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HomeMy WebLinkAboutUnalakleet Wind Project Power System Model Report - May 2009 - REF Grant 2195401a DNV company Power System Modeling for Unalakleet Wind Energy Project CS RP0022-A May 27, 2009 Prepared for: STG Inc 11820 South Gambell Street Anchorage, AK 99515 DNV Global Energy Concepts Inc. 1809 7th Avenue, Suite 900 Seattle, Washington 98101 Phone: (206) 387-4200 Fax: (206) 387-4201 www.globalenergyconcepts.com www.dnv.com MANAGING RISK Power System Modeling, Unalakleet, Alaska Approvals May 27, 2009 Prepared by Mia Devine Date May 27, 2009 Reviewed thony L. R gets Date Version Block CSRP0022-A Version Release Date Summary of Changes A May 27, 2009 Original DNV Global Energy Concepts Inc. 1 May 27, 2009 Power System Modeling, Unalakleet, Alaska CSRP0022-A Table of Contents BACKGROUND...........................................................................................................................1 POWER SYSTEM DESCRIPTION........................................................................................... 1 DieselGenerators.................................................................................................................... 1 WindTurbines........................................................................................................................ 1 HeatRecovery System............................................................................................................ 2 BatteryBank........................................................................................................................... 2 SystemControl........................................................................................................................ 3 MODELING ASSUMPTIONS.................................................................................................... 4 MODELING RESULTS............................................................................................................... 6 DNV Global Energy Concepts Inc. ii May 27, 2009 Power System Modeling, Unalakleet, Alaska List of Figures CSRP0022-A Figure 1. Proposed Wind Project Site, Unalakleet......................................................................... 2 Figure 2. Sensitivity Analysis of NPC on Battery Bank Installed Cost ......................................... 7 List of Tables Table 2. Technical Assumptions for Unalakleet Power System ..................................................... 4 Table 2. Economic Assumptions for Unalakleet Power System .................................................... 5 Table3. Results Summary.............................................................................................................. 6 DNV Global Energy Concepts Inc. iii May 27, 2009 Power Svstem Modeling?, Unalakleet, Alaska Background CSRP0022-A DNV Global Energy Concepts Inc. (DNV-GEC) has been retained by STG Inc to complete modeling of a proposed wind -diesel power plant in the community of Unalakleet, Alaska. The community has received funding from the Alaska Energy Authority (AEA) to install a number of 100 kW wind turbines to supplement the existing diesel power system. STG has been hired as the construction contractor. STG, in coordination with the local utility, is considering the installation of up to six wind turbines, and AEA has requested the consideration of an optional battery bank as a replacement to one or two of the proposed units in a six -turbine system. The purpose of the modeling described in this report is to compare the estimated fuel savings and life cycle cost of the wind -diesel system options with and without battery storage. The methodology, assumptions, and results of the analysis are described below. DNV-GEC has previously completed a wind resource and energy assessment for the community of Unalakleet, which is documented in the Unalakleet Rural Power System Upgrade Project Conceptual Design Report (CDR) dated October 12, 2007. During the previous work DNV-GEC visited the proposed wind project site and considered it acceptable for wind energy development. The CDR is publicly available from the AEA. After completion of the CDR, STG contracted DNV-GEC to complete a revised energy assessment based on additional wind resource data that was collected and the potential installation of two 600 kW wind turbines. The methodology and results are documented in a report titled Preliminary Energy Assessment for Unalakleet Wind Energy Project dated October 6, 2008. Data from both reports are used in the current analysis when appropriate. Power System Description The power system in Unalakleet is owned and operated by the Unalakleet Village Electric Cooperative (UVEC)_ The sections below describe the major system components that are currently installed or under consideration. According to the CDR, the average electric load in Unalakleet is estimated to be 455 kW and the peak load is 831 kW. Diesel Generators The power plant is scheduled for upgrades with funding from the AEA Rural Power System Upgrade program. The planned diesel power plant will consist of four Caterpillar 3456 model diesel gensets rated at 475 kW each. The diesel generators can operate in parallel and the system voltage is 480 V. The generators can operate at a minimum load of 100 kW and a maximum sustained load of 425 M. According to AEA, at least one diesel generator will remain on-line at all times in a wind -diesel hybrid system. Wind Turbines The wind power system currently under consideration will consist of either four or six 100 kW wind turbines manufactured by Northern Power Systems. The wind turbines will be installed in a single row on a hill located about 3 km north of the town of Unalakleet. The location of the DNV Global Energy Concepts Inc. 1 May 27, 2004 Power System Modeling, Unalakleet, Alaska CSRPOO22-A proposed project site and the turbine layout are shown in Figure 1. Also shown is the location of the meteorological (met) tower where two years of wind resource data have been collected. '.. i l —' — 7'+'s 1250. �a �x Figure 1. Proposed Wind Project Site, Unalakleet Heat Recovery System A heat recovery system is in place to provide waste heat from the diesel generators to the school and other community buildings. An electric boiler will be installed to utilize excess electricity from the wind turbines. According to UVEC, the heat provided by the diesel generators and/or wind turbines will be charged to the customer at the current diesel fuel rates. According to AEA, the thermal load at the community buildings ranges from about 500 kW in the winter months to 50 kW in the summer months. In absence of heat recovery from the diesel generators, the thermal demand would result in approximately 85,000 gallons of heating fuel consumption per year. Battery Bank In a hybrid power system, the primary advantage of energy storage equipment is to allow a diesel generator to shut down when the wind turbines supply more power than is needed by the load. During short-term lulls in wind power generation, the energy storage device supplies any needed power. If the lulls are prolonged and the storage becomes discharged, a diesel generator is started and takes over supplying the load, For this type of system to operate with minimal power loss to the community, the energy storage system must be appropriately sized to cover the electric load DNV Global Energy Concepts Inc. 2 May 27, 2009 Power System Modeling, Unalakleet, Alaska CSRPOO22-A long enough for a diesel generator to come online if the wind turbines were to fault and suddenly drop off-line. For the proposed hybrid power system in Unalakleet, since one diesel generator will be in operation at all times, the primary purpose of a battery storage system would be to prevent a second diesel generator from turning on. In sizing the battery bank, DNV-GEC considered the situation where the community demand is high (at 725 kW), the first diesel generator is operating at full capacity (475 kW), and the wind turbines are supplying the remainder of the community demand (250 kW). If the entire wind farm suddenly drops off-line, the battery bank would need to supply 250 kW for a period of time that would allow a second diesel generator to warm up and come online (about 10 minutes). Therefore, the battery bank would need to provide at least 40 kWh of usable capacity. Specification of the battery type and configuration is beyond the scope of this report; however, the ability of a battery bank to provide 250 kW of spinning reserve is included in modeling of the system control as described below. System Control It is DNV-GEC's understanding that the proposed wind -diesel system will be operated as a "medium -penetration" system where at least one diesel generator will remain in operation at all times, regardless of the output of the wind turbines. Enough operating reserve will be in place, either in the form of online diesel generators or battery capacity, to serve the electric load in the event that 100% of the wind output drops to zero at any given time. For system options without battery storage, DNV-GEC used an operating reserve value equal to 10% of the electric demand plus 100% of the wind power output. In this situation, enough diesel generator capacity must be online at any given time to be able to cover a 100% drop in wind power output and a 10% increase in the electric load. For the system options where a battery bank is installed, the operating reserve that the diesel generators would need to provide is reduced in the model to 10% of the electric demand and 40% of the wind power output in a four -turbine system or 50% of the wind power output in a five -turbine system. The battery bank will provide the extra operating reserve. DNV Global Energy Concepts Inc. 3 May 27, 2009 Power System Modeling, Unalakleel, Alaska Modeling Assumptions CSRP0022-A DNV-GEC used the software program HOMER, developed by the National Renewable Energy Laboratory, to model the hybrid power options under consideration. The HOMER modeling software compares the hourly output of the wind turbines with the hourly electric load of the community and dispatches the appropriate diesel generator to make up any difference in power needs. The operating reserve, minimum loading of the diesel engines, and the diesel -fuel efficiency curves are also taken into consideration to calculate the fuel consumption of the system. Inputs into the model include the local wind resource, the wind turbine power curve, the community's hourly electric load, diesel dispatch strategy, and diesel generator fuel curves. The HOMER model does not consider short-term power fluctuations caused by system dynamics or component transients. Table 1 and Table 2 summarize the technical and economic assumptions used in the analysis. Table 1. Technical Assumptions for Unalakleet Power System Description Value Source Community electric consumption 4,000 MWh/yr [1] Annual average electric load 455 kW [1 ] Annual peak electric load 831 kW [1 ] Community heating load 2582 MWh/yr (85,000 gal/yr) AEA Diesel generator make and model Caterpillar 3456 AEA Number of diesel generators 4 AEA Diesel generator rated capacity 475 kW AEA Diesel generator lifetime 60,000 hours AEA Diesel generator heat recovery rate 25% AEA, DNV-GEC Diesel generator minimum load 100 kW AEA Wind turbine make and model Northern Power Systems NW100-B STG Number of wind turbines 4 or 6 STG Wind turbine rated capacity 100 kW Northern Power Systems Wind turbine hub height 36.7 m Northern Power Systems Battery bank usable capacity 50 kWh, 250 kW AEA Battery bank lifetime 10 years DNV-GEC AC/DC converter rated capacity 250 kW, 480 V AEA Annual average hub height wind speed 6.5 m/s [2], DNV-GEC estimate based on updated data Annual average air density 1.28 kg/m3 [2] [1] Unalakleet Rural Power System Upgrade Project Conceptual Design Report dated October 12, 2007. [2] Preliminary Energy Assessment for Unalakleet Wind Energy Project dated October 6, 2008. DNV Global Energy Concepts Inc. 4 May 27, 2009 Power System Modeling, Unalakleet, Alaska CSRP0022-A Table 2. Economic Assumptions for Unalakleet Power System Description Value Source Price of diesel fuel $4.75/gal AEA Diesel generator operation and maintenance cost $3.501hr AEA Diesel generator replacement cost $200,000 AEA Price of community heating fuel $4.75/gal STG, UVEC Installed cost of wind turbines and associated balance of plant $9,000/kw AEA, STG Annual wind turbine operation and maintenance cost $5,000/turbine AEA Installed cost of battery bank and AC/DC converter $175,000 AEA, DNV-GEC Battery disposal and replacement cost $175,000 AEA, DNV-GEC Battery bank operation and maintenance cost $400/year DNV-GEC Annual real interest rate 3% AEA Project economic lifetime 25 years AEA DNV Global Energy Concepts Inc. 11 May 27, 2009 Power System Modeling, Unalakleef, Alaska Modeling Results CSRP0022-A Table 3 presents the results of the analysis. Five possible system configurations were evaluated (diesel -only system, diesel system with four wind turbines, diesel system with four wind turbines and battery bank, diesel system with five wind turbines and battery bank, and diesel system with six wind turbines). The primary metrics for comparing the different power system options are the net present cost (NPC) and the total fuel savings in the community. The results are based on the modeling assumptions described above; any changes to the assumptions will have an impact on the results. Table 3. Results Summary Net Annual Annual Total Gross Annual Present Diesel Fuel Heating Fuel Community Wind Generated System Cost Savings Savings Fuel Savings Electricity Configuration (millions) (gal) (gal) (gal) (MWh) Diesel -only with heat $26.4 0 40,000 40,000 0 recovery Diesel + 4 wind $26.0 60,000 33,000 93,000 1,010 turbines Diesel + 4 wind $26.1 62,000 32,000 94,000 1,010 turbines + batteries Diesel + 5 wind $26 1 74,000 32,000 106,000 1,262 turbines + batteries Diesel + 6 wind $26.3 76,000 37,000 113,000 1,515 turbines Note: The results are based on the gross energy production from the wind turbines. System energy losses, which were estimated to be 21 % in the Preliminary Energy Assessment for Unalakleet Wind Energy Project dated October 6, 2008, would reduce the estimated gross annual wind generated electricity and resulting diesel fuel savings. A sensitivity analysis was completed to evaluate the uncertainty in the installed cost of a battery storage system. Figure 2 illustrates the NPC of the evaluated systems based on a battery bank installed cost that ranges from $140,000 to $350,000. DNV Global Energy Concepts hic, 6 May 27, 2009 Power System Modeling, Unalakleet, Alaska $27.0 $26.8 O 'a $26.6 H $26.4 c $26.2 E $26.0 o $25.8 U $25.6 m y $25.4 Diesel Only Diesel + 6 WTGs CSRP0022-A Diesel + 5 turbines + battery Diesel + 4 turbines + battery —Diesel + 4 turbines EL $25.2 z $25.0 - $140 $175 $210 $245 $260 $315 $350 Installed Cost of Battery Bank (thousands of dollars) Figure 2. Sensitivity Analysis of NPC on Battery Bank Installed Cost Overall conclusions of the system modeling are summarized below. • The NPC of the hybrid power system options evaluated is approximately the same as the NPC of the diesel -only power system. The difference in NPC is up to 1,5%, which is within the margin of error of the modeling assumptions. • The NPC of a four -turbine system with batteries versus a four -turbine system without batteries is essentially the same. The increased fuel savings that the batteries provide is offset by the lifecycle cost of the battery bank. • The system with six wind turbines and no batteries results in the largest amount of overall fuel savings of the systems evaluated. • Other potential benefits of reduced fuel consumption in the community (such as reduced risk of fuel spills, reduced exposure to fuel price volatility, reduced size and O&M cost of tank farm) are not included in the economic analysis. • For all hybrid systems evaluated, the heating fuel consumption at the school and other community buildings increases compared to the diesel -only system with heat recovery. The reduced load on the diesels results in less heat available to community buildings. The system with six wind turbines comes close to making up for the reduced heat from the diesels by providing heat from excess electricity. • System energy losses and fuel price escalation rates were not included in this analysis and are likely to have an impact on the actual economic performance of a wind -diesel system, • The NPC of all the hybrid power systems evaluated are very close (within the margin of error of the modeling assumptions). The power system option that is ultimately selected for the community may depend more on non -economic factors, such as the level of community acceptance or desire for wind power, the comfort level and experience of the utility operators with the various system components, and the utility operator's level of acceptable system complexity. DNV Global Energy Concepts Inc. 7 May 27, 2009