Although not getting an annual fuel barge delivery is never an option any community wants to consider, it is becoming a common story in rural Alaska. And it has been Nikolski’s story two winters in a row. This community is at the front of the line for desperate to get an alternative to imported fuel. There are no tax credits available to Umnak Power for this project, but they can sell their green tags to Denali Green Tags. At the current rate of $4.50/MW Umnak Power’s project could bring in just over $1,000 annually – at today’s prices. The value of carbon offsets could go much higher in the near future. When the fuel barge does not make it to remote communities, deliveries get made in less than optimal ways. Decreasing the probability that Nikolski will need an emergency delivery decreases the opportunities for spills from non-traditional deliveries. 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. The final construction phase for the Nikolski Wind-Diesel Project is $451,030. This application is for $409,530 to complete the integration of the wind turbine, install the thermal nodes, and install the waste heat recovery system from the diesel plant to the community center. The remainder of the cost for this phase of the project will be covered by a $21,000 in-kind donation of room and board for the work crew, a $2,000 in-kind donation of trenching equipment and an operator, and a $8,500 in-kind donation of labor for construction. The total installed cost of this medium penetration wind-diesel system that includes the Vestas V15 65 kW wind turbine with thermal nodes at the school and Ugludax Lodge and a waste heat recovery system to the Community Center will come to$1,159,505. To date the project has included funding from USDA/RUS of $474,475 and the Aleutian Pribilof Island Community Development Association of $134,000. This cost reflects the construction of a road to the site, design of a tilt-up tower, refurbishing and shipping the wind turbine, installing the wind turbine, running the cable from the turbine to the power plant, and a study of the necessary modifications to the existing diesel plant controls for integrating the wind energy and controlling the excess electricity to thermal nodes. The community, with assistance from APICDA, will have contributed a total of $165,500 towards the cost of the entire project - 23% of the total costs. SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION Renewable Energy Fund Application Cost Worksheet Please note that some fields might not be applicable for all technologies or all project phases. Level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Wind Resource 9.01 m/s (at 30 meters) Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other 2 ii. Rated capacity of generators/boilers/other 1 - 37kw, 1-71 kW iii. Generator/boilers/other type none iv. Age of generators/boilers/other Commissioned May 2006 v. Efficiency of generators/boilers/other At full load, unit 1 burns 3.2 gpm; unit 2 burns 5.8 gpm. b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $12,033 ii. Annual O&M cost for non-labor $ 2,183 c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] 290,599 kWh ii. Fuel usage Diesel [gal] 25,548 gallons Other iii. Peak Load 52 kW iv. Average Load 30 kW v. Minimum Load 15 kW vi. Efficiency 11.37 kWh generated/gallon vii. Future trends Stable, with potential growth up to 1% per year d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 20,000 gallons estimated 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1 Renewable Energy Fund ii. Electricity [kWh] 0 iii. Propane [gal or MMBtu] N/A iv. Coal [tons or MMBtu] N/A v. Wood [cords, green tons, dry tons] Driftwood and scrap wood as available vi. Other 3. Proposed System Design a) Installed capacity 65 kW wind turbine b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] 262,000 kwh – Expected average annual wind turbine production 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 $201,250 b) Development cost $249,780 c) Annual O&M cost of new system $6,000 1st year, year 2 - 4 $3,500; year 5 $6,000 - $7,000 d) Annual fuel cost $94,000 reduction with Integration of Wind Turbine at 2008 annual average of $6.05/gal. $159,000 reduction with integration of Wind Turbine at 2008 late winter emergency fuel shipment. (An emergency shipment has been required past two years because scheduled Fall fuel delivery has not been made. 5. Project Benefits a) Amount of fuel displaced for i. Electricity 10,248 gallons ii. Heat 5,252 gallons iii. Transportation N/A RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2 Renewable Energy Fund b) Price of displaced fuel $6.05 c) Other economic benefits $1,000 + for green tags d) Amount of Alaska public benefits $95,000/yr. x 20 = $1,900,000 6. Power Purchase/Sales Price a) Price for power purchase/sale Current rate is $.55/kWh Res $.75/kWh Commercial 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio .21 (93,775/451.030) - fuel $ saved/cost of project Payback 4.81 years (451,030/93,775) – cost of project/fuel $ saved RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3 Alaska Energy Authority ‐ Renewable Energy FundBUDGET INFORMATIONBUDGET SUMMARY:Milestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1 WHR System $10,000.00 $28,280.00 $5,300.00 $43,580.002 Wind Turbine Integration $223,750.00 $10,500.00 $234,250.003 Thermal Node Installation $91,450.00 $8,500.00 $99,950.004 Hardwire Thermal Nodes $66,050.00 $7,200.00 $73,250.005$0.006$0.00Milestone # or Task #BUDGET CATAGORIES:123456TOTALSDirect Labor and Benefits $7,300.00 $15,000.00 $12,000.00 $12,000.00 $46,300.00Travel, Meals, or Per Diem $4,180.00 $13,790.00 $12,110.00 $6,860.00 $36,940.00Equipment $14,350.00 $14,765.00 $34,650.00 $6,500.00 $70,265.00Supplies $500.00 $500.00 $500.00 $500.00 $2,000.00Contractual Services $13,250.00 $161,500.00 $12,000.00 $16,000.00 $202,750.00Construction Services $2,700.00 $2,700.00Other Direct Costs $4,000.00$28,695.00$28,690.00$28,690.00$90,075.00TOTAL DIRECT CHARGES $43,580.00 $234,250.00 $99,950.00 $73,250.00 $0.00 $0.00$451,030.00RFA AEA09-004 Budget Form October 8, 2008 Geoff Butler, Project Manager, Village Community Building Energy Efficiency Program 5401 Cordova Street, Suite 303 Anchorage, AK 99518 (907) 562-3646 Connie Fredenberg Special Projects Manager TDX Power Inc. 4300 B St., Ste. 402, Anchorage, AK (907) 278-2312 RE: Available Funds for Nikolski Community Center Heat Recovery Connie, and whomever else it may concern, ABSN is currently working under grants funded by the Alaska Energy Authority / Denali Commission to complete energy efficiency projects in rural Alaska community buildings with the goal of reducing utility costs to village entities. In Nikolski we have completed all known lighting upgrades in community buildings and have been seeking other energy saving projects to complete our grant projects in that community. We have been working with Karen Plentnikoff of Aleutian Pribilof Islands Association, and John Lyons of TDX Power over the last several months in hopes of completing a heat recovery project to heat the Nikolski Community Center building. This project would provide substantial and long-term fuel savings to the Nikolski IRA Council and is our priority for energy efficiency projects in Nikolski. We have approximately $10,000 in available funds that is presently slated for that project to cover materials and/or labor to complete the job. Through past communications with John Lyons, we understand the plan has been to install a heat recovery system to the Nikolski community center from the nearby power plant, as part of the larger job of connecting the recently installed wind turbine to the village power system. John Lyons has done some preliminary work to assess materials and labor needed for the community center heat recovery job. Our grants for Nikolski terminate at the end of this year, which places a timeline on funding availability. Due to costs and logistics of completing work in Nikolsi, we 2 understand completing this project is dependent on dovetailing the project with connecting the wind turbine to the village power system. We understand this in turn is dependent on acquiring additional grant funding. For the purposes of our grant funds, if additional funding for the wind turbine connection comes available in the near term, we would need a letter from TDX Power and/or APIA informing us of this status, and guaranteeing the heat recovery project will be completed in conjunction with the wind turbine connection in 2009. Providing this takes place, up through December 15, 2008, TDX Power can invoice ABSN for up to $10,000 for materials used to complete the heat recovery project for the Nikolski IRA Council and the Nikolski community center. This letter also serves as a letter of support for TDX Power to receive a renewable energy grant through AEA and the State of Alaska to finish the final stages of completing the wind diesel power system in Nikolski. Sincerely, Geoff Butler Project Manager, ABSN Village Community Building Energy Efficiency Program Cc: Karen Plentnikoff, APIAI John Lyons, TDX Power Tanya Kyle, Tribal Administrator, Nikolski IRA Council ABSN - Village End Use Energy Efficiency Upgrade Projects – 2008 (907) 562-3646 Fax: (907) 770-5412 .High Penetration Wind-Diesel Project Community of Nikolski, Umnak Island Alaska ( Aleutian Pribilof lslan-ds Association Connie Fredenberg, Alternative Energy Coordinator 201 E. 3'(' ~ve. Anchorage, AK 99501 I Phone: (907)222-4222 Fax: (907)222-4286 constancef@apiai.org Environmental Report Finding Of No Significant Impact