HomeMy WebLinkAboutKodiak Electric Association - Pillar Mountain Wind Project - Sept 2016 - REF Grant 7050803Quick Facts
Total Project Costs: $44.5 million
Funding: Renewable Energy Fund & Local Funds
Equipment Specifications
Make/Model: (6) GE Energy SLE turbines
Rated Capacity: 1.5 MW each
Net Capacity Factor: 33%
Rotor Diameter: 77 meters
Hub Height: 80 meters
Total Rated Capacity: 9 MW
Diesel Fuel Offset
Estimated Annual: 900,000 gallons
Actual Annual: 1,622,000 gallons
Sept. 2010-Dec. 2014: 6,725,000 gallons
Fuel Savings
Estimated Annual: $2,522,506
Actual Annual: $5,066,000
Sept. 2010.-Dec. 2014: $22,665
Benefit/Cost Ratio: 3.89
Kodiak, Alaska
Kodiak Electric achieves 99.7% renewable energy
Pillar Mountain Wind Project
Project Overview
Beginning in 2009, the Kodiak Electric Association
(KEA) designed and constructed a large-scale wind
farm through two grants from the Alaska Energy Au-
thority’s (AEA) Renewable Energy Fund (REF). The
original phase of the project called for the installation
of three GE 1.5 MW SLE wind turbines. The project
was extremely successful and in 2012 additional REF
funding expanded the farm by adding three more
turbines of the same make/model. REF funds also
contributed to an Xtreme Power 3 MW battery energy
storage system. The expansion brought total project
capacity to 9 MW with 3 MW of storage.
Objectives
The objectives of this project were to displace diesel
fuel and provide the community of Kodiak with a
renewable, reliable, and cost effective energy supply.
Economic Feasibility
The project became operational in September of 2010.
Between September of 2010 and December of 2014,
the turbines generated 95,577 megawatt-hours of elec-
tricity and displaced 6,725,000 gallons of diesel fuel.
This displacement saved the community of Kodiak
$22,665,000 in just over four years. Over its 20-year
projected lifespan, the project has a benefit/cost ratio
of 3.89 and a simple payback of less than 9 years at
current displacement.
Project Specifications
Pillar Mountain stands 1,024 feet tall. Due to its coast-
al location and height, Pillar Mountain’s wind speed is
of the highest rank, or class 7. The high wind class en-
ables higher turbine efficiency and an excellent return
on investment. This project allowed KEA to exceed
its goal of providing the community with 95 percent
renewable power by the year 2020. KEA now provides Pillar Mountain turbines, photo courtesy of Greenbiz.com
power with 99.7 percent renewables. Each SLE turbine
stands 80 meters tall and has pitch controlled blades.
The turbine’s electronic controller checks the power
output several times per second; when the power out-
put is too high, the blade pitch mechanism turns the
blades slightly out of the wind. Conversely, the blades
are turned into the wind when the wind drops again.
This maximizes output for all wind speeds. The energy
storage system is composed of two Xtreme Power, Inc.
units, each 1.5 MW. They keep the electrical system
stable despite variable wind power output and have a
total of 2 megawatt-hours of storage capacity.
Allocation of Funding
The Alaska Energy Authority’s Renewable Energy
Fund contributed a total of $11.8 million for both
projects. Local funds contributed $32,750,00 that came
from two Clean Renewable Energy Bond (CREB)
loans from the IRS and several other sources. KEA
received the CREB funds at a near zero interest rate.
Learning Experiences/Challenges
This project has seen great success through its de-
sign, construction, and operation. It has been a model
project for both Alaskan communities and others who
are interested in the pursuit of renewables. Before the
installation of the Xtreme Power storage system, KEA
paid for a fire suppression system on each unit as a
preventative measure. Energy storage systems require
unique engineering and can sometimes cause compli-
cations. KEA was proactive in handling this possibility,
further exemplifying that they have made every effort
to make their project a success.
Community Benefits
The community pays $0.14 per kilowatt hour for
wind-generated electricity in contrast to $0.29/kWh
for diesel-generated electricity, which is based on Ko-
diak’s average fuel price of $3.50/gallon. Wind provides
18.8 percent of Kodiak’s power and the Terror Lake
hydroelectric facility provides another 80.9 percent.
With wind and hydro combined, KEA provides the
community with 99.7 percent renewable power. KEA’s
operation and maintenance costs have decreased and
they re-trained diesel technicians as wind and hydro
technicians to support the projects more fully.
In 2014, the Alaska Energy Authority and KEA re-
ceived the State Leadership in Clean Energy (SLICE)
award for the Pillar Mountain wind and Terror Lake
hydroelectric facilities. The award was given in recog-
nition of how the organizations collaborated to adopt
clean energy technologies and strengthen clean energy
markets. KEA’s electric rates are now the lowest of any
electric cooperative in the state of Alaska.
The wind project was not only integrated into KEA’s
diesel generation system, but into Terror Lake’s hydro-
electric system as well. Wind and water work together
so that when the wind energy is substantial enough to
support the community, the Terror Lake facility stays
dormant, and vice versa. In moments where wind and
hydro cannot support community demand, the Xtreme
Power system bridges the gap and gives the renewable
facilities time to increase their generation.
Note: For more information on the Terror Lake hydro-
electric facility, visit the AEA website to access the case
study.Project Contact Information
Parties Involved:
Alice Job, KEA
Email: ajob@kodiak.coop
Phone: 907-458-5780
Case Study Author:
Zoe Tressel, AEA
Website: Akenergyauthority.org
Phone: 907-771-3000
Pillar Mountain Wind Project
Kodiak Harbor and turbines, photo courtesy of KEA.Published August, 2015