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Chefornak Wind Energy Conceptual Design Report - Jul 2015 - REF Grant 7040056
Community of Chefornak Wind -Heat System Conceptual Design Report - Final Prepared for the Alaska Energy Authority Renewable Energy Fund Grant #7040056 Prepared by: Intelligent Energy Systems, LLC 110 W15th Ave Unit B Anchorage, AK 99501 907-770-6367 ies Executive Summary This report has been prepared by Intelligent Energy Systems, LLC, (IES) ofAnchorage, for the Community of Chefornak under the Alaska Energy Authority Renewable Energy Fund (REF) grant #7040056. The purpose of this study was to determine the technical and financial feasibility of using wind energy to displace diesel fuel used for heat and power in the village of Chefornak. This report proposes a conceptual design for a wind system, an estimate of the benefits of the wind system, and a construction cost estimate. This CDR analyzed different architectures including 3 different wind turbine manufacturers and multiple heat recovery equipment options. HOMER software was used for energy modeling. Cost analysis was preformed in regards to wind turbine capital costs, installation estimates, and heat recovery equipment options. Based on the analysis and community input, IES proposes the construction of a five wind turbine architecture with associated electrical controls and heat recovery equipment including a load regulating boiler. The proposed project consists of three primary components: 1. Five Windmatic 17 S, 95 kW (475 kw) wind turbines and. 75 miles of electrical distribution upgrade, with a .3 mile access board walk to the wind site. 2. Power plant control system upgrades including a load regulator in the power plant, upgraded repairs to the switchgear wiring and breakers, and installation of a wind diesel supervisory control and data acquisition system (WDSCADA). 3. Heat recovery equipment including commercial boilers and 40 ETS units located in residential homes. The recommended architecture proposed is estimated to annually displace 36,000gallons of diesel fuel used for power generation, and an additional 19,000gallons of heating fuel displaced by heat recovery equipment including residential electric thermal stoves (ETS) units. Intelligent Energy Systems, LLC ii 7/1K001K Chefornak Wind Heat System Conceptual Design Table of Contents ExecutiveSummary................................................................................................................ ii Section1.0 - Introduction.....................................................................................................1 Section 1.1-Project Participants..........................................................................................1 Section 2.0 - Community Description...............................................................................1 Section 3.0 - Existing Facilities...........................................................................................1 Section 3.1- Power System Overview............................................................................... 2 Section 3.2 - Annual Electrical Load Data........................................................................ 2 Section 3.3 - Fuel Purchases.................................................................................................. 3 Section 3.4 - Power Distribution.......................................................................................... 4 Section 3.5 - Heat Recovery................................................................................................... 4 Section 4.0 Community Power Demand and Homer Modeling................................4 Section 4.1- Load Growth Projection................................................................................6 Section4.1.1- Housing.............................................................................................. 8 Section4.1.2 - School.................................................................................................. 8 Section4.1.3 - Airport................................................................................................ 9 Section 4.1.4 - Water and Sanitation................................................................... 9 Section 4.2 - Alternative Energy and Energy Efficiency ............................................ 9 Section 4.2.1- Village Energy Efficiency Program ......................................... 9 Section 4.2.2 - Heat Recovery Opportunities................................................... 9 Section 4.2.3 - Wind Resources............................................................................10 Section 5.0 Proposed Project Recommendation.........................................................11 Section 5.1-Wind Heat Proposal.......................................................................................13 Section 5.1.1- Site Selection..................................................................................13 Section 5.1.2 - Wind Turbine Selection............................................................14 Section 5.1.3 - Heat Recovery Equipment..................................................... 19 Section 5.1.4 - Wind Diesel Controls.................................................................21 Section 5.2 -Diesel Power Plant Upgrades.....................................................................22 Section 5.2.1 - Current Power Plant...................................................................22 Section 5.2.2 - Bulk Fuel Storage.........................................................................22 Section5.3 -Distribution.......................................................................................................23 Section 6.0 Site Control and Selection............................................................................24 Section 7.0 Permitting and Spill Response...................................................................24 Section 7.1-U.S. Fish and Wildlife.....................................................................................25 Section 7.2 -U.S. Army Corp of Engineers......................................................................25 Section 7.3 -Federal Aviation Administration..............................................................25 Section 7.4 -State Historical Preservation Office........................................................26 Section 8.0 Construction Plan...........................................................................................26 Section 8.1 -Project Schedule..............................................................................................26 Section8.2 -Project Risk........................................................................................................26 Section8.3 -Job Skills..............................................................................................................28 Section 8.3.1 - Chefornak Local Employment................................................28 Section 8.4 -Material Resources.........................................................................................28 Section 8.4.1 - Resources in Chefornak and CWG........................................28 Section8.4.2 - SnoCat...............................................................................................29 Section 9.0 Project Cost Estimate.....................................................................................29 Section 9.1 -Operations and Maintenance Costs.........................................................30 Section 9.1.1 - Control System..............................................................................30 Section 9.1.2 - Wind Turbines..............................................................................30 Section10.0 Appendices.....................................................................................................31 Appendix A: Wind Resource Assessment Appendix B: Geotechnical Analysis Appendix C: Electrical System One Line Appendix D: Electrical System Condition report Appendix E: Site Control Appendix F: Homer Analysis Intelligent Energy Systems, LLC 7 /1 K /901 K 1.0Introduction: This report has been prepared by Intelligent Energy Systems, LLC (IES) for the community of Chefornak. The purpose of this study is to determine the technical and economic feasibility of using wind energy resources to displace diesel generation. This study provides an assessment of the wind resource potential along with a conceptual design and cost estimate for installation and operation of an economically viable community wind project. The design and cost estimates are based on operating systems in nearby communities. The objective of this study is to determine the suitability of wind power for the Renewable Energy Fund program application. 1.1 Participants in the project include: • Naterkaq Light Plant o Anna Abraham - Utility Manger o Joe Abraham - Power Plant Operator • Intelligent Energy Systems, LLC • Sakata Engineering • V3 Energy • City of Chefornak o Rosalie Mathew -Mayor o Bernard Mael - Former City Administrator • STG Inc. • The community of Chefornak 2.0 Community Description: The community of Chefornak is located on the south bank of the Kinia River at its junction with the Keguk River in the Yukon-Kuskokwim Delta. The village lies within the Clarence Rhode National Wildlife Refuge, established for migratory waterfowl protection. Chefornak is 98 air miles southwest of Bethel and 490 miles southwest of Anchorage. The city's GPS coordinates are 60.159070,-164.269437. tzebue S Fairbanks® ,t l`r 7 F� Anchorsv A- Bethel .. r� �] �l inghain� Qai&F W-1alka Fq� Intelligent Energy Systems, LLC 1 Located in a marine climate, precipitation averages 22 inches, with 43 inches of snowfall annually. Summer temperatures range from 41 to 57 'F. Winter temperatures range 6 to 24 'F." The city covers approximately 5.7 square (sq.) miles of land and approximately 0.8 sq. miles of water. Western Alaska has historically been occupied by Yup'ik Eskimos. In the early 1950s, Alexie Amagiqchik founded a small store at the site. He had moved from a village on the Bering Sea to the new location one mile inland to escape potential floodwaters. Others from the original village followed and settled in Chefornak. The city was incorporated in 1974. According to the 2010 census, the median household income in 2010 was $39,583 with a per capita income of $9,682. Approximately 26.6% residents were reported to be living below the poverty level. The potential work force (those aged 16 years or older) in the city was estimated to be 157, of which 122 were actively employed. In 2010 the unemployment rate was 13.2 percent; however, this rate included part- time and seasonal jobs, and practical unemployment or underemployment is likely to be significantly higher. The community's economy is primarily based on subsistence with other economic opportunities. These opportunities include commercial fishing, a small fish processing operation, and seasonal construction. Full time employment is limited to City and Tribal Offices, the school, the US Post Office, and the corporation store. Chefornak is accessible year round by air. The community can be accessed in the summer by barge/boat. A state-owned 3,230 ft. x 60 ft. wide gravel airstrip provides chartered and private air access year-round, and a seaplane base is available. Although there are no docking facilities, a number of fishing boats and skiffs are used for local travel. Snow machines are relied upon during the winter. Winter trails are marked to Kipnuk (20 miles southeast) and Kasigluk (78 miles northeast) and allow the movement of people and limited goods. 3.0 Existing Facilities: Chefornak has a diesel power plant with bulk fuel storage, a new 44,000 sq. ft. school completed in 2013 and the old school remodel finished in 2014, a community building, a washeteria, and 99 residences. 3.1 Power System Overview: The community received a new power plant that was constructed in 2008 by the Alaska Energy Authority. The electrical distribution system was built in 1980's and is divided into three sections: The old town, the new airport extension, and the new housing section. During the construction of the school, new housing and the airport runway, new power poles and conductors were installed. The remainder of the system is in need of repairs and upgrades. Intelligent Energy Systems, LLC 2 The power plant has three diesel engine generators. Generators No. 1 and No. 2 are John Deere Model 6125HF070, driving Marathon generators, each with a rating of 371 kW. A third engine generator is a John Deere Model 6081HF070, Marathon generator, with a prime power rating of 178 kW. The diesel engines and generators are controlled by Woodward GCP 31 engine generator controllers which provide start, stop, alarming, and protective functions for each engine generator set. The Woodward engine generator controllers are interfaced to the power plant supervisory data acquisition and control system (SCADA) that is housed in the switchgear cabinets. The SCADA is designed to; provide load dependent starts, black starts, paralleling of diesel engines, and breaker operation through the engine generator controllers. The switchgear hardware is housed in six cabinets: one cabinet for each engine generator controller and breaker, one for each of two variable speed drives which operate the radiator fans, one for each of the two distribution breakers, and one cabinet housing the supervisory control system. The current data collection and monitoring capacity is unable to provide system load performance data. Instrumentation was installed to capture one week of high-speed load data and establish a reference load and power quality baseline. This data collection capacity was expanded in June 2014. The power plant is well maintained and there is plumbing infrastructure and existing heat exchanger with the capacity for expansion of a heat recovery loop. There is also sufficient room to install a load balancing boiler in the power plant. The current diesel operating strategy is to run one of the larger gensets to meet the load during the day and a smaller genset to be run at night. 3.2 Annual Electric Load Data: On site data was collected by monitoring the power plant bus to evaluate the electrical load profile. One week of sub -second data was collected to determine the general load profile and establish a power quality baseline. This data was combined with historical Power Cost Equalization (PCE) data, and synthesized using both the Alaska Village Load Calculator spreadsheet developed by the AEA, and the load profiling capability of the HOMER model. These results were then adjusted to match actual recorded data. The result is 209kW average load, with seasonal, daily and DMap profiles provided in the attached HOMER profiles. In July of 2014, IES installed a digital data logger in the Chefornak power plant to capture and record power production, wind speed and outdoor temperature at the power plant. 3.3 Fuel Purchases: In 2013, the utility fuel storage was insufficient to meet the required generation and by February and March the utility had depleted its fuel storage and was required to purchase 20,000 gallons at retail price ($6.50-$7.00/ gal) from the school and corporation. One of the utility's 5000-gallon storage tanks was due for decertification for service in 2014. Load growth due to population increases, Intelligent Energy Systems, LLC 3 general increases in energy consumption and the addition of the proposed water and sewer project will increase the need for additional bulk fuel storage. The installation of a wind project would defer or negate additional investments in required bulk fuel storage while providing an additional annual economic benefit of over $90,000. Utility Fuel Purchases Date Amount (gallons) Price Cost Jan. & Feb. 2013 9,000 $6.95 $6Z,550.00 April 2013 8,356 $7.05 $58,909.80 May 2013 5,000 $6.65 $33,250.00 July 2013 51,000 $3.68 $187,680.00 Barge Sept 2013 50,000 $3.88 $194,000.00 Barge Feb.2014 10,000 $6.65 $66,500.00 June 2014 51,000 $3.75 $190,995.00 Barge 3.4Power Distribution: Chefornak's 7,200/12,470 kVA overhead electrical distribution system was constructed in 1986. The system has passed the point at which repairs are a viable option and is in desperate need of replacement. During recent years the average line loss has consistently been over 30%. In April 2013, IES determined excessive line losses were due to incorrect multipliers applied on three phase power meters. The school facility, the largest consumer in the village, had the incorrect multipliers applied to its kWH consumption. When this accounting error was adjusted, reported line loses declined to less than 10%. Small line loss is still created by unmetered streetlights. Chefornak has replaced 27 of these streetlights with LED lights. Only one of these LED lights is metered. The kWh from this meter is multiplied by 27. 3.5 Heat Recovery: The existing heat loop adds heat to the washeteria and one section of the domestic water line. This line runs between the washeteria and the pump house near the MET tower and CVRF building. There is electric heat tape on the domestic water lines that acts as a backup to the heat loop. Few people actually use the watering points Intelligent Energy Systems, LLC 4 due to the poor water quality. The new school has not expressed interest in accepting heat from an expanded heat recovery line. Future options for an expanded heat loop include a new water treatment facility if constructed in the vicinity of the power plant. 4.0 Community Power Demand: (HOMER Modeling) As with most rural communities, the electric load in Chefornak is lowest during the summer of June, July and August. This is due in part to the following factors: residents are fishing, the weather is more hospitable and school, one of the largest energy consumers in the community, is out of session. In 2013, Naterkaq Light Plant generated 1,812,860 kWh and sold 1,026,057 kWh. This load was divided between 101 Residential customers, 43 commercial customers, and 7 public facilities. The primary public facilities were the school and the washeteria. During 2013, average community electrical load was 209 kW, with minimum load of 167 kW, which occurred at night during the summer. A maximum electrical output of 357 kW occurred in February. The community experienced a load growth rate of 3%, over the previous estimates for the conceptual design completed for the construction of the new power plant in 2008. With the opening of the new school, the average load is expected to increase to 236 kW with an expected increase of the minimum average electrical load by 50 kW. This will increase fuel demand at the utility by over 30,000 gallons. Annual kWh sales are estimated to be over 2,000,000 by 2018. Additional load growth is attributed to the operation of the Coastal Villages Region Fund fish processing plant, the expansion of the water and sewer project, and new housing. The water and sewer plant is in the final design phase, with construction anticipated in 2018-2019. This CDR is based on the current electrical load of 1,800,000 kWh, with planned growth to 2,000,000 kWh by 2020. 60000 SUM 50" 4SOW 40M 3SOW 30000 Chefornak School Consumption (Kwh) 5/1/13 611113 7/1/13 8/1/13 9/1/13 1•0/1./13 11/1/13 12/1/13 1/1/14 2/1/14 3/1/14 4/1114 Intelligent Energy Systems, LLC 5 /JOD WOO YxrJ 43,013 3000 10X W 1 Chefarnmute Corp Energy Consumption (Kwh) 1.(1..13 2i1/13 3/1/13 6/1/13 5/1/13 6/1/13 //1,113 8/1i13 9/1/13 10/1/13 1111113 12.11./13 4.1Load Growth Projection: Chefornak has experienced steady growth in monthly kWh consumption that is consistent with other nearby communities. Consumption/generation in Chefornak has increased by approximately 16% since 1992 (.86% annual average). It is expected that the village load will continue to grow throughout the duration of the project's lifespan at a rate that is comparable to past experience. In comparison, over the same period (1992-2009), AVEC's consumption over their entire network has grown by 27% (1.36% annual average) Information involving average monthly consumption for the communities of can be found in the charts below. The PCE reports for the fiscal years 2007 thru 2014 are included in the appendixes. Below is a graph showing the village kWH consumption from fiscal 2007 thru 2014. The sharp kWh consumption growth in 2009 through 2013 can be attributed to the following events in order of magnitude: the school construction which started in 2010 with site prep then went into foundation construction in 2011, new school construction in 2012 followed by the remodel completion in early 2014. This not only includes the added consumption of construction activities of the new facility but also the additional consumption of the large construction crew at their living quarters. The Airport renovation had the same effect with the facility construction enhancements and the crew quarters consuming. Chefornak has a small commercial fish processing facility that is only active some years due to local harvest ability and fishing stocks. This facility uses flash freezing methods to preserve the product for exporting. Because of these events the projected annual growth looks like it has been accelerated. This is not the case as the anomalous events described above have skewed the consumption for the three years of 2010 thru 2013. By examining the end of fiscal 2013-2014 PCE report the school has been completed and the additional consumption has leveled off to a quantity expected for the larger school facility. The airport construction finished and the fish processing was not active in 2014. Intelligent Energy Systems, LLC 6 3000000 2500000 2000000 1500000 1000000 500000 y 2000000 c 1500000 era 1000000 500000 x 0 KWH Generated _KWH Generated —Ezpon. (KWH Generated) Historical kWh Diesel usage comparison: Chefornak O� Oa, O-" Off ` O� O OHO O^ 00 O0) yO �" y-t' ,LO ,LO �O Year kWh generated -Total kWh sold Population data for Chefornak shows a relatively constant population growth since 2003 with slight declines in 2009 and 2012. The 2009 decline was likely caused in part by the sharp rise in energy costs crisis that impacted communities throughout Western Alaska. The current population is 418, with a certified population count from the 2010 census stating 470 residents. Intelligent Energy Systems, LLC 7 GRID 460 440 a. 420 0 a 400 91Y11 Population 470 475 457 460 449 434 439 419 419 418 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Verified population data from DCRA 4.1.1 Housing: According to the Division of Community and Regional Affairs (DCRA), there are 99 housing units in Chefornak, but only 92 of these are occupied year round. Of the 7 unoccupied housing units, 3 of these are used on a seasonal basis. Seasonal usage may be due to various factors which are not explored in this report. According the most recent census data, average household size in Chefornak is 5 individuals.' However, until 2012, Chefornak showed relatively consistent population growth. In 2013, the population rose to 437 and 2014 numbers will show whether this increase will continue. The assumption is that additional homes will be constructed and occupied if population increases, thus impacting the potential energy load in the community. There has been some additional home construction by the Association of Village Council Presidents (AVCP). 4.1.2 School: In 2013, the Chefornak School had 178 students from kindergarten to 12th grade. The school is occupied from the first week of August to the end of May, typically operated from 7 am to 7 pm with extra -curricular activities outside of the school day and throughout the summer and winter breaks. Three quarters of the students are under the age of 15. The Chefornak School was expanded in 2012-2013. The new school in Chefornak has two generators, one rated at 575kW and another 135kW generator, which are used for back up and emergency power only. The average school electrical load is 200 - 230 kWh/day, with a peak load of 45 kW. 1 DCRA Intelligent Energy Systems, LLC 8 7/1K001K 4.1.3 Airport: In 2012 the Chefornak Airport was relocated and rebuilt. The upgraded state owned runway consists of a 3,230 foot long x 60-foot wide gravel airstrip. The strip is used by scheduled and chartered aircraft year-round. Currently the runway has minimal lighting marking the ends and edges. There is the potential for further airport improvements as the demand for air transportation increases. 4.1.4 Water and Sanitation: The city operates a small water treatment plant, which pulls water from a local well. Water is provided to the community from 12 watering points for 25 cents per 10 gallons via token purchase. Residents also use rainwater and melted ice for drinking and domestic use. The community's water treatment facility provides piped water to the local school, health clinic, fish processor, and project camps. The city also owns and manages the community landfill and sewage lagoon. Improvements to this system would require further energy systems improvement, and represents a potential energy use increase. This system is scheduled to be upgraded in 2015/16 with state and federal funding. 4.2 Alternative Energy and Emergy Efficiency: In most rural communities there are plenty of opportunities for alternative energy and energy efficiency. These systems and technologies include energy efficiency measures, both at the production side as well as end -user efficiency. Chefornak also has an excellent wind resource that makes it a candidate for a wind project. Combining end use and production efficiency with a wind system will give Chefornak the opportunity to make strides towards a sustainable future. 4.2.1 Village Energy Efficiency Program: Chefornak received funding through VEEP/EECBG grants for energy efficiency upgrades for 11 community buildings and four teacher housing units in 2005- 2006. The project replaced 149 inefficient lights through out the village with electronic ballast T8 lamps. These upgrades dropped the community energy use from 27,248 watts to 13,974 watts. This was the equivalent of displacing 1,892 gallons of diesel. This project cost $37,250 and had a simple payback of 3.3 years. There are ample opportunities for further end user improvements that will increase the efficiency of the village and save the community thousands of dollars. These improvements help make the positive impacts of other energy projects greater. 4.2.2 Heat Recovery Opportunities In addition to the existing heat recovery system, the future upgraded washeteria will also include a heat loop. The projected fuel use at this washeteria & water treatment plant is approximately 20,000 gallons annually. The corporation store is another potential customer for heat recovery opportunities. Intelligent Energy Systems, LLC 9 The new school has a new mechanical room with 3 boilers. It currently does not receive any heat recovered from the power plant nor expressed any desire for future heat from the power plant. The villages' residential heat load is also an option to receive the benefits of heat recovery through use of the ETS units. 4.2.3 Wind Resources: To verify that Chefornak is a strong candidate for a wind system, AEA began gathering wind data in 2011, a process that was completed by IES in 2014. Wind Resource Documentation Wind data recorded at the project site from an installed MET tower has been collected over a 16 month period and utilized in the analysis. Detailed information regarding the wind resource is included in the attached "Wind Resource Assessment Report." Wind measurement instrumentation was installed on a six-inch diameter 30 meter NRG tubular Tall Tower (MET tower) located immediately east of the village of Chefornak and near the south bank of the Kinia River. The tower is located on open tundra and is well exposed to winds from all directions. This site was chosen as a potential wind power site with relatively short connection to existing power distribution. Calculations indicate high mean wind speeds during the winter months with more moderate, but still quite high, mean wind speeds during summer months. This correlates well with the typical village load profile with high winter -time electric and thermal energy demand and lower summer -time energy demand. Chefornak experiences moderately cool summers and cold winters with resulting higher than standard air density. The data set of the measured mean annual temperature of - 0.9°C was compromised however by failure of the temperature sensor in mid -March, 2013. With inclusion of late March thru July 2013 data, the mean annual temperature would be higher than indicated. Calculated annual mean air density during the MET tower test period exceeds by 5.9% the 1.225 kg/m3 standard air density at a 20-meter elevation. This is advantageous in wind power operations as wind turbines typically produce more power at low temperatures/high air density than at standard temperature and density. Again though, this calculation does not include data from the warmer summer months so the mean air density should be considered with some caution, as it is likely high. The wind speed versus temperature scatterplot below indicates that a substantial percentage of wind in Chefornak coincides with cold temperatures, as one would expect. During the MET tower test period, temperatures rarely fell below -30°C and never below -40°C, the minimum operating temperature of arctic -capable wind turbines. Wind frequency rose data indicates that Chefornak winds are fairly directional, with north -northeasterly winds predominating and southwesterly and northwesterly Intelligent Energy Systems, LLC 10 winds contributing less significantly. Interestingly, the mean value rose indicates that northeasterly and southwesterly winds are of highest intensity. This results in the wind energy rose which indicates that power production winds are strongly northeasterly and to a lesser extent southwesterly. Wind conditions at the project site have been measured at 6.75 m/s (at 30 M hub height) through the collection of one year of MET tower data. Average wind power output from the wind system is estimated to be 117 kW with a total gross annual estimated wind system production of 1,027,060 kWh/yr. The completed project is expected to run at a 25% capacity factor (100% availability) and is designed to provide a medium penetration, diesel on, wind/heat/diesel system. 5.0 Proposed Project Recommendation: The excellent wind resource in Chefornak makes the community an ideal candidate for a wind system. Located only 13 miles north of Kipnuk, Chefornak has been exposed to the wind heat systems in the Chaninik Wind Group (CWG) communities, and has decided that a wind system will provide the residents in the community the opportunity to achieve a more sustainable future. The proposed Chefornak wind heat system will be modeled after the proven systems in the communities of Kongiganak, Kwigillingok and Tuntutuliak. It will incorporate wind turbines, electric thermal storage and load balancing components. The benefits of this project include displacement of diesel fuel used for power generation and heat, the creation of local wind technician jobs, the deferment or elimination of construction of additional bulk fuel storage, and improved generation efficiency. Through these measures, the community will reduce its reliance on fossil fuels, which will help stabilize the local Intelligent Energy Systems, LLC 11 community. The project will achieve: • Fuel displacement for power generation: 36,888 gallons (displaced with wind) • The utility's reduced fuel purchases of $184,440 annually (based on an average price for fuel over the lifetime of this project of $5.00/gallon) • Heating fuel displacement of 19,062 gallons (displaced with wind) • Estimated fuel displacement for home heating at 8,720 gallons annually with ETS units • Deferred bulk fuel storage upgrades (city usage 130,000 gallons, usable storage capacity 72,000) • Creation of long term local jobs, 2 part time wind techs The proposal project is laid out in the following sections and includes the related infrastructure development needed for the completion of a successful project. The recommended architecture is separated into three sections: Section 5.1, "Wind Farm " describes the proposed construction of a new wind system, including wind turbines, heat recovery equipment, and controls. Section 5.2, "Diesel Generation System" describes the upgrades to the diesel power plant, including heat recovery and a SCADA control package that will monitor and control integration of the wind energy. Section 5.3, "Distribution System Repair/Replacement" describes needed upgrades and repairs to the existing power distribution system. The process used to determine the best equipment options and architecture for Chefornak was based on HOMER software modeling, cost analysis on equipment and input from the community. To specify a community wind project based on HOMER guidelines in itself is not sufficient for defining the potential benefits from a wind project. Other issues that were taken into consideration include: Total fuel displacement: To be sustainable the wind project must be economically beneficial to the community it serves. If a wind project is too small, the benefits will be insufficient to incentivize the community to overcome the difficulties and the costs associated with the operations and maintenance of the infrastructure required. On the other hand, a wind project that significantly reduces a community's dependence on fossil fuels while translating a portion of the fuel savings into local jobs can provide a considerable economic boost for the community. Bulk fuel storage expansion mitigation: For the last 3 years, the utility has had to purchase over 20,000 gallons at retail price ($6.50-$7.00/ gal) from the school and corporation due to insufficient bulk fuel storage. In 2014, the Intelligent Energy Systems, LLC 12 7/1K001K utility's bulk fuel storage was further reduced by decertification of a 5,000- gallon storage tank. HOMER estimates the 5 turbine project has the potential to displace 36,000 gallons of fuel used for power generation and another 20,000 gallons of heating fuel. This level of fuel savings represents a 33% reduction in fuel consumption by the utility. This project would eliminate the immediate need for additional bulk fuel storage to be constructed. • Load growth discrepancies: There may be sizeable differences between load estimates and actual demands on the utility over the life of the proposed wind project. Load growth due to population increases and general increases in energy consumption is predicted. The addition of the proposed water and sewer project will also increase the need for additional electrical energy. 5.1 Wind Heat Proposal: The recommended Chefornak project consists of five Windmatic 17S 95 kW wind turbines with a combined installed capacity of 475 kW. It is the intention of the design to provide a high proportion of wind energy to the village even with a modest wind speed. Surplus energy produced from the wind farm is captured as heat for secondary loads. The integration of wind energy includes the installation of heat recovery equipment. A load regulating boiler is necessary for load balancing and frequency regulation. This unit can be interfaced into the heat recovery loop at the power plant. The other heat recovery equipment proposed are electric boilers in the public facilities and electric thermal stoves (ETS) in residential homes. The entire wind diesel system would be controlled using a wind diesel supervisory control and data acquisition system (WDSCADA). The design of the heat recovery systems would be included as part of the final design. Some improvements are needed to the electrical distribution system. Minor distribution upgrades are required to connect the wind system to the existing power system. This will require the installation of sectionalizing equipment, the replacement of three existing power poles, as well as the extension of the distribution by three power poles to the wind farm site. 5.1.1 Site Selection: The proposed wind site is located 1,000 feet from the existing 12.47 kV transmission line and will require a 3-pole line extension. The power poles to the wind turbines will be supported on driven H piles. The wind turbines will be located on the east side of the village along the river. After careful consideration, it was determined that this site balanced permitting, site control and wind resource issues in the best way possible. Intelligent Energy Systems, LLC 13 7/1K001K ,� � dew •, �.. ,�� = b. �a a is x 7 0 V1, i- 0 Several alternative wind sites were proposed along the road, running from the barge landing on the river to the airport. These sites presented good road access for service and installations, as well as proximity to an existing power line. The shortcomings of these options included upgrading of the single-phase distribution to three-phase, which would require additional engineering. The FAA indicated that potential wind site locations along the road violated the FAA instrument approach area and would require an extensive FAA review and possible reclassification. A preliminary review of alternative locations along the road outside of the instrument approach profile indicated that as much as 8,000 feet of three-phase line would require upgrading and additional engineering work would be required to ensure NESC codes are met for this line extension. After consulting with the community, these alternatives were discarded, as the community expressed concerns over alternative future uses of the land and overwhelming support for the selected area. 5.1.2 Wind Turbine Selection: Three wind turbines were considered for this project; the Windmatic 17S and the Northwind 100B 19/21 and the EWT. All of these turbines have been previously used in Alaskan projects and are on the list of approved AEA turbines. The EWT was ruled out as a potential wind turbine for the project after consultation with a geotechnical engineer. It was determined that that soil conditions were not favorable for the installation of tall turbines and would require an expensive and massive foundation. There were also concerns about the height of Intelligent Energy Systems, LLC 14 the turbine with respect to air carriers' customary practices. Rather than use a singular large machine, like an EWT 900, it was determined that several smaller machines were a better option. The advantages of the multiple smaller turbines include: ease of construction and maintenance, redundancy for increased dependability, options for separate selection and control, and regional maintenance capacity. Both the Windmatic and the Northwind are equipped with power electronics and customer interfaces for ease of integration into the village power system. The power electronics interface removes the starting current requirements and the need to provide reactive power support. Both wind turbines have a digital control and communication interface. This type of control provides real time control, communications and diagnostics between wind turbines and the power plant supervisory control. The local control of each wind machine includes: the state of the machine (running, stopped, on-line and off-line, power generated, alarms, nacelle position, etc.) Supervisory controls of the wind machine include, starting machines, stopping machines, and reducing the power output of the machine. It is proposed that the wind turbines be connected to the diesel plant via fiber optic cable. The turbines themselves will be installed on driven steel piles and placed approximately 250 feet apart. Each turbine will have an individual 12.5 kVa transformer. The geotechnical analysis indicates that the project site and route for interconnecting distribution line lie within a zone of discontinuous permafrost silts. Confirmatory geotechnical analysis is planned for the final design phase, however, investigation of nearby data has not revealed any conditions with which the project team is unfamiliar based on experience with similar locations in the Kuskokwim Delta. The proposed wind turbine foundation designs consist of driven piles, which have been used in soil conditions similar to those expected at the project site. Similar driven pile foundation has been used on the new school as well as on almost every wind turbine installed in this region of Alaska. A. Windmatic 17s Wind Turbine: The Windmatic turbine has a track record of ruggedness and reliability in surrounding community installation and the AEA has selected this turbine for their project in St. George. The turbines are proposed to be installed on four legged 85- foot lattice towers using pile foundations. The turbines have a 17-meter rotor and a rated capacity of 95 kW at 35 mph. These machines are rugged and well proven. They are available from a number of sources as fully remanufactured machines and most parts are available from suppliers as off the shelf components. A regional support network for these machines has been established by the CWG communities, thus helping ease the potential cost of bringing in multiple maintenance crews. There are well -trained regional crews located in Tuntutuliak, Intelligent Energy Systems, LLC 15 7/1K001K Kwigillingok and Kongiganak who could offer assistance and training to power plant employees in Chefornak. B. Northern Power System Northwind 100: There are over 30 Northwind 100 wind turbines operating in rural Alaska. The turbine is offered with both the 19 and 21-meter rotor diameters and is provided with a 30 meter tubular tower. The turbine is installed on pre -stressed concrete foundation which is welded to driven pile. Throughout its operations in Alaska, the Northwind 100 has shown reliability. The Northwind is equipped with a proprietary power electronics interface, and digital control system to monitor, control and provide an interface to the wind diesel supervisory control system. HOMER modeling of the Northwind 100s are included in the appendix. However, these machines require maintenance from outside technicians and due to Chefornak's location and logistical difficulties, the turbines could be down for long periods of time while the maintenance contractor is unable to reach the site. Another factor is the consideration of expense to hire technicians from an outside contractor. C. Wind Turbine Cost Estimates: Cost estimates for turbine installation were developed based on regional experience with similar projects, and after review of geotechnical information and structural requirements. Gross annual estimated energy production for each turbine was arrived at through comparison of power curves and wind resource information using HOMER. A separate resource assessment and wind diesel project analysis was conducted by Doug Vaught of V3 Energy. The wind resource assessment is provided in the appendices. A 20-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, and supported by ISER analysis. A detailed spreadsheet of the estimated costs of turbines types and associated cost is included below. Wind turbine make Pricing Quantity Turbine Pricing Foundation Foundation pricing estimate Tower Transmission upgrades Itertie/InfrastruAre estimate Integration Design estimated supply and install cost Total Per Turbine InstalkionCost Per Turbine irrrri© rirrrri� rrirQ�.�... �.-..� � .. ,irrrri :rrrm ,rrrrrm m ��� rr � ii irrrri� riirrrii� rriiQ�.�. �. �.-..� � � .. � irrrri rrrrir rrrrrm ,r m r: r irrrri© irrrii� r�rrrriQ�.�� �. �.���� � � �. � :rirrrri rrrir rrrrrir .�iir •;:rr .:,ir irrrri� irrrrii� �.rriiQ�.�� � :irrrri rrrm ,rrrrrm ��m :�� rr .• it . � rr � rrr ri © rrr ii � �,: rr it � .� ri rrr ri err rir ,rr rrr m r it � err �: •ii rr rrrri� irrrii� .rrii�.�� � irrrri rrrrir ,rrrrrir ,:.��ir� Intelligent Energy Systems, LLC 16 D. Recommended Turbine Selection: For the final design and implementation stage of this project, it is anticipated that a medium wind penetration system will be the most effective architecture for the Chefornak wind resource. In order to accomplish this architecture while balancing budgetary concerns, the less expensive Windmatic 17s turbines are recommended. Like the CWG villages, Chefornak made clear the importance of having units that can be maintained by local wind turbine technicians. With added turbines in the regional network, further opportunities arise for additional job creation while lowering the reliance on specialized staff that must be flown in to provide routine service, as would be the case should the project proceed with Northwind 100s or another unit not currently installed in the region. Additionally, during the construction phase of the project, technicians and local construction workers who are already familiar with the technology can be employed, bringing more economic benefit to the community. The Windmatic has the added benefit of being a more affordable unit with lower 0&M costs. Chefornak is interested in displacing as much diesel as possible. This means installation of more turbines rather than fewer. Because Windmatic turbines have a lower initial investment cost, as well as lower 0&M costs than the Northwind, the village is able to purchase more turbines at a lower cost, while lowering the need to pay for outside wind technicians to come into the village on a regular basis. A low penetration system could be built with possible future expansion of more wind turbines, however, construction costs including the mobilization of equipment make this a less desirable and efficient use of resources. The results of the HOMER analysis for the Windmatic 17S are summarized in the following table. Intelligent Energy Systems, LLC 17 7/1K001K Fuel Boiler on Excess Excess Total Relative Heat Thermal Savings/gallons Electricity Fuel Cost of Energy Loop Savings Electricity kWHr kHWr Diesel 0 1,447,822 0 17,846 13,272 .443 Only Wm 17S 13,401 1,496,286 1325 15,405 25,204 .429 1 Wm 17S 23,737 1,490,959 47,684 16,298 35,702 .41 2 Wm 17S 29,827 1,420,284 157,629 31,949 43,934 .399 3 Wm 17S 33,872 1,336,367 298,372 73,079 50,522 .394 4 Wm 17S 36,887 1,256,751 454,571 137,978 55,950 .393 5 Assumptions underlying the HOMER modeling: 1. 18% of the fuel value consumed by the diesel generators is captured by an existing heating loop to the water treatment plant. This corresponds to the approximate heat available in the jacket water without consideration of losses in the heat loop, or power plant need for heat. 2. A load balancing boiler of 300 kW regulating capacity is integrated into the power plant heat recovery loop, i.e. excess heat is added to the existing heat load. 3. Total heated space is modeled as 93,000 sq ft of residential space 50,000 sq ft school and 25,000 sq ft of conditioned space. 4. The diesel base case fuel savings is from heating fuel used in the buildings served by the heat loop. 5. Adding a single turbine does decrease the thermal savings, adding additional turbines provides additional heat as well as providing fuel savings at the generators. 6. As per AEA guidelines, the annual energy output of the wind turbines was de -rated by 18% in the HOMER analysis. This was accomplished in the modeling software by reducing the average wind speed from 7.5 m/s (measured) to 6.75 m/s. HOMER models the thermal energy production and usage by combining diesel jacket water using a "thermal load controller," which is connected to a combined thermal heating bus. The thermal load Intelligent Energy Systems, LLC 18 7/1K001K controller is a necessary component of the wind diesel system, as it provides fast load control to regulate the electrical frequency of the power system. HOMER models other thermal usage as an "electric boiler" on the thermal bus. While, conceptually, this is correct, in practice, the "lumped" electric boiler thermal system requires fast duty cycle response in order to compensate for rapid fluctuations in wind energy. 5.1.3 Heat Recovery Boilers & Electric Thermal Storage: To efficiently capture all of the wind resource in Chefornak, heat recovery equipment is used. HOMER modeling was used to estimate the potential heat and demand schedule. HOMER's thermal profiling analysis assumes a need for heat when it is produced, based on ambient temperature and predicted heat loss. However, HOMER makes no provision to evaluate building occupancy. Considering that commercial spaces typically require less heat at night when the wind resource is greatest, and that the efficiency of recovering jacket water heat is undetermined, HOMER estimates for the use and value of recovered heat remain to be verified. In the proposed system, the electrical system is stabilized through rapid load control. A combination of rapid and precise demand control and diesel engine load following modulate fluctuations in the consumer load and the wind production. An initial analysis of the heating load of the community is found below. Analysis includes heating fuel consumption per building and capital costs for proposed heat recovery equipment. Chefornak Secondary loads estimated gallons Building commercial / Attached to a of Heating fuel used Anually heating fuel equipment Device quantity sgft residential heating loop annually cost estimate ETS 1 1000 residential N 760 3,800 $6,600 ETS 10 10r000 residential N 7600 38,000 $52,500 ETS 20 20r000 residential N 15,200 76,000 $132,000 ETS 30 30r000 residential N 22,800 114,000 $198,000 ETS 40 40r000 residential N 30,400 152,000 $205,500 hydronic boiler 30 kW 1 9922.5 commercial/Corp store N 7541.1 37,706 $47,000 hydronic boiler 1 2,440 Commercial/City office N 1854.4 $9,272 $47,000 hydronic boiler 1 2,592 Commercial CVRF N 1969.92 $9,850 $47,000 hydronic boiler 2 2,880 Commercial /teacher housing N 2188.8 $10,944 $59,000 hydronic boiler 1 1,080 Commercial/Avugiak Store N 820.8 $4,104 $47,000 hydronic boiler 2 3,280 Commercial/IGAP/Church N 2492.8 $12,464 $59,000 hydronic boiler 1 560 commercial /VP50 home N 2492.8 $12,464 $47,000 hydronic boiler 1 1,152 Commercial/ Traditional tribal council N 875.52 $4,378 $47,000 Heat loop 1 300 commercial/washateria Y 228 Heat loop 1 LON commercial/water treatment plant Y 820.8 Commericial Total Sq. Ft. 25,287 Residential Total Sq. Ft. 93,781 Assumptions ETS= Electrical thermal Storage ETS units need a supervisory controller based at the power plant . This supervisory unit can handel up to 50 Units located through out banks ak Supervisory unit can controll larger commercial units as well as residential units. Supervisory unit cost is included in the individual ETS costs after 20 units Intelligent Energy Systems, LLC 19 7/1K001K There are three types of equipment proposed in this design. The existing heat recovery system with an additional load balancing boiler located in the power plant, remote electric boilers in selected community buildings and residential ETS units for the home. The heat recovery at the power plant is connected to the small heat loop supplying heat to the washeteria. The load regulating boiler will be integrated into this system. Remote electric boilers are a viable option for heat recovery in larger community buildings outside the power plant. These can be controlled from the power plant by the master control computer and switched on and off depending on the current wind energy in the system. These units range from10kW to 100kW units. Electric thermal stoves are house -sized electric heaters with storage capacity. The stoves are also controlled from the system master computer in the power plant. The units are turned on and off at subsecond timing depending on the wind energy in the system. One of the advantages of electric thermal storage is that surplus wind can be captured at any time for use later. The same cannot be said for dumping wind energy into a heat loop or distributed hydronic boilers. While the energy content of a kilowatt hour of wind heat is the same whether it used by an electric boiler in a community building or in a distributed ETS unit located in a residence, there are a number of differences to the overall value of the energy produced both to the community and to the productivity of the wind project. The major differences between the ETS and the centralized boilers are: 1. The ETS stoves can store excess energy and deliver it to the load at a later time. Energy storage enables more wind energy to be captured and used. 2. A lot of wind occurs at night. Energy storage enables the wind system to be more productive, more often. At night, when both electrical loads and the demand for heat in public building is lowest, storing the energy for use later in ETS has a tremendous advantage, and increases the value of the wind system. 3. The ceramic bricks inside the ETS units are able to be heated to higher temperatures (1200 F) than a similar volume of water (200 F), and thus have a greater energy storage capacity. The ETS systems are also safer because they do not have the potential for generating steam. 4. Electrical and heat loads in community buildings both peak during the day. Less wind energy is available for heat during the day, whereas the wind energy generated at night can be captured by the ETS for use during the day. 5. Over -supplying wind heat to electric boilers at night when it is not needed is potentially wasteful. 6. Residences use heat during the night. 7. Residential customers need heating cost relief. The benefits of the distributed ETS wind heat accrue directly to residents who save on heating bills. Intelligent Energy Systems, LLC 20 7/1K001K A preliminary survey of the community indicated that the average home in Chefornak was 1,200 square feet and uses over 766 gallons of heating fuel annually. During a windy week in the winter, a single home can consume an entire 55-gallon drum of heating fuel. Homeowners who have the ETS devices can expect annual saving of 220 gallons of heating fuel. Excess wind energy can be sold by the electric utility for at least $.10 per kilowatt-hour. This is equivalent to approximately $2.90/gallon heating fuel. Homeowners currently pay $7.10 per gallon of heating oil in Chefornak. Annual savings for a residential customer with a wind enabled electric thermal storage device is estimated to be $1,122. (8.00-2.90) x 220 = $1,122 annual savings. 40 residential ETS units are proposed for this project, offering a combined savings of approximately $44,800. 5.1.4 Wind Diesel Controls: Whenever wind energy is available and there is a need for energy, the wind turbines should be able to automatically turn themselves on and the produced energy integrated into the grid. As the energy output of the wind turbines increases, the diesel power plant recognizes the incoming energy as a negative load, up to the point where the diesel generators reach their low power output threshold. At this condition, additional wind energy must be managed in order to keep the wind energy from driving the diesel generator sets into a reverse power condition. As the wind power in the system surges, the diesel engine governors adjust to fill in lulls in the wind and a fast acting boiler is added to absorb and release surplus wind energy. The proposed design includes the installation of a fast acting, load regulating boiler (300 kW) to regulate system power flows. A two boiler configuration provides redundancy for precise power system regulation to capture excess wind and balance the energy generation. The boilers will rapidly absorb short and longer bursts of energy. Each electric heat recovery boiler would be plumbed into the existing heating system and regulated using the same thermostatic controls. Excess wind energy when available would be captured in these boilers and the heat used to offset fuel costs of heating the community buildings. The school represents a new, large, interruptible energy storage system that could benefit from future expansion of the wind project. All heat recovery loads will require separate metering and service panels, including cables, and breakers. The method of communication proposed is Ethernet. A. Wind Diesel Supervisory Control: Additional capability will need to be added to the existing SCADA cabinet for the load regulating electric boiler. The current diesel control system will require modernizing to improve reliability and control functionality. These upgrades will consist of replacement of older Woodward Engine Generator controllers, with units that have greater functionality and wider support. The EzGen engine generator controller will be interfaced to a Wind Diesel Supervisory Control and Data Acquisition System (WDSCADA). The WDSCADA will automate the paralleling and selection of engine generators, wind turbines, and load control systems to match the community load and optimize the use of available wind power. The WDSCADA will Intelligent Energy Systems, LLC 21 provide remote monitoring and remote diagnostics to allow remote support of local operators. A fiber optic communication cable will be installed from the power plant to the wind turbines for monitoring and control. 5.2 Diesel Power Plant Upgrades: Required modifications to the existing power plant are expected to be minimal. Installation of a load -controlled boiler into the existing heat recovery loop. A System Master/SCADA computer will be integrated into the power plant. This layer of control and monitoring proves to be invaluable for remote diagnosis and troubleshooting. 5.2.1 Current Power Plant: Currently, electrical power is generated and distributed by the Naterkaq Light Plant, which is owned and operated by the City of Chefornak. The diesel power plant consists of: Gensets #1&2 - 370 kW John Deere model 6125 diesel engines, each approximately 22,000 engine operating hours Genset #3 -180 kW, John Deere 6081, approximately 10,000 engine hours 5.2.2 Bulk Fuel Storage: Chefornak currently has insufficient fuel storage and has run out of fuel on several occasions. Installation of the wind diesel system would ensure that the current system would be adequate for the community's fuel storage needs. In 2012, Chefornak's annual diesel/heat fuel consumption for diesel generation and the washeteria was 134,000 gallons. The utility topped off its owned tanks (76,840 gallons) in August with the Fall fuel barge delivery. Once the City tanks are empty (usually during the early spring), the city must purchase fuel from the Chefarnmute Corporation or the school. Below is an itemized list of the bulk fuel capacity in Chefornak: City Tanks: Tank Number Capacity Usable City bulk capacity total Power Plant Total 1 10,000 9,336 7 14,000 13,001 8 15,000 12,180 9 8,000 7,491 17 10,000 9,038 57,000 51,046 27,000 25,794 127,886 Intelligent Energy Systems, LLC 22 School Tanks: Tank Number Type 18 Diesel Diesel Total Chefarnmute Corporation Tanks: Gasoline: Tank # 2 4 5 15 16 20B Total Diesel: Tank # 3 6 10 11 12 13 14 20A Total 5.3 Distribution: 40.740 40,740 15,410 8,330 10,330 15,000 15,000 2,000 66,070 10,414 10,300 82,809 6,150 15,000 6,060 15,000 2,000 147,733 A field survey of the electrical distribution system was preformed by Sakata Engineering. Modifications required to integrate the wind system are included in the Sakata Engineering Report appendix. The interconnection of the wind farm will require a 3 pole power line extension, replacement of 3 power poles, and the strengthening of 2 existing poles. To prevent frost jacking, the poles must be installed on driven steel H piles. The power poles will then be bolted to pilings, and Intelligent Energy Systems, LLC 23 new conductors will be installed. Each wind turbine is proposed to have an individual loop fed transformer. This will increase the reliability of the overall system by eliminating any single point of failure. All power line installation work will be completed during the winter when the ground is frozen and will support heavy equipment. Additional improvements are needed at the power plant distribution feeders. These include upgrading of conductors, installation of a new 225-kVa distribution transformer at the power plant, and installation of fuse load break elbows. 6.0 Site Control and Selection: There are no foreseen land ownership issues in the design. The proposed wind heat system has the blessing of the City of Chefornak for the turbine location site, and is on City owned land. There are no known flood hazards at the selected wind site and the State Historic Protection Office (SHPO) has been contacted, and indicates that this is not an area of archeological significance. A copy of the actual ANCSA 14(c) survey from the Bureau of Land Management was used to complete the site control for the Chefornak wind system. The wind turbine sites are all to be located within Tract E, a 227 acre tract that will be conveyed to the City after the survey is signed and recorded in 2014. There is a signed settlement agreement between the City and Chefarnmute dated June 19, 2008, stating the land identified on the map of boundaries will be conveyed to City within 120 days after the survey plat is recorded. A site control letter from Rick Elliot documenting site control is included in the appendix. 7.0 Permitting and Spill Response: 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 power lines to the wind turbines will extend on grade from nearby 3-phase power. The wind turbines are being constructed on pile foundations that will not require any filling of wetlands and do not require a Section 404 permit. It is not anticipated that any of the project will interfere with or result in the mortalities of any endangered species or migratory birds. In contacting the aforementioned agencies, the USFWS have requested that power lines be buried if possible, to refrain from using guyed towers, and 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 surveye within one month of installation. Threatened or endangered species USFWS has identified no nesting sites in the area • Habitat issues N/A • Wetlands and other protected areas N/A Intelligent Energy Systems, LLC 24 7/1K001K • Archaeological and historical resources the design does not include any trenching. Pile foundations and surface run electrical feeders with boardwalks on top of them built for mechanical protection. • Land development constraints N/A • Telecommunications interference N/A • Aviation considerations N/A • Visual, aesthetics impacts N/A • Identify and discuss other potential barriers N/A 7.1 U.S. Fish and Wildlife Service: The U.S. Department of the Interior Fish and Wildlife Service has been consulted based on a 5 wind turbine project and consultation occurred with respect for impact to endangered species. On the Y-K Delta, spectacled eiders breed mostly within 15 kilometers (km) (9.3 statute miles (mi)) of the coast from Kigigak Island north to Kokechik Bay (Service 1996), with smaller numbers nesting south of Kigigak Island to Kwigillingok and north of Kokechik Bay to the mouth of Uwik Slough. The coastal fringe of the Y-K Delta is the only subarctic breeding habitat where spectacled eiders occur at high density (3.0-6.8 birds/square kilometer (km2), 1.2-2.6 birds/square mile (mi2)) (Service 1996). Nesting on the Y-K Delta is restricted to the vegetated intertidal zone (areas dominated by low wet -sedge and grass marshes with numerous small shallow water bodies). Nests are rarely more than 190 meters (m) (680 feet (ft)) from water. (Federal Register/ Vol. 66, No. 25) The Steller's Eider is not known to breed around Chefornak, although the community is within the critical habitat region. Other wind projects in the region, including those in Kwigillingok, Kongiganak and Tuntululiak do not have any evidence of negatively impact to either of these species. 7.2 U.S. Army Wetlands Permit: This project will not significantly disturb or place fill material on existing soil in a wetlands determination from the U.S. Army Corps of Engineers as this project for the placement of piling falls under the general nationwide permits. 7.3 Federal Aviation Administration: The wind farm portion of this project requires approval by the Federal Aviation Administration (FAA) and review by the U.S. Fish and Wildlife Service (USFW). An FAA Aeronautical Study (No. 2008-WTW-5725-OE) was completed that authorizes construction of a single wind turbine up to 150 feet above ground level. The Aeronautical Study approval expires on January 10, 2013. A request for extension and an Actual Construction Notice, Form 7460-2, will be submitted to the FAA prior to expiration. Intelligent Energy Systems, LLC 25 7.4 State Historical Preservation Office: The SHPO issued a finding of No Historic Properties Affected for the project. 8.0 Construction Plan: Brief timeline For a Detailed schedule of the Chefornak project, please see section 8.1 To complete this project, mobilization of heavy equipment must be completed, and a workforce must be found in the community. As with other projects completed by IES, a strong focus will be placed on hiring local labor when possible, although some work must be completed by highly specialized crews. IES has worked with STG Inc. in the past and plan to continue this relationship. STG Inc. will provide much of the specialized labor needed for the construction of the wind turbines. Local crews will be trained in tower climbing and work closely with experienced CWG technicians to attain a level of expertise needed to assist with the construction of this project. Beginning during the summer of 2017, long lead materials for the project will be procured and shipped to Chefornak the following summer. These materials include wind turbines, either Windmatic, or Northwind units, and load -regulating boilers. Construction of the wind system will take place during the winter construction season when the tundra surrounding the construction site will be frozen, allowing the movement of heavy equipment and resulting in less damage to the surrounding environment. 8.1 Project Schedule: The project schedule including the final design phase of the project is shown below Start Milestones Tasks Date End Date Award NTP Final Design awarded Funds available 7-1-16 Final design Engineering /engineering coordination 8-1-16 8-1-17 Award NTP Construction funds Construction available 8-1-17 Permitting All permits captured and approved 11-1-17 Intelligent Energy Systems, LLC 26 Procurement Long lead items turbines controllers 8-1-17 4-1-18 Shipping Barge to Chefornak 7-10-18 9-10-18 Delivery Unload & stage construction materials 9-10-18 10-12-18 Site mobilization Crew and materials to Chefornak turbine site 3-1-19 4-10-19 Installation Foundations, towers, Turbines & turbine, electrical Electrical infrastructure infrastructure installation 4-10-19 7-10-19 Installation of Heat recovery system Power plant integration at the upgrades Heat Power plant includes recovery system Load regulator 5-10-19 6-10-19 Commissioning of Testing system 5-10-19 6-20-19 Training Wind tech training 6-10-19 9-24-19 Project close out As built drawings support project close out 10-1-19 11-1-19 Warranty support /Data collection 6-1-19 6-1-20 8.2 Project Risk: Alaska construction is inherently risky with unpredictable weather and logistics being the main driver of project success. The barging schedule will be pivotal on the scheduling. IES intendeds to mitigate some of the risk by allowing plenty of lead time for materials to be shipped from Seattle and Anchorage to arrive before possible freeze up. One primary advantage this project has is that similar projects have been built and are operating in neighboring villages. The members of the Chaninik Wind Group, which has created a strong and supportive assistance network in the region, has agreed to lend whatever support is required to make this a sustainable project. This includes expanded access to tools, equipment training, spare parts, and transportation and service options. The team of IES and STG has proven experience of managing the logistics of this project. Intelligent Energy Systems, LLC 27 8.3 Job Skills: The regional crews who have worked on the Chaninik Wind Group projects will complete the majority of the installations with lead construction management from STG, Inc. Local crews will be mobilized for the majority of the work with supervision and technical assistance from more qualified personnel, such as heavy equipment, electric and diesel specialists, and controls and communications specialists. The majority of the work will be completed by local crews assisted by outside specialists. 8.3.1 Chefornak Local Employment: An inquiry was made to the City for information regarding the availability of specialty skilled labor in Chefornak. There are many skilled laborers in the community including machinery operators and welders. During the construction portion of this project, these and other local skilled laborers will be utilized. In addition to the specialty trades listed, there are a number of local residents with general labor experience in various types of construction. It appears that at a minimum, a project superintendent, a pipe welder/mechanical foreman, a journeyman electrician and a journeyman lineman will need to be brought into Chefornak for this project. A specialty crew with experience will be required for installation of the wind turbines. 8.4 Material Resources: There are existing materials that are located in the region that can be used to assist during the design and construction of the project in Chefornak. These materials include cranes, excavators, and other needed materials for the projects. 8.4.1 Material Resources Available in Chefornak/CWG: Chefornak does not currently have material sources in the community. During past CWG projects, there has been some ability to coordinate with other projects to help ease financial burden on the project. However large projects, like the school redesign have been completed. Other projects that may occur during the proposed construction timeline will be coordinated with to the greatest extent possible to enable any additional cost savings. Chefornak does have a MET tower that had been gathering data until a failure of the data logger after about a year of collection. In July 2014 the data logger was replaced and the MET tower has continued to collect valuable data that can be used to help ensure a successful project. The power plant has ben outfitted with a new SCADA system for historical monitoring purposes. Intelligent Energy Systems, LLC 28 8.4.2 SnoCat: Transportation continues to be a large factor in the ability for a project to proceed in a timely manner. To help alleviate some of these issues and allow for material to be moved quickly and affordably, Chaninik Wind Group has invested in the purchase of a Bearcat SnoCat, which can travel across frozen tundra while pulling a sled during the winter months. Having this ability will allow the community to move project materials and supporting equipment from the surrounding villages and from Bethel at an affordable cost. CWG has many years experience operating the SnoCat and will be able to move material, like turbine components, transformers, distribution poles, and diesel generators without the use of aircraft during the winter months. 9.0 Project Cost Estimate: The cost estimates for the Chefornak project are based on varying sources of quotes, on estimated materials/labor projections, and previous invoices on other CWG projects. All grant funds will be expended on costs directly related to the performance of the scope of work and administration and reporting of grant activities. The total estimated project cost is $ 4,644,000. Wind Turbines Supply and install $ 2,744, 000 System integration $ 1,100,000 Intertie $ 800,000 Total Project Cost Estimate $ 4,6440,000 The summary cost items below include freight, balance of plant materials for commissioning, and contingency costs for each of the large project components. Note: This project cost estimate was developed on the basis of a stand-alone project. Benefits and cost savings are possible with close coordination with other projects in the area, such as schools and bulk fuel system construction. Savings can also be realized by coordinating with other regional projects to decrease costs related to the mobilization of heavy equipment. Intelligent Energy Systems, LLC 29 9.1 Operations and Maintenance Costs: Annual Control and Integration Support $ 2,000 Wind Turbines $ 45,000 Repair/Replace/Insurance $ 15,000 Total Estimated 0&M Costs Increase $ 62,000 9.1.1 Control System: The control, monitoring and integration system is provided with a two-year warranty. A reserve is set aside for changes and/repairs of $1.000 per month. The local operators will be trained to use the control and integration system. Typically, automated operation reduces the local labor burden. 9.1.2 Wind Turbines: The wind system is estimated to operate 350 days or 50 weeks per year with 2 weeks of scheduled maintenance. Service and maintenance will be performed by local technicians, with support from remote monitoring teams and annual diagnostic checkups on the wind turbines. A budget of $9,000 per year per turbine, or $.04/kWh is set aside. This budget is divided into parts ($0.01/kWh) and labor ($.03/KWh). This includes routine daily maintenance as well as on -going quarterly maintenance by local wind technicians. The turbines have advanced diagnostic packages with remote diagnostics that enable full time monitoring, remote programming and remote technical assistance. Intelligent Energy Systems, LLC 30 Appendices Intelligent Energy Systems, LLC 31 7/1K001K