HomeMy WebLinkAbout2017 Solar Published ArticleAn Alaska case study: Solar photovoltaic technology in remote microgrids
Erin Whitney, and Christopher Pike
Citation: Journal of Renewable and Sustainable Energy 9, 061704 (2017);
View online: https://doi.org/10.1063/1.4986577
View Table of Contents: http://aip.scitation.org/toc/rse/9/6
Published by the American Institute of Physics
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An Alaska case study: Solar photovoltaic technology
in remote microgrids
Erin Whitney and Christopher Pike
Alaska Center for Energy and Power, University of Alaska Fairbanks, P.O. Box 755910,
Fairbanks, Alaska 99775-5910, USA
(Received 6 June 2017; accepted 29 September 2017; published online 21 December 2017)
Solar photovoltaic (PV) technology is a nascent but promising energy option in
remote Alaskan microgrids and serves as an example for isolated electrical grids
worldwide. This study examines community scale solar PV installations in Alaska,
ranging in size from 2.2kW in Ambler to 50kW in Galena. Total installed costs
arguably show a trend toward lower values with larger installation sizes although
prices in Alaska are still significantly higher than in the rest of the United States.
Capacity factors range from 6% to 15%. However, it should be noted that some
installation configurations, particularly in the northwestern part of the state, were
installed with the goal of a broad production curve rather than maximum power
production.Published by AIP Publishing.https://doi.org/10.1063/1.4986577
INTRODUCTION
Significant volatility in fuel prices in the past decade and concerns over energy security
have thrust isolated grids such as those found in rural communities, island states, and remote
military installations using conventional fossil fuel power generation into an energy crisis.
Many of these remote locations are turning to renewable energy to reduce fuel consumption
and costs and to ensure a more independent and reliable energy source.
Over 200 remote communities in Alaska are largely dependent on diesel generators and
arguably have the highest electric rates in the nation due to the logistics of importing fuel.
These stand-alone village microgrids typically serve 300–450 people with average loads of
200kW (AEA, 2011). As such, the microgrids provide ideal laboratories to test and validate
variable generation and load control strategies with broader applications to high-penetration
renewable islanded systems globally. The renewable energy contribution in many small Alaska
communities is already much higher proportionally than what utilities in larger grids nationally
would even consider although they are on a trajectory that will require doing so in future
operations.
One of these renewable energy sources is solar photovoltaic (PV) power (Schwabe, 2016).
Although Alaska’s high latitude creates large fluctuations in sunlight throughout the year, com-
puter simulations show the solar PV potential in Alaska to be on a par with or greater than that
in Germany, the largest solar PV power market in the world (Wirth, 2015). Furthermore,
Alaska’s cold temperatures increase system voltage, reduce electrical resistance, and yield
higher-than-rated outputs associated with reflected light and albedo effects (Nelson, 2003 and
Brennan et al., 2014). These factors, combined with declining module prices, are making solar
PV technology more economical. Solar PV arrays have been installed in all areas of the state
from the southwest to the Arctic, and low sun angles and long daylight hours represent opportu-
nities to mount panels vertically on walls as well as on the east and west sides of buildings.
This review of solar PV technology in Alaska is a result of Alaska Senate Bill (SB) 138.
In this bill, the Alaska State Legislature created an uncodified section of law entitled: “Plan
and Recommendations to the Legislature on Infrastructure Needed to Deliver Affordable
Energy of the State to Areas That Do Not Have Direct Access to a [proposed] North Slope
Natural Gas Pipeline.” To support the Alaska Energy Authority (AEA) in its development of
1941-7012/2017/9(6)/061704/9/$30.00 Published by AIP Publishing.9, 061704-1
JOURNAL OF RENEWABLE AND SUSTAINABLE ENERGY 9, 061704 (2017)
an Alaska Affordable Energy Strategy, the Alaska Center for Energy and Power (ACEP) con-
tracted with AEA to document technology development needs specific to Alaska with regard
to renewable and sustainable energy technologies. The intention was to determine what tar-
geted, energy technology development solutions could be implemented in Alaska to make
energy more affordable in the Alaska Affordable Energy Study area. While the focus was on
technology research solutions, other factors such as logistics, labor, and training were also
addressed. Drafts of technology reviews were vetted by expert roundtables in late February
and early March 2016.
These reviews are not meant to be exhaustive discussions of energy technologies in Alaska
or proper designs for each technology, and they should not be used as guides for the choice
and installation of specific systems. As such, not all possible issues with power production and
each technology are addressed. Data for each technology were collected from surveys and pub-
lically available databases. Only completed projects, or projects with clearly reported data,
were included in each technology analysis. These distinctions and descriptions of data sources
are included in each technology review.
METHODS
To obtain information regarding the current state of the solar industry in Alaska, we con-
sulted installers, community development staff, and Alaska Energy Authority (AEA) staff.
Many of the systems installed in communities around the state are currently being monitored,
and data are available via online portals. Cost information is harder to acquire. For state-
funded projects, cost information is available from the AEA, but few projects have been
funded by the state. Cost information is sometimes available via community development
staff. This case study covers community installations that range in size from 2.2kW in
Ambler to 50kW in Galena. Significant data collection is still needed for specific details such
as module technology type, mounting types, and other characteristics that can help to further
refine analysis.
DISCUSSION
To illustrate the solar resource in Alaska, Fig.1 shows the expected average daily solar
radiation levels for varying surface angles for different cities in Alaska relative to Seattle and
Phoenix in the continental United States (ACEP, 2012). Anchorage (61 N) is located in south-
central Alaska, Fairbanks (65 N) is in the interior, and Kotzebue (67 N) is in the far north.
Figure 1(c)shows the amount of solar radiation that horizontal collectors would be expected to
receive throughout the year, with the highest radiation levels in May and June. In the graph
showing the collectors tilted at 15 steeper than the latitude angle and tilted vertically, a strong
improvement in springtime performance is seen. The graphs in the figure show that Fairbanks
and Kotzebue receive almost 5kWh/m
2 day in March and almost 6kWh/m
2 day in April. This
early season performance improvement is attributed to more direct radiation from the low sun
angles and high levels of reflected radiation from the snow-covered ground. Significant space-
heating demands also coincide with this springtime arctic solar resource. While solar PV power
is not a viable year-round resource for Alaskan communities, it can be of use for seasonal
applications and paired with other energy sources for winter energy demands.
Figure 1 uses data from the National Renewable Energy Laboratory (NREL), collected
between 1961 and 1990 and based on averaged values of radiation. It does not account for
weather patterns and cloud cover. In the NREL model, the albedo of snow was taken into
account to calculate reflected radiation (NREL, 1992). Surface albedo was adjusted depending
on the presence of snow cover. If there was snow on the ground, the surface albedo was set to
0.6 (albedo for snow ranges from 0.35 for old snow to 0.95 for dry new snow). If no snow
was indicated, the surface albedo was set to 0.2, a nominal value for green vegetation and
some soil types (NREL, 1992).
061704-2 E. Whitney and C. Pike J. Renewable Sustainable Energy 9, 061704 (2017)
Total installed costs
Total installed costs in $/W plotted as a function of installation size show a trend toward
lower costs with larger installation sizes, as seen in Fig.2. In this case, total installed costs are
the sum of labor, parts and materials, and shipping. In Alaska, the 6.7kW installation in Galena
($3.19/W) and the 18kW installation in Fort Yukon ($3.89/W) were accomplished with creative
means to cut costs. In Fort Yukon, these means included volunteer labor and a shipping deal.
For a number of other installations, figures are based on verbal estimates from batched pur-
chases and are not public record. The inconsistency of information is indicative of the nascent
solar PV industry in Alaska. In general, however, prices in Alaska are still higher than prices in
the contiguous United States. According to the Lawrence Berkeley National Laboratory
(LBNL) report, “Tracking the Sun VII” (Barbose et al., 2014), in the Lower 48, “Installed
FIG. 1. Expected average daily solar radiation levels for varying surface angles by city in Alaska, compared with Seattle
and Phoenix.
061704-3 E. Whitney and C. Pike J. Renewable Sustainable Energy 9, 061704 (2017)
prices exhibit significant economies of scale, with a median installed price of $4.8/W ($4800/
kW) for systems 2kW completed in 2013, compared to $3.1/W ($3100/kW) for commercial
systems >1000kW” (p. 2).
Operation and maintenance (O&M) costs
The cost calculation for operation and maintenance (O&M) of a PV system is an area of
increasing interest. Most systems around the United States have been installed within the last
8years, and limited O&M cost data exist (Enbar et al., 2015). In Alaska, most grid-tied PV sys-
tems have been installed for less than 5years. According to the Electric Power Research
Institute, O&M costs include scheduled maintenance and cleaning, unscheduled maintenance,
and inverter replacement reserves, with costs up to $47/kW/yr for non-tracking systems (Enbar
and Key, 2010). The O&M figures from a report by Black and Veatch (2012)and by the
LBNL (Bolinger et al., 2015) are $20–$50/kW/yr for non-tracking PV systems. Obviously, this
range is wide due to limited data and the short amount of time that grid-tied PV systems have
been installed. In addition, industry’s best practices are just beginning to emerge.
The Cold Climate Housing Research Center (CCHRC) has some of the oldest grid-tied
solar installations in Alaska; it maintains three pole-mounted PV systems on two-axis tracking
systems with a total installed size of 8kW. A relay has needed replacement, but otherwise very
little maintenance has been required. According to staff at the CCHRC, 4h of maintenance are
devoted to the systems per year (2h twice each year). Assuming $60/h, yearly maintenance
costs equal $30/kW/yr, without taking into account inverter replacement. The trackers are
locked at a fixed angle of 80 degrees azimuth facing due south between November and
February, when solar insolation is at a minimum and temperatures are coldest; they are set to
track the rest of the year.
One aspect of O&M in Alaska that deserves special mention is that of snow clearing. A
study by students at the University of Alaska Fairbanks involved simulating the cost and benefit
of clearing snow from a hypothetical 1MW solar installation that faced south at a panel angle
of 70 . The study plainly demonstrated that the cost savings from increased generation of elec-
tricity due to snow having been cleared from the panels did not justify the cost of labor to per-
form the task of clearing snow. This study was performed in Fairbanks, where winds are light
and extended cold temperatures cause snow that occurs in fall and winter to remain on the
ground into springtime. The results would likely be the same, if not more exaggerated, in
Western Alaska, where high winds blow and mid-winter warm-ups melt snow from roofs
(Vilagi and Brown, 2015).
During discussions with a number of individuals involved in the solar industry in Alaska,
it was generally agreed that O&M costs might be approximately $100 per installed kW of PV
power on the high side [Most solar systems within Alaska have been installed in the last
FIG. 2. Total installed costs ($/kW) as a function of installation size (kW) show a trend towards lower costs with larger
installation sizes.
061704-4 E. Whitney and C. Pike J. Renewable Sustainable Energy 9, 061704 (2017)
5 years, and little maintenance has been needed. The figure of $100/kW was reached after dis-
cussions with Ingemar Mathiasson (Northwest Arctic Borough), Robert Bensin (Bering Straits
Development Company), Jeremy Osborne (Yuut Elitnuarviat), and David Pelunis-Messier
(Tanana Chiefs Conference)]. Note that many of the PV arrays installed around the state have
not needed any maintenance since installation. Given all the documents reviewed to date, for
PV systems less than 20kW in Alaska, O&M likely ranges from $50/kW/yr on the road sys-
tem or in hub communities to $100/kW/yr in more remote areas. Operation and maintenance
costs are not completely dependent on the system size; they are also a function of the level of
local expertise available for repairs, the cost of travel to and from the site, occasional cleaning
and inspection, unscheduled warranty work, and inverter replacement reserves.
Expected life
Most installers assume a system life of 25years although they are useful to consider
expected lifetimes of individual components. Panels are typically warrantied for 10years on
materials and 25years for power output, and inverters can be warrantied from 10 to 20years.
No failure has been reported to date.
Capacity factors and diesel offset
Capacity factor is a function of weather, system design, system installation location, angle,
and azimuth. It is a unitless ratio of the average power generated, divided by the rated peak
power. Note that many of the systems installed in the Northwest Arctic Borough were installed
in a semicircular fashion, with the goal of a broad production curve rather than maximum
power production at midday. More systems are installed around the state than the ones reported
here; however, insufficient data were available to obtain capacity factor information on the sys-
tems not listed.
In Table I, the diesel offset was calculated by dividing the community diesel power plant
efficiency (found in reports by the AEA on power cost equalization) by the system’s annual
solar production to obtain gallons of diesel offset by the solar PV installation. While additional
factors contribute to the amount of diesel fuel offset by a renewable energy system, this method
provides a rough approximation.
Levelized cost per kW
The simple levelized cost of renewable energy (cents/kWh) was calculated at 70.5 cents/
kWh based on the following inputs into the National Renewable Energy Laboratory (NREL)
levelized cost of electricity (LCOE) calculator:
Period: 25years
Discount rate: 3%
Capital cost (average): $8000/kW
Capacity factor (average): 9%
Fixed O&M Cost: $100/kW/yr
Variable O&M cost: none
Heat rate: none
Fuel cost: none
Considering the capacity factors for installations in Alaska, the LCOE ranges from 42.3 to
105.8 cents/kWh over a capacity factor range of 6%–16%, all other variables remaining con-
stant. Similarly, factoring in the range of capital costs for installations in Alaska, which are
assumed to be equal to the total installed costs for our purposes, since solar PV costs are pre-
dominantly capital costs, the LCOE ranges from $0.40–$1.22/kWh over a capital cost range of
$3190–$13300/kW.
061704-5 E. Whitney and C. Pike J. Renewable Sustainable Energy 9, 061704 (2017)
Conditions for the greatest efficiency
Photovoltaics work best under clear, cold, and sunny conditions. Photovoltaic panels are
more efficient and produce more power at colder temperatures, and high springtime snow
albedo can reflect more solar radiation towards steeply angled panels. These cold, clear condi-
tions and long days with high albedo ground cover usually make April the highest production
solar month in most locations around Alaska.
At cold temperatures, short-circuit current decreases slightly, while open-current voltage
increases rapidly (LG Solar, 2017). For example, power output at 25 C can be approximately
25% higher than output at the standard test condition cell temperature of 25 C, given the same
irradiance (LG Solar, 2017). Note that this temperature dependence has been best characterized
at temperatures higher than standard test conditions and that this temperature-power correlation
needs further independent research and field characterization in Alaska’s below-freezing
environments.
Cost curve over time
The cost curve for using solar PV technology in Alaska over time is virtually impossible to
establish given that installations in the state are fairly recent and that there are inconsistencies
in data and differences in the installation approach (i.e., some installations are bid out, some
use volunteer labor, some find ways to cover shipping, etc.). As a point of reference, we can
look to national trends showing a steady decline in cost over the last two decades from
LBNL’s publication “Tracking the Sun VIII” (Barbose and Darghouth, 2015), where the follow-
ing is reported:
TABLE I. Capacity factors and diesel offsets for selected solar installations in Alaska.
Village
Rated size
(kW)
PV capacity
factor (%)
2013 community
diesel efficiency
(kWh/gal)a
Average daily
solar performance
since installation
(kWh)
Annual diesel
offset (gal)
Ambler 8.4 9 14.1 17.5 453
Ambler IRA 2.2 12 14.1 6.1 157
Kobuk 7.4 6 14.3 10.8 275
BSNC 9 16.2 37.3 840
Shungnak 7.5 7 14.3 12.4 316
Noorvik 12 6 12.4 17.6 518
Noatak 11.3 8 14.1 21.1 546
Deering 11.1 10 13.6 26.9 721
Selawik 9.7 11 13.9 25 656
Yuut Elitnaurviat (Bethel) 10 14 13.7 33.6 895
Kaltag 9.6 9 13 21.7 609
Galena 6.7 12 13.1 18.6 518
Ruby Washeteria 5.4 10 13.4 12.8 348
Ruby Health Clinic 5.5 8 13.4 10.8 294
Manley 6 9 12.5 12.3 359
Nenana 4.4 12 GVEA
b 12.5
CCHRCc 8 15 GVEA 29.7
aFrom the Alaska energy data gateway.
bNenana is on the Golden Valley Electric Association (GVEA) grid, which receives power from a number of generation
sources including hydro, coal, natural gas, fuel oil, and wind. Due to this variety, no diesel efficiency is given, and no diesel
offset is calculated.
cThe CCHRC has 3 tracking PV systems. The performances of these systems were averaged to determine capacity factors
and summed to calculate the average daily performance.
061704-6 E. Whitney and C. Pike J. Renewable Sustainable Energy 9, 061704 (2017)
Starting in 2009, installed prices resumed their descent and have fallen steeply and steadily
since, with average annual declines of 13%–18% per year across the three customer segments.
These recent price declines are the result of reductions in global PV module prices, as well as
declines in other hardware costs and ‘soft’ costs. Within the last year of the analysis period,
from 2013 to 2014, median installed prices fell by $0.4/W (9%) for residential systems, by
$0.4/W (10%) for non-residential systems <500kW, and by $0.7/W (21%) for non-residential
systems <500kW (Barbose, 2015).
Anecdotal evidence suggests that solar module prices and equipment prices have dropped
in Alaska, as they have in Lower 48. The costs of shipping and installation remain higher than
in the rest of the nation.
Cost data
Cost data for solar installations in rural Alaska (Table II) are difficult to obtain. Often the
contractor bids on a job as a lump sum, and separating labor from equipment and materials is
difficult to do accurately. Of note, the 6.7kW installation in Galena ($3.19/W) and the 18kW
installation in Fort Yukon ($3.89/W) were accomplished with creative means to cut costs. In
Fort Yukon, these means included volunteer labor and a shipping deal. For a number of instal-
lations, figures are based on verbal estimates from batched purchases and are not public record.
Transportation
Further data collection is needed for this category.
Technology trends
In Alaska, options in solar PV systems include micro-invertors, which are attached to each
panel and prevent an entire string of panels from going offline if just one panel is damaged. To
date, solar PV systems in Alaska have comprised only mono-crystalline and poly-crystalline sil-
icon modules. Module costs continue to drop, and efficiencies continue to increase, especially
for non-silicon technologies. Other technologies may lend advantages for use in Alaska.
Finally, concentrated solar PV technology is a candidate for generating heat as well as electric-
ity but may not be suitable for Alaska.
Storage systems
Currently, energy storage is not a significant component of solar PV systems in Alaska. An off-
grid utility-scale example outside Alaska that may provide guidance in this direction is the 600kWh
Absorbent Glass Mat battery bank in the Star Island solar installation in Maine. In addition, Tesla’s
7kWh Powerwall batteries may provide promising storage solutions for smaller installations.
Refurbishment/upgrade market
In the broader solar PV market, systems are generally replaced rather than upgraded. Both
used and surplus panels are available. However, purchasing used panels introduces the possibil-
ity that the panels may not work properly. Surplus panels are usually older models that the
manufacturer sells at a greatly discounted rate. Because these panels are older, they may not be
quite as efficient as brand new panels but can still be a reasonable value.
Realized cost savings
Cost savings from integrating renewable power are difficult to gauge due to technical and
incentive impacts at the entire power systems level.
At the technical level, for example, the effects of diminished losses of secondary services
such as recovered waste heat and reductions in fuel efficiency are hard to gauge, as they depend
not only on average reductions in load but also on specific operating schemes regarding mini-
mum allowable load on diesels and on spinning reserve kept.
061704-7 E. Whitney and C. Pike J. Renewable Sustainable Energy 9, 061704 (2017)
CONCLUSIONS
Solar photovoltaic (PV) technology is a nascent but promising energy option in remote
Alaskan microgrids and serves as an example for isolated electrical grids worldwide. This study
examines community-scale solar PV installations in Alaska, ranging in size from 2.2kW in
Ambler to 50kW in Galena. Total installed costs arguably show a trend toward lower values
with larger installation sizes although prices in Alaska are still significantly higher than in the
rest of the United States. Capacity factors range from 6% to 15%. However, it should be noted
that some installation configurations, particularly in the northwestern part of the state, were
installed with the goal of a broad production curve rather than maximum power production.
ACKNOWLEDGMENTS
The authors wish to thank the Alaska Energy Authority for its funding to support this project.
Many people have contributed information and insight to this study. For their review and
TABLE II. Cost data for selected solar installations in Alaska.
Installed cost by major components
a
Location
System size
(kW)
Installation
date
(month/year)
Hardware
($)
Support
structure
Labor/travel
($)
Shipping
($)
Cost/Watt
($)
Total
cost ($)
Installed systems. Costs were based on percentages of estimated total system cost
b
Ambler 8.4 3/2013 41250 Included in hardware 11250 22500.00 8.93 75000
Ambler IRA 2.2 3/2013 13750 Included in hardware 3750 7500.00 11.36 25000
Kobuk 7.4 3/2013 41250 Included in hardware 11250 22500.00 10.14 75000
Shungnak 7.5 10/2013 41250 Included in hardware 11250 22500.00 10.00 75000
Noorvik 12 10/2013 41250 Included in hardware 11250 22500.00 6.25 75000
Noatak 11.3 11/2013 41250 Included in hardware 11250 22500.00 6.64 75000
Deering 11.1 11/2013 41250 Included in hardware 11250 22500.00 6.76 75000
Kotzebue-1 10.5 10/2014 45650 Included in hardware 12450 24900.00 7.90 83000
Kotzebue-2 10.5 11/2014 45650 Included in hardware 12450 24900.00 7.90 83000
Selawik 9.7 11/2014 45650 Included in hardware 12450 24900.00 8.56 83000
Kiana 10.5 8/2015 45650 Included in hardware 12450 24900.00 7.90 83000
Buckland 10.5 2015 45650 Included in hardware 12450 24900.00 7.90 83000
Kivalina 10.5 2015 45650 Included in hardware 12450 24900.00 7.90 83000
Installed systems with detailed cost records
Eagle 24 7/2015 115552 Included
in hardware
94632 10.88 261000
Kaltag 9.6 2012 78657 Included
in hardware
15946 6465.00 13.33 128000
Galena 6.7 11/2012 14400 2000 5000 City covered
shipping cost
3.19 21400
Fort Yukon 18 7/2015 45000 Included
in hardware
20000 5000.00 3.89 70000
Galena 50 Dec 2015
estimate only
Lumped
together in bid
30000.00c 4.07 203613
aSystems in Ambler, Kobuk, Shungnak, Noorvik, Noatak, Deering, Kotzebue, Selawik, Kiana, Buckland, and Kivalina
(shaded in green) were installed by Bering Straits Development Company through coordination with the Northwest Arctic
Borough. Costs for these systems were difficult to separate from the main lump sum bid. Based on input from Rob Bensin,
costs were separated using 30% for logistics, 15% for labor, and the remainder for racking, hardware, and materials.
Systems in Eagle and Kaltag were installed by the utilities using funding from the Renewable Energy Fund. Systems in
Galena and Fort Yukon were installed with assistance from the Tanana Chiefs Conference.
bSystems were bid as a group (Bensin, 2016).
cThis system was only bid and not installed. Per price quote, “Heavy equipment to be provided for trenching/anchors/material
handling.” In addition, shipping was not included but was estimated after discussions with the energy manager at Tanana Chiefs
Conference. Shipping is estimated here at $30000 per Dave Pelunis-Messier, based on other similar systems in the Interior.
061704-8 E. Whitney and C. Pike J. Renewable Sustainable Energy 9, 061704 (2017)
comments, we wish to thank Rob Bensin, Energy Efficiency and Renewable Energy Division
Manager at Bering Straits Development Company; Ingemar Mathiasson, Energy Manager for the
Northwest Arctic Borough, Paul Schwabe of the National Renewable Energy Laboratory; Dave
Messier, Rural Energy Coordinator for the Tanana Chiefs Conference; Bob Deering of the United
State Forest Service; Bruno Grunau of the Cold Climate Housing Research Center; Alan Mitchell of
Analysis North; and Dave Lockard, Sam Tappen, and Neil McMahon of the Alaska Energy
Authority.
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