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HomeMy WebLinkAboutWrangell Hydro Boiler Case Study - REF Grant 2195423 est 2015Wrangell, Alaska Wrangell Hydroelectric Boilers Quick Facts Total Project Costs: $1,938,745 Funding: Renewable Energy Fund: $1,862,387 Local Funds: $76,358 Capital Costs: Design: $288,175.04 Construction: $1,650569.96 Equipment Boiler Make: Precision Boilers (3) Output: 160 kW (Nolan Center), 240 kW (Public Safety), & 700 kW (Schools ) Diesel Fuel Off set Estimated Annual: 100,000 gallons Actual Annual: 84,000 gallons Feb. 2011-Dec. 2014: 305,000 gallons Actual Fuel Savings Estimated Annual: $163,112 Actual Annual: 145,000 Feb. 2011-Dec. 2014: $640,000 Estimated Payback: 8 years Actual Payback: 13.4 years CASE STUDY Wrangell, AK. Photo courtesy of www.sitnews.us Project Overview In collaboration with the Alaska Energy Authority, Wrangell Municipal Light & Power (WMLP) com- pleted the design, construction, and integration of 3 electric boilers in Wrangell, Alaska. Th e new electric boilers convert wasted overfl owing water from the Tyee Lake Hydroelectric facility into usable energy. Th e three building complexes that directly benefi t from this energy are the Nolan Center, Public Safety Building (home to the fi re hall, court, and public safe- ty hall), and the High/Middle Schools. Objectives Th e main objective of this project was to reduce the community’s reliance on diesel fuel-powered facilities. Th is would ultimately reduce community members’ cost of energy and heat production while lowering the city’s carbon footprint. Reasons This Project Was Chosen Wrangell was using 2,982,822 gallons of diesel fuel annually to heat their entire village. Th e new electric boilers’ capacity and effi ciency have allowed villagers to use a cleaner source of fuel and saved them thou- sands of dollars. Using an electric boiler also reduces maintenance costs when compared to diesel boilers. Economic Feasibility Th e system became operational in February of 2011. Since then, it has produced 30,090 MMBtu of thermal energy and displaced 305,000 gallons of diesel fuel. Th is displacement has saved the community $640,000 in energy costs. Over its 20 year projected lifespan, the project has a calculated benefi t/cost ratio of 1.91, meaning that the benefi ts outweigh the costs by 1.91. the heat with the same amount of electrical energy. 3. Any overages in energy output at the Tyee facility are given to WMLP by SEAPA in the form of a re- bate equal to the overage amount. Th is has allowed Wrangell to keep their electrical rates at a subsidized eight cents per kWh. Th is helps residents with heating costs and encourages them to use electric boilers in- stead of diesel. Th is rate has been unchanged until re- cently. Due to projects that SEAPA is performing with Tyee’s excess water, there is not as much overage as Wrangell normally anticipates. As a result, rebates were lowered and electricity rates were increased slightly to 8.5 cents. Th ough this isn’t a huge bump, WMLP hopes to bring the cost back down for residents soon. Community Benefi ts 1. By implementing the conversion to electric boilers, the surplus energy produced by Tyee is utilized and the cost of energy for City facilities has decreased by approximately 48%. Th ese savings have been passed on to WMLP customers through a decrease in taxes and power rates, which benefi ts all Wrangell community members. 2. Th e Tyee Hydroelectric Facility has provided a steady electric rate to WMLP for 6.8 cents per kWh for the last 17 years. Th is is a benefi t to the community when compared to the constantly fl uctuating costs of diesel fuel. Project Contact information Parties Involved: Clay Hammer, WMLP Superintendent Email: powerplant@gci.net Phone: 907-874-3602 Brooke Williams, WMLP Secretary Email: wmlp@gci.net Case Study Author: Zoe Tressel, AEA Email: ztressel@aidea.org Phone: 907-771-3000 Hydroelectric boiler. Photo courtesy of WMLP. Power and Storage Electrical power is provided to Wrangell Municipal Light & Power (WMLP) by the Tyee Hydroelectric fa- cilities, owned by the Southeast Alaska Power Agency (SEAPA). Currently, Tyee has the capability of produc- ing 20 MW of power. During the summer months, ap- proximately 11 out of the 20 MW are excess power and during the winter 6-7 MW are excess. Diesel fueled generators remain as ready backups should an electri- cal catastrophe occur. Additionally, all public facilities that were converted to electrical energy have oil fi red boilers in place as a back up energy source. Learning Experiences/Challenges 1. Th e original application identifi ed eleven buildings for conversion to electric boilers. Due to a reduction in funds it was only feasible to construct heating sys- tems for the Nolan Center, Public Safety Building, and High/Middle Schools. Th ese buildings were ranked according to highest community need and value. 2. With the success of the project, private homes and businesses followed suit. WMLP is fi nding that the ad- ditional electric demand has a negative impact on their distribution and stand-by generation capabilities. Th ey have partnered with Cold Climate Housing Research to promote air source heat pumps as alternatives to resistance-based electric boilers for future community growth. Th ese pumps can produce up to three times Wrangell, Alaska