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HomeMy WebLinkAbout2021-04-14 AEA Agenda and docs813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG Alaska Energy Authority Board Meeting Wednesday, April 14, 2021 8:30 a.m. AGENDA Dial 1 (888) 585-9008 and enter code 212-753-619# Public comment guidelines are below. 1.CALL TO ORDER2.ROLL CALL BOARD MEMBERS3.AGENDA APPROVAL4.PUBLIC COMMENTS (3 minutes per person) see call in number above5.PRIOR MINUTES – March 3, 20216.EXECUTIVE SESSION – NONE7.NEW BUSINESS – NONE8.OLD BUSINESS – NONE9.DIRECTOR COMMENTS A.Response to Board Questions B.Denali Commission Update C.EV Update D.Legislative Update E.Power Project Fund Dashboard & Loan Report F.Rural Update G.Community Outreach Schedule H.Articles of Interest I.Next Regularly Scheduled AEA Board Meeting Wed. May 19, 2021 J.BOARD COMMENTS10.ADJOURNMENT Public Comment Guidelines Members of the public who wish to provide written comments, please email your comments to publiccomment@akenergyauthority.org by no later than 4 p.m. on Tuesday prior to meeting, so they can be shared with board members prior to the Wednesday meeting. Alaska Energy Authority Page 2 of 2 When calling in to make public comments, participants will enter the teleconference muted. After board roll call and agenda approval, callers who wish to make public comment will be asked to press *9 on their phones. This will initiate the hand-raising function. Caller will be unmuted individually in the order the calls were received. When an individual is unmuted, you will hear, “It is now your turn to speak.” Please identify yourself by name and organization if applicable and make your public comments. 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG Response to Board Questions from March 3, 2021 Board Meeting 1. What is the average size of a generator on rural communities. The most commonly installed genset is a JD 4045 100 kW. 2. Has AEA Reviewed the Energy Act of 2021 and determined any funding opportunities? AEA Staff has reviewed the Energy bill and subsequent to that review staff has engaged with the offices of both Senator Sullivan and Senator Murkowski to inform them of both energy and infrastructure opportunities in Alaska. In keeping with what has emerged as an opportunity proposed by the new administration both senators are looking for funding opportunities to deploy capital in state which would construct new public works projects and which would repair or refurbish existing infrastructure, specifically electric infrastructure. This would include both railbelt and rural needs. Further, it can be mentioned that careful thought is being given to green energy which is a focus of both the state and the nation. There are projects before the senators in the nature of “shovel ready” projects that meet both considerations. In a closely related, yet ongoing conversation AEA staff are engaged in conversations with National Laboratory personnel about new modular hydro opportunities in rivers and locations where there is not the same head as is associated with high mountain lake hydro. This is a relatively new undertaking by DOE but is seems there is some promise for the technology and there are numerous sites in Alaska where the opportunity to deploy the modular equipment concept may be productively employed. Lastly in response to the Board question the new Arctic Energy Office of DOE and the DOE Division of Indian Energy have each indicated new funding may enable them to participate with AEA in funding projects that qualify for Federal support. Those discussions are ongoing. They are dependent on Congress funding a national infrastructure plan. 3. Provide the composition of Electric Vehicle battery, disposal cost of EV battery, and replacement cost of EV battery. a. Composition of an EV Battery Most electric batteries are lithium based today. They often also include some combination of other metals such as cobalt, manganese, nickel and graphite. Alaska Energy Authority Page 2 of 2 Recently progress has been made and there is a market place belief that other lithium combinations and magnesium, sodium, or lithium-sulfur combinations have the potential to replace lithium-ion batteries on both a cost basis and on an energy density basis. Very recently there have been significant breakthroughs in EV Battery technology. Solid state batteries are seen as capable of resolving many of the cost life and social issues surrounding battery concerns. At Samsung a new batter is being tested that removes the lithium anode and replaces it with a silver carbon composite. Preliminary indications are that this change enables a greater energy storage capacity per unit size, enables a longer life cycle and improves overall safety. This test battery may allow a drive range of 500 miles, and may also enable more than 1,000 recharge cycles If that proves to be the case then simple math indicates an EV may last with one battery for a distance of 500,000 miles and may also have a significantly faster charging time than today’s batteries have. Today both Nissan and Tesla guarantee the life of a battery for 8 years or 100,000 miles. b. Disposal cost of a depleted EV Battery The Anchorage municipal landfill was unable to quote a dump charge for an EV battery. For the most part batteries are not disposed of. More often they are replaced and upon replacement the removed EV battery is re-purposed or recycled. While there is undoubtedly a cost it was not discovered within the scope of research performed. Repurposed batteries taken from an EV can be used to power homes and buildings and they can provide local storage function. When batteries reach an end to useful life they are often recycled. This typically involved separating the valuable metals such as cobalt and lithium salts, copper, aluminum and other materials. At the moment waste processing experts assert that about 60 percent of the materials in an EV battery pack are recycles but with EV’s expected to see an increase in popularity over the coming decade both batter manufacturers and recycling experts are hopeful about seeing a higher percentage of recycling success c. Replacing EV Battery Be grateful that there is a warranty on most EV batteries from EV manufacturers. Also, the cost of batteries fell about 80% between 2010 and 2020 according to McKinsey Research. In other terms the price fell on a kWh basis from $1000 to $271. It is also important to measure the size and power of a battery if there is to be a meaningful price comparison. There are industry predictions that suggest by 2030 prices may fall on a kWh comparison basis to below $100. Award No Project Name DC Funding Perf. Period Beg Perf. Period Thru Actions Since Last Report Estimated Jobs Created Permanent Jobs Created 01349-09 RPSU - Togiak-Twin Hills Intertie 4,187,221 2/15/2011 9/30/2021 None 26 2 01432-09 BFU - Tatitlek 1,472,000 6/1/2013 12/31/2021 None 30 2 01474-07 BFU - Chalkytsik 517,500 6/16/2015 12/31/2021 None 30 2 01485-04 START Communities Tech Asst 375,000 11/1/2015 6/30/2022 None 2 0 01492-08 BFU - Beaver 608,000 7/6/2016 12/31/2021 None 5 2 01500-06 Bulk Fuel Operator Training 1,010,000 9/1/2016 12/31/2021 None 3 0 01515-08 Circuit Rider Program 1,200,000 1/1/2017 12/31/2021 None 3 0 01516-07 RPSU - Maintenance & Improvement 748,776 10/1/2016 12/31/2022 None 20 0 01523-07 Miscellaneious Small M&I Projects 1,220,000 6/1/2017 12/31/2021 None 20 0 01525-05 Power Plant Operator Training 647,514 8/15/2017 9/30/2021 None 3 0 01544-03 Itinerant Utility Training 500,000 3/1/2018 6/30/2021 None 3 0 01548-06 RPSU M&I - Statewide 2,550,000 5/1/2018 12/31/2021 None 20 0 01549-04 RPSU Inventory & Assessment - Statewide 300,000 4/18/2018 12/31/2021 None 20 0 01550-03 RPSU - Akhiok 1,500,000 5/1/2018 9/30/2021 None 26 2 01551-05 RPSU - Venetie 250,000 5/1/2018 12/31/2021 Extended to 12/31/2021 5 2 01557-02 Barge Headers and Fill Lines 3,976,820 10/1/2018 12/31/2022 None 60 0 01571-01 BFU - Nunapitchuk 3,522,546 8/15/2019 12/31/2022 None 30 2 01574-02 RPSU - Nikolai 1,733,740 8/1/2019 3/31/2023 None 5 2 01575-02 RPSU - Nelson Lagoon 135,455 8/1/2019 6/30/2021 None 5 2 01576-03 RPSU - Rampart 1,733,740 8/1/2019 3/31/2023 None 5 2 01577-03 RPSU - Napaskiak 335,455 8/1/2019 12/31/2021 None 26 2 01592-01 BFU - Scammon Bay 300,000 2/17/2020 12/31/2021 Extended to 12/31/2021 5 2 01600-01 VEEP - Statewide 875,000 6/15/2020 12/31/2022 None 3 0 01610-01 BFU - Ekwok 100,000 9/1/2020 9/30/2021 None 30 2 01611-00 Engineering Library 100,000 9/1/2020 6/30/2022 None 1 0 01618-00 Fivemile Creek Hydroelectric Project 2,880,000 9/1/2020 12/31/2022 None 65 2 01628-00 Craig High School Biomass Project 440,417 11/1/2020 12/31/2021 None 8 2 Total Funding for Active DC Awards:33,219,184 Less Total Spending on Active DC Awards:(14,616,436) Total Funding Remaining on Active DC Awards:18,602,748 Active Denali Commission Awards As of 03/31/2021 ELECTRIC VEHICLE DC FAST-CHARGING SITE SELECTION Betsy McGregor Preliminary Design and Environmental Manager Informational Webinar March 30, 2021 WHO WE ARE REDUCING THE COST OF ENERGY IN ALASKA | 02 Created in 1976 by the Alaska Legislature, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska governed by a board of directors with the mission to “reduce the cost of energy in Alaska.” AEA is the state's energy office and lead agency for statewide energy policy and program development. WHAT WE DO Railbelt Energy –AEA owns the Bradley Lake Hydroelectric Project and the Alaska Intertie. These assets benefit Railbelt consumers by reducing the cost of power. Power Cost Equalization –The Power Cost Equalization Program reduces the cost of electricity in rural Alaska for residential customers and community facilities. Rural Energy –AEA constructs bulk fuel tank farms, diesel powerhouses, and electrical distribution grids in rural villages. AEA supports the operation of these facilities through circuit rider and emergency response programs. Renewable Energy –AEA provides renewable energy and energy efficiency grants, analysis, and expertise to benefit Alaskans. These include hydro, biomass, wind, solar, and others. Grants and Loans –AEA provides loans to local utilities, local governments, and independent power producers for the construction or upgrade of power generation and other energy facilities. Energy Planning –In collaboration with local and regional partners, AEA provides critical economic and engineering analysis to plan the development of cost effective energy infrastructure. REDUCING THE COST OF ENERGY IN ALASKA | 03 OUR PROJECTS REDUCING THE COST OF ENERGY IN ALASKA | 04 REDUCING THE COST OF ENERGY IN ALASKA | 05 AEA designated the Lead Agency in 2018 School Bus Replacement Public Transit Bus Replacement Replacement of gensets used for prime power in Rural Alaska EV Charging Infrastructure (15%) DC Fast-Charging Network (~$1 million) Community-based Level 2 Chargers VW ENVIRONMENTAL MITIGATION TRUST DC FAST-CHARGING NETWORK PROGRAM REDUCING THE COST OF ENERGY IN ALASKA | 06 Develop DCFC stations along highway corridors Stations located 50 to 100 miles apart Where communities and infrastructure exist Within 5 miles of highway system DC FAST-CHARGING CORRIDOR REDUCING THE COST OF ENERGY IN ALASKA | 07 Kenai Peninsula to Fairbanks PHASE 1 DC FAST-CHARGING CORRIDOR REDUCING THE COST OF ENERGY IN ALASKA | 08 615 miles 5 utility service territories Electricity calculator PHASE 1 DC FAST-CHARGING CORRIDOR REDUCING THE COST OF ENERGY IN ALASKA | 09 RFQ to qualify EVSE Packages –open RFI to identify interested Site Hosts –open RFA to select Site Hosts Round 1 –closes May 5, 2021 at 2 p.m. (Alaska Time) Selected Hosts notified May 12, 2021 Subsequent rounds as needed to meet Program goals AVAILABLE FUNDING VW Trust –80%, not to exceed $100,000 per site Grantee –20% AEA Round 1 Incentive –$10,000 per site (first 10 sites) Must complete and submit: Final site configuration plan Host Site Agreement(s) procure charging infrastructure invoice AEA no later than June 30, 2021 REDUCING THE COST OF ENERGY IN ALASKA | 10 ELIGIBLE EXPENSES REDUCING THE COST OF ENERGY IN ALASKA | 11 Final site design Charging equipment and related material Electrical contractors Installation labor and parts Signage Network services, customer service, warranties and maintenance for a period of 5 years INELIGIBLE EXPENSES REDUCING THE COST OF ENERGY IN ALASKA | 12 Electricity Purchase or lease real-estate Capital costs Construction of buildings, parking facilities, etc. General site maintenance PROPOSAL COMPONENTS REDUCING THE COST OF ENERGY IN ALASKA | 13 Application Form Proposal Budget Form Legal description of Site Letter from Servicing Utility Proof of Access to the Site Property ownership, lease, letter from property owner Letter(s) of Support Planning department, local organizations, EV owners, potentially impacted businesses PROPOSAL COMPONENTS REDUCING THE COST OF ENERGY IN ALASKA | 14 Project Organization, Staffing, and Qualifications (Section 6.2) Organizational Chart Project Lead Site Host EVSE Supplier EVSE Management/Maintenance Provider Grantee Other parties Individual Qualifications –Project Lead, EVSE Supplier Corporate Qualifications –Project Lead, EVSE Supplier PROPOSAL COMPONENTS REDUCING THE COST OF ENERGY IN ALASKA | 15 Financial and Ownership Structure (Section 6.3) Host Site Agreement –all relevant parties 5 years operation and maintenance Who has legal right to own and operate Who will receive revenue Responsible party to ensure payments Non-disclosure of confidential/proprietary info Disposition plan if agreement terminated Fee/rate Structure Point of sale equipment, method for payment PROPOSAL COMPONENTS REDUCING THE COST OF ENERGY IN ALASKA | 16 Site Suitability (Section 6.4) Meets requirements in RFA Section 3.1 Located within 5 miles of highway segments 24 hours per day; 7 days a week; 365 days a year Wi-Fi or cellular service to support network services 2 dedicated parking spaces per DCFC Electrical infrastructure to meet load Nearby amenities PROPOSAL COMPONENTS REDUCING THE COST OF ENERGY IN ALASKA | 17 Conceptual Site Configuration Plan (Section 6.5) Ingress and egress Buildings, other facilities on site Nearby amenities Point of interconnection with the existing electrical service Electrical meter Separate meter, if applicable Existing lighting or proposed lighting, if applicable DCFC EV charger Level 2 charger Dedicated parking spaces for EV Area for future expansion Signage PROPOSAL COMPONENTS REDUCING THE COST OF ENERGY IN ALASKA | 18 Project Implementation Plan (Section 6.6) EVSE Package Installation Operations and Maintenance Customer payment Customer support EVSE management and maintenance Data Capture Reporting Schedule PROPOSAL COMPONENTS REDUCING THE COST OF ENERGY IN ALASKA | 19 Budget (Section 6.7) Budget Item Description VW Funds from AEA1 SEP Incentive Funds from AEA2 Mandatory Match Cash Mandatory Match In-Kind Voluntary Match Cash TOTAL Project Management $0 Travel $0 Charging Unit $0 Other Mandatory Items (e.g., mounting hardware, activation fees) $0 Engineering and Final Design $0 Electrical System Upgrades, other components $0 Installation Labor and Parts $0 Permitting Fees $0 Network Services (5-years) $0 EVSE Warranty & Maintenance (5-years) $0 Other Itemized Costs $0 PROJECT TOTAL $0 $0 $0 $0 $0 $0 Percent by Funding Source #DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0! Complete Budget Form Explain budget SCORING CRITERIA (RFA SECTION 7) REDUCING THE COST OF ENERGY IN ALASKA | 20 CATEGORY MAXIMUM POINTS Application and Supporting Documentation 5 Project Organization, Staffing, and Qualifications 10 Financial and Ownership Structure 5 Site Suitability 20 Conceptual Site Configuration Plan 10 Project Implementation Plan and Schedule 15 Project Budget 10 Community Support 5 Site Location 20 Total 100 PHASE 1 HIGHWAY SEGMENTS REDUCING THE COST OF ENERGY IN ALASKA | 21 Highway 9 (Seward Highway) From Seward to intersection with Highway 1 Highway 1 (Sterling Highway) From Homer north to and including Kasilof North of Kasilof to intersection with Highway 9 Highway 1 (Seward Highway) From intersection with Highway 9 north to Potter Valley Road intersection Anchorage from Potter Valley Road intersection to Muldoon Road exit Highway 1 (Glenn Highway) East of Muldoon Road exit to Highway 3 intersection at Wasilla Highway 3 (Parks Highway) West of Wasilla up to and including Trapper Creek North of Trapper Creek up to and including Cantwell North of Cantwell up to and including Healy North of Healy up to and including Nenana North of Nenana up to and including Fairbanks SELECTED DCFC SITES REDUCING THE COST OF ENERGY IN ALASKA | 22 Round 1 notified May 12, 2021 Grant Agreement with AEA for 5+ years Incentive Funds Requirements Obtain a DUNS number Complete final site configuration plan Complete Host Site Agreement(s) Procure charging infrastructure Invoice AEA no later than June 30, 2021 REDUCING THE COST OF ENERGY IN ALASKA | 23 QUESTIONS CONTACTS REDUCING THE COST OF ENERGY IN ALASKA | 24 Lois Lemus llemus@aidea.org AIDEA/AEA Procurement Home Page aideaaeaprocurement.org Register to Receive Updates and Amendments aideaaeaprocurement.org/home/register/3212 AEA EV Webpage akenergyauthority.org/what-we-do/energy-planning-project-development/electric- vehicles Listserve list.state.ak.us/mailman/listinfo/alaskaev 813 W Northern Lights Blvd. Anchorage, AK 99503 Main: (907) 771-3000 Fax: (907) 771-3044 akenergyauthority.org Alaska Energy Authority AEA provides energy solutions to meet the unique needs and opportunities of Alaska’s rural and urban communities. AEA OVERVIEW Curtis W. Thayer Executive Director House Energy Committee April 8, 2021 WHO WE ARE REDUCING THE COST OF ENERGY IN ALASKA | 02 Created in 1976 by the Alaska Legislature, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska governed by a board of directors with the mission to “reduce the cost of energy in Alaska.” AEA is the state's energy office and lead agency for statewide energy policy and program development. WHAT WE DO Railbelt Energy –AEA owns the Bradley Lake Hydroelectric Project and the Alaska Intertie. These assets benefit Railbelt consumers by reducing the cost of power. Power Cost Equalization –The Power Cost Equalization Program reduces the cost of electricity in rural Alaska for residential customers and community facilities. Rural Energy –AEA constructs bulk fuel tank farms, diesel powerhouses, and electrical distribution grids in rural villages. AEA supports the operation of these facilities through circuit rider and emergency response programs. Renewable Energy –AEA provides renewable energy and energy efficiency grants, analysis, and expertise to benefit Alaskans. These include hydro, biomass, wind, solar, and others. Grants and Loans –AEA provides loans to local utilities, local governments, and independent power producers for the construction or upgrade of power generation and other energy facilities. Energy Planning –In collaboration with local and regional partners, AEA provides critical economic and engineering analysis to plan the development of cost effective energy infrastructure. REDUCING THE COST OF ENERGY IN ALASKA | 03 OUR PROJECTS REDUCING THE COST OF ENERGY IN ALASKA | 04 REDUCING THE COST OF ENERGY IN ALASKA | 05 What is energy? Simply put, energy is the capacity to do work. ““ REDUCING THE COST OF ENERGY IN ALASKA | 07 ENERGY UNITS Power Watts or kilowatts is like the flow rate of the water Energy Watts or Watts-hours or kilowatt hours is like the amount of water that ends up in a bucket POWER AND ENERGY U.S. AND ALASKA ENERGY PROFILE (%) REDUCING THE COST OF ENERGY IN ALASKA | 08 U.S.AK Oil and Gas Coal Renewable Energy Hydroelectric Nuclear Power URBAN ENERGY Map REDUCING THE COST OF ENERGY IN ALASKA | 11 Bradley Lake Hydroelectric Project Benefits 500,000+ members of Chugach Electric Association, City of Seward, Golden Valley Electric Association, Homer Electric Association, and Matanuska Electric Association Produces ~10% of Railbelt electricity at 4.5 cents/kWh or ~54,400 homes/year Over $20 million in savings per year to Railbelt utilities Bradley Lake versus natural gas BRADLEY LAKE HYDROELECTRIC PROJECT REDUCING THE COST OF ENERGY IN ALASKA | 11 WEST FORK UPPER BATTLE CREEK DIVERSION Project cost $47 million, will add ~10% energy or ~5,100 homes in a year Substantial completion on July 2020 Project diverts runoff from Battle Creek into Bradley Lake expanding the state’s largest hydroelectric facility Includes three miles of road, concrete diversion dam, and a five-foot diameter pipeline under the road to carry water from its source to Bradley Lake More energy at lower cost can be produced and delivered to ratepayers REDUCING THE COST OF ENERGY IN ALASKA | 12 Map REDUCING THE COST OF ENERGY IN ALASKA | 11 Soldotna to Quartz Creek Transmission Line 39.3 miles of 115-kV transmission line delivers Bradley Lake hydroelectric generated power AEA’s recent purchase allows for better cost alignment, increased reliability, and future prospect for upgrades to the line, which would decrease line losses and allow for increased power transmission north, and unconstraining Bradley power Schedule begins with preliminary design with 6 months, 24 to 36 month estimate to finalize construction SSQ TRANSMISSION LINE REDUCING THE COST OF ENERGY IN ALASKA | 14 Map REDUCING THE COST OF ENERGY IN ALASKA | 11 Alaska Intertie Transmission Line (Willow to Healy) 170 mile-long transmission line from Willow to Healy Allows Golden Valley Electric Association (GVEA) to connect to and benefit from lower cost power Improves reliability within Railbelt system Operated by AEA and Railbelt utilities Between 2008 and 2018, the Intertie provided an average annual cost savings of $40 million to GVEA customers ALASKA INTERTIE REDUCING THE COST OF ENERGY IN ALASKA | 16