HomeMy WebLinkAboutOuzinkie Wind Feasibility Study Project Strategic Energy Plan 2021 - REF Grant 7014005Ouzinkie
Strategic Energy Plan
The City, Native Corporation, and Native Village of Ouzinkie will work together
to provide reliable and sustainable energy to the community and create
economic opportunities by utilizing available diverse energy resources and
improving existing infrastructure to lower utility cost with a goal of 100% self-
sufficiency.
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NOTICE
This Strategic Energy Plan is made possible by support from the U.S. Department of Energy (DOE) Office of Indian Energy Policy
and Programs (DOE Office of Indian Energy). This document was developed as part of the On-Request Technical Assistance
Program supported by the Alliance for Sustainable Energy LLC (Alliance), the operator of the National Renewable Energy
Laboratory (NREL) for DOE.
Neither Alliance, DOE, the Government nor any other agency thereof, nor any of their employees, makes any warranty, express
or implied, or assumes any liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus,
product, or process disclosed, or represents that its use would not infringe any privately owned rights. Reference herein to any
specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not constitute or imply
its endorsement, recommendation, or favoring by Alliance or the Government or any agency thereof. The views and opinions of
the authors and/or presenters expressed herein do not necessarily state or reflect those of Alliance, the DOE, the Government or
any agency thereof.
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Content
Background ................................................................................................................................................... 4
Utility Provider, Costs, and Baseline Data..................................................................................................... 4
Energy Vision ................................................................................................................................................. 7
Energy Goals and Projects ............................................................................................................................ 8
Energy Goals ........................................................................................................................................... 10
Technical Potential ...................................................................................................................................... 11
Resource Assessment ................................................................................................................................. 12
Resources and Incentives ............................................................................................................................ 13
Federal Incentives ................................................................................................................................... 15
Alaska State Policies and Incentives ....................................................................................................... 15
Appendix A: Ouzinkie PV Watts Solar Analysis ............................................................................................. 1
Appendix B: Glossary of Energy Terms ......................................................................................................... 2
Appendix C. Strategic Energy Planning Workshop Participants and Energy Stakeholders .......................... 4
Reference List ................................................................................................................................................ 5
3
Village of Ouzinkie Energy Projects Timeline
0 to 2 Years 2 to 5 Years 5 to 10 Years
Penstock replacement Research alternative
hydroelectric load bank
options
Research potential tidal
project partners
Water drainage valve
replacement
Solar PV project
(possibly on the water
treatment facility)
Research dual output
hydro turbines
Biomass utilizing
sawmill waste
Install a larger hydro
turbine
Complete the street
light retrofits
Install a camera at the
dam to monitor the
water level
Expand waste heat
recovery to the new
transportation
warehouse
Replace the water level
sensor
Tribal and City buildings
energy efficiency
retrofits
Wind anemometer Extend transmission
Install residential pre-
paid meters
Intertie with Kodiak
Electric Association
Transmission/Distribution
improvements
Harbor Electrical
Upgrades
Complete maintenance
on generator #3
Evaluate alternative
payment structures for
water and energy
Complete phase 3 of
water line replacements
Evaluate potential
alternative drinking
water sources
4
Background
Ouzinkie was founded as a retirement community of the Russian American Company circa 1840 at the
head of what is now called Ouzinkie Harbor. A school and a store were constructed around 1900 which
began to attract other settlers. In 1921 the Katmai Cannery opened to support the local fishing industry
and provided steady employment, which led to home and infrastructure expansion. The Grimes Cannery
was founded in 1927 on the harbor’s west shore, and provided additional job opportunities for
community. In 1933 the Kenai Cannery ceased operations but the Grimes Cannery continued production
until 1956. The 1964 Good Friday Earthquake generated a tidal wave that destroyed both cannery
structures and neither cannery was ever reopened.
The current Village of Ouzinkie, accessible only by air or water, maintains a population of approximately
150 and is located near the west end of Spruce Island, 10 miles NNW of Kodiak City and 247 air miles
southwest of Anchorage. Spruce Island is separated from Kodiak Island by Narrow Strait, and
encompasses approximately 6.0 square miles of land and 1.7 square miles of water. The center of
Ouzinkie Village faces southeast onto Ouzinkie Harbor. The community of Ouzinkie has three main
entities. 1) The City of Ouzinkie was incorporated as a second class city in 1967 and is in the Kodiak
Island Borough. The City of Ouzinkie is governed by the city council consisting of 7 elected community
members whom internally elect the city mayor. The municipality operates all the utilities within the
community, to include electric, water and solid waste. 2) The Ouzinkie Native Corporation (ONC) is a for-
profit corporation established by the Alaska Native Claims Settlement Act, Public Law 92-203 of
December 18, 1971. 3) The Ouzinkie Tribal Council, Native Village of Ouzinkie is a federally recognized
tribe. The Native Village of Ouzinkie was formally established on June 1, 1978, and OTC serves as its
governing body. OTC is comprised of 7 elected local Tribal members, whom internally elect a President
to preside over Tribal Council meetings. OTC is the largest employer in the community, and contracts
extensively with the Bureau of Indian Affairs under the Indian Self-Determination and Education
Assistance Act, Public Law 93-638, as amended in October and November 1994. Spruce Island
Development Corporation (SIDCO) was established in May 2005 to seek self-sustaining economic
development in the community of Ouzinkie. The board of directors is appointed by the Ouzinkie City
Council, Ouzinkie Native Corporation board of directors, and Ouzinkie Tribal Council.
Utility Provider, Costs, and Baseline Data
There are a number of utilities throughout the Koniag Region servicing Native Villages. The Native
Village of Ouzinkie’s utility provider is the City of Ouzinkie. Due to the remoteness and lack of access to
electrical infrastructure, the average cost of electricity is significantly higher in Ouzinkie as compared to
the more urban areas of Alaska. The Alaska Energy Authority (AEA) established the Power Cost
Equalization (PCE) program which provides economic support in rural areas where the kWh charge for
electricity can be three to five times higher than more urban areas
(http://www.akenergyauthority.org/Programs/PCE). In Fiscal Year (FY) 2016, the effective residential
rate (Net PCE Benefit) was $0.22 per kWh, an increase from the previous two years.
Table 1 provides a summary of the energy costs and usage for Ouzinkie from 2014 to 2016.
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Table 1. PCE and Electricity-Use Statistics for the Native Village of Ouzinkie, FY 2014-FY 2016
Ouzinkie PCE Statistics FY 2014 FY 2015 FY 2016
Village Population 178 185 171
Last Reported Residential Rate Charged
(based on 500kWh) $0.49 $0.36 $0.38
Effective Residential Rate (per kWh)$0.20 $0.17 $0.22
Residential kWh Sold 298,498 284,067 279,970
Community Facility kWh Sold 143,259 138,615 161,064
Other kWh Sold (non-PCE) 247,210 245,288 210,598
Powerhouse (PH) Consumption kWh 46,825 59,879 36,162
Total kWh Sold & PH Consumption 735,792 727,849 687,794
Source: Alaska Energy Authority, 2016
The Ouzinkie power system consists of a hydroelectric turbine, diesel powered generators and the
associated distribution system. Table 2 details the nameplate capacity of turbine and generators at the
time of this report.
Table 2. Current Generation Source and Nameplate Capacity
Generation Source Nameplate Capacity
Hydroelectric Turbine 125 kW
Diesel electric Generator #1 60 kW
Diesel electric Generator # 2 80 kW
Diesel electric Generator # 3 190 kW
Diesel electric generators were first introduced in the community to support the energy demand of fish
canneries. In the 1970s, the transmission and distribution system was extended to accommodate new
housing. Few updates to transmission and distribution have occurred since, and many power poles,
lines, transformers and insulators are currently in need of repair. AEA has maintained a partnership with
the utility to assist with the rebuilding and replacement of the diesel electric generators. AEA worked
with the utility in 2005 to add switchgear and computers to the powerhouse for modernization and
improved integration of hydroelectricity into the distribution system. The most recent AEA financial
assistance for generator refurbishment occurred in 2012.
Fuel deliveries for the community occur two times per year by barge. Net diesel consumption for the
generators is presented in Figure 1, for a total of 59,634 gallons over a two year period.
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Figure 1. Powerhouse Generator Diesel Consumption
Hydroelectricity was first established in the early 1980s with a demonstration project consisting of a
wood crib dam structure, PVC penstock and small turbine. The dam formed Mahoona Lake, which is also
the source of drinking water for Ouzinkie. In approximately 1997, the Mahoon Lake dam was raised to
increase storage capacity. In 2014, due to initial signs of failure in the wood dam structure, ANTHC
worked with the utility to construct a new concrete dam. The hatch gate at the base of the new dam
was damaged in the winter of 2016 due to forces exerted from lake ice, however, the utility is currently
working with ANTHC to replace the valve system and damaged gate. Repairs are expected to be
completed by the end of 2017. The original PVC penstock, which is still in use, extends to the turbine
powerhouse over an approximate distance of 300 vertical feet and 4600 horizontal feet. PVC is degraded
by ultraviolet light, and as a result, any areas of exposure in the original penstock are brittle and subject
to failure. One such failure occurred in the fall of 2015 which drained the entire lake and resulted in
total diesel electric generation for a period of two months. This section of penstock has currently been
repaired, but the entire PVC penstock needs to be replaced with HPDE penstock in the near future to
prevent similar failures. The current hydro turbine is aging, and the most recent refurbishment
maintenance to the turbine occurred approximately late 1990s.
Figure 2 demonstrates diesel and hydro electricity production over a two year period. Aside from
residential customers, primary electricity demand comes from the school, health clinic, community and
tribal halls. A significant decrease in demand is noted in the summer months when school is out of
session. The utility reads power meters on the 26th of each month, keeps records in QuickBooks and
currently qualifies for PCE from the state of Alaska. A load bank of 40kW heating elements is utilized for
voltage regulation, responding to immediate increases/decreases of customer demand. The Tribal
Cultural Center installed 20 solar photovoltaic panels, roof mounted, in 20XX.
0
1000
2000
3000
4000
5000
6000
Ouzinke Turbine Diesel Consumption for the
period from July 2014 to June 2016
Diesel Consumed (gal)
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Figure 2. Electric Utility Data, Note: Hydro Dam construction in summer 2014 and Hydro Penstock
failure in fall 2015
Energy Vision
The energy vision was developed through a collaborative effort during the two day energy planning
workshop in May of 2017. During the energy planning process the participants identified the following
energy values:
Hydroelectric upgrades
Renewable energy
Energy efficiency
Electric infrastructure improvements
Power plant and generator upgrades
Water infrastructure improvements
These energy values were than used to create a final energy vision. The following statement is the
Ouzinkie energy vision that was developed and agreed upon by the planning team:
The City, Native Corporation, and Native Village of Ouzinkie will work together to provide reliable and
sustainable energy to the community and create economic opportunities by utilizing available diverse
energy resources and improving existing infrastructure to lower utility cost with a goal of 100% self-
sufficiency.
0
10000
20000
30000
40000
50000
60000
70000
80000
Ouzinke Diesel and Hydro Electricity
Production July 2014 to June 2016
Diesel (kWh)Hydro (kWh)
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Energy Goals and Projects
The energy planning team identified the projects listed below for sustainable energy development.
These projects are aligned with the energy values identified by the energy planning participants. The
projects are also prioritized by time frame as shown in Table 3Error! Reference source not found.
below.
Hydroelectric Upgrades
Penstock replacement
Dam gate valve replacement
Research dual output hydro turbines
Install a larger hydro turbine
Install a camera at the dam to monitor the water level
Replace the water level sensor
Research alternative hydroelectric load bank options
A significant portion of the electricity consumed in Ouzinkie is provided by the Mahoona Lake Dam.
Additionally, Mahoona Lake, which only exists due to the presence of the dam, is the sole source of
drinking water for Ouzinkie. Maintaining and improving this vital resource was one of the top priorities
identified during the energy planning workshop. The highest priority projects include replacing the
penstock and the gate valve. Previous failure of the gate valve resulted in a complete drainage of
Mahoona Lake and the current valve is a temporary fix until the new valve arrives in Ouzinkie. The
current penstock is composed of PVC and is exposed in several areas, making it susceptible to damage
from sunlight and other falling/crushing hazards which may compromise the integrity of the penstock.
The loss of use of the Mahoona Lake water resource resulting from any failures in the penstock or the
gate valve has a substantial economic, health, and social impact on Ouzinkie. Implementing the projects
listed above will help increase the reliability of the dam and will also increase its potential, efficiency,
and reliability in the future.
Renewable Energy
Solar PV project (possibly on the water treatment facility)
Wind anemometer
Biomass utilizing sawmill waste
Research potential tidal project partners
Diversifying and securing the energy supply, as well as creating energy sovereignty, was identified as a
value to the City and Village of Ouzinkie. To help advance those values the Tribe will evaluate several
renewable energy options, including solar, wind, and biomass. Recently, solar PV was installed on the
community center and the data from that project should be analyzed to determine its cost to benefit
ratio. Due diligence, including resource assessments and feasibility studies, will be completed prior to
the implementation of any renewable energy project.
Energy Efficiency
Complete the street light retrofits
Expand waste heat recovery to the new transportation warehouse
Tribal and City buildings energy efficiency retrofits
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Ouzinkie’s electricity consumption is at its peak during the winter when heating and lighting use is high.
Ouzinkie has already taken some steps to improve its energy efficiency, such as retrofitting some of the
street lights with LEDs and utilizing waste heat from the generators to heat the firetruck garage.
Ouzinkie will continue to support energy efficiency and reduce it energy consumption by completing the
street light LED retrofits and expanding the waste heat to the planned transportation warehouse.
Additionally, improving the separation between the interior and exterior of a building, also known as the
building “envelope,” can help reduce heating needs, and adding additional or new windows can help
increase natural lighting. Energy efficiency retrofits should be prioritized for high energy consuming
buildings to help increase the cost effectiveness of the projects.
Electric Infrastructure Improvements
Install residential pre-paid meters
Transmission/Distribution improvements
Extend transmission
o Dump
o Sawmill
o Sunny Cove
o Pleasant Harbor
Intertie with Kodiak Electric Association
Harbor Electrical Upgrades
Ouzinkie has had a several issues with their transmission and distribution system, including fires and
arcing. Addressing those issues and improving the transmission system can help improve public safety,
energy reliability, and reduce line loss. Ouzinkie will also evaluate the feasibility and cost of
interconnecting with Kodiak Electric Association (KEA). The costs and impacts of an intertie with KEA
should be thoroughly evaluated prior to implementation of that project. Ouzinkie has also considered
installing pre-paid meters for all residential consumers to help ensure payment and also to encourage
conservative energy consumption.
Power Plant and Generator Upgrades
Complete maintenance on generator #3
The existing power plant is currently undergoing maintenance on several issues. Future upgrades will be
considered to help ensure that the power source is reliable and operating at its maximum efficiency.
Water Infrastructure Improvements
Complete phase 3 of water line replacements
Evaluate alternative payment structures for water and energy
Evaluate potential alternative drinking water sources
During the energy planning workshop it was noted that the current payment structure for water use
does not fully cover the costs for the water treatment and supply. To make up for the shortfall, the City
may rely on income from its energy sales, reducing the amount of energy revenue that could be used to
maintain and improve the energy systems. Various payments structures will be evaluated to determine
if this problem could be addressed in a way that would allow for affordable water supply while reducing
the need to utilize energy revenue.
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Completing the water line replacements that were previously started in Ouzinkie was identified as a high
priority project for the City and Village. Completing the upgrades will reduce losses to leakage, improve
water quality, and help reduce overall costs. Because of past issues with the dam at Mahoona Lake and
the temporary loss of drinking water, the City and Village will also investigate other potential drinking
water sources.
Table 3. Village of Ouzinkie Energy Projects Timeline
0 to 2 Years 2 to 5 Years 5 to 10 Years
Penstock replacement Research alternative
hydroelectric load bank
options
Research potential tidal project
partners
Water drainage valve
replacement
Solar PV project (possibly on
the water treatment facility)
Research dual output hydro
turbines
Biomass utilizing sawmill waste
Install a larger hydro turbine Complete the street light
retrofits
Install a camera at the dam to
monitor the water level
Expand waste heat recovery to
the new transportation
warehouse
Replace the water level sensor Tribal and City buildings energy
efficiency retrofits
Wind anemometer Extend transmission
Install residential pre-paid
meters
Intertie with Kodiak Electric
Association
Transmission/Distribution
improvements
Harbor Electrical Upgrades
Complete maintenance on
generator #3
Evaluate alternative payment
structures for water and
energy
Complete phase 3 of water line
replacements
Evaluate potential alternative
drinking water sources
Energy Goals
To help meet the energy vision and values identified by the Tribe the Ouzinkie strategic energy planning
participants identified goals that will be used to set milestones and track progress. The following goals
were identified during the workshop:
Goal 1: Hydroelectric Penstock Replaced by 2019
Replacing the penstock for the hydroelectric system was identified as the highest priority project and
goal for the Village and City of Ouzinkie. As seen in the fall of 2015, penstock failure can result in loss of
both the drinking water and energy supply. A previous study was done to determine the best material
for the new penstock and provide an estimate for the total cost of replacement. Currently, Ouzinkie is
working to find funding for replacement of the penstock.
Goal 2: Put up an Anemometer within 1 Year
Ouzinkie is interested in pursuing wind energy as an alternative energy supply. They will work to locate
and install a wind anemometer to gather wind speed data for one year to help determine the level of
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wind resource. Ouzinkie will reach out to other cities and villages that have previously installed
anemometers to see if any are available at a reduced cost to the City and Village.
Goal 3: Identify Funding for Energy Related Infrastructure Improvements within 2 Years
Both the City and Village of Ouzinkie will research and pursue funding opportunities for the much
needed infrastructure improvements. Loans, grant opportunities, and other local, state, and federal
funding opportunities may be available to help support the much needed transmission, hydro, water
distribution, and generator improvements.
Goal 4: Establish a Village Store by 2020
The City and Village of Ouzinkie identified the need for a store during the energy workshop. It was also
proposed that there may be potential to partner with businesses or a potential food cooperative in
Kodiak to help reduce the cost of shipping food and goods to Ouzinkie, making items in the store more
affordable for residents. A future store may also be able to sell the produce produced at the farm in
Ouzinkie.
Goal 5: Implement a Solar Project by 2021
Ouzinkie would like to implement a second solar PV project by 2021 to take advantage of the summer
solar resource. The water treatment facility was identified as a potential location for a solar PV system
and would also help reduce the costs of water treatment. Data has been collected on the existing solar
system on the community center and should be analyzed to determine its cost-effectiveness.
Goal 6: Increase Hydroelectric Efficiency by 5% by 2022
Ouzinkie will work to improve the efficiency of the hydroelectric system. Although all options will be
evaluated, potential methods for doing so may include an alternative load bank options, installing a dual
speed generator, or utilizing a larger sized generator.
Technical Potential
A technical potential analysis estimates the resources that can be used for large, commercial-scale
renewable energy generation based on commercially available technologies, developable land, and
system performance. It may not reflect the developable potential because it does not incorporate
technology costs, competing land uses, transmission and infrastructure availability, policy, investor, or
energy competitiveness environments. As technical potential considers commercial- scale projects only,
a site-specific assessment for distributed applications, such as residential solar photovoltaics (PV) and
micro wind, is needed to adequately evaluate the potential for small-scale renewable energy
development on tribal land. Table 4 provides a summary of the Koniag Region’s technical potential for
renewable energy. More detailed information on the methodology used to calculate technical potential
is available at www.nrel.gov/docs/fy13osti/56641.pdf.
Table 4. Technical Potential of Various Renewable Energy Resources in the Bristol Bay Native Region
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Resource Availability
Biopower from Solid Residues (MW) 0 MW
Rural Utility PV Potential Installed Capacity (MW) 14,187 MW
Rural Utility PV Available Land (km2) 296 km2
Wind Potential Installed Capacity at 80m and GCF>=30% (MW) 21,453 MW
Wind Available Land at 80m and GCF>=30% (km2) 18,805 km2
Hydropower Capacity Potential (MW) 21 MW
Geothermal Hydrothermal Potential Installed Capacity (MW) 3 MW
Resource Assessment
The Koniag Region has potential for renewable energy generation from many resources. There is high
technical potential to develop wind projects and moderate technical potential to develop rural utility-
scale PV projects. Figure 3 illustrates the technical potential of renewable energy resources throughout
the Koniag Region. For more information on the basics of renewable energy technology and links to
further resources, see https://energy.gov/indianenergy/resources/education-and-training.
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Figure 3. Resource Potential in the Koniag Region
Resources and Incentives
Several programs offer financial programs, technical assistance, and procurement support to help tribal
communities achieve their energy goals. The programs below represent various assistance programs
that may be leveraged to complete the Village’s energy related projects.
The Energy Development Assistance Tool
o Provides information for Tribes about federal grant, loan, and technical assistance
programs available from more than 10 federal agencies to support energy development
and deployment in Indian Country and Alaska Native villages.
https://energy.gov/indianenergy/energy-development-assistance-tool
Grants
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o Programs that offer grants relevant to the above listed energy programs and projects
include:
US Department of Energy
Energy Efficiency and Renewable Energy
http://www.energy.gov/indianenergy/office-indian-energy-policy-and-
programs
US Department of Agriculture
Energy Efficiency and Community Upgrades
Rural Utility Service (electrical and communications)
http://www.usda.gov/wps/portal/usda/usdahome?navid=otr
Housing and Urban Development
Energy Efficiency and Housing Weatherization
http://portal.hud.gov/hudportal/HUD?src=/topics/grants
Bureau of Indian Affairs
Renewable Energy and Energy Offices
http://www.bia.gov/WhoWeAre/AS-IA/IEED/DEMD/TT/TF/index.htm
Loan Programs
o Programs that offer loans relevant to the above listed energy programs and projects
include:
US Department of Agriculture and Rural Development
https://www.rd.usda.gov/programs-services/all-programs/electric-
programs
Office of Indian Energy and Economic Development
https://www.bia.gov/WhoWeAre/AS-IA/IEED/index.htm
Technical Assistance
o Programs that offer technical assistance relevant to the above listed energy programs
and projects include:
US Department of Energy:
Energy Efficiency and Renewable Energy (all technologies)
Strategic planning
Financing
http://www.energy.gov/indianenergy/office-indian-energy-policy-and-
programs
Housing and Urban Development
Energy Efficiency, Weatherization
http://portal.hud.gov/hudportal/HUD?src=/topics/grants
Bureau of Indian Affairs
Renewable Energy
http://www.bia.gov/WhoWeAre/AS-IA/IEED/DEMD/TT/TF/index.htm
Procurement
o The following entities offer procurement assistance:
GSA
Comprehensive
https://www.gsaglobalsupply.gsa.gov/
Alaska Programs and Incentives
o Additional programs and incentives specific to Alaska are also available:
http://programs.dsireusa.org/system/program?fromSir=0&state=AK
Alternative Energy Conservation Loan Fund
15
https://www.commerce.alaska.gov/web/ded/FIN/LoanPrograms/Altern
ativeEnergyLoanProgram.aspx
AIDEA Loan Program
http://www.aidea.org/Programs/LoanParticipation.aspx
Federal Incentives
Federal incentives play an important role in the commercialization and adoption of renewable energy
technologies by providing consistent financial support for growth, including the construction of
manufacturing plants and the extended project development and construction time typically required
for renewable energy projects. For the commercial, industrial, utility, and agricultural sectors, the U.S.
government currently supports renewable energy deployment through the Investment Tax Credit (ITC)
and New Markets Tax Credit (NMTC), which encourage private investment by reducing taxes owed by a
project owner. While the NMTC is available beginning the year in which the investment is made, the ITC
is available to the taxpayer in the year the energy project is put into service. In addition to these tax
credits, the government provides depreciation benefits through the Modified Accelerated Cost Recovery
System (MACRS), which enables certain investments in wind, geothermal, and solar technologies to be
recovered over a 5-year schedule in lieu of the standard life of the asset. MACRS improves the economic
viability of a project by reducing tax liability in the initial years of production.
Investment Tax Credit – Section 48 of the Internal Revenue Code provides an ITC for certain types of
energy projects, which reduces a company’s tax liability by a percentage of qualified capital
expenditures. The credit is allotted in the year in which the project begins commercial operations and
vests linearly over a 5-year period (e.g., 20% of the 10% geothermal credit vests each year over a 5-year
period). If the project owner sells the project before the end of the 5-year period, the unvested portion
of the credit will be recaptured by the Internal Revenue Service. Technologies eligible for the ITC include
solar, fuel cell, small wind, geothermal, microturbine, and combined heat and power (CHP). The ITC for
geothermal and CHP projects is 10%, while the ITC for solar, fuel cell, and small wind projects is 30%
until the program expires on Dec. 31, 2016. More information on the ITC is available at
http://programs.dsireusa.org/system/program/detail/658.
New Markets Tax Credit – The NMTC was enacted by Congress as part of the Community Renewal Tax
Relief Act of 2000 to create jobs and improve the lives of residents in low-income communities and
target populations. It allows individual and corporate taxpayers to receive a federal income tax credit for
making Qualified Equity Investments (QEIs) in qualified Community Development Entities (CDEs). CDEs
must be designated by the Community Development Financial Institutions (CDFI) Fund, which is a
division of the U.S. Department of the Treasury. The NMTC equals 39% of the investment and is claimed
over a 7-year period. Through 2011, the CDFI Fund made 664 awards worth a total of $33 billion. For
more information on the NMTC, see https://www.cdfifund.gov/programs-training/Programs/new-
markets-tax-credit/Pages/default.aspx.
Alaska State Policies and Incentives
Alaska employs a suite of regulatory policies and financial incentives related to renewable energy and
energy efficiency; although, the state does not have a renewable portfolio standard or goal.
Furthermore, all utilities with annual retail sales of 5,000 megawatt-hours (MWh) or more must offer
net metering for renewable energy systems, however, the overall enrollment is limited to 1.5% of a
utility’s retail sales from the previous year and a system capacity limit of 25 kilowatts (kW). Customers
16
are compensated monthly for net excess generation (NEG) at a “non-firm rate” or essentially the
avoided-cost rate which is carried over indefinitely to the following billing periods. The state has also
promulgated interconnection guidelines, although not the preferred IREC standards, to facilitate the
interconnection process.
There are a variety of financial incentives available to those interested in developing renewable energy
and energy efficiency projects in Alaska. Among these incentives are property tax incentives, loan
programs, rebates, and renewable energy grant programs. More detailed information on financial
incentives is available on the Alaska Energy Authority website (http://www.akenergyauthority.org/) as
well as within the Database of State Incentives for Renewables & Energy Efficiency (www.dsireusa.org).
1
Appendix A: Ouzinkie PV Watts Solar Analysis1
2
Appendix B: Glossary of Energy Terms
Base Load
The minimum amount of energy that must be generated constantly by a utility in order to meet
minimum customer demand.
Commercial-Scale Project
A stand-alone project with a primary purpose of generating revenue resulting in financial self-
sufficiency.
Community Development Entity (CDE)
Required participant in New Market Tax Credit (NMTC) transactions.
Community Development Financial Institutions (CDFI) Fund
Created for the purpose of promoting economic revitalization and community development through
investment in and assistance to CDFIs. The CDFI Fund was established by the Riegle Community
Development and Regulatory Improvement Act of 1994.
Cooperative Utility (Co-op)
A government-regulated not-for-profit utility that is owned by its customers. Net revenue is either
reinvested in the utility or distributed to its shareholders (customers).
Distributed Generation
A term used to describe an energy system in which electricity generation occurs in dispersed
geographical locations that are in close proximity to energy demand. It is an alternative to a traditional
grid system, in which electricity is produced at a centrally located plant and then transmitted to
customers over long distances.
Investment Tax Credit (ITC)
Reduces federal income taxes for qualified tax-paying owners based on capital investment in renewable
energy projects and is earned when equipment is placed in service.
Investor Owned Utility (IOU)
A government-regulated private-sector firm seeking profit by providing a utility service, such as water or
electricity.
Modified Accelerated Cost Recovery System (MACRS)
A mechanism for computing tax depreciation on property placed in service after 1986 using accelerated
methods of cost recovery over statutory recovery periods. An MACRS deduction is determined by
applying a declining-balance percentage for a statutory recovery to the cost of the property. The cost of
eligible property is recovered over 3-year, 5-year, 10-year, 15-year, or 20-year periods, depending on
the type of property. For renewables, most expenditures are on a 5-year schedule.
New Market Tax Credit (NMTC)
1 http://pvwatts.nrel.gov/
3
The NMTC was enacted by Congress as part of the Community Renewal Tax Relief Act of 2000 to create
jobs and improve the lives of residents in low-income communities and target populations.
Net Metering
Billing system that provides customers with credit for electricity generated from distributed resources
(such as PV energy); host often receives the full retail value for the excess electricity generated by the
system that is fed back to the utility grid.
Off-taker
Purchaser of the electricity from a renewable energy system. For a facility-scale project, it is often the
building location where the system is located. For a community-scale project, it is often the community
supporting the development. For a commercial-scale project, it can be any party purchasing the
electricity, typically a utility.
Public Regulatory Commission
A governing body that regulates the rates and services of a public utility provider.
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Appendix C. Strategic Energy Planning Workshop Participants and Energy
Stakeholders
Ouzinkie Strategic Energy Planning Workshop Participants:
Melodi Chichenoff, Ouzinkie City Council
Robert Baskofsky, Ouzinkie Tribal Council
Matthew Jones, Ouzinkie City Council
Daniel Rich, Ouzinkie City Council
Clare Anderson, Power Operator
Linda Getz, City of Ouzinkie
Katherine Panamarioff, City of Ouzinkie
Alex Ambrosia, City of Ouzinkie
Ouzinkie Energy Stakeholders:
City of Ouzinkie
Ouzinkie Tribal Council
AEA
ANTHC
KANA
SWAMC
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Reference List
Alaska Energy Authority. 2017. Power Cost Equalization Statistical Reports by Community, FY 2013-FY
2015. http://www.akenergyauthority.org/Programs/PCE
Database of State Incentives for Renewables & Efficiency. 2017. Programs, Alaska.
http://programs.dsireusa.org/system/program?state=AK
U.S. Energy Information Administration. 2017. Average Retail Price of Electricity to Ultimate Customers
by End-Use Sector, by State October 2016 (Cents per Kilowatt Hour).www.eia.gov/electricity/monthly