HomeMy WebLinkAboutR4PreliminaryProjectSummariesAlaska Renewable Energy Fund: Round 4 - Preliminary Findings
600 AVCP Housing Wind Turbine Project
AVCP Regional Housing Authority
Construction
DesignProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Government Entity
Project Description
The purpose of the AVCP Housing Wind Turbine Project is to construct two turbine towers for wind generated energy, with the purchase of land from the City
of Bethel for the site, a power generation/controls building, and complete Operations and Maintenance training of permanent employees. The calculated
annual projected kWh usage of the Low Income Rental units, Lulu Herron Congregate housing and the AVCP RHA Office Complex and warehouses is 581,573
kWh.
AEA Review Comments
AVCP Regional Housing Authority proposes to construct a 200 kW wind energy project to serve their campus in Bethel. AVCP would first purchase land from
the City of Bethel for $670,000 in late 2011, and begin equipment purchase and construction in spring 2012.
There are other significant energy planning and project development activities taking place in Bethel. The City of Bethel has been funded through the RE Fund
round 1 for a 400 kW wind project. To date the City and utility have not reached an agreement for power purchase or interconnection. Additionally Village
Wind Power is funded under round 0 to assess feasibility of a large scale wind power project. Napakiak Incinraq Power Company is proposing reconnaissance
through design of a wind project. TDX, who state that are assuming ownership of the Bethel utility in summer 2011, has proposed feasibility through
construction of a 1+ MW wind system on the Bethel grid. Finally AVCP Regional Housing Authority is proposing study of hydro at the Kiseralik and Chikuminuk
Rivers in Round 2 of the RE Fund. Therefore, there is a need for a regional integrated resource energy plan in the Bethel area to coordinate when and where
energy projects should be developed. This proposal should be considered in the context of an integrated plan to assure proper sizing, timing, and integration of
multiple energy projects. AEA believes that such an overall plan for the Bethel power system should be developed before proceeding with any additional wind
development.
AEA has met with City of Bethel, AVCP Rural Housing Authority, Yukon Kuskokwim Health Corporation, Calista Corporation and TDX to discuss regional
energy planning, including wind and hydro development. The group has agreed to pursue coordinated energy planning for the region and the Bethel grid.
AEA believes that Bethel’s large load provides the opportunity for deploying megawatt scale turbines with better economics than smaller-scale wind
installations. TDX, as the major power generator for the Bethel system, is the logical entity to lead feasibility assessment of wind generation in Bethel.
Recommend no funding.
Not Recommended
Cost of Power:$0.54
Requested Grant Funds:$3,045,000
Matched Funds Provided:$750,000
Total Potential Grant Amount:$3,795,000
AEA Funding Recommendation:
Funding & Cost
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11/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
601 Waste Energy Powered Absorption Refrigeration Unit
Valdez Fisheries Development Assn., Inc.
Design
Proposer:
Proposed Project Phase:
App #
OtherResource:
PlentovichAEA Program Manager:Applicant Type:IPP
Project Description
The project, located in Valdez, AK will capture waste heat generated at the Petro Star Refinery. Waste heat will be collected by a shell & tube glycol medium
recovery system. The medium will drive 2 technologies operating in a series. Ammonia absorption technology will create cooling for 45 million pound -20
degree cold storage facility. An organic Rankin Cycle Generator will use the medium once it has exited the ammonia absorption system to create 600 wk’s of
power which will be used to operate the cold storage facility as well as the Solomon Gulch Hatchery. The final benefit will be to use the cold cycle of the
generator to create a salmon rearing facility.
AEA Review Comments
Valdez Fisheries Development Association is requesting funding for permitting and final design of a system to convert recovered heat from the Petrostar
Refinery to 630 kW of power to the CVEA grid, refrigeration to a cold storage and fish processing facility, and tempered water to the Solomon Gulch Hatchery.
VFDA submitted a related application in RE Fund round 2 (#207) that was not recommended for funding because it was for the entire cold storage facility, not
the energy system. The VFDA submitted a second application in round 3 (#434) identical to the current application, which limits the scope to the energy system
design.
The project has substantial value for demonstrating a system that would aid development of fish processing and cold storage in coastal communities with access
to recoverable heat.
However, AEA has the following concerns with this application:
1. VFDA has still not secured financing for the cold storage facility that justifies the absorption system.
2. During round 3 review AEA requested the feasibility analysis for the ORC (power generation) component of the system, but VFDA was unable to provide it.
The current application still does not include this analysis.
3. In round 3 AEA requested a breakdown of the $1 million design budget, but VFDA was unable to provide any detail. The current application still does not
include this detail. Without this detail that justifies this cost, AEA must regard this amount as excessive.
4. Similar to the last application there remains no indication they will purchase power from the project, a requirement of the IPP status that make the grantee
eligible.
Recommend no funding.
Not Recommended
Cost of Power:$0.20
Requested Grant Funds:$1,021,287
Matched Funds Provided:$350,000
Total Potential Grant Amount:$1,371,287
AEA Funding Recommendation:
Funding & Cost
/kWh
21/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
602 Adak Renewable Diesel Project
TDX Adak Generating, LLC
Feasibility
Proposer:
Proposed Project Phase:
App #
WindResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
Phase 1: Reconnaissance & project feasibility was funded. It includes a site survey; wind resource monitoring installation, data gathering and reporting on
first year’s data; Feasibility Study and conceptual design. This activity is a preliminary engineering and financial analysis of the potential for a hybrid
renewable project. The proposal is for Phase II, Preliminary Design: this proposal will advance the assessment and engineering evaluations conducted in
Phase 1 with the preliminary design efforts necessary to advance the potential project to the stage that it’s ready for final design, permitting and construction.
Phase III (Final Design & Permitting) will include the final design of the winning resources. Phase IV (Construction) will cover the construction portion of this
project.
AEA Review Comments
TDX proposes conceptual design and feasibility assessment of a hybrid renewable (wind, geothermal and/or hydro)-diesel system for Adak. TDX proposes to
follow-up on an existing grant for $85,835 matched by $6,470 to perform a reconnaissance report, monitoring, wind resource report, feasibility study, and
conceptual design.
AEA has the following concerns about this application:
1. The existing grant was put in place in May 2010. TDX has made little progress on the existing grant and has not requested reimbursement or submitted any
progress reports.
2.The proposed work is for feasibility and conceptual design. This work is already included in the scope of the current grant.
Recommend no funding.
Not Recommended
Cost of Power:$0.71
Requested Grant Funds:$250,050
Matched Funds Provided:$0
Total Potential Grant Amount:$250,050
AEA Funding Recommendation:
Funding & Cost
/kWh
31/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
603 Takatz Lake Hydroelectric Feasibility Analysis
City & Borough of Sitka
Feasibility
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Local Government
Project Description
Development of hydroelectric power at Takatz Lake would include construction of a 200-foot high main concrete arch dam, a small 30-foot high secondary
saddle dam, power intake, unlined tunnel, power penstock, power plant, tailrace, and transmission line segments including: underground, submarine, and
overhead sections. the project would produce approx. 106,900 MWh per year via two 13.8 MW turbine-generators.
AEA Review Comments
CB of Sitka requests additional funding for assessing feasibility of the potential 28 MW Takatz Lake hydro project. To date RE Fund round 1 has awarded partial
funding of $1,152,134 to the project for this purpose. For this application CBS is requesting an additional $2 million.
Project is consistent with findings of the 2008 Sitka Power Supply Plan and would follow less expensive alternatives, including increasing capacity of the existing
Blue Lk Hydro project, in order to avoid more costly diesel generation. There is potential for developing road and marine facilities associated with the project
that would provide access to eastern Baranof Island. FERC has issued a preliminary permit to Sitka to assess feasibility of Takatz. Given the widespread interest
in linking major electric generation and loads in Southeast, development of Takatz should be coordinated with the SE Alaska Regional Energy Plan.
AEA has recently determined that additional funding is available from round 1 funds to support funding this project at the original Rd 1 application amount of $2
million. This is also the cap amount for feasibility for this project. The existing grant will be amended to increase its funding level to $2 million. No additional
funding recommended due to the cap.
Not Recommended
Cost of Power:$0.09
Requested Grant Funds:$2,000,000
Matched Funds Provided:$0
Total Potential Grant Amount:$2,000,000
AEA Funding Recommendation:
Funding & Cost
/kWh
41/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
604 Bethel Renewable Energy Project
TDX Power, Inc.
Construction
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:IPP
Project Description
Phase II includes a site survey; wind resource monitoring installation, data gathering and reporting on 10 month’s data in conjunction with existing wind data
and will result in completion of feasibility & conceptual design within two quarters of wind data compilation. The project will include the feasibility of building
new wind energy capacity and leveraging in other wind projects being planned by the City of Bethel and the Housing Authority. TDX Power is a seasoned
rural energy operator with extensive wind turbine experience. TDX Power will complete a Phase III final design by the end of the second year of the project.
Phase IV construction will commence in the first quarter of year 3 and will be completed by the end of year 4 with an operating 1 MW rated wind turbine
producing 3,050,000 kWh and leveraging a potential additional wind farm capacity of 1 MW to provide a total of 6,100,000 kWh from the combined 2MW of
renewable energy to the Bethel utility grid.
AEA Review Comments
TDX Power proposes to feasibility, design, and construction of 1-2 MW wind energy project for Bethel.
TDX owns and/or operates three wind-diesel power systems in St. Paul, Sand Point, and Tin City. TDX states in their application that they will be assuming
operation of the Bethel power utility by summer 2011. Given these circumstances TDX is an attractive and logical entity to develop a large-scale wind project in
Bethel.
However there are other significant energy planning and project development activities taking place in Bethel. The City of Bethel has been funded through the
RE Fund round 1 for a 400 kW wind project. To date the City and utility have not reached an agreement for power purchase or interconnection. Additionally
Village Wind Power is funded under round 0 to assess feasibility of a large scale wind power project. AVCP has submitted an application for final design and
construction in round 4 for a 200 kW wind project to serve Bethel (#600). Napakiak is proposing feasibility and design of wind generation (#697) along its
intertie with Bethel. Finally AVCP Regional Housing Authority is proposing study of hydro at the Kiseralik and Chikuminuk Rivers in Round 2 of the RE Fund.
Therefore, there is a need for a regional integrated resource energy plan in the Bethel area to coordinate when and where energy projects should be developed.
This proposal should be considered in the context of an integrated plan to assure proper sizing, timing, and integration of multiple energy projects. AEA believes
that such an overall plan for the Bethel power system should be developed before proceeding with any additional wind development.
AEA has met with City of Bethel, AVCP Rural Housing Authority, Yukon Kuskokwim Health Corporation, Calista Corporation and TDX to discuss regional
energy planning, including wind and hydro development. The group has agreed to pursue coordinated energy planning for the region and the Bethel grid.
AEA believes that Bethel’s large load provides the opportunity for deploying megawatt scale turbines with better economics than smaller-scale wind
installations. TDX proposes a logical, stepwise approach for developing large scale wind generation in Bethel.
Recommend partial funding of $213,690 for feasibility analysis and conceptual design with the requirement that TDX work with the City, the Housing Authority,
the Health Corp, Calista, Napakiak Ircinraq Power Company, and other entities in regional and community energy planning.
Partial Funding
Cost of Power:$0.54
Requested Grant Funds:$3,961,637.5
Matched Funds Provided:$699,112.5
Total Potential Grant Amount:$4,660,750
AEA Funding Recommendation:$213,690
Funding & Cost
/kWh
51/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
605 Biomass Fuel Dryer Project
City of Craig, Alaska
Construction
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
The project consists of acquiring & installing equipment that will dry approx. 13,000 tons of wood waste per year produced as a byproduct of the sawmilling
process. Dried wood would then be burned in publicly owned facilities to provide reduced cost, district-style heat for these facilities at a reduced cost to the
public entities that operate these facilities. The project enables recipient facilities to burn renewable fuels to provide heat at lower costs over time than the
cost to burn fossil fuels to produce heat.
AEA Review Comments
Applicant proposes to purchase a chip fuel dryer and lease it to the Viking Lumber Mill which currently provides chip fuel to the city of Craig for use in the
biomass boiler to heat the pool and school for the community. Fuel could also be made available to other facilities on Prince of Wales Island and other locations.
The new biomass boiler currently has a fuel dryer as part of the system. The moisture content of the fuel has consistently been higher than design parameters.
The new dryer would allow for the fuel to be pre-treated before delivery to the school, and could potentially allow for the development of other chip customers
for Viking Lumber.
AEA recongizes that there is significant public benefit from this project, however, it believes that there must be reasonable economic return to the public from
the allocation of the grant fund, while at the same time assuring that Viking recieves reasonable return.
Recommend full funding with the following special provision: Before funds are made available, AEA must approve the lease/operate/maintain business
agreement between Viking and Craig.
Full Funding
Cost of Power:$0.20
Requested Grant Funds:$350,000
Matched Funds Provided:$250,000
Total Potential Grant Amount:$600,000
AEA Funding Recommendation:$350,000
Funding & Cost
/kWh
61/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
606 Jack River Hydro Project
Native Village of Cantwell
Recon
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Local Government
Project Description
The Native Village of Cantwell wishes to improve the reliability and lower the cost of the community of Cantwells power system. Currently they obtain power
from the line between MEA and GVEA (Alaska Intertie System). To accomplish this they propose to build a hydroelectric project on the Jack River, a short
distance from Cantwell. The installed capacity of this plant will be in excess of 1 MW. It will be comprised of a dam and a short tunnel. A feasibility design and
scoping are required to provide the parameters of the project.
AEA Review Comments
Native Village of Cantwell proposes a reconnaissance study for a 1+MW storage hydro project on the Jack River located near Cantwell. The project would
connect to the Railbelt Energy Grid served by GVEA. AEA recommend funding for this project in RE fund round 3 (#402) but insufficient funds were available.
The proposal includes letters of support from Ahtna Inc, Denali Borough, Denali National Park, Golden Valley Electric, and Usibelli Coal.
DNR comments note proximity to the Denali Fault and dam safety issues.
AEA staff accompanied NVC and their potential consultant Polarconsult on a site visit in 2008 and concluded that the project may have merit. However
insufficient information has been collected and provided to justify funding for full feasibility and conceptual design.
Recommend partial funding of $30,000 for reconnaissance assessment.
Partial Funding
Cost of Power:$0.17
Requested Grant Funds:$190,000
Matched Funds Provided:$10,000
Total Potential Grant Amount:$200,000
AEA Funding Recommendation:$30,000
Funding & Cost
/kWh
71/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
607 Lime Village Photovoltaic System Retrofit
Lime Village Traditional Council
Construction
Proposer:
Proposed Project Phase:
App #
SolarResource:
StrombergAEA Program Manager:Applicant Type:Government Entity
Project Description
Between 1995 and 2001, Lime Village became the first community in Alaska to develop a hybrid solar and diesel fuel generation electrical system. Hybrid
systems use more than one power source to meet its community energy needs. This proposal is to upgrade and retrofit the existing solar system, develop
remote monitoring system and provide for ongoing maintenance of the system. The system consists of an array of solar panels that can produce 12KW of
electricity. The electricity generated by the solar panels is stored in a battery system. The community's electrical energy needs are then supplied by the
batteries and supplemented by a diesel generator. The existing cost of diesel fuel in Lime Village is approximately $8.00 per gallon. This generates an average
electrical cost of $1.00 to $1.50 per kilowatt. The community uses approximately 7,000 KW per month and has 30 units using electricity. The proposed
retrofit is predicted to result in a significant reduction in the cost of electrical energy.
AEA Review Comments
AVCP proposes refurbishing the existing 12 kW photovoltaic-diesel hybrid system in Lime Village. The system was installed in 1999-2001 with donations by
British Petroleum and Siemens for the PV panels. Although the panels are reportedly operable, the charger-inverter and control system does not work. The
status of ~100 kWh lead acid battery system is unknown. AEA notes that the efficiency of the Lime Village power system is very low (7.88 kWh/gal).
Given the remoteness and very high cost of fuel in Lime Village, it makes sense to determine if and how the system can be reactivated before allocating funds for
the task. $25,000 is a reasonable estimate for system evaluation.
Recommend partial funding for system evaluation.
Partial Funding
Cost of Power:$1.17
Requested Grant Funds:$69,000
Matched Funds Provided:$3,000
Total Potential Grant Amount:$72,000
AEA Funding Recommendation:$25,000
Funding & Cost
/kWh
81/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
608 Renewable Energy Feasibility Study
Louden Tribal Council
Feasibility
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
This feasibility study will be used to elect the best technology and to develop a preliminary design for a renewable biomass based CHP (combined heat and
power) system to replace diesel fuel for --
1. The Galena electrical power supply and
2. To provide district heating for the utilidor system that serves the Galena Interior Learning Academy (GILA).
The proposed system will provide about 1000 kilowatts of electrical generation capacity and will provide recovered heat for the utilidor. The CHP project is
expected to replace about a million gallons of diesel fuel per year by using locally harvested biomass in the form of wood chips.
The technology options appear to be either a steam powered generator and heating system or a biomass gasification system. A reconnaissance study is
already in progress to provide the baseline information for this feasibility study. The reconnaissance survey by WH Pacific is scheduled for completion by
December 31, 2010.
AEA Review Comments
Louden Tribal Council proposes assessing feasibility of a combined wood-fired heat and power system in Galena. The project under consideration involves
formation of a partnership with the biomass owner (Gana-a’Yoo Native Corporation), purchasing and installation of the harvesting equipment, appropriate
generation and heat recovery systems, and providing heat for the existing utilidor and buildings occupied by the Galena City School District.
Louden is seeking funding from USDA for assessment and management planning for the local biomass resources. These funds, although important to the effort,
are not assured.
Louden has contracted with WH Pacific for a reconnaissance study scheduled for completion in December 2010.
Recommend full funding with requirement that AEA accept the reconnaissance study before any funds are disbursed.
Full Funding
Cost of Power:$0.56
Requested Grant Funds:$100,000
Matched Funds Provided:$49,300
Total Potential Grant Amount:$149,300
AEA Funding Recommendation:$100,000
Funding & Cost
/kWh
91/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
609 Atqasuk Transmission Line
North Slope Borough
Design
Proposer:
Proposed Project Phase:
App #
OtherResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
This phase of the Barrow to Atqasuk Power Transmission Project will initiate the engineering phase of the project concept that was proven to be the most viable in the feasibility
study. The intent of the feasibility study was to first determine if there is an economical solution for providing electric power to Atqasuk from a low cost energy source. That source,
of course, is the natural gas that is available in the Barrow area. The next goal of the study determines which power transmission concept is the most economical and compatible
with the prevailing technical, environmental and social constraints. In short, the most attractive power transmission concept will be the result of the feasibility study.
The winning concept then enters the preliminary engineering phase. The purpose of the preliminary design is to adequately define the project so that all stakeholders can
understand it. These stakeholders include the owners, end-users, financiers and the concerned regulatory bodies. It is the basis for gaining approval and agreement to go forth with
the project. It should be noted that this preliminary phase of engineering constitutes about 30% of the entire engineering effort. The 70% balance is for final design engineering and
is required solely for constructing the project. The final design consists of detailed drawings, specifications and other materials relevant to the construction phase.
Tasks involved during this preliminary engineering phase include the following:
• Establishing the transmission line route
• Determine physical constraints such as rivers, lakes, roads, infrastructure
• Analyze ice and wind loading
• Determine optimum structure types
• Plan structure height, spacing and conductor sag curves
• Determine wire sizes
• Determine grounding requirements
• Identify insulation and hardware requirements
• Assess environmental permit requirements
• Schedule critical procurement and contracting
• Produce cost estimates
AEA Review Comments
The North Slope Borough proposes following up earlier feasibility work funded under the RE Fund round 2(#245) on developing a 70-mile transmission line
connecting Atqasuk to the natural gas-fired power plant in Barrow. AEA recognizes that renewable energy resource development is not viable, thus the project is
potentially eligible for RE fund support.
NSB's feasibility report is due this winter. Work to date has identified concerns with steller and spectacled eider habitat, raising concerns for increased costs due
to possible requirements for underground construction. Additionally right-of-way issues will need to be resolved, including those associated with Native
allotments. The current feasibility analysis (#245) does not include conceptual design.
Recommend full funding with provision that AEA accept the feasibility report for the work currently underway (#245) before any funds are disbursed for the
proposed project.
Full Funding
Cost of Power:$0.15
Requested Grant Funds:$210,000
Matched Funds Provided:$21,000
Total Potential Grant Amount:$231,000
AEA Funding Recommendation:$210,000
Funding & Cost
/kWh
11/5/2011 2:13:46 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
610 Kaktovik Wind Diesel
North Slope Borough
Feasibility
Proposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Local Government
Project Description
The North Slope Borough (NSB) envisions a wind energy and area-wide energy management system, consisting of wind diesel integration, end-use energy
efficiency, automated building controls, and conservation. This phase of the project is the feasibility study phase of a three phase project which will include
phases for design and permitting, and construction and commissioning for three anticipated wind turbines to supplement the existing power generation and
distribution system for the community of Kaktovik. Participants in the project include North Slope Borough, a contracted engineering/design firm, and
Northern Power Systems of Barre, Vermont (wind turbine experts and supplier). The contractor will provide overall project management and system
engineering during this phase of the project. During the construction phase, MSB will recruit an engineering and construction contractor for design and
installation of all civil works, erection of the wind turbines, and installation of all ancillary electrical systems. Northern Power will provide Northwind 100B
model wind turbines plus startup & commissioning services.
AEA Review Comments
North Slope Borough proposes feasibility assessment of developing a wind-diesel system in Kaktovik. Currently the North Slope Borough is conducting similar
feasibility analyses in Pt. Hope (#413), Pt. Lay (#421), and Wainwright (#412).
NSB has completed onsite wind resource assessment and provides the wind resource report in the application. The report documents a Class 5 wind resource.
Recommend full funding.
Full Funding
Cost of Power:$0.15
Requested Grant Funds:$132,000
Matched Funds Provided:$13,200
Total Potential Grant Amount:$145,200
AEA Funding Recommendation:$132,000
Funding & Cost
/kWh
111/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
611 Point Hope Wind Turbine Design
North Slope Borough
Design
Proposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Local Government
Project Description
The North Slope Borough (NSB) envisions a wind energy and area-wide energy management system, consisting of wind diesel integration, end-use energy
efficiency, automated building controls, and conservation. This phase of the project involves the final design and permitting for three anticipated wind
turbines to supplement the existing power generation and distribution system for the community of Point Hope. Participants in the project include North
Slope Borough, a contracted engineering/design firm, and Northern Power Systems of Barre, Vermont (wind turbine experts and supplier). The contractor
will provide overall project management and electrical system engineering for the project, as well as, in the final phase of the project, the design and
installation of all civil works, erection of the wind turbines, and installation of all ancillary electrical systems. Northern Power will provide Northwind 100B
model wind turbines plus startup & commissioning services.
AEA Review Comments
The North Slope Borough proposes final design and permitting for a 300 kW wind project to serve the Point Hope grid. The Borough is currently working on a
round 3 grant for conceptual design (#413) and has completed onsite wind resource assessment which indicates a class 6 resource.
The proposed budget includes $160,000 for final environmental assessment and mitigation plans. The current work includes $102,000 for similar activities.
AEA believes that it is reasonable to reduce the budget for this on the basis of the previous award.
Since conceptual design is not yet complete, construction cost estimates are very approximate; However, unless the construction cost can be reduced economics
for constructing the project will not be favorable,
Recommend partial funding of $298,000 with requirement that before final design funds are disbursed AEA accept the feasibility and conceptual design report.
Partial Funding
Cost of Power:$0.15
Requested Grant Funds:$400,000
Matched Funds Provided:$40,000
Total Potential Grant Amount:$440,000
AEA Funding Recommendation:$298,000
Funding & Cost
/kWh
121/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
612 Point Lay Wind Generation Design
North Slope Borough
Design
Proposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Local Government
Project Description
The North Slope Borough (NSB) envisions a wind energy and area-wide energy management system, consisting of wind diesel integration, end-use energy
efficiency, automated building controls, and conservation. This phase of the project involves the final design and permitting for three anticipated wind
turbines to supplement the existing power generation and distribution system for the community of Point Lay. Participants in the project include North Slope
Borough, a contracted engineering/design firm, and Northern Power Systems of Barre, Vermont (wind turbine experts and supplier). The contractor will
provide overall project management and electrical system engineering for the project, as well as, in the final phase of the project, the design and installation of
all civil works, erection of the wind turbines, and installation of all ancillary electrical systems. Northern Power will provide Northwind 100B model wind
turbines plus startup & commissioning services.
AEA Review Comments
The North Slope Borough proposes final design and permitting for a 300 kW wind project to serve the Point Lay grid. The Borough is currently working on a
round 3 grant for conceptual design (#421) and has completed onsite wind resource assessment which indicates a class 4-5 resource.
The proposed budget includes $160,000 for final environmental assessment and mitigation plans. The current work includes $102,000 for similar activities.
AEA believes that it is reasonable to reduce the budget for this on the basis of the previous award.
Since conceptual design is not yet complete, construction cost estimates are very approximate; However, unless the construction cost can be reduced economics
for constructing the project will not be favorable,
Recommend partial funding of $298,000 with requirement that before final design funds are disbursed AEA accept the feasibility and conceptual design report.
Partial Funding
Cost of Power: $0.15
Requested Grant Funds:$400,000
Matched Funds Provided:$40,000
Total Potential Grant Amount:$440,000
AEA Funding Recommendation:$298,000
Funding & Cost
/kWh
131/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
613 Wainwright Wind Turbine Design
North Slope Borough
Design
Proposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Local Government
Project Description
The North Slope Borough (NSB) envisions a wind energy and area-wide energy management system, consisting of wind diesel integration, end-use energy
efficiency, automated building controls, and conservation. This phase of the project involves the final design and permitting for three anticipated wind
turbines to supplement the existing power generation and distribution system for the community of Wainwright. Participants in the project include North
Slope Borough, a contracted engineering/design firm, and Northern Power Systems of Barre, Vermont (wind turbine experts and supplier). The contractor
will provide overall project management and electrical system engineering for the project, as well as, in the final phase of the project, the design and
installation of all civil works, erection of the wind turbines, and installation of all ancillary electrical systems. Northern Power will provide Northwind 100B
model wind turbines plus startup & commissioning services.
AEA Review Comments
The North Slope Borough proposes final design and permitting for a 300 kW wind project to serve the Wainwright grid. The Borough is currently working on a
round 3 grant for conceptual design (#412) and has completed onsite wind resource assessment which indicates a class 4-5 resource.
The proposed budget includes $160,000 for final environmental assessment and mitigation plans. The current work includes $102,000 for similar activities.
AEA believes that it is reasonable to reduce the budget for this on the basis of the previous award.
Since conceptual design is not yet complete, construction cost estimates are very approximate; However, unless the construction cost can be reduced economics
for constructing the project will not be favorable,
Recommend partial funding of $298,000 with requirement that before final design funds are disbursed AEA accept the feasibility and conceptual design report.
Partial Funding
Cost of Power:$0.15
Requested Grant Funds:$400,000
Matched Funds Provided:$40,000
Total Potential Grant Amount:$440,000
AEA Funding Recommendation:$298,000
Funding & Cost
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141/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
614 NWAB School Alternate Energy Solar Awareness Project
Northwest Arctic Borough
Construction
Proposer:
Proposed Project Phase:
App #
SolarResource:
StrombergAEA Program Manager:Applicant Type:Local Government
Project Description
This proposal is for a 700 watt Solar PV array, to be installed on each of the ten NWAB high schools in the Borough, co-generating with the grid. The project
explores modular inverter technology for redundancy and also provides a platform for understanding Solar (PV) technology for our student base, supporting
an upcoming curriculum-addendum at high school-level and a class at Chukchi College. With an ongoing program for alternate energy in our curriculum, the
schools could expand the alternate energy program every spring to the extent allowable by the local utility (KEA) and AVEC and also communicate the
technology & teachings to other schools in the State of AK. Over time, the schools could become more and more efficient in their use of energy as each high
school finishing class would contribute a project to offset the energy usage in the school. As we incorporate alternate energy sources in Alaska’s rural
communities, it is important to make a way available for our coming generations to become proficient in the new implementation of the resources. After all,
they will live with what we create and have to be able to understand and work with the systems. If this doesn’t happen and we have to rely on outside
expertise to service the new energy systems, then the cost of operation will be excessive and our effort of lowering energy cost for the region will be hampered.
We need to take responsibility now for what we create for future generations. This project will be a start.
AEA Review Comments
The NW Arctic Borough proposes installing a total of 7 kW of photovoltaic panels in 10 communities (700 W/community). The purpose of the application is for
energy cost reduction and local education. The solar panels would be installed by a Fairbanks supplier.
AEA has the following concerns about this application:
1. Given a cost of almost $150,000 for all ten systems and total annual fuel savings of only 800 gallons per year, project economics are poor (B/C = 0.54).
2. Since the panels would be installed, not by local community members but by a contractor, education value would be limited.
No funding recommended.
Not Recommended
Cost of Power:$0.70
Requested Grant Funds:$137,209
Matched Funds Provided:$12,500
Total Potential Grant Amount:$149,709
AEA Funding Recommendation:
Funding & Cost
/kWh
151/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
615 CEA Transmission Line to Renewable Energy Resources
Chugach Electric Association, Inc.
Design
FeasibilityProposer:
Proposed Project Phase:
App #
TransmissionResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
Chugach is proposing to being the process of route selection and permitting for a new transmission line linking potential renewable energy projects on the
west side of Cook Inlet to the existing Chugach system. Ormat Nevada, Inc. (Ormat), a wholly owned subsidiary of Ormat Technologies, Inc. (NYSE “ORA”),
secured 15 geothermal leases on Mt. Spurr from the State of Alaska in 2008 and has since embarked on multi-phased exploration and development plan, with
a goal to explore and build a utility scale 50-100 MW geothermal power plant to be connected to the Railbelt power grid around 2016. Ormat has built over
1,000 MW of geothermal plants during the last 3 decades all over the western United States and several locations internationally. Phase 1 of Ormat’s
exploration, focusing on both aerial and ground based geological and geophysical surveys was completed in August 2010. Phase 2a, focusing on drilling four
500’ to 1000’ core holes, to measure temperature gradients and other geological features, started early September 2010 an is expected to be completed by the
end of the month. Phase 2a will move on to drilling additional, deeper, slim holes in 2011. Both phases (1 and 2a) will be partially cost shared by Oramat and
AEA as part of Round IIII of the Renewable Energy Grant Program. Future Ormat exploration and development phases, planned for 2012-2013, will focus on
additional drilling in an attempt to confirm and delineate the geothermal resource. Subsequent geothermal field development and power plant construction
and commissioning are expected to take place in 2014-2016. Hydroelectric resource assessment at Lake Chakachamna is not as far along, but a project in the
future is possible.
Chugach’s proposed project would include one or more high voltage transmission lines which would connect to the existing substation and transmission lines
at Beluga. The line would be built for a maximum operation voltage o 230 kV but could initially be operated at a lower voltage to match first stage
development of 50 MW of the geothermal project. The line would cover a distance of at least 40 miles, depending on the routing. The initial phase would
investigate feasible routes and select a preferred route, including permitting and right of way acquisition. While Chugach would own and operate the line, all
purchases (presumably all Railbelt utilities) would be able to access the renewable energy. The line would be designed to accommodate future development of
a hydro resource at Lake Chakachamna.
AEA Review Comments
Chugach Electric Association proposes a multiphased approach toward developing electrical transmission on the west side of Cook Inlet to carry power from
potential geothermal project at Mt Spurr and a potential hydropower project at Lake Chakachamna. Phase 1 (feasibility) consists of preliminary design, route
selection, and assessment of permit requirements. Phase 2 (final design) would consist of permits and rights-of-way, geotechnical and survey work, and final
design.
Chugach Electric would complete feasibility activities in June 2012. Following feasibility, Chugach would complete final design activities in June 2013. The
proposal provides only a general description of project tasks and costs.
Ormat is test drilling on Mt. Spurr four 500-1000' depth core holes and plans to drill additional deeper slim holes in 2011 as part of round 3 grant #477.
Additionally Ormat has applied for a round 4 grant (#652) to construct a test well. Chakachamna would involve a lake tap from Lake Chakachamna, a 10 mile
power tunnel leading to an underground power house in the McArthur River Basin. The two power generation projects have not been proven to be technically
and economically viable and also may have environmental permitting challenges. Railbelt IRP findings are favorable for both Mt. Spurr and Chakachmna
projects. Under direction from the Legislature, AEA is undertaking additional analyses to determine the feasibility of Chakachamna in relation to other large
hydro projects on the Railbelt. The results of that study are not available on the date of this review.
Since the two energy generation projects remain in the feasibility determination phase, AEA believes it is reasonable to provide funding for the proposed
transmission project to completion of the feasibility.
Recommend partial funding of $600,000 with the requirements that CEA prepares a more detailed scope and budget for AEA approval.
Partial Funding
Cost of Power:$0.15
Requested Grant Funds:$1,700,000
Matched Funds Provided: $80,000
Total Potential Grant Amount:$1,780,000
AEA Funding Recommendation:$600,000
Funding & Cost
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161/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
616 GVEA Eva Creek Wind Turbine Purchase
Golden Valley Electric Association
Construction
Proposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
GVEA plans to award the EPC contract and wind turbine purchase contract in April 2011. The wind turbine purchase contract will require a 10% down
payment based on discussions with possible wind turbine suppliers. GVEA will be purchasing 12-24 wind turbines depending on the results of a wind turbine
evaluation. The turbines under review are sized from 1-2.2 MW. The total planned output of the Eva Creek Project is 24 MW.
AEA Review Comments
GVEA requests funding for ordering wind turbines for a 24 MW project in the Healy area. AEA has provided $2 million toward feasibility and permitting in
round 1 (#109). Turbines are scheduled for purchase in summer 2011 following consideration of bids from turbine suppliers and EPC contractors by the GVEA
board. Site work and turbine erection would be completed in summer 2012. The project would be commissioned in summer 2012.
GVEA has received federal approval for CREB bond financing.
Recommend full funding.
Full Funding
Cost of Power:$0.17
Requested Grant Funds:$1,463,200
Matched Funds Provided:$36,329,400
Total Potential Grant Amount:$37,792,600
AEA Funding Recommendation:$1,463,200
Funding & Cost
/kWh
171/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
617 Tok School Biomass Heating Project
Alaska Gateway School District
Construction
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
Phase I of the Tok School biomass heating project is scheduled to be complete Oct. 2010. Project was developed using AEA Round I Grant funding. Project
consisted of a biomass heating facility that contained an automated biomass heating system that will heat the existing K-12 school. Phase II which is seeking
AEA round IV grant funding, is an extension of the Tok School biomass heating project and will consist of the bid alternates that were developed during Phase
I but not constructed. Bid alternates that would be of most benefit to the facility & will be part of the scope of work for Phase II will consist of: 1)Bid Alternate
1: Extending a hot water heating loop & related mechanical & electrical integration from the biomass heating facility to a detached multipurpose building
which houses an ice hockey rink and shooting range and also to an additional detached Zamboni garage. Both buildings are located on the Tok School
campus. 2) Bid Alternate 3: Adding a heat exchanger in the K-12 school building to isolate new biomass boiler system fluid from existing K-12 school heating
system fluid.
AEA Review Comments
Alaska Gateway School District proposes adding on a heat loop off the newly-completed wood-fired heating system at the Tok School to provide heat to the
detached multipurpose buildings that houses a hockey rink, shooting range and Zamboni garage.
The new wood heating system at the Tok School is very promising. However, given that the project would displace 9720 gallons of heating fuel per year at a cost
of $754,651, economics are not favorable.
Recommend no funding.
Not Recommended
Cost of Power:$0.53
Requested Grant Funds:$754,651
Matched Funds Provided:$560,000
Total Potential Grant Amount:$1,314,651
AEA Funding Recommendation:
Funding & Cost
/kWh
181/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
618 CVEA Silver Lake Feasibility
Copper Valley Electric Association, Inc.
Feasibility
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
The primary purpose of this application for preliminary permit is to secure the right to investigate the power potential at Silver Lake and determine the best
adapted use of that power potential in the geographic area, including CVEA’s system. Detailed maps showing the project boundary and study area are
provided in Exhibit 3-Project Maps & Photos. CVEA proposes to step down from generation voltage at the project to serve local requirements in the
immediate area. The transmission segment that would connect the proposed Silver Lake project to CVEA’s system in Valdez is therefore not jurisdictional as a
“primary line” and would be constructed under State of AK approvals. Two alternative approaches to this line are provided in Exhibit 4.1, Alternative
Transmission Line Routes.
AEA Review Comments
CVEA proposes studies to address fish, wildlife, water use, geology, soils, cultural, recreational and other potential impacts of a 20-40 MW hydro project at
Silver Lake. CVEA applied for reconnaissance assessment funding in round 3 (#452) and were recommended for funding, however there was insufficent funding
for the project. Since then, CVEA has funded a recon study using their own resources. This recon report is to be completed in December 2010. CVEA has
applied to FERC for a preliminary permit for Silver Lk, which is anticipated to be issued in the near future.
CVEA has received $2,288,000 in round 1 funding and $1,000,000 in legislative funds for feasibility analysis of Alison Lake hydro. Given the current load of the
CVEA system it is likely that either, but not both Allison Lake and Silver Lake hydroelectric projects can be economically developed.
A significant factor in the feasibility of Silver Lake is development of a 20-mile transmission line through mountainous terrain from the proposed power house to
Valdez. Silver Lk was studied in the 1980s and 90s and was not pursued further due to poor economics and fish habitat issues. The project, however, would
provide substantial amounts of energy, significantly greater than the output of Alison Lake.
Recommend full funding with special provision that a CVEA -funded reconnaissance report that addresses Silver Lake's project economics and potential fatal
flaws is provided to AEA, and AEA concurs with the recommendations to proceed to further study of Silver Lake. Also AEA will want to see a thorough analysis
of the land ownership issues associated with this project in the feasibility stage since that will affect licensing provisions. (See DMLW comments).
Full Funding
Cost of Power:$0.33
Requested Grant Funds:$637,500
Matched Funds Provided:$212,500
Total Potential Grant Amount:$850,000
AEA Funding Recommendation:$637,500
Funding & Cost
/kWh
191/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
619 Port St. Nick Fish Enhancement Hydropower
City of Coffman Cove
Construction
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Local Government
Project Description
The City of Coffman Cove and Craig partnered in a King Salmon Enhancement Program. We built a hatchery at the Craig water treatment plant with Pacific
Sustainable Salmon Funds. This was the first year of return for Port St Nick’s fish. Upwards of 6,000 fish returned to the area. Next year will be Coffman
Cove’s first year of returning fish. The Port St. Nick site was chosen due to the availability of generous quantities of high pressure water feeding the Craig
water plant. An 8 inch line is currently side tapped into a 12 inch line to feed the hatchery. Inside the hatchery there are pressure reduction valves to step
down the pressure from 250 lbs to an operational pressure of 10 PSI. This results in a waste of hydro energy that could be used to drive a small hydro
electrical plant effectively producing power and depressurizing and providing the hatchery needs simultaneously. Electricity produced from a small hydro
plant could be used to provide power to the grid, be used to supplement or provide power to the water plant and be purchased to provide funds for rearing of
King Salmon smolts.
AEA Review Comments
The City of Coffman Cove proposes to construct 55 kW project that would capture hydro energy from the penstock that provides water supply to the City of Craig
Water Treatment Plant and the Port St. Nicholas fish hatchery near Craig.
AEA has the following concerns about this project:
1. The RE Fund has already allocated funding to the 5 MW Reynolds Creek (RC) project and the Northern Prince of Wales Intertie that provides all electrical
needs for the island for the foreseeable future. The RC hydro project is expected to spill water over much of the next decade.
2. The application provides little to no reconnaissance, feasibility or design information.
3. Business arrangements are not described.
Recommend no funding.
Not Recommended
Cost of Power:$0.20
Requested Grant Funds:$158,400
Matched Funds Provided: $39,600
Total Potential Grant Amount:$198,000
AEA Funding Recommendation:
Funding & Cost
/kWh
201/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
620 Whitman Lake Project
City of Ketchikan dba Ketchikan Public
Utilities
Construction
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Local Government
Project Description
The proposed Whitman Lake Project will install 4.6 MW of hydropower generating capacity at an existing dam, supporting near-term capacity demand
increases in the Ketchikan area and displacing diesel generation as the existing Tyee Lake (SEAPA) resource becomes fully utilized. It will also replace the
aging water supply system of the SSRAA Whitman Lake Hatchery, providing increased water quantity, reliability and redundancy to a facility that is critical to
the region’s commercial fishing, seafood processing & sportfishing industries.
AEA Review Comments
Ketchikan Public Utilities proposes to construct a 4.5 MW storage hydro project on an existing dam at Whitman Lake. KPU was funded at $1.3 million for final
design and permitting under RE fund round 2 (#37) and expects to complete this work by December 2010. KPU has reached a settlement agreement with DNR,
ADFG, and the USFS on the project.
KPU plans to finance the $14.5 million balance of the project using unspecified grants, municipal bonds, or other options.
With legislative funding, AEA is currently developing a regional integrated energy resource plan for Southeast Alaska. Whitman Lake hydro appears to be a
viable energy resource that could be valuable in satisfying future energy and capacity demands for the SEAPA network at large. However, this cannot be
confirmed until the Southeast IRP (SEIRP) project is complete. One specific output from this plan is a preferred generation resource plan. Currently there is not
sufficient information to serve as a basis for an economic analysis. This analysis will be done as a part of the SEIRP.
Partial funding of $700,000 ($2 million cumulative cap for final design/construction minus $1.3 million granted in round 2) recommended.
Special provisions are as follows: (1) Grantee to demonstrate that all preconstruction activities (including those previously funded under Round 1 RE Fund
grant) have been completed in a manner acceptable to AEA, including resolution of all land and site control issues; (2) Before any funds can be paid out under
this grant, grantee will submit a project financing plan acceptable to AEA which describes the source and financial cost of all committed funds required to
complete the entire Whitman Lake project and allow it to produce and sell power; (3) provide FERC notice to proceed with construction activities; and (4)
consistent with AEA policy, energy and capacity from this project must be available to all ratepayers on the SEAPA network on an equal, non-discriminatory
basis; and (5) scope of work is consistent with findings of the Southeast Alaska IRP. .
Partial Funding
Cost of Power:$0.10
Requested Grant Funds:$2,000,000
Matched Funds Provided:$14,500,000
Total Potential Grant Amount:$16,500,000
AEA Funding Recommendation:$700,000
Funding & Cost
/kWh
211/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
621 Akutan Geothermal Development Project
City of Akutan
Design
Proposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:Local Government
Project Description
This project is the continuation of the Hot Springs Bay Valley Geothermal Reconn. Project, previously funded under AEA REF Grant Agreement #2195475.
Surface exploration & analysis, a preliminary technical feasibility assessment and economic assessment were completed in 2009-2010. With the City’s
commitment of an additional $1.2 million, exploratory drilling of two test wells was completed 8/10. Drilling program confirmed presence of a geothermal
resource sufficient for final design & permitting as described in Phase III requirements listed in Section 2.5 of RFA AEA 11-005. This Round IV grant
application is a request for funds to complete Phase III, Final Design & Permitting.
AEA Review Comments
The City of Akutan proposes to complete final design and permitting of a geothermal power plan serving the City and Trident Seafoods. The City of Akutan
began this project under a RE Fund Round 2 grant (#246) and continued with partial funding under a round 3 grant (#470). In the summer of 2009, the City
performed surface exploration work, including field mapping, CSAMT and remote sensing, to help choose drill sites. In summer 2010 two wells were drilled
with good results. The first well hit several shallow, hot aquifers (up to 359F at 585 ft). The second well was evidently less permeable and did not encounter
much fluid, although an elevated geothermal gradient was recorded.
The City is proceeding with feasibility stage activities, scheduled for completion in June 2011. Pending are finalization of the resource assessment, conceptual
design and project cost, financial analysis, preliminary power sales agreement, and a draft operational and business plan.
DGGS finds that "Drilling at Akutan during the summer of 2010 confirmed the presence of a high-temperature geothermal resource at Akutan. This resource is
comparable to that at Makushin, and is in the tens-of-megawatts class.." The substantial geothermal resource combined with the substantial energy load of the
fish processing plant and the City of Akutan indicates promise for this project.
Recommend full funding with provision that before funds are made available for final design and permitting, the City must provide to AEA and AEA must accept
a feasibility assessment that justifies continued project development.
Full Funding
Cost of Power:$0.32
Requested Grant Funds:$2,695,000
Matched Funds Provided:$355,000
Total Potential Grant Amount:$3,050,000
AEA Funding Recommendation:$2,695,000
Funding & Cost
/kWh
221/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
622 Cordova Community Biomass Feasibility Study
Native Village of Eyak
Design
FeasibilityProposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
The Native Village of Eyak proposes a feasibility study to evaluate the potential of installing a biomass heating system to heat one or more community
buildings. The community would utilize wood waste from the community burn pile and cardboard from the landfill. Alder from right-of-way clearing of
roads would also be considered as a fuel source. The community would develop a community energy audit protocol as part of the feasibility process.
(Project description edited for length and clarity.)
AEA Review Comments
Applicant Native Village of Eyak proposes assessing feasibility of heating buildings in Cordova with local wood and waste cardboard. The applicant also
proposes to develop a community energy audit protocol. The applicant requested funding for this project last year (#408) and AEA recommended partial
funding. However the project was not funded due to insufficient funding.
Based on prefeasibility reports provided upon AEA request, the community may need to utilize local wood in addition to the burn pile.
The budget provided in the application does provide justification for what appears to be a very expensive feasibility analysis. Based on experience with other
biomass thermal projects in Alaska, AEA recommends partial funding of 75,000.
Partial Funding
Cost of Power:$0.33
Requested Grant Funds:$245,065
Matched Funds Provided:$3,000
Total Potential Grant Amount:$248,065
AEA Funding Recommendation:$75,000
Funding & Cost
/kWh
231/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
623 Susitna Valley High School Wood Heat
Matanuska Susitna Borough
Construction
DesignProposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
The proposed project is to design and build a redundant wood fired heating plant to heat the Susitna Valley High School with fuel wood which will be
sustainably harvested from an appropriately-scaled, designated, land-base selected from nearby Borough timber lands. It includes the Energy Building which
houses the boilers, the connection piping to the building and the controls required to monitor and control the system. The project also includes the on site
storage of the split cordwood. A long-term management plan for the designated timber lands will be developed in which a Secondary Vocational-Education
curriculum can be enfolded that will directly involve student and community participation in ongoing studies of forest regeneration, biodiversity, timber
harvest, wood products development, trail development and managing for multiple use.
AEA Review Comments
The Matanuska-Susitna Borough proposes design and construction of a cordwood-fired heating system for the Susitna Valley High School. The project would
displace approximately 22,000 gallons of heating oil per year using approximately 250 cords of wood per year with a delivered cost of $200/cord.
The proposal is based on a detailed feasibility analysis completed in 2009 with support from a grant under the Denali Commission/AEA alternative energy grant
program. The analysis considered conceptual design of the wood boiler systems as well wood fuel availability and cost.
The proposal to heat the school has many attractive features, including creating jobs and enhancing educational opportunities of the local students, providing a
research forest, and demonstrating biomass energy in a relatively accessible part of the state. Based on the feasibility report there is an ample, sustainable wood
supply and the school would save $20,000-50,000 per year.
However, given relatively high project cost, economics are marginal using the standard 20-year project life assumption. The feasibility report runs sensitivity
analyses and concludes that project economics are attractive using only the most optimistic assumptions for heating load, wood consumption and price, and
project cost.
No funding recommended.
Not Recommended
Cost of Power:$0.17
Requested Grant Funds:$750,000
Matched Funds Provided:$5,500
Total Potential Grant Amount:$755,500
AEA Funding Recommendation:
Funding & Cost
/kWh
241/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
624 Wrangell Electric Vehicle Feasibility Study
City & Borough of Wrangell
Construction
Design
Feasibility
Recon
Proposer:
Proposed Project Phase:
App #
OtherResource:
OttAEA Program Manager:Applicant Type:Local Government
Project Description
This project is a conceptual design/feasibility study of localized testing and evaluation of electric vehicles and related infrastructure in an Alaska community,
using locally-generated renewable electricity to displace the use of gasoline and diesel vehicle fuel. The community served by this project is Wrangell, Alaska.
Directly involved in this project is the City and Borough of Wrangell (City), through Wrangell Municipal Light and Power (WMLP), and the Southeast Alaska
Power Agency (SEAPA). The City is requesting grant funds for a feasibility/design study/cost estimate of an electric vehicle charging station in Wrangell,
presumably to be located at City-owned buildings such as the WMLP/public works, well as a feasibility/market study of the types of electric vehicles most
appropriate for use in Wrangell. Different business models, including an EV rental car pool, would be explored. Cost estimates for partially converting the
city’s vehicle fleet to EVs could also be prepared.
AEA Review Comments
The City and Borough of Wrangell proposes assessing feasibility of using electric vehicles utilizing excess hydro from the southern Southeast electric grid.
Specifically, as an output of the project the City proposes to purchase an electric car and develop a charging station in Wrangell.
AEA supports the concept of displacing transportation fuel using renewable energy resources where shown to be economically feasible. AEA notes benefit/cost
ratio is 0.39 assuming 5 cent per kWh power over a 15 year project life. We are concerned that power may not be available at this rate for the long-term.
Impacts of conventional power consumption, heating conversions, and electric transportation are being considered in the Southeast Alaska IRP project, expected
to be complete by the end of 2011. For this reason we feel it would be useful to the IRP project for portions of this work to be done. Specifically, work that would
be useful includes studies on the impacts of electric vehicles on the City distribution system, incremental impacts that electric vehicles will have on the future
energy consumption and power demand for the Wrangell system, and opportunities for deploying smart grid technology.
Recommend partial funding of $25,000 for reconnaissance study that will be useful to the Southeast IRP project with requirement that scope must be developed
in coordination with the AEA-led IRP.
Partial Funding
Cost of Power:$0.13
Requested Grant Funds:$112,500
Matched Funds Provided:$12,500
Total Potential Grant Amount:$125,000
AEA Funding Recommendation:$25,000
Funding & Cost
/kWh
251/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
625 Excursion Inlet Hydro Project Phases I and II
Haines Borough
Feasibility
ReconProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Government Entity
Project Description
AEA Renewable Energy Fund grant guidelines require a multi-phase approach to project development. The Borough is requesting funds for the first two
phases in this application: Reconnaissance and Feasibility/Conceptual Design Studies. The tasks for this project are described in Section 2.4 of the grant
application instructions
AEA Review Comments
The Haines Borough proposes reconnaissance and feasibility assessment of two hydro projects totalling 3 MW and 1.5 miles of transmission to connect to the
Ocean Beauty's fish processing facility and residences in the community of Excursion Inlet.
As the proposal notes "barriers to project development will include anadromous fish concerns...." Major concerns with protection of these species include
minimum flows below a diversion facility and the need for both upstream and downstream fish passage at the intake structures".
The applicant does not indicate who owns the land on the projects would be developed. The processor and most residences are seasonal.
Recon study should address fish habitat, electrical service and estimated load for the Borough subdivision, establishment of community utility, business
arrangement for selling power to the fish processor Ocean Beauty, site control and land ownership, and FERC jurisdiction. Specifically, the recon work shall
include consideration of fish habitat issues as it affects the cost, capacity, and energy output of the project and environmental licensing concerns.
Recommend partial funding for reconnaissance study.
Partial Funding
Cost of Power:$0.21
Requested Grant Funds:$317,130
Matched Funds Provided:$10,000
Total Potential Grant Amount:$327,130
AEA Funding Recommendation:$93,593
Funding & Cost
/kWh
261/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
626 Carlson Creek Hydroelectric Project
Alaska Power Company
Design
FeasibilityProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
APC proposes to construct the 300 kW Carlson Creek Hydroelectric Project (Project), which will be located approximately 8 miles north of Slana on the Glenn
Highway (Tok Cutoff). The Project would off-set diesel generation which presently supplies power to the communities of Slana, Chistochina, and Mentasta.
The Project will consist of two small diversion structures, approximately 13,200 feet of penstock, a powerhouse with a single generating unit, tailrace, small
substation, and a very short length of transmission line. For about half the year, the Project operation will be run-of-river, but during the colder months the
Project will draw water from Carlson Lake. The potential annual generation is estimated to be approximately 1,200 MWh/yr, which is about equal to the
current annual requirements of the three communities.
Therefore, the Project has the potential to almost offset 100% of the current diesel generation. The Project will provide clean, renewable electricity, as well as
rate stabilization. The cost to maintain a hydro project is also significantly lower than diesel generation.
AEA Review Comments
APC (a wholly owned subsidiary of Alaska Power and Telephone) proposes feasibility assessment, permitting and final design for a 300 kW hydro project at
Carlson Cr. that would serve Slana and Chistochina.
This is a continuation of a project reconnaissance assessment funded in round 2 (#226), now projected to be complete in spring 2013. As part of the current
work APC will request a project jurisdictional determination by FERC.
APC submitted a similar proposal in round 3 (#443) that was recommended for funding. However insufficient funding was available.
Work under the current proposal would not begin until fall 2013. It is reasonable for APC to complete current work and resubmit an application for funding after
determining project viability.
Recommend no funding.
Not Recommended
Cost of Power:$0.52
Requested Grant Funds:$540,000
Matched Funds Provided:$60,000
Total Potential Grant Amount:$600,000
AEA Funding Recommendation:
Funding & Cost
/kWh
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
627 Connelly Lake Hydroelectric Project
Alaska Power Company
Design
FeasibilityProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
The Connelly Lake Hydroelectric Project (Project) will be located in Southeast Alaska, approximately 14 miles northeast of the City of Haines and 10 miles
southwest of the City of Skagway. Connelly Lake (formerly known as Upper Chilkoot Lake) is an 85 acre Alpine Lake, and drains into the Chilkoot River. The
project will be on state and private land, including the Haines State Forest and Chilkat Bald Eagle Preserve. The project facilities will include a dam at the lake
outlet, a penstock about 6,200 feet long, a 12.0 MW powerhouse with two generating units, a 14-mile-long 34.5 kV transmission line and a 14-mile long access
road. Final dimensions and capacities of these facilities will be determined by optimization studies to be conducted during Phase II. The Project will be
developed by APC to provide additional generation to its interconnected Haines and Skagway electrical systems.
AEA Review Comments
Applicant proposes feasibility study and final design/permitting for a 12 MW storage hydro project. An IRP is desirable for the Skagway, Haines, Klukwan area
before proceeding to final design and construction for these projects. AP&T is also proposing recon and feasibility study of Schubee Lk hydro project (#441) in
response to local input. AP&T submitted a similar proposal in RE fund round 3 (#437) that was recommended for partial funding, but did receive a grant due to
insufficient funds.
Existing recon study proposes a substantially smaller 6 MW project which impounds less water than the current proposal. Project may require intertie and road
access across the Chilkat Bald Eagle Reserve if it is not feasible to route through the Haines State Forest. Application includes March 09 letter from BLM
indicating land has been transferred to State of Alaska, thus reducing likelihood of FERC jurisdiction. Power sales/benefits limited to offset of diesel costs and
air pollution during summer cruise ship landings in Haines and Skagway. Seasonal power production would limit year-round availability.
Recommend $468,000 partial funding for Phase 2 feasibility study with scope per application with provision that 1) land issues and licensing jurisdiction
question be resolved with go/no-go points established 2) scope of work is consistent with findings of the Southeast Alaska IRP.
Partial Funding
Cost of Power:$0.21
Requested Grant Funds:$1,040,000
Matched Funds Provided:$260,000
Total Potential Grant Amount: $1,300,000
AEA Funding Recommendation:$468,000
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
628 Neck Lake Hydroelectric Project
Alaska Power Company
Construction
Design
FeasibilityProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
APC proposes to construct a small run-of-river hydroelectric project at Neck Lake, a 1,000 acre lake located 1.5 miles southwest of the community of Whale
Pass on Prince of Wales Island. The Project would supply power to the community of Whale Pass, and would offset diesel generation, which is currently the
sole source of electricity. The relatively high and modulated flows from the lake combined with the steep drop at the lower end of the outlet stream provide a
good opportunity for a small run-of-river hydroelectric development. Facilities would include an access road, intake structure, 400 feet of penstock, a
containerized power plant, a tailrace channel, and upgrade of 4 miles of transmission line. The hydroelectric facilities will be designed to avoid interference
with the existing salmon rearing and collection facilities operated at Neck Lake by the Southern Southeast Regional Aquaculture Association (SSRAA). APC
conducted a reconnaissance study of the site in 2008, and determined that there is sufficient potential to almost always provide enough generation for Whale
Pass loads (see Section 10 for a copy of the reconnaissance report). The Project will provide clean, renewable electricity, as well as rate stabilization and lower
rates for APC’s Whale Pass customers.
AEA Review Comments
AP&T proposes final design, permitting, and construction of a run-of-river 124 kW hydro project at Neck Lake. The project would result in displacing virtually
all of the diesel used for power generation in Whale Pass. RE Fund round 2 (#223) provided $108,000 for feasibility analysis, scheduled for completion in 2011
-12. AEA has allocated $90,000 in round 3 funds (App #440) for permitting and final design to be completed by Summer 2013. Construction would begin in
Fall 2013.
In November 2010, FERC ruled it has jurisdiction for licensing at Neck Lake. When contacted by AEA, AP&T announced they have decided to stop any further
activity to develop a hydroelectric power plant at Neck Lake.
Recommend no funding since on 12/6/2010 AP&T indicated it won’t pursue this project.
Not Recommended
Cost of Power:$0.44
Requested Grant Funds:$1,844,000
Matched Funds Provided:$596,000
Total Potential Grant Amount:$2,440,000
AEA Funding Recommendation:
Funding & Cost
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291/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
629 Reynolds Creek Hydroelectric Project Transmission Line
Alaska Power Company
Construction
Proposer:
Proposed Project Phase:
App #
TransmissionResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
The overall 34kV power line route is approximately 12 miles long. Approximately 0.9-mile of the westernmost section is an existing APC 2kV distribution line
that will be overbuilt. The line will cross Hetta Inlet via Jumbo Island. The route primarily follows existing logging roads. The power line will begin at a point
along Hydaburg Road about 0.45 miles northeast of the town. It will continue northeast along the existing logging road passing north of Deer Bay and
intersecting Hetta Inlet opposite Jumbo Island. This section is adjacent to private forested land with a small section of Muskeg and is 7.0 miles long. The
logging roads are mostly mild to moderate cut sections with a few rock cuts. The first 0.9 miles of this section is an existing APC corridor adjacent to the road
established for a 2kV line. The water crossing over Hetta Inlet will be accomplished with 3 multi-pole structures with one on each side of the inlet and one at
the pinnacle of Jumbo Island. Jumbo Island slopes steeply toward the water on both sides and is heavily forested. A new corridor will need to be established.
The structure on the island will likely be set by helicopter. This crossing is 0.9 miles across. The power line will continue in a new corridor for 0.3 mile to the
east until it intersects an existing logging road. Approximately 1500 feet of temporary or permanent access road spurs will need to be constructed to access 2
line structures along this section. The line route then turns south and follows existing logging roads 3.8 miles southeast to the powerhouse/switchyard
location near Copper Harbor. This section is adjacent to private, recently harvested forest land with very steep and rocky terrain prone to slides. The logging
road is primarily full bench construction with several rock cut sections. There are danger trees (and boulders) above the power line route on the eastern side
slopes that may need to be removed/secured to protect the power line.
AEA Review Comments
Alaska Power Company (APC), a subsidiary of Alaska Power and Telephone (AP&T) proposes funding for the transmission portion of the 5 MW Reynolds Creek
hydropower project. Haida Energy, a joint venture of AP&T and Haida Corp, would own the project and sell power on a wholesale basis to APC, the certificated
utility on Prince of Wales (PoW) Island. The project is a component of Reynolds Creek Hydro Project, which received $2M (App #104) in grant funding already.
In Round 3, an application (#439) was submitted for transmission line construction for Reynolds Creek. Although AEA recommended the project for funding
there was insufficient funding appropriated to fund this project.
The following grant allocations totaling $4.1 million have been made for the Reynolds Creek project:
1) $100,000 of Denali Comm funds to Haida Corp through the Denali Commission / AEA alternative energy RFP
2) $1 million in RE fund round 1 funds to Haida Corp
3) $1 million in RE fund round 1 funds to Haida Power, a joint venture between APC and Haida Corp
4) $2 million in legislative appropriation to Southeast Conference
The project will be dispatched in conjunction with AP&T's existing Black Bear Lk and South Fork hydro projects. Previous applications state that Reynolds Creek
hydro will only be used after the existing hydro projects are fully dispatched. An extension of PoW transmission to the northern portion of island has been
funded by the Denali Commission and RE Fund round 1.
Haida Energy has recently informed AEA that the project budget may need to be increased and has agreed to direct its engineer of record to update the project
cost estimate. Also, Haida Energy has informed AEA that it has redesigned the project to relocate the power house and to make other changes to improve
constructability.
Recommend full funding with the following grant conditions: Before any construction grant funds are disbursed: 1) Grantee must secure an amendment to the
existing project management agreement to include this grant in the agreement, and to become a signatory to the agreement, 2) all final design documents,
permits, rights-of-way, and FERC license must be in place, 3) completion of a revised project cost estimate by the engineer of record that is satisfactory to AEA
and a revised project finance plan that demonstrates that the applicant has raised all funds necessary to complete the project, 4) the grantee must establish a
power purchase agreement acceptable to AEA, based on cost-based rate methodology that demonstrates that benefits of public funds flow to the ratepayers, 5)
ownership of the transmission line must be with Haida Energy, or Grantee must provide a transmission maintenance and operations agreement giving control of
the project to Haida Energy or an alternative business arrangement acceptable to AEA.
Full Funding
Cost of Power:$0.32
Requested Grant Funds:$2,000,000
Matched Funds Provided:$400,000
Total Potential Grant Amount:$2,400,000
AEA Funding Recommendation:$2,000,000
Funding & Cost
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301/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
630 Schubee Lake Hydroelectric Project
Alaska Power Company
Design
FeasibilityProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
APC is actively looking to add another hydroelectric storage facility to its Upper Lynn Canal (ULC) system serving Haines, Skagway, and nearby communities.
To date, APC has considered Connelly Lake near Haines and Walker Lake near Klukwan, with Connelly Lake being preferred because of its much greater
energy potential. However, some Haines citizens are opposed to development of Connelly Lake, and have expressed their interest in APC evaluating the
Schubee Lake site as an alternative. APC has made a very preliminary evaluation of the Schubee Lake site and believe there is some potential; therefore the
proposed grant is to study the Schubee Lake site to approximately the same depth as Connelly Lake so that a fair comparison can be made between the two. In
our view, this means bypassing the reconnaissance phase (Phase I) and proceeding directly with conceptual design and feasibility work (Phase II).
AEA Review Comments
AP&T proposes funding feasibility of developing a 6 MW storage hydro project at Schubee Lake. This proposal is almost identical to a round 3 proposal for this
purpose (#441) that for which AEA recommended partial funding. However, insufficient funds were available to provide a grant.
As before, AP&T has not prepared a formal reconnaissance assessment of the project that meets requirements of the RFA. AP&T is responding to a level of
public opposition to developing another hydro site at Connelly Lk. AEA is recommending feasibility funding for Connelly Lk (#627).
AEA has the following concerns with Schubee Lk: 1) it is located on USFS lands and would be subject to FERC licensing, 2) it has a higher relative cost with less
energy output than Connelly, 3) it would require an expensive connection to the existing submarine cable connecting Haines and Skagway.
AEA recognizes the importance for the Haines Borough citizens to make informed decisions regarding development of alternative hydro locations. However we
believe that sufficient information for determining the development path can be achieved by more limited analysis.
Recommend partial funding of $80,000 for reconnaissance assessment with the provisions that 1) AP&T must provide a revised scope of work for approval by
AEA before funds are disbursed, 2) scope of work is consistent with findings of the Southeast Alaska IRP .
Partial Funding
Cost of Power:$0.21
Requested Grant Funds:$160,000
Matched Funds Provided:$40,000
Total Potential Grant Amount:$200,000
AEA Funding Recommendation:$80,000
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
631 Yerrick Creek Hydroelectric Project
Alaska Power Company
Construction
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
APC proposes to construct the 1.5 MW Yerrick Creek Hydroelectric Project (Project) located on Yerrick Creek, approximately 20 miles west of Tok. The
Project would off-set diesel generation in the communities of Tetlin, Tanacross, Dot Lake and Tok. The Project will consist of a small diversion structure,
approximately 15,000 feet of penstock, powerhouse with a single generating unit, tailrace, small substation, and transmission line. The Project operation will
be run-of-river; annual generation is expected to be approximately 4,900 MWh/yr (approximately 40% of the interconnected load). The Project will provide
clean, renewable electricity, as well as rate stabilization. The cost to maintain a hydro project is also significantly lower than diesel generation.
AEA Review Comments
Already has a $4 M grant from Round III; which is to be used for construction / Therefore, not eligible for additional grant funding for construction.
Did Not Pass Stage 1
Cost of Power:$0.53
Requested Grant Funds:$4,000,000
Matched Funds Provided:$8,725,000
Total Potential Grant Amount:$12,725,000
AEA Funding Recommendation:
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
632 Reconnaissance Study of Tenakee Inlet Geothermal Resource
Inside Passage Electric Cooperative
Recon
Proposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:Utility
Project Description
The purpose of this project is to investigate the potential of using the known geothermal resource at Tenakee Inlet to produce power and evaluate alternative
uses of the source. Springs near the head of Tenakee Inlet have the highest recorded surface temperature (176° F) of any of the numerous geothermal springs
tested on Chichagof Island and listed on the Geothermal Resources of Alaska Map. Geochemistry of the spring waters indicates a maximum subsurface
temperature of 243° F. The surface flow rate of the spring has been measured at 90 L/min and the convective heat discharge estimated at 0.5 MW. We request
funding for a two-phase reconnaissance study of the resource with a planned timeline of approximately 18 months. Phase I will include mapping, remote
sensing, aerial and ground based geophysics, and geochemical sampling. If justified by the first phase, we will commence with Phase II - exploratory well
drilling. In this second phase, two wells would be drilled, although the second would have to be justified by the combined results of Phase I and the first well.
This is the complete scope of work we are requesting funding for with this grant, but if this work is successful and promising, future work would include
additional drilling necessary to confirm and develop the resource, necessary permitting, and power plant and infrastructure construction.
AEA Review Comments
Applicant IPEC proposes a staged assessment of geothermal resources of Tenakee Inlet Hot Springs consisting of field work in 2010 followed by exploratory
drilling in the summer 2011. This application is identical to a round 3 application (#501) that was recommended, but which did not receive funding due to
limited funds.
DGGS notes that the hot spring is one of the hottest in Southeast Alaska suggesting a reasonable chance of power outputs up to a few megawatts. The hot
springs is located in a remote location on Tongass NF land and would require a special land use permit. The hot springs is approximately 20 miles from Hoonah
with no road access. Hoonah has also submitted an application to construct a hydro project at Gartina and Water Supply creeks. The hot springs is
approximately 10 miles from Pelican, which has a hydro resource that supplies all of its power.
DGGS agrees with the proposed two-phase plan outlined in this proposal—1) geological and geophysical studies followed by 2) site test drilling. However, DGGS
states concerns regarding IPEC’s approach to identifying the exact location of the sub-surface resource prior to drilling. Further DGGS notes that “Additional
clarification and details of the work plan, and how the information will be used to provide drilling locations and/or indication of reservoir should be provided to
fully evaluate the proposal. Additionally, if chosen for funding, it would seem reasonable to provide the funds in a phased manner that coincides with the phases
of the work: drilling to occur only after geological and geophysical fieldwork and economic, environmental, and permitting issues are resolved favorably.”
The project represents an option for displacing the 350,000 gpy diesel consumption for power in Hoonah. At an estimated installed cost of $27 million not
including transmission to Hoonah or other infrastructure, however, project economics do not appear to be attractive.
AEA recommends partial funding for the initial phase of field work with the requirement that prior to any funds being disbursed for the field investigation IPEC
will prepare a workplan and project team satisfactory to AEA and DGGS.
Partial Funding
Cost of Power:$0.38
Requested Grant Funds:$2,579,200
Matched Funds Provided:$0
Total Potential Grant Amount:$2,579,200
AEA Funding Recommendation:$599,200
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
633 Nushagak Community Wind Power Project
Nushagak Electric & Telephone Cooperative
(NETC)
Construction
DesignProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
The Nushagak Community Wind Power Project proposes to erect two wind turbines (approximately 200-300 kW. e.g. Aeronautica 29-225kW) and connect
them into the adjacent electric grid operated by Nushagak Electric and Telephone Cooperative (NETC) serving Dillingham and Aleknagik, Alaska. This
installation will deliver annually up to 900 mega watt hours of electric power and replace more than 64 thousand gallons of diesel fuel.
The proposed Kanakanak site has enough wind to be considered a commercially viable site for a small commercial sized mid-scale turbine. Such a device
would produce in excess of $155,000/yr. Further, such wind turbines will serve as an important educational tool for NETC to gain the important skills and
expertise to operate and maintain state of the art renewable technology. Such knowledge is a central component to NETC developing a sustainable energy
system that will integrate renewable power sources with existing diesel technology.
AEA Review Comments
Nushagak Cooperative requests funding for final design and construction of a 450 kW wind project.
Currently Nushagak has received a $100,000 grant from the Denali Commission under the Alternative Energy Grant program for wind feasibility. Nushagak has
a grant to study hydro feasibility for project(s) at Lake Elva and Grant Lake north of Aleknagik.
Nushagak’s proposal demonstrates impressive level of community support for developing a utility-scale wind project in Dillingham. The utility has performed a
substantial amount of work in preparation for wind development, including a reconnaissance level assessment of energy alternatives prepared by the University.
AEA has the following concerns regarding this proposal:
1. The feasibility information submitted is not sufficient to provide a basis for final design and construction. Specifically, it does not include a conceptual design.
2. Alternatives assessed were limited to small turbines. There is no discussion of the risks associated with deploying a new turbine model in the state.
3. The economics of this project are marginal and may be improved by considering other sites, equipment, and project size.
4. Nushagak has not yet completed a substantial portion of or drawn any conclusions from the wind feasibility work underway.
5. The proposed scheduled begins in October 2010 with design and permitting completed in May 2011 before funding from the RE Fund would be available.
Recommend no funding.
Not Recommended
Cost of Power:$0.46
Requested Grant Funds:$3,199,400
Matched Funds Provided:$355,488
Total Potential Grant Amount:$3,554,888
AEA Funding Recommendation:
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
634 Nikiski Combined Cycle Conversion (NCCC)
Alaska Electric & Energy Cooperative
Construction
DesignProposer:
Proposed Project Phase:
App #
Heat RecoveryResource:
PlentovichAEA Program Manager:Applicant Type:Utility
Project Description
The Nikiski Combined Cycle Conversion (NCCC) project will convert the existing simple cycle 42MW gas turbine into a highly efficient combined cycle plant
by adding a Steam Turbine Generator (STG) and re-commissioning the existing Heat Recovery Steam Generator (HRSG). The STG will recover waste heat
from the existing gas turbine and produce an additional 18MW of capacity with no additional fuel required. The plant conversion will increase the base load
plant efficiency by 45% without increasing fuel consumption. AEEC is seeking grant funds for the construction phase of this waste heat recovery project.
AEA Review Comments
Alaska Electric Energy Cooperative (AEEC), a wholly-owned subsidiary of Homer Electric Association, proposes to convert the existing 42 MW single-cycle
combustion turbine into a 60 MW combined cycle system utilizing recovered heat from the combustion turbine exhaust.
This project was considered in the Alaska Energy Authority Railbelt Integrated Resource Plan (RIRP), as a “committed unit”, that is, a power generation project
an individual utility was planning, designing or constructing while the integrated resource plan was being developed.
The RIRP included an analysis of the cost impacts these committed units would impose on the Railbelt, if built outside of the regional planning process. While
the RIRP analysis does not capture the full incremental cost of utilities acting independently over the 50-year planning horizon, it does give an indication of
relative cost differential. Cumulatively, costs over the 50 years increase 5.6% from the least cost scenario of regional power portfolio development, if utilities
pursue independent project development. (RIRP, p. 1-31)
The RIRP concludes: “…there are significant cost savings associated with the Railbelt utilities implementing a plan that has been developed to minimize total
regional costs, while ensuring reliable service, as opposed to the individual utilities working separately to meet the needs of their customers.” (RIRP, p. 1-32)
While the project appears to be economic as a stand-alone project, it was not selected as a regional plan generation facility, and its construction appears to
increase costs for the ratepayer. For this reason AEA cannot recommend this project.
No funding recommended.
Not Recommended
Cost of Power:$0.20
Requested Grant Funds:$2,000,000
Matched Funds Provided:$500,000
Total Potential Grant Amount:$2,500,000
AEA Funding Recommendation:
Funding & Cost
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351/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
635 Grant Lake Hydroelectric Facility
Kenai Hydro LLC
Feasibility
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:IPP
Project Description
The Grant Lake Hydroelectric Facility would consist of 5 MW of installed capacity with an average annual output of 20,600 MWh of energy, installed on the
Grant lake watershed near Moose Pass, Alaska. The proposed Project is comprised of a diversion dam at the outlet to Grant Lake (under consideration), an
intake structure in Grant Lake, a tunnel, a surge tank, a penstock, a powerhouse, a tailrace detention pond, a switchyard with disconnect switch & stepup
transformer, and an overhead or underground transmission line. The intake would be in Grant Lake near its outlet. Water would be conveyed from the intake
through a 3200’ penstock to a powerhouse containing two Francis-type turbines. The powerhouse would be located near the bank of Grant Creek and would
discharge through a second penstock into Grant Creek. A transmission line would connect the facility to the Railbelt grid near Moose Pass. Please see the
attached Project Description that was filed with FERC on August 13th, 2010. Kenai Hydro LLC, whose sole member is the Homer Electric Association (HEA),
was created in 2008 to evaluate and possibly develop this site as a low impact hydroelectric facility.
AEA Review Comments
Kenai Hydro LLC, a wholly-owned subsidiary of Homer Electric Association, proposes field studies/environmental assessment, preliminary engineering/project
scoping, cost analysis, and FERC license application for developing a 4.5 MW hydro facility at Grant Lake. AEA has granted Kenai Hydro $100,000 for
reconnaissance assessment in the alternative energy RFP and $816,000 in RE Fund round 1 (#34). Kenai Hydro proposes to provide a 20% match.
AEA has the following concerns about this project:
1. There is significant public opposition to the project.
2. We think it’s going to cost more to mitigate impacts of features not yet anticipated in the cost estimate, such as i) relocation of the roadway and transmission
line due to presence of Iditarod Commemorative trail (currently permitted and under development), and ii) the cost of constructing a new tailrace pond.
3. We expect that in the FERC licensing process, there will be constraints on the operation of the project that will significantly impact the amount of energy that
can be produced. For instance, energy output will be reduced in order to maintain environmental stream flows and lake levels necessary to mitigate impact on
fisheries.
However, recognizing that this project would provide a significant amount of renewable energy, AEA recommends funding for continued feasibility to assist the
applicant in developing a low-impact project configuration that is economic, able to be licensed by FERC, and is acceptable to project stakeholders.
Recommend partial funding of $1,184,000 ($2 million cap minus the existing grant of $816,000).
Partial Funding
Cost of Power:$0.18
Requested Grant Funds:$1,500,000
Matched Funds Provided:$375,000
Total Potential Grant Amount:$1,875,000
AEA Funding Recommendation:$1,184,000
Funding & Cost
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361/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
636 Thorne Bay School Wood Fired Boiler Project
Southeast Island School District
Construction
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Government Entity
Project Description
This project consists of the construction of biomass heating system, using high efficiency, low emissions wood fired boilers to heat the school and the athletic
complex. It includes construction of wood-fired boiler heat building and a cordwood storage building, at the Thorne Bay School. An alternative plan could be
to use the new self contained wood boilers housed in a connex unit used at Stebbins if the unit becomes approved and proves efficient to use.
AEA Review Comments
The SE Island School District proposes to construct a cordwood -fired heating plant that will supply the Thorne Bay K-12 school and school district office. SEISD
submitted a RE fund found 1 proposal for $178,179 with a $42,000 match . The project team concluded that this was insufficient funding for the project and ,
have spent the last year pursuing additional financing. Under an existing grant from AEA SEISD is currently in the final design stage for the the project.
The school district is installing a similar system in Coffman Cove expected to be in operation in 2011.
School enrollment has been variable, but has managed to stay above the minimum level. USFS facilities are located near the campus and represent potential
additional heating loads. Management capability is very good.
Recommend full funding.
Full Funding
Cost of Power:$0.59
Requested Grant Funds:$300,000
Matched Funds Provided:$60,000
Total Potential Grant Amount:$360,000
AEA Funding Recommendation:$300,000
Funding & Cost
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371/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
637 Feasibility Assessments for Wood Heating in Interior AK Communities
Interior Regional Housing Authority
Feasibility
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Government Entity
Project Description
The eight communities named in this proposal—Hughes, Ruby, Koyukuk, Nulato, Kaltag, Nikolai, Anvik, and Holy Cross—have all identified wood heating in
public buildings as a priority energy opportunity that can displace fuel oil, save the communities money, utilize locally available renewable resources, and
create local employment opportunities. These communities are interested in installing high-efficiency, low emission biomass boilers similar to the Garn boiler
system currently in use in the Tanana washeteria and other Alaska communities. The first step in this process is the preparation of a feasibility assessment
that identifies potential buildings for wood heating, the size and type of boilers that would be required, estimated fuel displacement and cost savings, capital
cost and payback period, forest inventory and wood harvest plan, and so on. The applicant proposes to subcontract with Dan Parrent, wood utilization
specialist of the Juneau Economic Development Council, to conduct 1- to 2-day site visits in each community and prepare feasibility assessments for each.
Parrent has extensive experience in this area and has prepared numerous such reports for other Alaska communities. The forest inventory and wood harvest
planning work will be conducted by Will Putman, head forester for Tanana Chiefs Conference (TCC). Following the completion of these reports, project staff
Kim Carlo of Interior Regional Housing Authority (IRHA) and Ross Coen of TCC and the Alaska Center for Energy and Power at the University of Alaska
Fairbanks (UAF) will continue to communicate with residents of the communities and facilitate their internal planning processes to determine whether each
community wants to move forward with final design and construction phases of the respective wood-heating projects. The applicant anticipates submitting
final design and construction proposal(s) to the RE Fund (Round 5) for those communities named in this proposal that wish to proceed.
AEA Review Comments
IRHA proposes to team with Tanana Chiefs Conference and UAF to perform reconnnaissance assessment and fuelwood inventory for community cordwood
systems for Nulato, Ruby, Holy Cross, Koyukuk, Anvik, Nikolai, Hughes and Kaltag. Communities were chosen based on 1) biomass energy development was
indicated as an objective in the Alaska Energy Pathway and 2) community councils passed resolutions of interest.
The application includes a strong project team and indicates substantial community buy-in.
Recommend full funding.
Full Funding
Cost of Power:$0.69
Requested Grant Funds:$154,477
Matched Funds Provided:
Total Potential Grant Amount:$154,477
AEA Funding Recommendation:$154,477
Funding & Cost
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381/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
638 Yukon River Debris Mitigation Project
Alaska Power & Telephone Company
Construction
ReconProposer:
Proposed Project Phase:
App #
OtherResource:
McMahonAEA Program Manager:Applicant Type:Utility
Project Description
The project will be a study of the phenomena of river debris with an emphasis on developing technologies and protocols to mitigate the impact of the debris
on the operation of hydrokinetic turbines, in general, and specifically the hydrokinetic turbine operating in the Yukon River at Eagle, AK.. The Yukon River
Hydrokinetic Project [YRHP] is a multiyear pilot study being performed by AP&T to determine the viability of hydrokinetic technology in a remote isolated
Alaskan community. The YRHP originally funded by the Denali Commission is currently operating from funds granted by the Alaskan Center for Energy and
Power [ACEP]. The YRHP will be operated for two more years through the operating seasons of 2011 and 2012. Recognizing that debris mitigation is a critical
issue to the success of the hydrokinetic concept AP&T will contract the University of Alaska-Fairbanks [UAF] to perform debris studies during the 2011 and
2012 operating seasons and analyzing and evaluating mitigating techniques from the data collected in the studies.
Please refer to the UAF Statement of Work [SOW] attached for more details. During the 2010 operating season a debris boom was deployed upstream of the
hydrokinetic device. This first generation debris mitigation system [DMS] failed to perform but lessons were learned and AP&T along with it contractors will
manufacture a second generation DMS-2 through the winter of 2010 that will be deployed with the hydrokinetic device at the beginning of the 2011 operating
season. This new debris system will be designed primarily to deflect the surface debris. Subsurface debris moving through the water column also needs to be
deflected and the results of the UAF study will be used to upgrade the DMS-2 over the winter of 2011. The upgraded third generation system DMS-3 will be
deployed in 2012 and UAF will complete its studies with the collection of data through the 2012 operating season and its evaluation. If feasible the
hydrokinetic unit will be deployed in the years subsequent to the pilot study period. If this is the case the results of the UAF study will be utilized to determine
if new improvements should be made to the debris mitigation system.
AEA Review Comments
Alaska Power & Telephone proposes to study and develop mitigation measures for river debris that impacts hydrokinetic devices, specifically the 25 kW New
Energy Corporation’s Encurrent device at Eagle.
The impact of debris is an important issue for developing river hydrokinetic devices in Alaska. Debris has caused serious disruptions and lower availability of
power production in demonstration projects in Eagle and Ruby. Debris monitoring and/or mitigation is addressed in the scopes of work of at least two other
projects in Alaska—1) AEA’s grant to UAF for work at ORPC's Tanana River site and 2) the Denali Commission grant to ORPC Inc which includes a component
for debris monitoring and mitigation. Denali Commission is providing substantial support (~$3 million) to support demonstration of hydrokinetic technology in
Eagle.
Given the amount of work that is already funded to address debris mitigation, AEA believes that a statewide approach is a more effective means of accomplishing
the objectives of this proposal. AEA will coordinate with the UAF Alaska Hydrokinetic Energy Research Center to do this.
No funding recommended.
Not Recommended
Cost of Power:$0.64
Requested Grant Funds: $1,190,876
Matched Funds Provided:
Total Potential Grant Amount:$1,190,876
AEA Funding Recommendation:
Funding & Cost
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391/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
639 Eek Wind Feasibility
Alaska Village Electric Cooperative, Inc.
Design
Proposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
AVEC proposes to install a wind meteorological (met) tower and complete geotechnical work to determine the feasibility of installing wind turbines in Eek.
The work will would involve obtaining a letter of non-objection from the landowner for the placement of the met tower and geotechnical fieldwork,
permitting, transporting and installing a met tower at this location, studying the wind resource for one year, and conducting a geotechnical investigation to
determine the soil conditions and needed engineering at the site. A conceptual design would be created based on the outcome of the met tower recordings and
geotechnical investigation. Permits and site control would be obtained for the conceptual design of this project.
AEA Review Comments
AVEC proposes assessing feasibility of a wind-diesel system in Eek. Wind resource is estimated from the state’s high resolution map as a class 3. The applicant
estimates wind resource as a class 4 based on nearby Quinhagak’s measured resource. The community operates a single phase power system. The Northwind
100 turbines operates in three phase. AVEC has prepared a recon- level wind power report for Eek based on regional wind data.
This application is one of 7 wind feasibility projects that AVEC is proposing in round 4. AVEC has received funding in rounds 2 and 3 for feasibility assessment
in 3 other communities. All of the proposals include standardized descriptions of feasibility tasks—including project development/scoping and contractor
solicitation, detailed energy resource analysis (met tower wind resource assessment), identification of land and regulatory issues, permitting and environmental
analysis, detailed analysis of existing and future energy costs and markets, conceptual business and operations plans, assessment of alternatives, detailed
economic and financial analyses, conceptual design analysis and cost estimate, and final report and recommendations.
Given the similar tasks among multiple projects, AEA thinks that it is reasonable that, if AVEC receives funding for multiple projects, the utility may be able to
reduce costs through coordinated procurement and management of these projects.
Recommend full funding with requirement that before grant is finalized, AVEC will prepare budgets for all round 4 wind feasibility projects with the goal of
identifying opportunities to reduce costs.
Full Funding
Cost of Power:$0.70
Requested Grant Funds:$142,500
Matched Funds Provided:$7,500
Total Potential Grant Amount:$150,000
AEA Funding Recommendation:$142,500
Funding & Cost
/kWh
401/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
640 Elim Wind Feasibility
Alaska Village Electric Cooperative, Inc.
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
AVEC proposes to install a wind meteorological (met) tower and complete geotechnical work to determine the feasibility of installing wind turbines in Elim.
The work would involve obtaining a letter of non-objection from the landowner for the placement of the met tower and geotechnical fieldwork, permitting,
transporting and installing a met tower at this location, studying the wind resource for one year, and conducting a geotechnical investigation to determine the
soil conditions and needed engineering at the site. A conceptual design would be created based on the outcome of the met tower recordings and geotechnical
investigation. Permits and site control would be obtained for the conceptual design of this project.
AEA Review Comments
AVEC proposes assessing feasibility of a wind-diesel system in Elim. Wind resource is estimated from the state’s high resolution map as a class 3-4. AVEC notes
that wind towers would provide a landmark for navigation in Norton Sound.
This application is one of 7 wind feasibility projects that AVEC is proposing in round 4. AVEC has received funding in rounds 2 and 3 for feasibility assessment
in 3 other communities. All of the proposals include standardized descriptions of feasibility tasks—including project development/scoping and contractor
solicitation, detailed energy resource analysis (met tower wind resource assessment), identification of land and regulatory issues, permitting and environmental
analysis, detailed analysis of existing and future energy costs and markets, conceptual business and operations plans, assessment of alternatives, detailed
economic and financial analyses, conceptual design analysis and cost estimate, and final report and recommendations.
Given the similar tasks among multiple projects, AEA thinks that it is reasonable that, if AVEC receives funding for multiple projects, the utility may be able to
reduce costs through coordinated procurement and management of these projects.
Recommend full funding with requirement that before grant is finalized, AVEC will prepare budgets for all round 4 wind feasibility projects with the goal of
identifying opportunities to reduce costs.
Full Funding
Cost of Power:$0.60
Requested Grant Funds:$142,500
Matched Funds Provided:$7,500
Total Potential Grant Amount:$150,000
AEA Funding Recommendation:$142,500
Funding & Cost
/kWh
411/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
641 Kaltag Solar Construction
Alaska Village Electric Cooperative, Inc.
Construction
Proposer:
Proposed Project Phase:
App #
SolarResource:
StrombergAEA Program Manager:Applicant Type:Utility
Project Description
AVEC proposes to install a 10 kW solar array in Kaltag. The array would be installed on the side of the existing power plant facility that is owned and operated
by AVEC. Work would involve shipping materials to the community, installing, integrating, testing, and commissioning the array. As a pilot study, installation
of this small array in Kaltag would help AVEC evaluate the benefits of solar arrays installed at power generating facilities
AEA Review Comments
AVEC proposes installation of a 10 kW low penetration photovoltaic-diesel system to supply station service power to the Kaltag system. Panels would be located
on the Kaltag power house.
Project economics are marginal (B/C=0.67) given the minimal amount of fuel that the system will displace. However AVEC states that the main value of the
project is to demonstrate performance of a solar-diesel system in a utility environment.
Full funding recommended.
Full Funding
Cost of Power:$0.63
Requested Grant Funds:$90,000
Matched Funds Provided:$10,000
Total Potential Grant Amount:$100,000
AEA Funding Recommendation:$90,000
Funding & Cost
/kWh
421/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
642 Koyuk Wind Phase II Feasibility
Alaska Village Electric Cooperative, Inc.
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
AVEC proposes to install a wind meteorological (met) tower and complete geotechnical work to determine the feasibility of installing wind turbines in Koyuk.
The work would involve obtaining a letter of non-objection from the landowner for the placement of the wind tower(s) and geotechnical fieldwork, permitting,
transporting and installing a met tower at this location, studying the wind resource for one year, and conducting a geotechnical investigation to determine the
soil conditions and needed engineering at the site. A conceptual design would be created based on the outcome of the met tower recordings and geotechnical
investigation. Permits and site control would be obtained for the placement of the met towers and wind turbines.
AEA Review Comments
AVEC proposes assessing feasibility of a wind-diesel system in Koyuk. Wind resource is estimated from the state’s high resolution map as a class 3. AVEC notes
that the wind turbines would provide a landmark for navigation in the area.
This application is one of seven wind feasibility projects that AVEC is proposing in round 4. AVEC has received funding in rounds 2 and 3 for feasibility
assessment in three other communities. All of the proposals include standardized descriptions of feasibility tasks—including project development/scoping and
contractor solicitation, detailed energy resource analysis (met tower wind resource assessment), identification of land and regulatory issues, permitting and
environmental analysis, detailed analysis of existing and future energy costs and markets, conceptual business and operations plans, assessment of alternatives,
detailed economic and financial analyses, conceptual design analysis and cost estimate, and final report and recommendations.
Given the similar tasks among multiple projects, AEA thinks that it is reasonable that, if AVEC receives funding for multiple projects, the utility may be able to
reduce costs through coordinated procurement and management of these projects.
Recommend full funding with requirement that before grant is finalized, AVEC will prepare budgets for all round 4 wind feasibility projects with the goal of
identifying opportunities to reduce costs.
Full Funding
Cost of Power:$0.63
Requested Grant Funds:$142,500
Matched Funds Provided:$7,500
Total Potential Grant Amount:$150,000
AEA Funding Recommendation:$142,500
Funding & Cost
/kWh
431/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
643 Marshall Wind Feasibility
Alaska Village Electric Cooperative, Inc.
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
To better determine the feasibility of wind power in Marshall, AVEC proposes to build on the results of the already-completed wind resource study by
commissioning a geotechnical study for the site and performing a conceptual design study to determine the most optimal equipment configuration and layout.
The geotechnical work would involve obtaining permanent site control from the landowner with the intent of supporting follow-on turbine construction in a
future project.
AEA Review Comments
AVEC proposes assessing feasibility of a wind-diesel system in Marshall. Wind resource is measured as a class 4 based on ten months of met tower data. AVEC
notes that the wind turbines will provide a local landmark for navigation.
This application is one of seven wind feasibility projects that AVEC is proposing in round 4. AVEC has received funding in rounds 2 and 3 for feasibility
assessment in three other communities. All of the proposals include standardized descriptions of feasibility tasks—including project development/scoping and
contractor solicitation, detailed energy resource analysis (met tower wind resource assessment), identification of land and regulatory issues, permitting and
environmental analysis, detailed analysis of existing and future energy costs and markets, conceptual business and operations plans, assessment of alternatives,
detailed economic and financial analyses, conceptual design analysis and cost estimate, and final report and recommendations. AVEC eliminates the cost of
wind resource assessment in this application, due to the presence of a met tower.
Given the similar tasks among multiple projects, AEA thinks that it is reasonable that, if AVEC receives funding for multiple projects, the utility may be able to
reduce costs through coordinated procurement and management of these projects.
Recommend full funding with requirement that before grant is finalized, AVEC will prepare budgets for all round 4 wind feasibility projects with the goal of
identifying opportunities to reduce costs.
Full Funding
Cost of Power:$0.63
Requested Grant Funds:$111,150
Matched Funds Provided:$5,850
Total Potential Grant Amount:$117,000
AEA Funding Recommendation:$111,150
Funding & Cost
/kWh
441/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
644 Old Harbor Hydroelectric
Alaska Village Electric Cooperative, Inc.
Design
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
The Alaska Village Electric Cooperative (AVEC), the electrical utility provider in Old Harbor, Alaska, is proposing to complete final design and permitting of
hydroelectric project in Old Harbor, Alaska. The proposed project is a 300 kW run of the river hydroelectric plant with a diversion structure, pipeline,
powerhouse, and electric line. The project involves collecting up to 7 cfs of water year round from Mountain Creek tributary of Barling Bay Creek and
transporting it to a tributary of Lagoon Creek. The project would meet the existing electricity demand of the community.
AEA Review Comments
AVEC proposes final design and permitting of a 300 kW run-of-river hydro project on the east fork of Mountain Creek near Old Harbor. AVEC is currently
working on project feasibility under an RE Fund round 1 grant (#73) which is expected to be complete by next summer. AVEC studied a project nearby in the
late 90s but put the project on hold due to adverse economics and fish habitat study requirements.
Current work indicates a promising project. The proposal is supported by local city government and Native corporation.
AVEC does not identify the project engineer. Portions of the project are on USFWS refuge and on an Exxon Valdez conservation easement.
Recommend full funding with requirement that before funding is disbursed AVEC must submit a feasibility report acceptable to AEA.
Full Funding
Cost of Power:$0.62
Requested Grant Funds:$237,500
Matched Funds Provided:$12,500
Total Potential Grant Amount:$250,000
AEA Funding Recommendation:$237,500
Funding & Cost
/kWh
451/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
645 St. Mary’s/Pitka’s Point Wind Construction
Alaska Village Electric Cooperative
Construction
DesignProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
AVEC proposes to complete final design, permitting, construction, erection, startup, and commissioning of two wind turbines to supplement the existing
power generation system for currently intertied communities of St. Mary’s and Pitka’s Point.
AEA Review Comments
AVEC proposes final design, permitting and construction of a 400 kW wind project to serve the St. Marys-Pitkas Point grid. In round 3 AVEC proposed final
design, permitting, and construction of a 900 kW wind project and intertie to serve the communities of St. Marys, Mountain Village, Pitkas Point, and Pilot
Station (#516). In round 2 AVEC requested funding for feasibility assessment for this project (#298). AEA recommended both proposals for funding; however
there was not sufficient funding for either.
In 2009 to 2010 AVEC has continued with onsite wind resource monitoring. Met towers between Pitkas and St Marys indicate a class 6 wind resource but also a
potential problem with icing. AVEC proposes to complete final design and permitting in February 2012 and complete construction in summer 2012.
AVEC has not completed a conceptual design for this project.
Recommend partial funding of $275,554 for completing feasibility, final design, and permitting with the requirement that before final design funds are disbursed
AEA accept the feasibility and conceptual design report.
Partial Funding
Cost of Power:$0.59
Requested Grant Funds:$4,000,000
Matched Funds Provided:$500,000
Total Potential Grant Amount:$4,500,000
AEA Funding Recommendation:$275,554
Funding & Cost
/kWh
461/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
646 Scammon Bay Wind Feasibility
Alaska Village Electric Cooperative, Inc.
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
AVEC proposes to install a wind meteorological (met) tower and complete geotechnical work to determine the feasibility of installing wind turbines in
Scammon Bay. The work will involve obtaining a letter of non-objection from the landowner for the placement of the met tower and geotechnical fieldwork,
permitting, transporting and installing a met tower at this location, studying the wind resource for one year, and conducting a geotechnical investigation to
determine the soil conditions and needed engineering at the site. A conceptual design would be created based on the outcome of the met tower recordings and
geotechnical investigation. Permits would be obtained for the conceptual design of this project.
AEA Review Comments
AVEC proposes assessing feasibility of a wind-diesel system in Scammon Bay. This is a resubmittal of a round 3 application (#514) that AEA recommended for
funding, but which did not receive funding due to insufficient funds. Wind resource is estimated as a class 5 based on the state's high-resolution wind map.
AVEC notes that the wind turbines will provide a local landmark for navigation.
This application is one of seven wind feasibility projects that AVEC is proposing in round 4. AVEC has received funding in rounds 2 and 3 for feasibility
assessment in three other communities. All of the proposals include standardized descriptions of feasibility tasks—including project development/scoping and
contractor solicitation, detailed energy resource analysis (met tower wind resource assessment), identification of land and regulatory issues, permitting and
environmental analysis, detailed analysis of existing and future energy costs and markets, conceptual business and operations plans, assessment of alternatives,
detailed economic and financial analyses, conceptual design analysis and cost estimate, and final report and recommendations. AVEC eliminates the cost of
wind resource assessment in this application, due to the presence of a met tower.
Given the similar tasks among multiple projects, AEA thinks that it is reasonable that, if AVEC receives funding for multiple projects, the utility may be able to
reduce costs through coordinated procurement and management of these projects.
Recommend full funding with requirement that before grant is finalized, AVEC will prepare budgets for all round 4 wind feasibility projects with the goal of
identifying opportunities to reduce costs.
Full Funding
Cost of Power:$0.62
Requested Grant Funds:$142,500
Matched Funds Provided:$7,500
Total Potential Grant Amount:$150,000
AEA Funding Recommendation:$142,500
Funding & Cost
/kWh
471/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
647 Selawik Hybrid Wind Diesel System Turbine Upgrade
Alaska Village Electric Cooperative, Inc.
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
To determine the viability of upgrading the Selawik wind turbines from the existing AOC machines to Northern Power NW100s, AVEC proposes to conduct a
feasibility study and conceptual design. AVEC will analyze and report findings to partners and community members. By reusing the existing site, we
anticipate to drive down the total installed cost significantly. This total project concept, with wind generation, could be segmented into the following phases:
Phase 1. Feasibility study & conceptual design.
Phase 2. Financing and negotiation of any power purchase agreement.
Phase 3. Design and engineering.
Phase 4. Installation of transmission and wind energy.
Phase 5. Operations and maintenance.
This proposal only covers phase 1.
AEA Review Comments
AVEC proposes assessing feasibility of replacing the existing four 65 kW AOC turbines in Selawik with 100 kW Northwind turbines, or equivalent. Since the
wind farm was constructed in 2002, AVEC has had problems with turbine downtime due to tip break failures. Additionally, it appears that the wind resource is
mediocre, based on low energy production when operating. Despite the presence of turbines in Selawik, AVEC does not provide any empircal wind resource
data.
This application is one of 7 wind feasibility projects that AVEC is proposing in round 4. AVEC has received funding in rounds 2 and 3 for feasibility assessment
in 3 other communities. All of the proposals include standardized descriptions of feasibility tasks—including project development/scoping and contractor
solicitation, detailed energy resource analysis (met tower wind resource assessment), identification of land and regulatory issues, permitting and environmental
analysis, detailed analysis of existing and future energy costs and markets, conceptual business and operations plans, assessment of alternatives, detailed
economic and financial analyses, conceptual design analysis and cost estimate, and final report and recommendations.
Given the similar tasks among multiple projects, AEA thinks that it is reasonable that, if AVEC receives funding for multiple projects, the utility may be able to
reduce costs through coordinated procurement and management of these projects.
Recommend full funding with requirement that before grant is finalized, AVEC will prepare budgets for all round 4 wind feasibility projects with the goal of
identifying opportunities to reduce costs.
Full Funding
Cost of Power:$0.66
Requested Grant Funds:$85,000
Matched Funds Provided:$8,500
Total Potential Grant Amount:$93,500
AEA Funding Recommendation:$85,000
Funding & Cost
/kWh
481/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
648 Stebbins Wind Feasibility
Alaska Village Electric Cooperative, Inc.
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
To determine the feasibility of installing wind towers in Stebbins, AVEC proposes to continue to monitor the existing wind meteorological (met) tower that
was erected this year using funding from the Denali Commission. AVEC would also perform geotechnical work to support an engineering effort. The work
would involve obtaining a letter of non-objection from the landowner for geotechnical fieldwork, studying the wind resource for one year, and conducting a
geotechnical investigation to determine the soil conditions and needed engineering at the site. A conceptual design would be created based on the outcome of
the met tower recordings and geotechnical investigation. Permits and site control would be obtained for the conceptual design of this project.
AEA Review Comments
AVEC proposes assessing feasibility of a wind-diesel system in Scammon Bay. This is a resubmittal of a round 3 application (#511) that AEA recommended for
funding, but which did not receive funding due to insufficient funds. Wind resource is estimated as a class 4-5 based on the state's high-resolution wind map.
AVEC has some data available from a met tower that is collecting onsite wind resource data. AVEC plans a 10-mile intertie connecting Stebbins and St. Michael
and has prepared a conceptual design for a bulk fuel storage facility that provides a cost estimate for adding wind to the system. Following the connection, the
St. Michael power plant will be put on standby status. AVEC notes that the wind turbines will provide a local landmark for navigation.
This application is one of seven wind feasibility projects that AVEC is proposing in round 4. AVEC has received funding in rounds 2 and 3 for feasibility
assessment in three other communities. All of the proposals include standardized descriptions of feasibility tasks—including project development/scoping and
contractor solicitation, detailed energy resource analysis (met tower wind resource assessment), identification of land and regulatory issues, permitting and
environmental analysis, detailed analysis of existing and future energy costs and markets, conceptual business and operations plans, assessment of alternatives,
detailed economic and financial analyses, conceptual design analysis and cost estimate, and final report and recommendations. AVEC eliminates the cost of
wind resource assessment in this application, due to the presence of a met tower.
Given the similar tasks among multiple projects, AEA thinks that it is reasonable that, if AVEC receives funding for multiple projects, the utility may be able to
reduce costs through coordinated procurement and management of these projects.
Recommend full funding with requirement that before grant is finalized, AVEC will prepare budgets for all round 4 wind feasibility projects with the goal of
identifying opportunities to reduce costs.
Full Funding
Cost of Power:$0.61
Requested Grant Funds:$137,750
Matched Funds Provided:$7,250
Total Potential Grant Amount:$145,000
AEA Funding Recommendation:$137,750
Funding & Cost
/kWh
491/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
649 Kenny Lake School Wood Fired Boiler
Copper River School District
Construction
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
The Copper River School District (CRSD) proposes to install a 1.8MBTU wood pellet fueled boiler at the Kenny Lake School. This boiler will displace 18,625
gallons of fuel oil every year. The current boilers will be used for backup, low load and peak heat periods. This project will involve school district personnel,
local contractors, design engineers and the Alaska Energy Authority (AEA). This project will employee local residents in construction, keep energy money
within the State of Alaska and utilize regional biomass resources from the Fairbanks area. This project will introduce bulk delivery of pellets from the Superior
Pellet Plant, located in North Pole, AK, to the Copper River Valley. Local residents may be able to expand use of pellets for home heating use.
AEA Review Comments
Copper River School District proposes to construct a 1.8 MMBtu/hr wood pellet-fired heating plant to supply the Kenny Lake School. RE Fund round 1 (#46)
provided funding for final design. Upon request of the grantee AEA is managing the project.
Pellets would be purchased from the new Superior Pellets fuel facitlity in Fairbanks. Other potential supply is from Canada. Project is scheduled for completion
in December 2011. The project would represent the first instituional-scale pellet heating plant in Interior.
Recommend full funding.
Full Funding
Cost of Power:$0.20
Requested Grant Funds:$565,485
Matched Funds Provided:
Total Potential Grant Amount:$565,485
AEA Funding Recommendation:$565,485
Funding & Cost
/kWh
501/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
650 Chefornak Wind Feasibilitly
City of Chefornak
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Local Government
Project Description
The Chefornak Wind Turbine Feasibility, Design and Permitting project involves all preconstruction activities to support the installation of three (3) 100 kW
wind turbines on the eastern edge of the City of Chefornak. This proposal requests funding to complete Phase II and Phase III project activities. Funding
received through this application will be utilized to accomplish the following scope of work:
1. Procure and install a MET tower at the proposed wind turbine installation location
2. Collect one year of resource data and process recordings through appropriate modeling software
3. Perform geotechnical analysis at the project site
4. Develop final project designs and cost estimates
5. Apply for and obtain relevant project permits
This scope of work proposed in this application will support the eventual installation of a 300 kW wind power installation that will be owned by the City of
Chefornak and operated by the Naterkaq Light Plant (NLP). The NLP is wholly owned by the City of Chefornak and the electricity produced by the installed
turbines will be distributed to the utility without charge. The wind turbines will be connected into NLP’s electrical distribution system through a new three-
phase distribution line running from the project site to the existing power plant. The project will offer benefits to the community of Chefornak and its electric
customers through a system-wide reduction and stabilization of energy prices. The City of Chefornak has assembled a project team headed by STG
Incorporated that is prepared to immediately begin work on an accelerated schedule. Among others, the project team includes members from Powercorp
Wind Diesel North America, DNV Global Energy Concepts Inc, Erricos Engineering, Alaska Line Builders, Duane Miller Associates, Hattenburg Dilley &
Linnell, BBFM Engineers and Aurora Consulting. All aspects of the feasibility, design, and permitting project, detailed in the following pages of this
application, can be completed within one year from the receipt of funding.
AEA Review Comments
City of Chefornak proposes feasibility, final design and permitting of a community wind-diesel system. The system would include three Northwind 100 kW
turbines, a Powerstore flywheel, and an electric boiler at the school as a dumpload. This proposal is similar to a round 3 proposal for final design and
construction (#424) that was recommended for partial funding for feasibility but did not receive funding due to insufficient funds.
AEA and the City completed a powerhouse upgrade in 2004. The City has an AEA met tower stored in Chefornak. The City has not completed a full feasibility
assessment including: detailed energy resource analysis; assessment of design alternatives; geotechnical analysis and a final report with recommendations.
Given that the City has not completed conceptual design, AEA questions the basis of the proposed configuration. The feasibility tasks identified in the
application do not address assessment of design alternatives as stated in the RFA (sec 2.4). Given that the met tower is already onsite, the $49,750 budget for
installing the met tower is too high. AEA thinks that $25,000 is a more reasonable figure for installing and collecting data for wind resource assessment.
Given the relatively high cost of the project under the proposed configuration, project economics appear poor, with a benefit to cost ratio that is significantly less
than 1.
Recommend partial funding of $136,750 to complete feasibility.
Partial Funding
Cost of Power:$0.65
Requested Grant Funds:$250,000
Matched Funds Provided:$15,000
Total Potential Grant Amount:$265,000
AEA Funding Recommendation:$136,750
Funding & Cost
/kWh
511/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
651 Southwest Alaska Regional Geothermal Energy Project
Naknek Electric Association, Inc.
Construction
Proposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:Utility
Project Description
Phase IV: Construction, Testing, and Assessment – Naknek-G #3. The Southwest Alaska Regional Geothermal Energy Project has drilled Naknek-G#1 to
depth and is ready to begin assessing its geothermal fluid production characteristics. Drilling Naknek-G #2 is scheduled to begin in October 2010 and
completed before the end of the year. After Naknek-G #2 has been drilled and the capacity for geothermal fluid production for electric and heat energy
generation is thoroughly understood NEA will contract for design, permitting, and construction of a modular generation facility. In addition to traditional
geologic and geophysical logging in the Naknek wells includes a logical and well-considered set of activities undertaken during and after drilling that will serve
to characterize the reservoir and communication between the first two wells in the production field. Naknek-G #3 drilling tasks are scheduled to begin
September 2011, and the costs of achieving its drilling (construction), testing and evaluation objectives are the substance of NEA’s request for REFGP Round
IV funding. Preliminary results support temperatures and flow adequate for the production of electricity. Well field construction including production and
injection wells will continue until required MW capacity is met.
AEA Review Comments
Naknek Electric Association requests funding for a 12,000 foot well as part of planned 25 MW geothermal project that would provide power to SW Alaska
communities.
DGGS has the following comments on the project:
“The current information provided in this proposal, as well as that provided in previous proposals, fails to establish the existence of a robust geothermal resource
capable of generating the amount of electricity described. In fact, the current data outlined in the press suggests the temperature and flow rates in the initial well
are insufficient to maintain the level of electrical production stated as the goal of the project. In order to correctly evaluate the current proposal, the state will
need additional information. This information should include:
- Sustained down hole temperature profile from well G1
- Sustained and long term effective flow rates from Well G1
- Any down-hole geophysical information to substantiate water flow, porosity, permeability, and cement bond to casing (to determine level of fluid influx into
wellbore and from what horizon).
- Any additional observational or deterministic information that could be used to quantitatively evaluate the potential operational capacity of the geothermal
system identified.
We will be unable to evaluate the proposal further until this information is provided.”
AEA requested this information from Naknek Electric on Oct 7 requesting a response by Oct 21. Later, AEA contacted the utility again and verified that Naknek
had received the request. Naknek Electric did not provide the requested information.
AEA has no record that a viable geothermal resource exists.
No funding recommended.
Not Recommended
Cost of Power:$0.42
Requested Grant Funds:$4,000,000
Matched Funds Provided:$5,624,000
Total Potential Grant Amount:$9,624,000
AEA Funding Recommendation:
Funding & Cost
/kWh
521/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
652 Mount Spurr Geothermal Project
Ormat Nevada, Inc.
Construction
Proposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:IPP
Project Description
Mount Spurr represents what currently appears to be the best opportunity in Alaska to develop a Utility-scale base-load geothermal energy power plant.
Located 80 miles west of Anchorage on state lands leased by Ormat Nevada Inc. in October of 2008, a successful power project at Mt. Spurr would serve
communities along the Railbelt through power purchased by one or more of the Railbelt electric utilities.Ormat is leading a rigorous exploration campaign, to
be partially cost shared by AEA using a grant to be awarded in the framework of round III of the Renewable Energy Fund. Exploration to date includes
desktop studies based on exploration work done by the Alaska Volcano Observatory and others during the mid 1980’s; a field reconnaissance trip and
geochemical analysis done by Ormat in August 2009; intense geological and geophysical exploration (including mainly a heli-magnetic survey, satellite
imagery, LiDAR survey, ground-based Magneto-Telluric survey and ground-based gravity survey) performed during July and August
2010 and initial results of core drilling that started early September 2010 and is currently ongoing. Analysis of all data collected during the above mentioned
exploration work is very encouraging as to the potential existence of a commercial size geothermal resource. However, further exploration – planned for this
fall and for summer of 2011, before funds described in this application are requested - is required in order to confirm it. This grant request is for the next
phase of project development – to be sometimes referenced in this application as “phase III” - which is to start construction of the geothermal well field and
later on (beyond the scope of this grant application), the power plant itself. The first step in construction of a commercial geothermal well-field is to drill a
full-size deep geothermal production well, in order to tap into the geothermal reservoir and flow test the geothermal fluid in order to measure its temperature,
pressure, chemical composition and other attributes. The location of this well will be based on a synthesis of 2010 and 2011 exploration work mentioned
before. Follow-up steps (beyond the scope of this grant application) will include drilling additional production wells; drilling one or more injection wells;
performing a long-term multi-well flow test to measure the size of the geothermal reservoir; drilling additional production and injection wells and building a
power plant, including a geothermal gathering system, utility interconnection facilities etc.
AEA Review Comments
Ormat proposes to drill the first full-sized geothermal production well at Mt. Spurr. Prior to the award of this grant Ormat will have completed its exploration
program funded in round 3 (#477) which has or will include 1) geophysical exploration, 2) surface mapping, 3) four temperature gradient wells, and 4) two slim
holes. Ormat proposes to begin the construction phase of the project in the summer of 2012 based on a go/no-go decision if the current work indicates a high
likelihood of the presence of a high quality geothermal resource. This decision would be made in August 2011.
Ormat's preliminary estimate for the net capacity of the project between 50 and 100 MW at a cost of $5,000-6,000/kW.
Although the proposed drilling work would not take place until summer 2012, Ormat needs to select contractors for the work in fall 2011. Ormat would mobilize
the drill rig in spring 2012 at their own expense. Ormat will match state dollars on a 2 to 1 basis for the proposed work.
Recommend funding with the requirement that AEA, in consultation with DGGS, must concur with Ormat's decision to proceed with the proposed work before
any funds are disbursed.
Full Funding
Cost of Power:$0.15
Requested Grant Funds:$1,999,972
Matched Funds Provided:$3,882,298
Total Potential Grant Amount:$5,882,270
AEA Funding Recommendation:$1,999,972
Funding & Cost
/kWh
531/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
653 Terror Lake Unit 3 Hydroelectric Project
Kodiak Electric Association, Inc.
Construction
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
The Terror Lake Unit 3 Hydroelectric Project proposes to install a third hydro turbine capable of producing an additional 11.25 megawatts (MW) in the
existing Terror Lake plant. The original engineers of the Terror Lake facility had the foresight to design the facility for the expansion to three turbines. The
original design assumed the day would arrive when additional capacity would be required. That day has arrived. Kodiak’s growing electrical demand has
surpassed the current capacity of Terror Lake. Expanding the capacity at Terror Lake by 11.25 MW with a third turbine generator will enhance the stability of
KEA’s isolated grid system allowing additional forms of renewable energy to be integrated and Kodiak’s dependence on diesel fuel to be minimized. The third
turbine at Terror Lake is the cornerstone necessary for KEA to achieve its’ Vision Statement: Endeavor to produce 95% of energy sales with cost effective
renewable power solutions by the year 2020.
AEA Review Comments
Kodiak Electric proposes construction funding for an additional 11.25 MW hydro turbine for the existing Terror Lk project. There have been two prior RE Fund
grants, a round 2 grant of $500,000 (#215) for feasibility and a round 3 grant (#401) of $248,160 for final design and bid documents.
During feasibility analysis, KEA has concluded that there will be no adverse impacts to stream flow by adding an additional turbine. This will likely facilitate
acceptance by the resource agencies during the required FERC license amendment process.
In November 2010 AEA received a draft FERC capacity amendment application that indicates energy production drops from 12.4 GWh/yr to 2.9 GWh/yr and
project cost drops from $15.9 million to $10.6 million. Although the project economics are somewhat poorer given these new estimates, they remain highly
attractive.
The current schedule indicates equipment procurement would begin in January 2012, while site work would begin a year later. The project is scheduled for
completion in July 2013.
Recommend partial funding of $3,751,840 ($4,000,000 cap minus $248,160) with provision that KEA provides AEA, and AEA accepts, final design, final
construction cost estimate and bid documents.
Partial Funding
Cost of Power:$0.15
Requested Grant Funds:$7,000,000
Matched Funds Provided:$7,459,790
Total Potential Grant Amount:$14,459,790
AEA Funding Recommendation:$3,751,840
Funding & Cost
/kWh
541/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
654 Pilgrim Hot Springs Geothermal Resource Assessment
University of Alaska Fairbanks INE/ACEP
Feasibility
ReconProposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:Government Entity
Project Description
The Pilgrim Hot Springs geothermal system was extensively studied in the late 1970s and early 1980s using a variety of geological, geochemical, and
geophysical techniques. Unfortunately the execution of these surveys and interpretation of the data did not result in a thorough understanding of the area,
and the most important conclusions for potential future development – such as locating the upflow zone of the geothermal fluid – was not determined.
In 2010, the University of Alaska Fairbanks began Phase I of an intensive new exploration program of the Pilgrim Hot Springs resource, funded mainly
through a Department of Energy grant with cost share provided through a $613,174 award under Round III of the Renewable Energy Grant Fund. This first
Phase, which is currently underway, involves the use of an innovative geophysical remote sensing techniques (including forward looking infrared radiometry,
or FLIR) intended to map the spatial extent and total heat flow to the surface and make a preliminary estimation of the developable extent of the reservoir.
These remote sensing techniques are being coupled with more traditional ground-based exploration techniques to pinpoint the location of the upflow zone,
map the spatial extent and total heat flow to the surface, and estimate the temperature and depth of the reservoir.
This proposal addresses Phase II and III of this project. Phase II involves drilling and testing two 500 ft temperature gradient holes and two 2500 ft
confirmation holes into the resource to confirm the results from Phase I. The third Phase will involve developing a more complete understanding of the
reservoir through flow testing and water sampling of the holes, and development of a numerical reservoir model. The end result of this project will be an
economic and geothermal resource model of the Pilgrim Hot Springs site and surrounding area to determine if it can be economically developed, and to what
extent.
AEA Review Comments
UAF proposes to assess geothermal resources at Pilgrim Hot Springs through refurbishing existing shallow wells and drilling deep wells. This is a resubmittal of
a RE Fund round 2 proposal (#258) and a partial resubmittal of a round 3 proposal (#466) that was recommended for funding, but which received only partial
funding of $613,174 due to limited RE Fund appropriation. USDOE funding will fund up to $4,274,792 (~69% of the project cost).
Land above the resource is now owned by Unaatuq LLC, a consortium of seven Native organizations.
The Nome Energy Study identified development of the Pilgrim Hot Springs geothermal resource as the least-cost option for long-term power supply. The
applications includes letters of support from Nome Joint Utilities and Mary's Igloo Native Council (the owner of the adjacent land). DGGS indicates support for
the project (see above).
Recommend full funding with the provision that prior to the disbursement of funds, UAF confirm legal access to the resource with the new landowner.
Full Funding
Cost of Power: $0.37
Requested Grant Funds:$1,330,467
Matched Funds Provided:$2,000,000
Total Potential Grant Amount:$3,330,467
AEA Funding Recommendation:$1,330,467
Funding & Cost
/kWh
551/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
655 Triangle Lake Hydroelectric Project
Metlakatla Indian Community
Feasibility
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Government Entity
Project Description
The proposed Triangle Lake hydroelectric project will be located on the west side of Annette Island near the route of the proposed Metlakatla- Ketchikan
Intertie. The project as presently envisioned will be comprised of a small embankment dam at the outlet of Triangle Lake, a 1.3 mile long penstock and a
powerhouse containing a single horizontal Francis turbine generating unit with a capacity of 4.0 MW. The Triangle Lake project will provide additional
hydroelectric power to Metlakatla and, with construction of the Metlakatla-Ketchikan Intertie, to the interconnected electric systems of Ketchikan, Wrangell
and Petersburg. MIC will develop and own the Triangle Lake project.
AEA Review Comments
Metlakatla Indian Community proposes assessing feasibility of a 4 MW storage hydro project at Triangle Lk. Improved access to the proposed hydro site by
recent road construction to Walden Point makes hydro development more reasonable to consider at this site. Project would be located on federal trust land.
Major issue remains a market for power, which should be assessed in a regional IRP. This proposal is similar to a Round 3 proposal (#450) that was
recommended for funding, but which did not receive a grant due to insufficient funds.
Because the project would connect to the SEAPA grid that has numerous existing and proposed alternatives for generation and transmission, AEA concludes that
there is insufficient information provided to assign a benefit to cost ratio.
Recommend full funding with requirement that scope of work is consistent with findings of the Southeast Alaska IRP.
Full Funding
Cost of Power:$0.09
Requested Grant Funds:$500,000
Matched Funds Provided:
Total Potential Grant Amount:$500,000
AEA Funding Recommendation:$500,000
Funding & Cost
/kWh
561/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
656 Metlakatla-Ketchikan Intertie
Metlakatla Indian Community
Construction
DesignProposer:
Proposed Project Phase:
App #
TransmissionResource:
OttAEA Program Manager:Applicant Type:Government Entity
Project Description
The proposed Metlakatla-Ketchikan Intertie is a 34.5-kV transmission line that will interconnect the electric systems of Metlakatla Power & Light (MP&L) and
Ketchikan Public Utilities (KPU). The Intertie will include 14 miles of overhead wood pole transmission line to be constructed on Annette Island between
Metlakatla and Walden Point and an approximate three mile submarine cable crossing of Revillagigedo Channel between Walden Point and KPU’s Mountain
Point Substation. The project will also include control system upgrades to allow for the integrated operation of the interconnected systems’ generating plants.
Design of the Metlakatla- Ketchikan Intertie is nearly complete. Transmission poles have also been procured and are currently stored in Metlakatla.
AEA Review Comments
Metlakatla Indian Community proposes funding for constructing an 18 mile intertie that connects the Metlakatla and Ketchikan power systems. Permitting and
design were funded by RE Fund round 1 (#20). MIC submitted a round 3 application (#449) that was recommended but not funded due to insufficient funding.
The project cost is now estimated at $12.73 million, up from the previous estimate of $7.65 million. The estimated annual surplus hydro energy has decreased
from 8.5 GWh to 6.0 GWh.
The application provides no indication of a power sale agreement with Ketchikan Public Utility.
MIC is requesting over $9.4 million for financing the balance of the project. The proposal does not recognize the maximum funding cap of $2 million and
provides no other indication of how the balance of the project would be financed.
Because the project would connect to the SEAPA grid that has numerous existing and proposed alternatives for generation and transmission, AEA concludes that
there is insufficient information provided to estimate a benefit/cost ratio.
AEA recommends funding in the amount of $1,180,000 ($2 million cumulative cap minus the $820,000 the project received in round 1).
AEA recommends special provisions be associated with this grant as follows: (1) Before any grant funds can be disbursed, MIC is to submit to AEA for its review
and approval, a power sales agreement between MIC and KPU which clarifies the terms, conditions, rates and amount of power for this intertie; (2) MIC must
demonstrate completion of all preconstruction activities including final design documents and final construction cost estimate; (3) MIC must demonstrate
project site control, including required easements and Rights-of-way, NEPA requirements and all permits needed to construct have been issued; and (4) the
scope of work is consistent with findings of the Southeast Alaska IRP.
Partial Funding
Cost of Power:$0.09
Requested Grant Funds:$9,405,200
Matched Funds Provided:$3,320,000
Total Potential Grant Amount:$12,725,200
AEA Funding Recommendation:$1,180,000
Funding & Cost
/kWh
571/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
657 AVTEC Hydro Training Facility
Alaska Vocational Technical Center
Construction
Design
ReconProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Government Entity
Project Description
AVTEC, in partnership with the City of Seward, intends to renovate and refurbish, and upgrade the City of Seward's existing unused Marathon Hydro electric
plant to be used as an education and training tool in support of AVTEC's Hydro Power Plant Operator training program sponsored by the Alaska Energy
Authority. The intent is to return the plant to productive use and maximize the training benefits it can provide.
AEA Review Comments
AVTEC proposes final design and construction to renovate the existing Marathon Creek 250 kW hydro project. The project was constructed in the 1980s but
ceased operation in the 1990s after an electrical system failure. AVTEC intends to use the project as a hydro training facility and sell power to the City of Seward
Electrical Utility.
The business arrangement and site control for this project remains to be established.
Recommend partial funding of $67,500 for final design and permitting with the provision that the MOA between the City and AVTEC for site control be
finalized before any funds are disbursed.
Partial Funding
Cost of Power:$0.13
Requested Grant Funds:$703,800
Matched Funds Provided:$16,588
Total Potential Grant Amount:$720,388
AEA Funding Recommendation:$67,500
Funding & Cost
/kWh
581/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
658 Organic Rankine Cycle Field Testing
University of Alaska Fairbanks ACEP
Feasibility
Proposer:
Proposed Project Phase:
App #
Heat RecoveryResource:
PlentovichAEA Program Manager:Applicant Type:Government Entity
Project Description
This proposal represents the second phase (field testing) of “Optimizing Heat Recovery Systems for Power Generation in Rural Alaska,” a proposal funded by
the Denali Commission ($250,000) and the Alaska Energy Authority ($54,306). The project involves laboratory testing of a 50 kW precommercial ORC unit
to test the efficacy of generating power using recovered waste heat from a mid-sized rural power plant. The testing will take place at the University of Alaska
Fairbanks in winter 2010-2011, with the Phase 2 field testing called for in this proposal to begin in October 2011. The Phase 2 testing includes performance
data collection and analysis, evaluation of operation and maintenance requirements, economic analysis of potential power generation / cost savings, and
establishing guidelines for future ORC applications throughout rural Alaska and a methodology for selecting appropriate village sites. Both phases of the
overall project include data collection and comparison of a 250 kW ORC unit presently being tested in Cordova, Alaska. No funding is requested in this
proposal for monitoring the Cordova project.
AEA Review Comments
ACEP in partnership with Tanana Chiefs Conference proposes to follow up lab testing of 50 kW Electrotherm ammonia cycle engine that converts recovered heat
to power. It is part of an overall program funded by EPA and AEA to develop and perform independent evaluation of organic rankine cycle and similar
technology for use in rural Alaska. Following completion of lab testing in summer 2011 the unit would be moved to a suitable community power plant in the TCC
region.
This project represents applied research that can provide immediate benefits to communities. Because it is not fully commercialized there is significant technical
risk.
Recommend full funding contingent upon AEA accepting report from lab testing that indicates the technology is potentially viable for rural Alaska.
Full Funding
Cost of Power:$0.56
Requested Grant Funds:$472,787
Matched Funds Provided:
Total Potential Grant Amount:$472,787
AEA Funding Recommendation:$472,787
Funding & Cost
/kWh
591/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
659 Kachemak Bay Tidal Power
City of Homer
Design
Feasibility
ReconProposer:
Proposed Project Phase:
App #
OtherResource:
McMahonAEA Program Manager:Applicant Type:Local Government
Project Description
The proposed project will assess the tidal energy potential and development feasibility of four sites within Kachemak Bay. With assistance from the National
Oceanic and Atmospheric Administration (NOAA), the project will utilize historical water level and current data, recent sea floor mapping data, and new
ocean current measurements to construct a comprehensive ocean circulation model of the entire Kachemak Bay region. The model and tidal current data
analyses will provide detailed information on tidal energy potential throughout Kachemak Bay. With this tidal power information and consideration of
effective tie-in to the electric grid, four sites will be selected and power production costs, output, and availability, as well as potential environmental issues,
will be assessed to determine initial feasibility of tidal energy projects. For all feasible sites, a conceptual design to optimize tidal energy production will be
produced, along with a construction cost estimate for that design.
AEA Review Comments
The City of Homer proposes reconnaissance assessment and feasibility analysis/conceptual design of a 1.2 MW hydrokinetic device in Kachemak Bay. This is a
modified resubmittal of round 3 application #500 that was recommended for funding, but that was not funded due to limited funding. Homer has assembled a
strong project team that includes a number of entities with experience in assessing tidal energy feasibility and resources—NOAA’s Coast Survey Development
Laboratory (CSDL), Kasitsna Bay Laboratory and Center for Operational Oceanographic Products and Services; Homer Electric Association; the ADF&G and
NOAA-supported Kachemak Bay Research Reserve, Native Village of Port Graham; City of Seldovia; and the Seldovia Village Tribe. The application
appropriately addresses potential wildlife impacts and includes the involvement of ADFG. NOAA commits to $680,000 in in-kind project support.
The proposed work would take place in two stages: 1) Following initial kickoff meetings, CSDL would create a model of Cook Inlet tidal current velocity and
direction based on input of bathymetry, salinity, temperature, river flow inputs, and other parameters. Work would take place between July 2011 and January
2013. Based on results the project team would decide whether or not to proceed to the next phase. 2) Conceptual design of a tidal power plant, to be completed
in June 2013.
Cook Inlet is known to have the second largest tidal variation in North America. It also adjacent to Alaska's largest connected electrical load. The first phase of
this project would provide valuable baseline data on not only tidal power density, but also information useful for oil spill response, fish and wildlife habitat, and
recreational and commercial boating safety. For these reasons AEA will allocate other non-RE Fund funding to support the first phase of the project. Based on
the results of the first phase the project team can decide whether or not to proceed to conceptual design.
No funding recommended.
Not Recommended
Cost of Power:$0.20
Requested Grant Funds:$620,811
Matched Funds Provided:$706,424
Total Potential Grant Amount:$1,327,235
AEA Funding Recommendation:
Funding & Cost
/kWh
601/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
660 Cook Inlet TidGen Project
ORPC Alaska, LLC
Construction
Proposer:
Proposed Project Phase:
App #
OtherResource:
McMahonAEA Program Manager:Applicant Type:IPP
Project Description
ORPC Alaska, LLC, a wholly owned subsidiary of Ocean Renewable Power Company, LLC (collectively, ORPC), develops technology and projects generating
emission-free electricity from tidal, river and ocean currents. ORPC requests Phase IV funding for the TidGen™ Project to complete the first stage of ORPC’s
larger Cook Inlet Tidal Energy Project. The TidGen™ Project involves installing a 4- device TidGen™ Power System with a total rated generating capacity of
600 kW in a 6-knot current. ORPC’s TidGen™ Power System consists of one or more TidGen™ devices (which include a turbine generator unit [TGU]
mounted on a bottom support frame) connected to an on-shore substation using underwater power and control cables. ORPC expects to receive the pilot
project license from the Federal Energy Regulatory Commission (FERC) by December 2011. ORPC will release the initial TidGen™ Project components for
manufacture by January 2012 and will ship the components of the first of four TidGen™ devices to Anchorage by May 2012. The TidGen™ Power System will
be assembled at the Port of Anchorage and will be installed in phases from June 2012 to July 2013. ORPC will then monitor the system to collect essential site
development and environmental data. In subsequent stages of the Cook Inlet Tidal Energy Project, which are not in the scope of this application, ORPC will
deploy an OCGen™ Power System to increase the rated capacity to 0.9 MW by the end of 2013 and to 3 MW by the end of 2014. ORPC will ultimately increase
the rated capacity to commercial scale − up to 100 MW − by 2020 under a FERC operating license that ORPC will obtain before the end of the pilot project
license period.
AEA Review Comments
Ocean Renewable Power Corporation proposes permitting, final design and construction of a 600 kW array of proprietary cross-flow tidal instream electric
conversion units for potential scale-up to 100 MW. The units would use a gravity foundation on the bottom of Cook Inlet near Fire Island. ORPC’s technology
is currently being tested in Eastport, Maine. Undersea cable would bring power to shore. The project siting depends on being intertied to the Railbelt grid
through transmission developed in conjunction with the planned Fire I wind farm.
The proposer states that the most substantial challenges will be impacts on beluga, migrating fish, and sediment flow. ORPC has received $600,000 in funding
from USDOE to assess impacts on belugas and $240,000 to assess impacts of sediment on device components. ORPC has obtained a preliminary FERC permit
and would prepare a request to FERC for pilot project license in late 2011. Other permits will include ADFG fish habitat, DNR water and subsurface use, Army
Corps title 10, Coastal Zone, and Coast Guard navigational assessment. ORPC has developed a team of specialists that they state will address technical and
habitat issues.
ORPC will complete conceptual design and feasibility analysis by December 2011.
ORPC proposes to pay for almost all of the design and permitting. RE Fund dollars would support construction. While AEA remains concerned about the risks
associated with deploying new technology, we note that the Alaska-based developers have assembled a credible project team and have invested substantially in
developing the technology. Alaska has most of the nation’s potential for tidal energy and it is logical for the state to support ocean energy technology
development.
Recommend full funding with provision that before any funds are released 1) ORPC must demonstrate to AEA’s satisfaction that, based on the Maine
deployment, the technology is viable, and 2) AEA must accept the conceptual design and feasibility assessment.
Full Funding
Cost of Power:$0.15
Requested Grant Funds: $2,000,000
Matched Funds Provided:$6,050,538
Total Potential Grant Amount:$8,050,538
AEA Funding Recommendation:$2,000,000
Funding & Cost
/kWh
611/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
661 Turnagain Arm Tidal Electrical Generation Project
Turnagain Tidal Energy Corporation
Feasibility
Proposer:
Proposed Project Phase:
App #
OtherResource:
McMahonAEA Program Manager:Applicant Type:IPP
Project Description
The Turnagain Arm Tidal Electrical Generation Project (TATEP) consists of the installation of patented and proven Rance tidal electrical generation turbines
housed in a barrage located in Cook Inlet. (See Map, p. 107.) TATEP is modeled on the La Rance tidal electrical generation plant built at La Rance, Brittany,
France in 1966 at a cost of $88 million. The turbines are housed in a barrage approximately one-half mile long. (See illustration, p. 109, 110.) The tidal
electrical plant has been in operation since 1966, with 240 MW of electrical capacity. The plant produces electricity at 1.2¢ / kWh to France’s consumers.
There have been no mechanical breakdowns in 44 years with normal maintenance. The Rance turbines work in areas with at least 80 ft. of water at high tide
and 54 ft. low tide, similar to Turnagain Arm tides. TATEP turbines will be housed underwater horizontally and will turn the same direction on incoming and
outgoing tides with generators located on top of the barrage. Specific sites of the turbines will be selected after further research into environmental,
hydrodynamics of tides and water movement. The La Rance plant has twenty-four 10 MW generators for a total of 240 MW. TATEP’s plan calls for fifty to
one hundred twenty 10 MW generators which would produce 500 MW to 1200 MW net electricity. The project will be developed in stages. The first stage calls
for 50 turbines which would be sufficient to provide 500 MW net electricity: 100% of the baseline demand currently in the railbelt region. Cost of the project
at that point would be $1.5 billion instead of $2.5 billion. At that point, tidal power would be used in combination with utilities’ current gas turbines, wind,
coal, and hydroelectric power for the peak demand and slack period. The tidal electrical production can be expanded as needed over time by adding more
turbines. Turbines will be connected by transmission lines; and submarine cable will bring the electricity produced to Chugach Electric on the Anchorage side
and to Homer Electric on the Kenai side, accessing existing utility corridors as much as possible to produce inexpensive electricity to Alaska Railbelt
consumer. The project is priced for all stages to be built: however, the first stage would produce enough electricity to be competitive with hydroelectric,
geothermal, natural gas, and other renewables.
AEA Review Comments
The Turnagain Arm Tidal Energy Company's application is for a feasibility study of creating a tidal barrage energy system across Turnagain Arm. The barrage
would be 1-2 mile in length, 120 feet wide at its base, and extend 15 feet above the high water line in the area between Fire Island to the Kenai Peninsula. It
would include 50 to 120 La Rance-style low-head tidal generators, each with a 10 MW capacity. The proposed system would have a maximum output of 500
-1200 MW. Project to be started in 2011 and finished in 2017.
AEA has the following concerns about this application:
1) The application does not provide a clear description of the operation of the proposed barrage system. There is no analysis of average power output or total
resource availability.
2) In order for the project to function similar to the La Rance project, a dam (barrage) would need to be constructed across Turnagain Arm. AEA questions the
practicality of such a project given the high costs and geotechnical risks, as well as likely impacts on fish and marine mammals.
3) Although an investor from Singapore (Singa Mas) is reportedly willing to supply $500 million in financing for construction, the current application includes
no cash match.
Recommend no funding.
Not Recommended
Cost of Power:$0.15
Requested Grant Funds:$2,000,000
Matched Funds Provided:
Total Potential Grant Amount:$2,000,000
AEA Funding Recommendation:
Funding & Cost
/kWh
621/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
662 Gulkana Village Pellet Fuels Project
Gulkana Village Council
Construction
DesignProposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Government Entity
Project Description
We are constructing a facility to manufacture wood fuel pellets utilizing local wood and biomass that has no other commercial value and would normally go to
waste as feedstock. Our operation will involve harvesting, chipping, and processing the material into wood fuel pellets for residential and commercial
markets.
The first phase of the project is under construction. We are erecting a 30’ by 40’ metal building for the pellet plant. The first pellet production line will be
installed in the building. We will shortly be accepting delivery of the equipment for this first line, which will produce one ton of pellets per hour. Based on the
number of inquiries and orders we have already received, we anticipate this will not keep up with demand. We anticipate expanding the operation by
installing additional production lines as demand warrants.
AEA Review Comments
Gulkana Village Council proposes funding for wood pelletizing equipment as part of a densified wood business under development by the Council. The Council
is in the process of obtaining a pellet mill and a hammermill and of constructing a building to house the equipment.
AEA has provided a RE Fund round 1 grant (#2) to the Council for developing a cordwood –fired district heating system the community hall, two office buildings
and four duplexes. The system is under operation.
AEA requested reconnaissance, feasibility, and design information as part of the review of this application. Specifically AEA asked to “provide copies of the
business and operation plans. Your business plan should address long term raw material supply and operation, maintenance and fuel supply costs.”
In response the council provided only a brief tentative business plan that does not address long-term feedstock supply contracts, specific markets, or detailed
operating and maintenance activities and costs. DNR review raises concerns about feedstock demand versus availability and costs.
The Council has demonstrated substantial initiative in developing a biofuel business for the community. AEA strongly supports the Council’s initiative but
concludes that the Council has not provided sufficient information required by the RE Fund request for applications to serve as a basis for public funding.
No funding recommended.
Not Recommended
Cost of Power:$0.20
Requested Grant Funds:$955,000
Matched Funds Provided:$99,000
Total Potential Grant Amount:$1,054,000
AEA Funding Recommendation:
Funding & Cost
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631/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
663 Ionia Renewable Energy Training Center
Alaska Mental Health Trust Authority
Construction
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Government Entity
Project Description
Alaska Mental Health Trust (AMHT) is applying to the Alaska Energy Authority (AEA) Renewable Energy Fund Round IV Phase IV grant program, seeking
funding for equipment purchase and installation of a GARN biomass heating system for the community of Ionia. The Ionia community is building a two-story
6,000 square foot community center/barn on their property near Kasilof for the purpose of demonstrating renewable energy systems and sustainable living
strategies for their neighbors of Kenai Peninsula and other rural Alaskans.
(Project description edited for length and clarity)
AEA Review Comments
Applicant (Alaska Mental Health Trust Authority) proposes to develop a wood fired and solar heating system for the Ionia Renenwable Energy Training Center.
The Trust intends to act as grantee/sponsor for this project and accepts responsibilities under RFA section 1.4 for ownership and control of the facilities. This
project was recommended for funding in round 3 (#480), but did not receive funding due to insufficient funding.
Ionia has successfully developed a similar wood fired system that supplies heat and domestic hot water for the Community Long House. Ionia has a very
progressive focus in producing energy and food using their own local resources.
However, the project would only result in displacing 4,200 gallons of diesel per year. Given a proposed grant of over $240,000 and a match of $33,000, this
results in poor economic returns. AEA notes that the economic analysis in round 3 was incorrect; the current B/C corrects the error.
Recommend no funding.
Not Recommended
Cost of Power: $0.20
Requested Grant Funds:$241,623
Matched Funds Provided:$33,000
Total Potential Grant Amount:$274,623
AEA Funding Recommendation:
Funding & Cost
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641/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
664 Kwethluk Wind Feasibility
Organized Village of Kwethluk
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Government Entity
Project Description
Organized Village of Kwethluk (OVK) requests funding for a an AEA Round IV Phase II Feasibility Analysis to further assess technical, economic, financial
and operational viability of a wind system for Kwethluk and to narrow the focus of final design and construction of such a system.
During this project, we will install a wind meteorological (met) tower to solidify the options of installing wind towers in Kwethluk. The work will involve
obtaining a letter of non-objection for placement of the wind tower, permitting, transporting and installing a met tower at this location and studying the wind
resource for one year. A conceptual design for a wind farm will be created based on the outcome of the met tower recordings.
(Project description edited for length and clarity)
AEA Review Comments
The Village of Kwethluk proposes feasibility assessment and conceptual design of a wind energy system to be located on the old runway owned by Alaska
DOTPF.
AEA's high-resolution wind map indicates a class 4 resource. Despite the location on the runway, some level of geotechnical assessment will be required.
Geotech is not listed in the proposal. At the same time, tasks 4-7 basically consisting of cost analysis and conceptual design are budgeted $114,000. AEA thinks
this figure is rather high.
Recommend full funding with requirement that grant scope needs to include geotechnical assessment.
Full Funding
Cost of Power:$0.52
Requested Grant Funds:$145,000
Matched Funds Provided:$16,000
Total Potential Grant Amount:$161,000
AEA Funding Recommendation:$145,000
Funding & Cost
/kWh
651/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
665 Upper Tanana Biomass CHP Project
Alaska Power & Telephone Company
Design
FeasibilityProposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Utility
Project Description
Alaska Power & Telephone (AP&T) proposes to conduct a Phase II project that will complete the Feasibility Analysis, (Biomass) Resource Assessment and
Conceptual Design for a 2MWe biomass gasification CHP (combined heat and power) system. AP&T, in partnership with Nexterra Systems, and with support
from GE Energy, the Upper Tanana communities of Tok, Tetlin, Dot Lake and Tanacross, the State of Alaska Department of Natural Resources (DNR),
Contracted Consultants, Foresters and Economists, will collaborate to assess the feasibility of a system utilizing locally sourced woody biomass as fuel. The
project will thoroughly assess the long-term sustainability and projected costs of the biomass resource. The project will also develop the conceptual design,
assess the project site, and identify any remaining technical and operational barriers. This will refine the Benefit/Cost Ratio projections and better define
public benefits. Most of the detail in this grant application is from pre-feasibility work previously done by AP&T. All the data presented herein will be
thoroughly assessed for confirmation or adjustment in the proposed analysis.
AEA Review Comments
Alaska Power Company proposes feasibility assessment and conceptual design of a 2MW wood gasification power generation system to serve the Tok area power
system. The system includes a 30 mmBtu/hr Nexterra gasification system and GE Jenbacher reciprocating generators. An important component of the
proposed project is demonstration of an innovative gas clean up system.
APC applied unsuccessfully for a $10 million grant from USDOE for this project in early 2010. APC proposed to use USDOE funds and its own resources to
complete feasibility/concept design and permitting/final design during the first half of 2010. In round 3 APC requested construction funds from AEA (#479),
but AEA recommended against funding the project. The current proposal focuses on feasibility and conceptual design.
AEA is strongly supportive of demonstrating the Nexterra/GE technology in Alaska. This proposal is particularly attractive because
1. APC has a good track record as a well-operated utility and a leader in renewable energy development in Alaska
2. Tok, located on the road system, is an excellent site for demonstration of a wood-fired biopower project
3. The upper Tanana Valley has a substantial wood resource and a number of sawmills in operation.
4. The proposed technology has strong potential for application in other parts of the state.
AEA has concerns about the viability of integrating a wood-fired heat and power system into the Tok grid since
1. There is a hydro resource available at Yerrick Creek to serve the Tok grid currently under development that is also being funded by the RE Fund is (#438)
2. The RE Fund has already supported a significant wood energy project in Tok to supply the school with heat (#49).
Recommend full funding with provision that APC coordinate its feasibility assessment with the school heating project and Yerrick Creek hydro project.
Full Funding
Cost of Power:$0.53
Requested Grant Funds:$380,000
Matched Funds Provided:$45,000
Total Potential Grant Amount:$425,000
AEA Funding Recommendation:$380,000
Funding & Cost
/kWh
661/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
666 Kenai Winds Expansion
Kenai Winds LLC
Construction
Proposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:IPP
Project Description
Kenai Winds LLC has received AEA support to develop and erect a 10 MW wind energy facility located in the Nikiski industrial area on the Kenai Peninsula.
Through prior discussions with Homer Electric Association, the project size is being increased to 15MW. This proposal is submitted to secure funding needed
for the expansion. The facility will consist of 5 to 10 wind turbines disbursed throughout the site, electrically interconnected to either HEA’s Nikiski substation
or Chugach Electric Association’s Bernice Lake substation. The project will sell its electrical output to CEA. Letters of support from HEA and CEA are
including in Appendix E and Appendix L. Kenai Winds LLC was included on the Round III renewable energy projects approved by the Alaska state legislature
for funding. Due to budget cuts, those funds were not received. This application will help restore funding which will directly result in lower power price to the
Alaska ratepayer.
AEA Review Comments
Project failed Stage 1 - capped out.
Did Not Pass Stage 1
Cost of Power:$0.20
Requested Grant Funds:$2,000,000
Matched Funds Provided:$8,000,000
Total Potential Grant Amount:$10,000,000
AEA Funding Recommendation:
Funding & Cost
/kWh
671/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
667 Kotzebue Paper & Wood Waste to Energy
City of Kotzebue
Design
FeasibilityProposer:
Proposed Project Phase:
App #
OtherResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
The purpose of this project is to determine the feasibility of converting paper, cardboard and other wood-based waste into thermal energy for heating the
municipal water system of Kotzebue, Alaska. The City of Kotzebue proposes to complete a feasibility study and conceptual design for a paper/wood waste
thermal energy system. To this end, the City will study the paper/wood waste stream in Kotzebue, environmental impacts of the combustion process, and the
economics of the process. This total project concept could be segmented into the following phases:
Phase 1. Feasibility study & conceptual design.
Phase 2. Financing and paper/wood waste collection agreements.
Phase 3. Permitting, design and engineering.
Phase 4. Construction.
Phase 5. Operations and maintenance.
AEA Review Comments
The City of Kotzebue proposes to study feasibility of converting paper and wood from the city waste stream into heat for the municipal water system. The City
estimates 1,825 to 2,920 tons per year of paper and wood are produced in Kotzebue per year that could displace approximately 100,000 gal/yr of heating fuel.
The City submitted a round 2 application (#284) for a $15,000 reconnaissance-level study of adapting US Dept. Defense waste-to-energy technology for use in
Kotzebue which AEA recommended, but which was not funded due to insufficient funds.
For the current proposal the City is requesting funding for feasibility level assessment without submitting a reconnaissance level report that concludes that the
project concept is viable.
Recommend full funding with requirement that the City will complete tasks 1-4 (permitting, resource analysis, equipment analysis, and environmental analysis)
and conclude that is justified to proceed to conceptual design and further stages. AEA must agree with this conclusion before more than $25,000 of grant funds
are disbursed.
Full Funding
Cost of Power:$0.46
Requested Grant Funds:$85,000
Matched Funds Provided:$9,250
Total Potential Grant Amount:$94,250
AEA Funding Recommendation:$85,000
Funding & Cost
/kWh
681/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
668 Upper Kobuk River Biomass
Northwest Inupiat Housing Authority
Design
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Government Entity
Project Description
The intent of this project is to increase the use of locally available, biomass energy for thermal heating and biomass needs. This project will be located in the
upper Kobuk River Valley and will serve the villages of Ambler, Kobuk, and Shungnak. The applicant is Northwest Inupiat Housing Authority (NIHA).Other
project partners include NANA Regional Corporation, Maniilaq Association, WHPacific Inc., and the Kobuk, Shungnak and Ambler Village Councils. There
are four phases to this project and this application is for phase three.
AEA Review Comments
Northwest Inupiat Housing Authority proposes to follow-up ongoing feasibility assessment for building heating in Ambler, Shungnak, and Kobu funded in round
1 (#59). Based on outcome of the assessment NIHA would choose one of the communities for final design and permitting.
The grant for the round 1-funded work was executed in August 2009. AEA is concerned that the project has been progressing slowly. The project is being
managed by WH Pacific, a subsidiary of NANA.
Recommend full funding with requirement that before any funds are expended, the applicant provide and AEA accept the feasibility and conceptual design
report.
Full Funding
Cost of Power:$0.80
Requested Grant Funds:$250,000
Matched Funds Provided:$20,000
Total Potential Grant Amount:$270,000
AEA Funding Recommendation:$250,000
Funding & Cost
/kWh
691/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
669 Akiachak Wind Feasibility & Conceptual Design
Akiachak Native Community/Akiachak Ltd.
Design
Feasibility
ReconProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Government Entity
Project Description
To determine and document the feasibility and conceptual design of a wind diesel turbine facility in the community of Akiachak, Alaska. Akiachak Native
Community (ANC) proposes to install a wind meteorological (met) tower and to complete the necessary geotechnical work to determine the economic
feasibility of installing wind turbines in Akiachak, Alaska. The work will involve:
(1) obtaining a letter of non-objection for placement of the wind tower and
(2) geotechnical fieldwork, permitting, purchasing, transporting, and installing a met tower,
(3) studying the wind resource for one year and documenting the results and
(4) conducting a geotechnical investigation to determine the soil conditions and needed engineering at the site.
A conceptual design will be created based the met tower data recordings and geotechnical investigation. This will provide adequate information to determine
whether there is enough wind resource to justify taking a project to design and ultimately the construction of a wind-diesel system for the community of
Akiachak.
AEA Review Comments
Akiakchak Native Corporation proposes reconnaissance and feasibility of a wind-energy system in Akiakchak. Akiakchak was recommended in round 2 (#212)
for feasibility assessment, however there was insufficient funding. Akaikchak has a met tower on site, but it is not erected and operational.
The geotech portion of the budget ($75,000) appears rather high, while conceptual design appears low.
Recommend full funding.
Full Funding
Cost of Power:$0.63
Requested Grant Funds:$110,000
Matched Funds Provided:$15,000
Total Potential Grant Amount:$125,000
AEA Funding Recommendation:$110,000
Funding & Cost
/kWh
701/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
670 Thayer Lake Hydropower Development Generation
Kootznoowoo, Inc.
Construction
Design
FeasibilityProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:IPP
Project Description
This proposal is being evaluated as a combined proposal with #671.
Thayer Lake Hydropower Development consists of a 1 +MW run of the river hydropower project located in the Tongass Forest within the Admiralty Island
National Monument based on a proposal that Kootznoowoo submitted in March 2000 which is described more fully in the Angoon Hydrologic Project
Feasibility Evaluation Report (Project). The development would be located on Thayer Creek approximately 6 miles north of Angoon. Thayer Creek flows out of
Thayer Lake (64 square mile reservoir) at a gentle grade through a broad forested valley then steepens for 6,800 feet through a narrow forested canyon and
finally flattens again for 2000 feet before flowing into Chatham Strait. The development will tap the energy potential in the steep section of the stream and
will avoid any impact on anadromous fish that use the lower portion of the creek. The average flow of Thayer Creek is approximately 370 cfs and can vary
from 25 cfs during the coldest periods of the winter to over 2000 cfs during storms in the fall and winter. The generating facility has a head of 250 feet which
is approximate because of the wording of the Forest Service Record of Decision (ROD) requiring maintenance of fish habitat. An additional restriction set
forth in the ROD which is not considered in the HDR proposal requires the overland transmission line be buried where feasible along the access road to the
community of Angoon. The transmission line funding will be submitted in a separate companion application for Round III funds.
AEA Review Comments
Kootznoowoo Inc. proposes a 1+ MW run-of-river hydroelectric project and 6.7 mi transmission project to supply the community of Angoon. Kootznoowoo has
supplied separate applications for each of the projects. AEA is lumping the two project proposals together for the purposes of evaluation. These proposals are
similar to ones submitted in round 3 (#517, 523) that were recommended but not funded due to insufficient funding.
The application includes a letter of support from local utility Inlet Passage Electrical Co-op (IPEC) and others. Kootznoowoo has received a grant $1,110,500
from USDOE for preconstruction activities.
Project appears to be a promising source of renewable energy for the community of Angoon. Special legislation (ANILCA Section 506) has granted
Kootznoowoo, Inc. certain rights for development of a hydroelectric facility at Thayer Creek and has simplified the permitting for the project. The project is only
six miles from Angoon and closely matches Angoon's energy requirements.
Recommend partial funding of $1,060,500 for completion of all preconstruction activities, including final design and permitting (culminating in the issuance of
the USFS Special Use Authorization for the project) with the provisions that prior to releasing any AEA grant funds: 1) Kootznoowoo and IPEC must provide a
written joint report acceptable to AEA that documents the integration of project design and operation with the needs of the existing IPEC system, 2)
Kootznoowoo and IPEC must finalize an MOU that defines a viable business arrangement and will include intent to sign a cost-based power sales agreement, 3)
scope be must consistent with the recommendations of the Southeast Alaska IRP.
Partial Funding
Cost of Power:$0.42
Requested Grant Funds:$4,000,000
Matched Funds Provided:$978,000
Total Potential Grant Amount:$4,978,000
AEA Funding Recommendation:$1,060,500
Funding & Cost
/kWh
711/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
671 Thayer Lake Hydropower Development, Transmission
Kootznoowoo, Inc.
Construction
Design
FeasibilityProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:IPP
Project Description
See Proposal #670
Thayer Lake Hydropower Development consists of a 1 +MW run of the river hydropower project located in the Tongass Forest within the Admiralty Island
National Monument based on a proposal that Kootznoowoo submitted in March 2000 which is described more fully in the Angoon Hydrologic Project
Feasibility Evaluation Report (Project). The development would be located on Thayer Creek approximately 6 miles north of Angoon. Thayer Creek flows out
of Thayer Lake (64 square mile reservoir) at a gentle grade through abroad forested valley then steepens for 6,800 feet through a narrow forested canyon and
finally flattens again for 2000 feet before flowing in to Chatham Strait. The development will tap the energy potential in the steep section of the stream and
will avoid any impact on anadromous fish that use the lower portion of the creek. The average flow of Thayer Creek is approximately 370 cfs and can vary
from 25 cfs during the coldest periods of the winter to over 2000 cfs during storms in the fall and winter. The generating facility has ahead of 250 feet which is
approximate because of the wording of the Forest Service Record of Decision (ROD) requiring maintenance offish habitat. An additional restriction set forth
in the ROD which is not considered in the HDR proposal requires the overland transmission line be buried where feasible along the access road to the
community of Angoon. The transmission line funding will be submitted in a separate companion application for Round III funds.
AEA Review Comments
See project #670
Cost of Power:$0.42
Requested Grant Funds:$4,000,000
Matched Funds Provided:$978,000
Total Potential Grant Amount:$4,978,000
AEA Funding Recommendation:
Funding & Cost
/kWh
721/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
672 Snettisham Transmission Line Avalanche Mitigation
Alaska Electric Light & Power Company
Construction
DesignProposer:
Proposed Project Phase:
App #
TransmissionResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
A conceptual design report has been completed for the six towers of highest avalanche risk (LaRue, 2010). The report was based on experience and
engineering resources gained during the 2008 and 2009 avalanche repairs. The recommended mitigation construction cannot be completed in one year;
hence the requested funds would be used over a 2011-2012 period. In 2011, we propose to construct the replacement of tower 3/4 and structural
modifications to existing towers 4/1, and 4/2 for an estimated $1,562,000. In 2012, we propose to construct a large steel diversion structure above tower 4/5
similar to one constructed in 2009 above tower 4/6. We also would construct a smaller diversion structure above tower 4/4 for an additional combined cost
of $2,457,600.
AEA Review Comments
Alaska Electric Light and Power proposes final design and construction of one tower replacement, two tower structural modifications, and addition of snow
diversion structures to two towers on the intertie that connects the Snettisham project to Juneau.
AEL&P proposes a two-phase design and construction schedule. Phase 1 begins in late 2010 and ends in fall 2011. Phase 2 begins in late 2011 and ends in fall
2012. Round 4 funds are available only for activities that take place after July 1, 2011 (Phase 2 work).
The project is eligible for funding under the RE Fund because it will reduce the liklihood of the number of outages occurring due to avalanches that necessitate
diesel generation (e.g. the major outages in the winters of 2008 and 2009) in addition to improving reliability of Snettisham hydropower.
Recommend funding of up to $2 million for activities that take place after July 1, 2011.
Partial Funding
Cost of Power:$0.11
Requested Grant Funds:$3,215,680
Matched Funds Provided:$803,920
Total Potential Grant Amount:$4,019,600
AEA Funding Recommendation:$2,000,000
Funding & Cost
/kWh
731/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
673 Atmautluak Wind Renewable Energy
Village of Atmautluak
Design
Proposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Government Entity
Project Description
Based on the conclusions of our completed feasibility and conceptual-design efforts, the Village of Atmautluak (Village) will, with Alaska Energy Authority
(AEA) assistance, complete the design process to successfully install a wind-diesel system in the community. This includes automated controls and the
equipment necessary to regulate, control and deliver reliable energy to the residents of the community. The project will produce the final designs and plans
and complete the necessary permitting for two projected wind turbines and the associated equipment installations to upgrade the existing power generation
and distribution system to produce power from a wind turbine-diesel engine configuration. The Village of Atmautluak, will hire and contract with WH Pacific
to complete this design project and provide management oversight of any subcontracted engineering/design firms. WH Pacific will also complete the RFP
process: provide overall project management oversight of the necessary civil work and work closely with Northern Power to install Northwind100/21 B model
wind turbines, manage the startup and commissioning.
AEA Review Comments
The Village of Atmautluak proposes final design and permitting for a 200 kW wind –diesel project.
The community has already completed a $45,000 feasibility study funded by the Denali Commission. Although the feasibility study is valuable, it did not
include geotechnical assessment and AEA notes the following limitations in the HOMER system modeling:
1. The model assumes the old Northwind 100a power curve instead of the new 100b model
2. The spinning reserve requirement is set too low
3. The fuel curve on one of the existing diesel gensets indicates higher fuel economy than manufacturer specs
4. Modeling did not evaluate use of excess windpower for heat
5. Analysis assumes 25 year life instead of standard 20 year life.
6. The report notes need for “more detailed design, permitting/environmental studies, and economic analysis is warranted to confirm economic feasibility
before funding can be secured or a decision is made to proceed with construction
AEA thinks that the cost of a full feasibility study and conceptual design for a wind-including geotechnical analysis ranges from roughly $80,000-180,000.
Recommend partial funding of $100,000 for completing feasibility and conceptual design.
Partial Funding
Cost of Power:$0.77
Requested Grant Funds:$225,000
Matched Funds Provided:$25,000
Total Potential Grant Amount:$250,000
AEA Funding Recommendation:$100,000
Funding & Cost
/kWh
741/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
674 Stetson Creek Diversion/Cooper Lake Dam Facilities
Chugach Electric Association, Inc.
Construction
Design
FeasibilityProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
As part of the FERC relicensing of the Cooper Lake plant in 2007, Chugach agreed to spend up to $11.04 million ($12.5 million in 2009 dollars) to construct a
project to divert water from Stetson Creek into the Cooper Lake reservoir and a related structure to release water into Cooper Creek. The purpose of the
project is to enhance fish habitat. It will add water to Cooper Lake and result in additional hydroelectric energy generation.
AEA Review Comments
Chugach Electric requests funding for feasibility, permitting/final design, and construction of a project to divert water from Stetson Creek into the Cooper Lake
Reservoir and a related structure to release environmental flows into Cooper Creek as a part of the FERC re-licensing of Cooper Lake hydro project in 2007.
CEA agreed to spend up to $12.5 million (2009$) to construct this project in order to enhance fish habitat in Cooper Creek by raising the stream water
temperature.
In support of the relicensing effort CEA has funded a substantial amount of feasibility-level work. In 2007 the project was estimated to cost about $11 million.
However, following a 2009 constructability review, the capital cost estimate increased to $24 million due to requirements for tunneling and control structures
for the diverted water and for the environmental flows.
The main benefit of the proposed project would be the continued operation of the 19.4 MW Cooper Lake project. In addition the diversion adds water to Cooper
Lake, resulting in a net increase in hydropower. For the purposes of the economic analysis prepared for evaluating this application, only the additional costs of
the diversion and benefits of the incremental hydropower are considered.
Before RE Fund funding is allocated to construction, it is reasonable for CEA to complete feasibility, permitting, and final design.
Recommend partial funding for feasibility, permitting, and final design.
Partial Funding
Cost of Power:$0.15
Requested Grant Funds: $2,000,000
Matched Funds Provided:$21,900,000
Total Potential Grant Amount:$23,900,000
AEA Funding Recommendation:$576,080
Funding & Cost
/kWh
751/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
675 Battle Creek Diversion Project
Chugach Electric Association, Inc.
Feasibility
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
This is a project to divert water from the upper watershed of the middle branch of Battle Creek into Bradley Lake. Based on Battle Creek stream flow
measurements from 1991 to 1993, diverting a portion of the stream flow to Bradley Lake has the potential to increase annual energy output by 27,000 to
45,000 MWh, depending on the amount of flow diverted. Environmental, geotechnical, preliminary engineering and analytical work is needed to evaluate fish
habitat, the potential energy resource, and diversion dam and conveyance (i.e., tunnel, pipe, open channel) alternatives to divert the water.
AEA Review Comments
Chugach Electric Association, on behalf of the Bradley Project Management Committee, proposes preliminary design of diversion of Middle Fork Battle Creek
into Bradley Lake. The work would also include permitting, environmental and fish studies and preparation of an application to amend the Bradley Lake hydro
project FERC license. BPMC would also provide matching funds on a 1:1 basis. AEA staff would manage the project.
Work completed to date includes reconnaissance and analysis of environmental and energy production impacts. Stream gauging is in progress.
Recommend full funding.
Full Funding
Cost of Power:$0.20
Requested Grant Funds:$500,000
Matched Funds Provided:$500,000
Total Potential Grant Amount:$1,000,000
AEA Funding Recommendation:$500,000
Funding & Cost
/kWh
761/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
676 Eska Creek Hydroelectric Project
Bering Pacific Engineering
Recon
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:IPP
Project Description
The Eska Creek Hydroelectric Project is a potential run of river hydroelectric resource located near Sutton, AK with a capacity up to 1.5 MW.
AEA Review Comments
Applicant proposes recon assessment of a 1.45 MW run-of-river hydropower project at Eska Creek near Sutton. The project would include a very long (13,000 ft)
penstock. Environmental issues are undefined. DNR notes potential conflicts with other uses and proximity of the project to Castle Mt Fault.
Recommend full funding.
Full Funding
Cost of Power:$0.17
Requested Grant Funds:$37,000
Matched Funds Provided:$7,400
Total Potential Grant Amount:$44,400
AEA Funding Recommendation:$37,000
Funding & Cost
/kWh
771/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
677 Akiak Hydro Study
City of Akiak
Recon
Proposer:
Proposed Project Phase:
App #
Ocean/RiverResource:
McMahonAEA Program Manager:Applicant Type:Local Government
Project Description
The Kuskokwim River meanders above and below the community of Akiak leaving it on a peninsula which at its widest point is approximately 3 miles across.
The bend immediately above Akiak compress' the flow of the river resulting in increased water velocity (speed). We intend to place an intake at that point in
the bend with the greatest speed, and pipe the water we collect, 1) across the peninsula, 2) to a small slough behind the village, or 3) parallel to the river to a
point further down the bend depending on the results of a feasibility study. The intake will be deep enough to avoid icing issues, permitting year round
operation of a run of the river hydro facility. The reconnaissance will identify annual flow and the placement of all facilities necessary for the hydro plant,
pipeline, intake and transmission needs.
AEA Review Comments
Applicant proposes reconaissance study of a hydrokinetic project in Akiak costing $350,000. Due to lack of geographic relief in the vicinity of Akiak, a run-of-
river hydro project is not feasible. RE Fund round 1 has performed site-specific assessment of hydrokinetic resources in nearby Kuskokwim villages. Results are
not yet available. The current application provides insufficient description of the type of system that is proposed and is very expensive. AEA feels that the
current statewide approach for hydrokinetic resource, technology development, and environmental analysis is a more effective use of state resources.
Recommend no funding.
Not Recommended
Cost of Power:$0.63
Requested Grant Funds:$350,000
Matched Funds Provided:
Total Potential Grant Amount:$350,000
AEA Funding Recommendation:
Funding & Cost
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781/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
678 False Pass Wind Energy Project
City of False Pass Electric Utility
Feasibility
ReconProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Local Government
Project Description
False Pass currently produces all their electricity from diesel generators and heating from burning fossil fuels. Data from a met tower set up several years ago
was compromised and has data gaps when bears damaged the equipment, but the data still may be useful if analyzed using appropriate assumptions and
software. The wind resource may prove to be good, but we won’t know until the data is analyzed and a wind resource report is completed. In addition, an
avian study will determine if birds will be of concern and/or if mitigation measures are necessary.
This project seeks funding for analyzing the raw wind data and preparing a wind assessment report for False Pass. Based on wind assessment results/report a
subsequent proposal may be submitted for conceptual design. In addition, an avian study will determine if migrating or nesting birds present concerns to a
wind project and determine mitigation measures. The principal goals of baseline bird studies are to quantitatively describe the temporal and spatial use by
birds of the study area and provide baseline information on avian species and their habitat sufficient to use in evaluating the probable impact of installation of
a wind turbine. The specific goals are to provide avian monitoring protocol training to local agent(s), collect avian data to determine bird activity at the
delineated areas around the turbine site, record any dead or downed (injured) birds at the site that may be the result of collisions with the meteorological
tower, and prepare avian monitoring reports including back-up information and complete avian data.
AEA Review Comments
The City of False Pass proposes recon and feasibility assessment of wind energy and diesel heat recovery in False Pass. The proposal is consistent with the
recommendations from a general energy assessment of Cold Bay, False Pass and Nelson Lagoon sponsored by the 2008 Denali Commission/AEA Alternative
Energy grant program and AEA’s Energy Pathway publication. Raw data from AEA’s met tower in False pass suggests a class 4-5 wind resource.
Aleutians East Borough would manage the project.
Diesel heat recovery potential appears marginal. The system is already supplying city shop near the power plant with heat. The next closest facility is the school,
600’ away.
Recommend partial funding for reconnaissance assessment.
Partial Funding
Cost of Power:$0.52
Requested Grant Funds:$128,625
Matched Funds Provided:$10,000
Total Potential Grant Amount:$138,625
AEA Funding Recommendation:$69,075
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
679 Nelson Lagoon Wind Energy Project
Nelson Lagoon Electrical Cooperative
Feasibility
ReconProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
Nelson Lagoon requests funding for this wind study as the first step towards supplementing the high cost of diesel generators currently in use. The wind
study and avian study will satisfy Phases I, Reconnaissance and Phase II, Feasibility, and the study will result in a feasibility report on the technical, economic,
financial and operational viability and guidelines of implementing the next three phases of a wind energy system.
The grant would be managed by the Aleutians East Borough and calls for the solicitation of a contractor to perform the analysis and a community meeting
with the contractor for presentation, review and discussion of the results.
Participants in the project will include:
1) Nelson Lagoon Electrical Cooperative (owned by the Native Village of Nelson Lagoon)
2) Aleutians East Borough who will provide overall project management
3) A contracted firm who will provide civil and electrical system engineering
4) Contractor to perform the avian and environmental studies
5) A supplier for the met towers.
AEA Review Comments
Nelson Lagoon Electric Cooperative proposes recon and feasibility assessment of wind energy and diesel heat recovery in Nelson Lagoon. The proposal is
consistent with the recommendations from a general energy assessment of Cold Bay, False Pass and Nelson Lagoon sponsored by the 2008 Denali
Commission/AEA Alternative Energy grant program and AEA’s Energy Pathway publication. Airport data and the Pathway indicate a class 6 wind resource.
Aleutians East Borough would manage the project.
Diesel heat recovery potential appears excellent. The power system is adjacent to a storage building and harbormaster office.
Recommend partial funding for reconnaissance assessment, including a met tower.
Partial Funding
Cost of Power:$0.74
Requested Grant Funds:$158,625
Matched Funds Provided:$10,000
Total Potential Grant Amount:$168,625
AEA Funding Recommendation:$99,075
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
680 Cold Bay Wind Energy Project
G&K Electric Utility
Feasibility
ReconProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type: IPP
Project Description
Cold Bay requests funding for this wind study as the first step towards supplementing the high cost of diesel generators currently in use. The wind study and
avian study will satisfy Phase I, Reconnaissance and Phase II, Feasibility, and the study will result in a feasibility report on the technical, economic, financial
and operational viability and guidelines of implementing the next three phases of a wind energy system.
The grant would be managed by the Aleutians East Borough and calls for the solicitation of a contractor to perform the analysis and a community meeting
with the contractor for presentation, review and discussion of the results.
Participants in the project will include:
1. G&K Electric Utility
2. Aleutians East Borough who will provide overall project management.
3. A contracted firm who will provide civil and electrical system engineering.
4. Contractor to perform the avian and environmental studies.
5. A supplier for the met towers.
AEA Review Comments
G&K Electric Utility proposes recon and feasibility assessment of wind energy and diesel heat recovery in Cold Bay. The proposal is consistent with the
recommendations from a general energy assessment of Cold Bay, False Pass and Nelson Lagoon sponsored by the 2008 Denali Commission/AEA Alternative
Energy grant program and AEA’s Energy Pathway publication. Airport data and the Pathway indicate a class 7 wind resource.
Aleutians East Borough would manage the project.
Diesel heat recovery potential appears excellent. The power system is adjacent to several public facilities and the power plant has a manifold on the diesel
cooling system.
Recommend partial funding for reconnaissance assessment, including a met tower.
Partial Funding
Cost of Power: $0.64
Requested Grant Funds:$158,625
Matched Funds Provided:$10,000
Total Potential Grant Amount:$168,625
AEA Funding Recommendation:$99,075
Funding & Cost
/kWh
811/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
681 Lake & Peninsula Wood Boilers
Lake & Peninsula Borough
Construction
Proposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
Provide wood boilers for community facilities in Igiugig, Illiamna, Kokhanok, and Port Alsworth. Wood boilers in these villages have been the subject of a
detailed feasibility/design study, which shows they are economically and technically feasible. The project would allow the borough to advertise for a
design/build RFP to construct these facilities, and to have the expertise to evaluate potential designs and inspect finished construction. The competitive
process would ensure the best and most appropriate design. Community organizations with a record of maintaining community facilities are supporting and
have committed to use and maintain the wood boilers. Landowners where the wood will be gathered also support the project.
AEA Review Comments
Lake and Pen Borough proposes construction of community wood heating systems in Igiugig, Port Alsworth, Iliamna, and Kokhanok. This proposal follows up
earlier feasibility and final design work funded under RE Fund round 1 (#63).
AEA has the following concerns about this proposal:
1. Outdoor wood boilers (OWB) are proposed for deployment. Alaska experience to date indicates relatively low efficiency and substantial smoke from these
units. New models have been developed that have achieved EPA emission certification. AEA has contracted with a Biomass Energy Resource Center to assess
emission and efficiency for Alaska application.
2. The projects would use approximately 20-30 cords per year. Little information is provided to confirm availability of a sustained fuel supply over the 20 year
life of the projects.
3. Given relatively low diesel displacement economics appear marginal.
Recommend full funding with the following requirements:
1. Before any funds are disbursed the Borough must demonstrate to AEA a sustainable long-term fuel supply in each burn location.
2. Before OWBs are specified and purchased the Borough must demonstrate to AEA that efficiency and performance are reasonable.
Full Funding
Cost of Power:$0.73
Requested Grant Funds:$369,900
Matched Funds Provided:$123,300
Total Potential Grant Amount:$493,200
AEA Funding Recommendation:$369,900
Funding & Cost
/kWh
821/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
682 Fivemile Creek Hydroelectric Project
Chitina Electric, Inc.
Design
FeasibilityProposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
The proposed Fivemile Creek Hydroelectric Project consists of four major components, including:
>A creek diversion structure- The diversion structure would create a small impoundment that would divert a portion of flow from Fivemile Creek into a
pipeline (penstock).
> A penstock – The penstock is a pipeline that will transport water from the intake structure to the turbine powerhouse. The penstock for this project will be
around 12-inches in diameter and 8,500 linear feet long. Its primary purpose is to pressurize the water from the creek.
> A hydroelectric turbine power plant – The power plant will house the turbine and electrical generating equipment and controls. Water from the penstock
will spin the turbine and generators and produce electricity. The power plant will include a tailrace that will return water from the penstock to the creek bed.
> Electrical tie-in – An overhead high voltage line will connect the turbine power plant to the existing electrical distribution system near the airport.
AEA Review Comments
Chitina Electric proposes completing final design, permitting, and construction of a 300 kW run-of-river hydro project on Five Mile Creek. The project received
a $303,000 grant under round 2 of the RE Fund (#236). AEA is managing the project on Chitina Electric’s behalf. AEA and Chitina expect to complete the
conceptual design and feasibility in July 2011. AEA and Chitina completed a diesel power system upgrade for the community in 2009.
The project would be located on lands owned by the Chitina Native Corporation, who has agreed to donate lands to support the project. All indications to date
suggest no significant land or environmental issues, and likely no FERC jurisdiction. There is an existing road for access to the proposed intake site. The hydro
powerhouse would be located next to the diesel power plant. The project would supply most of the community electrical needs.
Since the design is not complete and a construction cost estimate is not available, AEA does not recommend construction funding at this time.
Recommend partial funding of $277,000 ($580,000 for total feasibility/final design/permitting minus existing grant of $303,000) for completing permitting
and final design.
Partial Funding
Cost of Power:$0.53
Requested Grant Funds:$3,602,000
Matched Funds Provided:$803,000
Total Potential Grant Amount:$4,405,000
AEA Funding Recommendation:$277,000
Funding & Cost
/kWh
831/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
683 Cook Inlet Tidal Hydrokinetic Power Generation
Baker Hughes, Inc.
Design
Proposer:
Proposed Project Phase:
App #
OtherResource:
McMahonAEA Program Manager:Applicant Type:IPP
Project Description
The waters of Cook Inlet offer a clean and renewable power source for the communities of South Central Alaska. Our project will utilize existing
infrastructure, namely the King Salmon platform, and proven submersible technologies to capture the tidal energy of the Inlet. Baker Hughes Centrilift
develops electrical submersible pumps (ESP) for the oil industry and given our product’s reliable history in very demanding oil well environments, their ESP
system was chosen as the power generating unit. The smaller diameter of an ESP Generator allows for higher speed operation and lower impact to fish than
propeller-based systems. The ESP Generator would consist of: 1) aquatic life diverters to protect the environment and minimize the environmental impact of
the system, 2) rotating multistage turbine anchored in water at optimum flow velocity depth, 3) submersible electric power cable would carry the energy to
shore connecting to 4) local utility substation or transformer. Buoys would be placed strategically near the system to alert boat traffic. The existing platform
would act as an anchoring structure and intermediate for power distribution.
By partnering with UAF, we will utilize existing in-stream testing sites, thus allowing the deployment of prototypes aimed at providing power to rural
communities. With that said, our project will also target rural communities situated on a viable year long hydro-resource. The system will be designed to
produce adequate energy during low-flow conditions of the winter season. Our anchoring system will look to anchor the system throughout the year, yet
enabling a break-away during significant ice/debris flow. Enabling retrieval of the system without significant damage to the internal components of our
equipment, which will allow a quick turnaround once the obstruction has passed.
AEA Review Comments
Baker Hughes (BHI) proposes to develop new technology that would modify existing Baker Hughes Centrilift H Series pumps currently used in Cook Inlet oil
and gas platforms to convert hydrokinetic flow to electrical power. This application is similar to a RE Fund round 3 submittal that was recommended but which
did not receive funding due to insufficient funds. The team proposes to first develop a bench scale unit at UAF then test a 50 kW unit in the Tanana River. BHI
would then use their own funding and resources to test a 500 kW unit at the King Salmon Platform in Cook Inlet.
For the purpose of round 4 technical review AEA requested the following information:
1. Design and specifications for the project including dimensions, data and calculations to determine power output at given different water velocities
2. Explain how the high speeds for the device are produced and why this will be beneficial to power production and lower impacts to marine life.
3. Will the Baker Hughes CentriLift pump be under warrantee for the modified application as a hydrokinetic turbine?
4. What effect will the “built-in aquatic life diverters” have on power output?
5. Please provide further information on the anchoring design.
6. Explain how the device will be deployed.
BHI provided technical specifications for the Centrilift pump, but did not provided any diagrams that clarify how the pump would be integrated into a power
system. BHI did not respond to questions 2-6.
The application does not include a letter of support from Chevron, owner of the King Salmon platform.
AEA understands that BHI is proposing to develop hydrokinetic technology that could be a very attractive use of oil and gas platforms. Given the substantial
project risk and unknowns, however, we believe that the newly established Emerging Energy Technology Fund is a more appropriate program for considering
state support.
Recommend no funding.
Not Recommended
Cost of Power: $0.15
Requested Grant Funds:$400,000
Matched Funds Provided:$1,960,000
Total Potential Grant Amount:$2,360,000
AEA Funding Recommendation:
Funding & Cost
/kWh
841/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
684 New Koliganek Wind & Heat Recovery Feasibility Study
New Koliganek Village Council
Design
FeasibilityProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Government Entity
Project Description
The New Koliganek Village Council respectfully requests project funding for a Wind and Heat Recovery Feasibility Study. Analysis of the raw meteorological
data by V3 Energy, LLC indicate a Class 4 wind regime which merits investigation. The project will result in a report of the technical, economic, financial and
operational viability of installing a wind-diesel system for electric distribution and heat recovery in the village of Koliganek.
The grant will be managed by the New Koliganek Village Council. Marsh Creek Energy Systems has been selected to carry out the technical, analytical and
reporting tasks of the project. The Bristol Bay Native Association (BBNA) and Marsh Creek will also be available to provide support, as needed, to the Project
Manager and Koliganek Tribal Administrator in the preparation of financial reports stipulated in the grant.
AEA Review Comments
The New Koliganek Village Council requests funding for feasibility assessment of wind generation and heat recovery for the community power system. Based on
an AEA met tower in Koliganek, the wind resource is a class 3.
Given a high expected project cost and energy production from a fair wind resource, project economics are marginal.
Recommend full funding.
Full Funding
Cost of Power:$0.50
Requested Grant Funds:$105,050
Matched Funds Provided:$7,000
Total Potential Grant Amount:$112,050
AEA Funding Recommendation:$105,050
Funding & Cost
/kWh
851/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
685 Napaskiak Wind, Power and Heat Recovery
City of Napaskiak Electric Utility
Feasibility
ReconProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Local Government
Project Description
The City of Napaskiak requests funding for a wind study which includes an avian study and feasibility report as the first and second steps towards
supplementing the high cost of diesel generators currently in use. These studies will satisfy both Phase I Reconnaissance and Phase II Feasibility components
of the AEA's basic outline of the Wind Resource Development Partnering Plan Procurement. The studies will result in a feasibility report on the benefits, costs
and guidelines for implementing the next three phases of a wind turbine system, both in terms of a stand-alone system operated independently by Napaskiak
Electric Utility and in the context of a possible sub-regional intertie. The feasibility study will include a Heat Recovery System that utilizes jacket water from
the diesel generators and excess electricity from wind generated power. This project will solicit community participation from the beginning and will promote
wind-diesel O&M training opportunities to appropriate candidates.
AEA Review Comments
The City of Napaskiak requests funding for reconnaissance and feasibility assessment of wind generation and heat recovery for the City power system. The
Energy Pathways document notes a class 5 wind resource. However the newly-revised AEA wind high resolution wind map estimates Napaskiak is a class 3 wind
resource.
The recon phase budget includes $52,250 for land use permitting and environmental analysis. AEA believes that it is not justified to spend this large amount of
money before the overall wind resource is understood and the concept is validated.
Recommend partial funding of $61,225 with a required match of $2,800 for reconnaissance assessment.
Partial Funding
Cost of Power:$0.60
Requested Grant Funds: $171,275
Matched Funds Provided:$9,550
Total Potential Grant Amount:$180,825
AEA Funding Recommendation:$61,225
Funding & Cost
/kWh
861/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
686 Port Heiden Wind Turbine Project
Lake & Peninsula Borough
Construction
DesignProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Local Government
Project Description
The Lake and Peninsula Borough, along with the City of Port Heiden, proposed to install a single commercial-grade wind tower in Port Heiden to reduce the
amount of fuel burned and to lower electricity rates for customers. Prompted by the success of small-scale wind towers and recommendations laid out in the
2008 Lake and Peninsula Borough Regional Energy Plan, the Borough commissioned a private firm, Knight-Piesold, to analyze Port Heiden. The results of
this wind study indicated a favorable cost/benefit ratio and the Borough plans to move forward with the project. Drawing on the unique methods used by the
Borough in a successful wind tower installation in the Village of Kokhanok, the Borough proposes a four-step process to reach the end goal of a successful
installation of a wind tower. The first step will be the Borough selecting an owner’s representative to provide engineering and technical support. The second
step will be the Borough, Port Heiden, and the owner’s representative to create an RFP for the actual wind tower construction and maintenance, and evaluate
the bids on the RFP. The third and forth stages are construction of the wind turbine and systems upgrade, followed by a five-year maintenance and operation
contract with the winning bidder that incorporates training for local employees. This will be discussed in further detail later in the application.
AEA Review Comments
Lake and Pen Borough proposes final design and construction of a 330 kW wind project in Port Heiden through a design-build process.
Lake and Pen Borough has supplied a very thorough feasibility study. However the report does not include conceptual design drawings or a geotechnical study.
AEA has the following concerns about the project:
1. Economic feasibility appears to require a high penetration system. AEA believes the construction cost estimate is rather low for a high-penetration project.
2. Based on the expected 50-year extreme wind speed for the site, the feasibility report recommends an IEC class 1 turbine. The only turbine that meets this
condition is the Enercon turbine. The Enercon turbine may not be available in the U.S.
3. Port Heiden has not received PCE since December 2009 because they have neglected to file an annual report with RCA. This raises questions regarding the
community’s ability to support a relatively complex energy project.
Given these considerations AEA believes that it is premature to allocate construction funding to this project. The design budget is configured assuming the
design-build process. Assuming that design and construction are funded separately and the work includes a geotech study, AEA believes that $250,000 is
sufficient to complete design and permitting.
Recommend $250,000 for design and permitting.
Partial Funding
Cost of Power:$0.57
Requested Grant Funds:$1,700,000
Matched Funds Provided:$448,536
Total Potential Grant Amount:$2,148,536
AEA Funding Recommendation:$250,000
Funding & Cost
/kWh
871/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
687 Hoonah Heat Recovery Project
Inside Passage Electric Cooperative, Inc.
Construction
Proposer:
Proposed Project Phase:
App #
Heat RecoveryResource:
PlentovichAEA Program Manager:Applicant Type:Utility
Project Description
IPEC proposes to construct a heat recovery project in the community of Hoonah. The Project will recover available jacket water heat from IPEC-Hoonah
diesel generation that is currently being rejected to the atmosphere via radiators and reduce annual diesel heating fuel consumption of nearby community
buildings by over 55,000-gallons/year.
AEA Review Comments
IPEC proposes construction of a diesel heat recovery system in Hoonah that will consist of jacket water heat recovery equipment and a piping loop that will
supply heat to the school complex and community buildings. The heat recovery system is estimated to displace approximately 57,000 gallons of heating fuel per
year.
AEA is managing this project on behalf of IPEC under the Denali Commission-funded rural power system upgrade program. The power system upgrade may
also include hydro projects at Gartina and Water Supply creeks with average output of 340 kW. In the event that the hydro resource is developed, amount of
recoverable diesel heat is expected to decrease to approximately 46,000 gallons/year.
IPEC is requesting supplementary funds above the $530,000 available for the heat recovery project that the Denali Commission is contributing. The project is
scheduled for completion in August 2012.
Recommend full funding.
Full Funding
Cost of Power:$0.42
Requested Grant Funds: $475,000
Matched Funds Provided:$530,000
Total Potential Grant Amount:$1,005,000
AEA Funding Recommendation:$475,000
Funding & Cost
/kWh
881/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
688 Pelican Hydroelectric Upgrade Project
City of Pelican
Construction
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Local Government
Project Description
The City of Pelican proposes to complete the renovation and upgrade of the existing community hydroelectric project to replace the current failing, obsolete,
inefficient and unsafe facility, and to expand the use of underutilized available hydroelectric power to meet unserved electric needs in the community
AEA Review Comments
The City of Pelican proposes completing construction of a 650 kW run-of-river hydro project. Design and construction has been supported by the Denali
Commission through an AEA-managed rural power system upgrade project. Other energy-related projects completed recently in Pelican by AEA include a bulk
fuel plant and a new diesel powerhouse. The hydro project is a rebuild of the 1940s era hydro project that supplied the fish processing facility and the
community. The project is now approximately 60% complete and is scheduled for start-up in 2012. The fish processing facility has had financial problems over
the last few years.
Site control for the project is not finalized. While the Pelican Utility District (PUD), owned by Kake Tribal Corp, holds a DNR easement for the hydroelectric
project from the intake to the power house, the City holds an easement on this same tract only for water and sewer improvements. The City is in discussion with
the PUD to establish an operating agreement for the power system. The City will obtain site control in conjunction with this agreement.
Recommend full funding with requirements that before construction funding is disbursed the City must obtain and demonstrate to satisfaction of AEA 1) site
control for the hydro project, 2) FERC approval of revised construction plans dated 10/11/10, 3) final design and specifications for all grant-funded project
elements, 4) a finance plan for the entire project, and 5) an updated business plan.
Full Funding
Cost of Power:$0.43
Requested Grant Funds:$1,896,836
Matched Funds Provided:$3,624,000
Total Potential Grant Amount:$5,520,836
AEA Funding Recommendation:$1,896,836
Funding & Cost
/kWh
891/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
689 Port Graham Biomass Waste Heat Demo Project
Port Graham Village Council
Construction
DesignProposer:
Proposed Project Phase:
App #
BiomassResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
Port Graham Village Council and Chugachmiut are planning implementation of a 1.45 mmbtu biomass community building heat utility for Port Graham,
Alaska. A feasible biomass technology option has been identified to utilize a GARN Boiler to provide hot water heat from a woody biomass fuel source that can
be obtained from Port Graham Village Corporation lands on a sustained basis. An existing road system supplies access to the fuel source. The project will
provide hot water to heat Port Graham community buildings (New Fire Hall (and accessory building housing a 4-wheeler foam fire trailer), the Old Fire Hall,
the Port Graham Health and Dental Clinic, the Port Graham Village Council Office, the Port Graham Museum/HeadStart Center and the Port Graham
Corporation Office) at a price sufficiently below the cost of current heating costs using fuel oil to justify investment. Existing community buildings fuel oil
heating systems can be retro-fitted to accommodate hot water from the proposed wood-burning GARN Boiler and rely on the existing fuel oil-fired hot water
heating equipment for backup. The GARN Boiler community building heating option will provide heat at less than the current fuel oil based system displacing
more than an equivalent amount of diesel fuel on a Btu basis.
(Project description edited for length and clarity)
AEA Review Comments
The Village Council of Port Graham proposes final design and construction of a 1.45 mmBtu/hr cordwood-fired district heating system that will supply
community facilities and residences.
The Council submitted an application (#488) in round 3 for construction of a wood-fired power generation system that AEA recommended against funding. As
the basis for the round 3 application the Council provided an assessment of local available wood along with other combined heat and power feasibility
information.
Currently the community uses approximately 53,100 gallons/year of diesel to heat community facilities, while the cannery may consume an additional 25,000
gallons/year if it resumes regular operation. Given the plentiful wood resources in the area, biomass district heating appears to be an attractive alternative.
The project budget appears excessive. Of the total budget of $845,805 approximately 20% is for tribal and Chugachmiut project management and
administration salaries. According to a email sent to AEA on 9/14 the travel budget of $80,065 was overestimated by $29,250. The budget includes work in
support of a power purchase agreement totals over $61,000. Since this is not a power project this item is in question. The budget for design consultants totals
$228,600, approximately 27% of the total and substantially higher than similar projects, which are usually around 15%.
Given these concerns with the budget it is premature to allocate funds for construction. Given experience with other cordwood boiler installations AEA
estimates final design and permitting costs approximately $50,000.
Recommend partial funding of $75,000 for final design and permitting.
Partial Funding
Cost of Power:$0.20
Requested Grant Funds:$697,475
Matched Funds Provided:$148,330
Total Potential Grant Amount:$845,805
AEA Funding Recommendation:$75,000
Funding & Cost
/kWh
901/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
690 Hunter Creek Hydroelectric Project
Eklutna, Inc.
Recon
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:IPP
Project Description
The Hunter Creek Hydroelectric Project is a potential hydroelectric resource in the Matanuska-Susitna Valley with an estimated installed capacity of 6.5 MW.
This proposed reconnaissance study will investigate the resource to determine if a project is viable and to also perform preliminary feasibility work on the
project location, size, and resource availability.
AEA Review Comments
Eklutna Inc proposes recon assessment of a 6.5+MW hydro project on Hunter Cr. The project would include an extremely long penstock (13,000 ft cross-basin
pipeline plus an 8,000 ft penstock), and 11 miles of transmission. This proposal is a resubmittal of a round 3 proposal (#475).
DNR DMLW questions that Eklutna owns the land as stated in the application. If BLM owns the land this project falls under FERC jurisdiction. DNR also notes
this is popular recreation area and the project may garner public opposition. DNR DGGS notes proximity to Castle Mt Fault and potential earthquakes.
Recommend full funding.
Full Funding
Cost of Power:$0.17
Requested Grant Funds:$84,000
Matched Funds Provided: $16,000
Total Potential Grant Amount:$100,000
AEA Funding Recommendation:$84,000
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
691 Glacier Fork Hydroelectric Project
Glacier Fork Hydro, LLC
Recon
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
The Glacier Fork Hydroelectric Project is an approximately 75 MW storage project proposed for the Glacier Fork of the Knik River. Electricity from the project
would be delivered into the railbelt transmission grid via a new approximately 20-mile transmission line to existing transmission infrastructure in the vicinity
of the Old Glenn Highway bridge over the Knik River. A map of the project is included at the end of the application in Attachment I.
AEA Review Comments
Glacier Fork LLC proposes reconnaissance assessment of a 75 MW hydro storage on Glacier Fork of the Knik River. This project was recommended in RE Fund
round 3 (#493) but insufficient funds were available.
Since last year there have two developments related to this project:
1. The Railbelt Energy Integrated Energy Resource Plan has been finalized by AEA. The plan identifies the Glacier Fork as a potential large hydro generation
site.
2. The Alaska Legislature appropriated $10 million in FY11 to AEA for Railbelt large-scale hydro planning, design, and permitting. These funds were for Susitna,
Chakachamna, and Glacier Fork projects. AEA will be managing the funded activities for these projects.
Given that funding support is already in place to study Glacier Fork, AEA does not believe that additional RE Fund allocations are necessary.
No funding recommended.
Not Recommended
Cost of Power:$0.16
Requested Grant Funds:$210,000
Matched Funds Provided:$40,000
Total Potential Grant Amount:$250,000
AEA Funding Recommendation:
Funding & Cost
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921/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
692 Elfin Cove Hydroelectric Project
Community of Elfin Cove Utility Commission
Design
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
The project will include a run-of-river hydroelectric project between Crooked Creek and Jim’s Lake (the upper project), and a second storage hydroelectric
project between Jim’s Lake and tidewater (the lower project). According to Polarconsult’s June 2010 Reconnaissance Study, the upper project would have an
estimated installed capacity of 50 kW, and the lower project would have an estimated installed capacity of 150 kW. These projects will meet an estimated 97%
of Elfin Cove’s existing electrical demand, and also provide a substantial amount of interruptible excess electricity
AEA Review Comments
The Elfin Cove Utility proposes final design and permitting of a 50 kW run-of-river hydro project at Crooked Creek and a 150 kW storage hydro project at Jim’s
Lake. Feasibility study was already funded by the Denali Commission/AEA alternative energy RFP (#17). Elfin Cove submitted a similar proposal in RE Fund
round 3 (#446) that was recommended but was not funded due to insufficient funds.
The proposed project is sited on USFS land, indicating FERC license will be required. AEA has constructed a power and bulk fuel system under the RUS energy
program. Elfin Cove expects to deliver the feasibility report in December 2010.
Recommend full funding for final design and permitting with requirement that AEA approve the feasibility study before any funds are disbursed.
Full Funding
Cost of Power:$0.52
Requested Grant Funds:$347,000
Matched Funds Provided:$48,000
Total Potential Grant Amount:$395,000
AEA Funding Recommendation:$347,000
Funding & Cost
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931/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
693 Fourth of July Creek Hydroelectric Project
Independence Power, LLC
Feasibility
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:IPP
Project Description
The Fourth of July Creek Hydroelectric Project is a low-impact run-of-river renewable energy project proposed near Seward, Alaska. The project would be
located east of the Spring Creek Correctional Facility and Fourth of July Creek Industrial Park, across Resurrection Bay from the City of Seward. The project is
anticipated to have an installed capacity of 5.4 MW and provide an estimated 21,700 MWh of energy annually. The project would supply approximately one
third of Seward Electric System's annual energy requirements.
AEA Review Comments
Independence Power LLC proposes conceptual design and feasibility assessment of 5.4 MW project on Fourth of July Creek near the Seward Correctional
Facility. Independence Power received a grant for recon assessment from RE Fund round 1 (#86). A similar proposal was submitted and recommended for RE
Fund round 3 (#494), but insufficient funding was available.
Independence Power completed a final recon report in early October 2010. Generally AEA agrees with the report's conclusions that further study is warranted.
AEA is concerned about impacts of potential Fourth of July Creek torrents on proposed infrastructure.
Recommend full funding.
Full Funding
Cost of Power:$0.13
Requested Grant Funds:$136,500
Matched Funds Provided:$61,500
Total Potential Grant Amount:$198,000
AEA Funding Recommendation:$136,500
Funding & Cost
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941/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
694 Southern Railbelt Small Hydro Reconn. Study
Polarconsult Alaska, Inc.
Recon
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:IPP
Project Description
Conduct a comprehensive reconnaissance study of small hydro resources on the southern railbelt. The study would focus on alpine rivers and streams in
proximity to the areas currently served by MEA, CEA, HEA, MLP, and SES. The emphasis of the study would be on low-impact run-of-river resources between
500 and 5,000 kW installed capacity. Investigated resources would include rivers and streams shown on USGS 1:63360 maps located in economic proximity
to existing electrical transmission and distribution infrastructure. The study would be conducted in three screening stages. The first stage would include a
desktop assessment of the resources to estimate power potential and fatal flaws (technical, environmental, economic and/or political barriers). The second
stage resource screening would be a desktop technical and financial analysis of the resources that pass stage 1 to identify the most cost effective resources. The
third stage resource screening would be a field visit to those resources that pass stage 2 to collect further data about the resource and provide reconnaissance-
level technical and financial analyses. The budget allows for up to 30 projects to receive stage 3 review and analysis. The final deliverable for the project
would be a report detailing the resources investigated and the results of all screening stages. The outcome of the study would be the most comprehensive list
yet compiled of the most promising hydropower resources in the southern railbelt region, ranked by development viability. This would guide AEA, utilities,
and other regional decision makers to implement more effective planning efforts for power supply in the railbelt.
AEA Review Comments
Failed Stage 1 review
Did Not Pass Stage 1
Cost of Power:
Requested Grant Funds:$1,375,000
Matched Funds Provided:$80,000
Total Potential Grant Amount:$1,455,000
AEA Funding Recommendation:
Funding & Cost
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951/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
695 Indian River Hydroelectric Project
City of Tenakee Springs Electric Department
Design
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Local Government
Project Description
Replace diesel generation of electricity for the community of Tenakee Springs with renewable hydroelectric power. The City of Tenakee Springs proposes to
construct a hydroelectric project on Indian River. This will be a low head, run-of-river plant displacing the use of 44,400 gallons of diesel fuel annually.
Design, engineering, and construction will involve the City of Tenakee Springs, multiple state and federal agencies, private contractors, and the Alaska
EnergyAuthority.
AEA Review Comments
The City of Tenakee Springs proposes final design and permitting of a 120 kW run-of-river hydro project at Indian River. The City submitted a similar
application under RE Fund round 3 (#447), but there was insufficient funding available. Funded by the DC/AEA alternative energy grant program, the City has
completed a feasibility assessment for this project. Over the last year the City has submitted permit applications and obtained LIDAR topo mapping of the
project site using remaining feasibility funds. In general, the City has carefully managed funding for the project.
The project would be located on state and city land. The project received a non-jurisdiction finding from FERC in May 2010.
In round 1 AEA recommended against funding final design and permitting before a subregional energy plan that addressed systems in Tenakee, Hoonah, and
Pelican was prepared. Hoonah is pursuing hydro development in nearby projects, while Pelican is upgrading its existing hydro project. In AEA’s RE Fund round
3 review, given these circumstances and the long distances between these communities, AEA saw no reason to delay consideration of a hydro project in Tenakee
further.
Recommend full funding.
Full Funding
Cost of Power:$0.30
Requested Grant Funds:$203,000
Matched Funds Provided:$26,000
Total Potential Grant Amount:$229,000
AEA Funding Recommendation:$203,000
Funding & Cost
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Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
696 Merrill Field Landfill Gas Heating/Energy Project
Municipality of Anchorage
Design
FeasibilityProposer:
Proposed Project Phase:
App #
OtherResource:
PlentovichAEA Program Manager:Applicant Type:Local Government
Project Description
The project will utilize landfill gas (LFG) generated by wastes at the former Merrill Field Landfill site to fuel one or more boiler units at the adjacent
Anchorage Fire Department (AFD) Fire Training Complex. The complex has four buildings which use boilers for primary heat. The project would include
either installation of a central boiler system feeding into the existing boiler heat systems or modification of existing boilers at individual buildings. The project
will also include expansion of existing LFG collection systems at the landfill site, as well as gas process, compression and transmission equipment, as needed.
Ultimately the current gas production could support local generation of electricity (100 to 200 kw) or an expanded district hating system providing base heat
load for facilities adjacent to the Fire Training Center. Because of uncertainties in gas impurities, off site facility configurations and other limitations, this
grant proposal has been developed toward a district heat system for the Fire Training Facility only. The first phase of the grant project would be a feasibility
study to develop other options, optimize the system and identify potential revenue streams which could flow from this project.
AEA Review Comments
Municipality of Anchorage Solid Waste Services proposes recovering remaining landfill gas from the Merrill Field collection system and piping it to the Muni-
owned Anchorage Fire Training Center. Landfill gas would fire a central boiler for the 4-building facility.
The concept of using landfill gas for heating is sound. However, given that project would displace only 81,000 million Btus over the 15-year lifespan of the
project, the payback of the project is over 50 years.
Recommend no funding.
Not Recommended
Cost of Power: $0.15
Requested Grant Funds:$2,000,000
Matched Funds Provided:$200,000
Total Potential Grant Amount:$2,200,000
AEA Funding Recommendation:
Funding & Cost
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971/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
697 Napakiak Wind Design & Construction Planning
Napakiak Ircinraq Power Company
Design
Feasibility
ReconProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
Besides photovoltaic power, the only clean emissions free renewable power source with the potential for significantly lowering energy costs in Napakiak, (pop.
370) is wind energy. The community has selected a wind site on land owned by the corporation along a newly-constructed 8.9 mile, 12470 V, 3 phase tieline
over which the community receives all of its electricity from Bethel Utilities. This tieline is capable of handling up to 2 MW of power. Funding is being sought
to complete final designs, construction cost estimates and integration studies needed for a construction ready project. The preliminary feasibility favors the
installation of sufficient wind capacity to meet the majority of the community energy requirements and potentially sell wind energy back across the tie line
into Bethel.
AEA Review Comments
Napakiak Ircinraq Power Company proposes reconnaissance through and design/permitting for a wind energy project for the Bethel-Napakiak grid. In summer
2010 AEA provided a met tower for onsite wind resource assessment in Napakiak. Data collection is ongoing.
There are other significant energy planning and project development activities taking place in Bethel. The City of Bethel has been funded through the RE Fund
round 1 for a 400 kW wind project. To date the City and utility have not reached an agreement for power purchase or interconnection. Additionally Village
Wind Power is funded under round 0 to assess feasibility of a large scale wind power project. AVCP has submitted an application for final design and
construction in round 4 for a 200 kW wind project to serve Bethel (#600). TDX, who state that are assuming ownership of the Bethel utility in summer 2011,
has proposed feasibility through construction of a 1+ MW wind system on the Bethel grid. Finally AVCP Regional Housing Authority is proposing study of hydro
at the Kiseralik and Chikuminuk Rivers in Round 2 of the RE Fund. Therefore, there is a need for a regional integrated resource energy plan in the Bethel area to
coordinate when and where energy projects should be developed. This proposal should be considered in the context of an integrated plan to assure proper
sizing, timing, and integration of multiple energy projects. AEA believes that such an overall plan for the Bethel power system should be developed before
proceeding with any additional wind development.
AEA has met with City of Bethel, AVCP Rural Housing Authority, Yukon Kuskokwim Health Corporation, Calista Corporation and TDX to discuss regional
energy planning, including wind and hydro development. The group has agreed to pursue coordinated energy planning for the region and the Bethel grid.
AEA believes that Bethel’s large load provides the opportunity for deploying megawatt scale turbines with better economics than smaller-scale wind
installations. TDX, as the major power generator for the Bethel system, is the logical entity to lead feasibility assessment of wind generation in Bethel.
Recommend no funding through the RE Fund. However AEA will provide direct assistance through its wind resource assessment program to Napakiak for
completing the current wind assessment work in the community.
Not Recommended
Cost of Power:$1.08
Requested Grant Funds:$282,395
Matched Funds Provided:$20,000
Total Potential Grant Amount:$302,395
AEA Funding Recommendation:
Funding & Cost
/kWh
981/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
698 Kongiganak Flywheel Energy Storage
Puvurnaq Power Company
Construction
DesignProposer:
Proposed Project Phase:
App #
OtherResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
This project demonstrates the use of flywheel energy storage to stabilize any village power grid. Grid stability is needed to achieve increased use of wind and
other renewable energy sources in diesel mini grids. The proposed project consists of installation of a Powerstore flywheel energy storage system, along with a
state-of-the-art Distributed Digital Control System, to create a very high-penetration wind diesel system with residential thermal storage in Kongiganak,
Alaska. The demonstration of this system will enable the effective sizing and cost reduction measures to be identified so that the system can be widely
replicated throughout the state and other power systems throughout the country.
AEA Review Comments
Puvurnaq Power Company, owned by the Native Village of Kongiganak, proposes to install a 300-kW Powerstore flywheel as a component of their 450-kW wind-
diesel system under development. The function of the proposed flywheel is to maintain power quality and stability by quickly supplying power to the system
when load or wind energy supply changes. This allows the system to consume less diesel capacity to supply the needed “spinning reserve”.
The wind system in Kongiganak has been under construction since spring 2009 and is funded, in part by RE fund round 1 (#110). The system is one of four
projects under the auspices of the Chaninik Wind Group receiving state funding for wind construction:
1. Kongiganak ($3.2 million of state funds allocated)
2. Kwigillingok ($3.2 million of state funds allocated)
3. Tuntutuliak ($3.36 million of state funds allocated)
4. Kipnuk ($1.6 million of state funds allocated)
In addition to the total of $11.36 million in RE fund and direct legislative appropriation, the projects are receiving $750,000 from the USDOE for residential
thermal devices.
Construction is behind schedule on these projects chiefly due to integration and control issues. The concept of using distributed residential heating loads and
smart meters for frequency control has not been proven. Additionally the controllers for the Windmatic 17S turbines are under redesign and testing.
Since the wind-diesel system is currently under development and its operational characteristics are not yet fully understood, the economic evaluation of this
application has a high degree of uncertainty.
Until these projects are operational as currently scoped, AEA does not support allocation of additional public funds for expanded scope.
Recommend no funding.
Not Recommended
Cost of Power:$0.55
Requested Grant Funds:$1,395,231
Matched Funds Provided:$166,137
Total Potential Grant Amount:$1,561,368
AEA Funding Recommendation:
Funding & Cost
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991/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
699 Akiak Integrated Renewable Energy Projects
City of Akiak
Design
Feasibility
ReconProposer:
Proposed Project Phase:
App #
OtherResource:
AEA Program Manager:Applicant Type:Local Government
Project Description
Community Energy Information and Renewable Energy and Energy Efficiency Assessment The purpose of this project is to remove barriers to improving the
energy efficiency, using renewable energy and increasing the reliability of existing energy infrastructure and is based on collecting and analyzing the
information needed to make good decisions.
This project has four elements that will result in a comprehensive community-based renewable energy plan based on wood, wind and solar power. The four
elements of the work plan consist of the following:
1. Community Energy Surveys
2. Community Energy and Resource Monitoring
3. Wood Energy Assessment
4. Wind and Solar Energy Assessment
AEA Review Comments
Akiak proposes
1. Community energy surveys
2. Community Energy and resource monitoring
3. Wood Energy assessment
4. Wind and solar energy assessement
Following is text from Tanana (see #281) The work that the applicant proposes does indicate a particular type of project. While potentially valuable to Akiak,
work is more effectively accomplished using standard methods on a statewide and regionwide basis that builds on the work already done in the statewide energy
report that was released after this application.
Failed Stage 1 review
Did Not Pass Stage 1
Cost of Power:$0.63
Requested Grant Funds:$142,000
Matched Funds Provided:
Total Potential Grant Amount:$142,000
AEA Funding Recommendation:
Funding & Cost
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1001/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
700 High Penetration Wind Diesel Power and Heat
Kipnuk Light Plant
Construction
DesignProposer:
Proposed Project Phase:
App #
WindResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
The proposed project is a medium- to high-penetration wind systemfor the community of Kipnuk, Alaska. The project will be owned and operated by the
Kipnuk Light Plant and the community of Kipnuk, and consists of three Northwind 100 wind turbines, a modular hybrid wind diesel power conditioning
control module, a 200 kW frequency controlled heat recovery boiler, 20 residential electric thermal storage devices. This hybrid power system is designed to
fit with the existing diesel power plant, and wrap into any new plant proposed for the future. The wind turbines are well proven in Alaska, the power
conditioning and controls module is able to be located next to the existing or new power plant. The power control and conditioning module will contain new
wind-diesel controls and switchgear, a grid regulating inverter and energy storage unit for grid stabilization. The 20 electric thermal storage devices will
capture any excess available wind energy and store it as heat for residential heating. The wind turbines and hybrid controls and power conditioning module
will be mounted on pile foundations on property provided by the community. This wind diesel system architecture is scalable through the addition of wind
turbines, new diesel gensets, addition of more real energy storage in the form of batteries, flywheel or capacitors. The system is also capable of
accommodating the addition of residential electric thermal storage devices when additional wind energy capacity becomes available.
AEA Review Comments
Kipnuk Light Plant proposes final design and construction of 300 kW wind-diesel system, including a 250 kW battery storage system.
Kipnuk received a direct legislative appropriation of $1.6 million in July 2009. The system is one of four projects under the auspices of the Chaninik Wind
Group receiving state funding for wind construction:
1. Kongiganak ($3.2 million of state funds allocated)
2. Kwigillingok ($3.2 million of state funds allocated)
3. Tuntutuliak ($3.36 million of state funds allocated)
4. Kipnuk ($1.6 million of state funds allocated)
In addition to the total of $11.36 million in RE fund and direct legislative appropriation the projects are receiving $750,000 from the USDOE for residential
thermal devices.
Unlike the other Chaninik projects, Kipnuk proposes to use Northwind 100 turbines. Similar to the other Chaninik projects, Kipnuk plans to use distributed
residential heating loads and smart meters for frequency control.
Kipnuk has not completed conceptual or final design. The existing legislative funding is available for these purposes.
Kongiganak, the first of the Chaninik projects, is behind schedule chiefly due to integration and control issues. The concept of using distributed residential
heating loads and smart meters for frequency control has not been proven.
Recommend no funding.
Not Recommended
Cost of Power:$0.65
Requested Grant Funds:$3,424,041
Matched Funds Provided:$1,200,000
Total Potential Grant Amount:$4,624,041
AEA Funding Recommendation:
Funding & Cost
/kWh
1011/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
701 Palmer Ice Arena Geothermal & Heat Recovery Improvements
City of Palmer
Construction
DesignProposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:Local Government
Project Description
The City of Palmer owns and operates the Palmer Ice Arena which is located at 480 E. Cope Industrial Way, Palmer Alaska. The Ice Arena was built in 2004,
and opened in 2005, though the building is new, the compressors and refrigeration system are a 1950 design and were acquired from the decommissioned
Bonnie Cusack Ice Arena. Wolf Architecture, Inc. performed the energy audit of the Ice Arena and identified the refrigeration system accounting for 45%, and
the heating accounting for 32% of the annual costs. The energy audit recommended replacing the current equipment with new, more efficient, correctly sized
equipment for the facility. With more modern compressors, the facility would easily be able to increase efficiency by 20% or more. It was recommended to
use a central Geothermal Ground Source Heat Pump system for the cooling and heating demands. Additionally, waste heat recovery could be implemented
with the new equipment in order to use the heat created in the required heating areas of the building. This project would be competitively bid according to the
City ordinances and managed by the Public Works Department. The City Council has adopted resolution no 10-042 and 10-060 establishing a budget for the
Ice Arena Expansion project.
AEA Review Comments
The City of Palmer proposes final design and construction of a ground source heat pump to provide heating and cooling for the City’s ice arena. Construction
would commence in spring 2012 and be completed fall 2012.
The current heating and refrigeration system is old, inefficient and needs to be replaced. In order to assess whether it is economically beneficial to support final
design costing $120,000 the City would need to provide basic feasibility information comparing installed cost and O&M costs of a new conventional boiler and
compressor system with costs of a ground source heating pump system.
AEA requested this and other information from the City. The City provided only an electronic copy of the facility energy audit and indicated that the information
was contained in the report. The energy audit does not contain the information that AEA requested and does not serve the purpose of a feasibility phase report
required in the request for applications. AEA and its economic consultants are unable to assess viability of this project and whether it is reasonable to provide
funding for final design.
No funding recommended.
Not Recommended
Cost of Power:$0.17
Requested Grant Funds:$1,094,695
Matched Funds Provided:$250,000
Total Potential Grant Amount:$1,344,695
AEA Funding Recommendation:
Funding & Cost
/kWh
1021/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
702 Packers Creek Hydroelectric Project
Chignik Lagoon Power Utility
Construction
Proposer:
Proposed Project Phase:
App #
HydroResource:
OttAEA Program Manager:Applicant Type:Utility
Project Description
Proposed project is a high head run-of-river hydroelectric power plant on Packers Creek in Chignik Lagoon with an installed capacity of 145 kW. Project will
include a 9 foot tall timber dam, 3,220 foot long 16 inch diameter penstock and access trail; 400 square foot power house; 1,500 foot long access road with a
bridge across Packers Creek to the powerhouse; and a 1,700 foot long overhead power line extension to the existing distribution system.
AEA Review Comments
Chignik Lagoon Power Utility was funded at $150,000 in round 1 of the RE fund for final design and permitting (app#14). The Utility submitted a proposal for
construction in RE Fund 2 (#290). AEA recommended no funding since final design and permitting were not complete.
Final design and permitting are still not complete, although the Utility has made some progress. The Utility has completed a conceptual design and has
submitted applications for water rights, wetlands, and other coastal zone authorizations. The Utility has been in discussion with ADF&G for a fish habitat
permit and with Chignik Lagoon Native Corp for obtaining site control. Recently the Utility obtained a non-jurisdiction finding from FERC for the project.
AEA remains concerned that permits are not in place and final design and construction cost estimate are not yet complete. For this reason we cannot support
funding for construction at this time.
Recommend no funding.
Not Recommended
Cost of Power:$0.50
Requested Grant Funds:$2,440,000
Matched Funds Provided:$60,000
Total Potential Grant Amount:$2,500,000
AEA Funding Recommendation:
Funding & Cost
/kWh
1031/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
703 Tuntutuliak Wind Energy Storage
Tuntutuliak Community Services Assn., Inc.
Construction
DesignProposer:
Proposed Project Phase:
App #
OtherResource:
JensenAEA Program Manager:Applicant Type:Utility
Project Description
This is a proposal to add electric thermal and battery energy storage to the existing Tuntutuliak wind/diesel system in order to increase the village’s use of
wind energy and further displace the use and expense of diesel fuel. The project will increase power conditioning capabilities of the Tuntutuliak facility
through the installation of a lithium-ion battery and power conditioning system capable of providing 250 kW of energy for 15 minutes, which is sufficient time
to start a diesel generator after a long period of diesel off operation, and the installation of an additional 92 kW of Electric Thermal Storage (ETS) in
community facilities. The installation of the 250kW Battery Storage System in the existing power facility will provide: 1) adequate fault ride-through; 2)
voltage and frequency support; 3) excess wind energy storage and 4) sufficient energy for extended periods of ‘Diesel Off’ operation. When successful, this
project will provide a cost-effective smart grid system which can be widely replicated throughout the state.
AEA Review Comments
Tuntutuliak Community Services Association proposes to install a 250-kW battery storage system as a component of their planned 450-kW wind-diesel system.
The function of the proposed battery system is to maintain power quality and stability by quickly supplying power to the system when load or wind energy supply
changes quickly. This allows the system to run less diesel capacity to supply the needed “spinning reserve”.
The wind system in Tuntutuliak received a direct legislative appropriation of $1.6 million in July 2009 and RE Fund round 2 design and construction funding in
March 2010 (#273). The system is one of four projects under the auspices of the Chaninik Wind Group receiving state funding for wind construction:
1. Kongiganak ($3.2 million of state funds allocated)
2. Kwigillingok ($3.2 million of state funds allocated)
3. Tuntutuliak ($3.36 million of state funds allocated)
4. Kipnuk ($1.6 million of state funds allocated)
In addition to the total of $11.36 million in RE fund and direct legislative appropriation the projects are receiving $750,000 from the USDOE for residential
thermal devices.
Construction is behind schedule on these projects chiefly due to integration and control issues. The concept of using distributed residential heating loads and
smart meters for frequency control has not been proven. Additionally the controllers for the Windmatic 17S turbines are under redesign and testing.
Since the wind-diesel system is currently under development and its operational characteristics are not yet fully understood, the economic evaluation of this
application has a high degree of uncertainty.
Until these projects are operational as currently scoped AEA does not support allocation of additional public funds for expanded scope.
Recommend no funding.
Not Recommended
Cost of Power:$0.53
Requested Grant Funds:$708,162
Matched Funds Provided:$3,200,000
Total Potential Grant Amount:$3,908,162
AEA Funding Recommendation:
Funding & Cost
/kWh
1041/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
704 Kwigillingok Wind Energy Storage
Kwig Power Company
Construction
DesignProposer:
Proposed Project Phase:
App #
OtherResource:
JensonAEA Program Manager:Applicant Type:Utility
Project Description
This is a proposal to add electric thermal and battery energy storage to the existing Kwigillingok wind/diesel system in order to increase the village’s use of
wind energy and further displace the use and expense of diesel fuel. The project will increase power conditioning capabilities of the Kwigillingok facility
through the installation of a lithium-ion battery battery and power conditioning system capable of providing 250 kWhrs of energy for 15 minutes, which is
sufficient time to start a diesel generator after a long period of diesel off operation, and the installation of an additional 92 kW Electric Thermal Storage (ETS)
units in community facilities. The installation of the 250kW Battery Storage System in the existing power facility will provide: 1) adequate fault ride-through;
2) voltage and frequency support; 3) excess wind energy storage and 4) sufficient energy for extended periods of ‘Diesel Off’ operation. When successful, this
project will provide a cost effective smart grid system which can be widely replicated throughout the state.
AEA Review Comments
Kwig Power proposes to install a 250-kW battery storage system as a component of their planned 450-kW wind-diesel system. The function of the proposed
battery system is to maintain power quality and stability by quickly supplying power to the system when load or wind energy supply changes quickly. This allows
the system to run less diesel capacity to supply the needed “spinning reserve”.
The wind system in Kwig received a direct legislative appropriation of $1.6 million in July 2009 and RE Fund round 1 design and construction funding in March
2010 (#107). The system is one of four projects under the auspices of the Chaninik Wind Group receiving state funding for wind construction:
1. Kongiganak ($3.2 million of state funds allocated)
2. Kwigillingok ($3.2 million of state funds allocated)
3. Tuntutuliak ($3.36 million of state funds allocated)
4. Kipnuk ($1.6 million of state funds allocated)
In addition to the total of $11.36 million in RE fund and direct legislative appropriation the projects are receiving $750,000 from the USDOE for residential
thermal devices.
Construction is behind schedule on these projects chiefly due to integration and control issues. The concept of using distributed residential heating loads and
smart meters for frequency control has not been proven. Additionally the controllers for the Windmatic 17S turbines are under redesign and testing.
Since the wind-diesel system is currently under development and its operational characteristics are not yet fully understood, the economic evaluation of this
application has a high degree of uncertainty.
Until these projects are operational as currently scoped AEA does not support allocation of additional public funds for expanded scope.
Recommend no funding.
Not Recommended
Cost of Power:$0.50
Requested Grant Funds:$708,162
Matched Funds Provided:$3,200,000
Total Potential Grant Amount:$3,908,162
AEA Funding Recommendation:
Funding & Cost
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1051/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
705 Japonski Island Boathouse Heat Pump
City and Borough of Sitka
Construction
DesignProposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:Local Government
Project Description
The City and Borough of Sitka is proposing the design and construction of a hybrid ground source heat pump system to serve the heating needs at the City and
Borough of Sitka's Japonski Island Boathouse Historical Rehabilitation Project. The Japonski Island Boathouse Historical Rehabilitation Project is an
historically accurate renovation of the small boat repair and launch facility originally constructed by the U.S. Navy in 1941. The Japonski Island Boathouse
Heat Pump project hybrid system will consist of a ground source heat pump system that will meet approximately 81% of the facility's heating needs, with a
supplemental electric heat system to make up the difference during periods when the facility's heat loads exceed the capacity of the ground source heat pump
system. The proposed hybrid ground source heat pump system will be installed in tidelands adjacent to the Boathouse. The Renewable Energy Grant Fund
request herein is for the additional design and construction costs for the hybrid ground source heat pump system.
(Project description edited for length and clarity)
AEA Review Comments
City and Borough of Sitka (CBS) proposes design and construction of a ground source heat pump for the historic Japonski Island boathouse, a 2500 sq ft
building undergoing substantial renovations. A capacity of 4-tons is expected for the GSHP system. The GSHP would be deployed horizontally within the tidal
zone, with HDPE pipes buried four feet deep in 2000 sq. ft. of Sitka Sound. The expected coefficient of performance (ratio of heat delivered to electrical energy
input) is 3-4.
Design would be complete in October 2011. Construction would be completed by October 2012. The project is expected to cost approximately $90,000 more
than a conventional oil-fired system.
AEA is concerned about the high project cost versus the relatively small amount of heating oil (2,700 gal/yr) that is being displaced. The applicant notes that
that there may be permitting delays due to staff shortage at DNR. DNR agrees with this point.
The project would provide a demonstration of a ground source heat pump in a prominent location. Given the small project size, AEA believes it is reasonable to
fund both design and construction.
Recommend full funding with requirement that AEA accept final design and construction budget before any construction funds are disbursed.
Full Funding
Cost of Power:$0.09
Requested Grant Funds:$125,000
Matched Funds Provided:$40,000
Total Potential Grant Amount:$165,000
AEA Funding Recommendation:$125,000
Funding & Cost
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1061/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
706 Sitka Renewable Energy Feasibility for Wastewater Treatment Plant
City & Borough of Sitka
Design
Feasibility
ReconProposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:Local Government
Project Description
Application to AEA for $20,000 grant to evaluate the technical and financial feasibility for integration and optimization of heat pump technologies to offset
heating oil and grid electricity usage in the Sitka Wastewater Treatment Plant on the waterfront on Japonski Island Sitka.
AEA Review Comments
The City and Borough of Sitka proposes a reconnaissance through conceptual design for an effluent heat pump to heat the city's wastewater treatment plant.
Two 60-ton heat pumps would transfer the heat in the effluent to heat the wastewater treatment plant. The expected coefficient of performance (the ratio of the
heat output relative to the electrical energy inputted) is 3-4. The project would also provide cooling by direct heat transfer. The current HVAC system has
reached its useful life and needs to be replaced.
Although the preliminary economic analysis prepared for the REF review indicates marginal economics, further design work and refinement of assumptions may
improve project viability.
Recommend full funding.
Full Funding
Cost of Power:$0.09
Requested Grant Funds:$20,000
Matched Funds Provided:$6,000
Total Potential Grant Amount:$26,000
AEA Funding Recommendation:$20,000
Funding & Cost
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1071/5/2011 1:41:29 PM Page
Alaska Renewable Energy Fund: Round 4 - Preliminary Findings
707 Sitka Renewable Energy Feasibility for Centennial Hall & Library
City & Borough of Sitka
Design
Feasibility
ReconProposer:
Proposed Project Phase:
App #
GeothermalResource:
McMahonAEA Program Manager:Applicant Type:Local Government
Project Description
Application to AEA for $30,000 grant to evaluate the technical and financial feasibility for integration and optimization of heat pump technologies to offset
heating oil and grid electricity usage in Centennial Hall and the adjacent Kettleson Memorial Library on the waterfront in downtown Sitka.
AEA Review Comments
The City and Borough of Sitka proposes a reconnaissance through conceptual design for a seawater heat pump that would provide heating and cooling for
Centennial Hall and the Kettleson Memorial Library. The recon assessment would be complete in September 2011, and the feasibility assessment/conceptual
design would be completed by October 2011.
Although the preliminary economic analysis prepared for the REF review indicates marginal economics, further design work and refinement of assumptions may
improve project viability.
Recommend full funding.
Full Funding
Cost of Power:$0.09
Requested Grant Funds:$30,000
Matched Funds Provided:$9,000
Total Potential Grant Amount:$39,000
AEA Funding Recommendation:$30,000
Funding & Cost
/kWh
1081/5/2011 1:41:29 PM Page