HomeMy WebLinkAboutSand Point Wind Project AEA&TDX&SPG 08-2015-WSand Point, Alaska
Wind project improves infrastructure and reduces local energy costs
Quick Facts
Total Project Costs: $2,989,606
Funding: Renewable Energy Fund & Local Funds
Capital Costs
Design: $294,000
Construction: $2,695,265
Equipment Specifications
Make/Model: (2) Vestas V39
Rated Capacity: 500 kW
Net Capacity Factor: 26.8%
Rotor Diameter: 39 meters
Hub Height: 40.5 meters
Total Rated Capacity: 1 MW
Diesel Fuel Offset
Estimated Annual: 126,429 gallons
Actual Annual: 81,000 gallons
Aug. 2011-Dec. 2014: 210,000 gallons
Fuel Savings
Estimated Annual: $386,872
Actual Annual: $371,000
Aug. 2011-Dec. 2014: $965,000
Benefit/Cost Ratio: 4.54
Sand Point Wind Project
Project Overview
In partnership with the Alaska Energy Authori-
ty (AEA), Sand Point Generation (SPG) and TDX
Power completed the design and construction of a
1-MW wind farm in Sand Point, Alaska. The system
is comprised of two 500kW Vestas V39 turbines. It
was designed to integrate into the existing diesel Sand
Point Generation utility and provide wholesale power
to the community. A secondary load system was de-
signed to help heat the school, clinic, and community
building through excess wind energy but has yet to be
completed. Funding has been appropriated and SPG is
ready to move into its next phase of completion.
Objectives
The objectives of this project were to displace diesel
fuel and provide the community of Sand Point with a
renewable, reliable, and cost effective energy source.
Economic Feasibility
The project became operational in August of 2011.
Between August of 2011 and December of 2014, the
turbines have generated 2,864 megawatt-hours of
electricity and 413 MMBtu of thermal energy. This
has allowed SPG to displace 210,000 gallons of diesel
fuel and has saved the community $965,000 in avoid-
ed fuel costs. Over its 20 year projected lifespan, the
project has a calculated benefit/cost ratio of 4.54.
Project Specifications
The project was a joint effort beween AEA, SPG, TDX
Power, and Aleutian Wind Energy (a subsidiary of
TDX). AEA provided funding and project support
while SPG owns the utility. Through TDX Power,
AWE designed, constructed, and maintains the proj-
ect. The Vestas V39 are each 500 kW and are intended
for a range of harsh conditions, especially exposed lo-
cations. The turbine’s electronic controller checks the
Sand Point and Vestas V39, photo courtesy of AEA.
power output several times per second; when the pow-
er output is too high, a blade pitch mechanism turns
the blades slightly out of the wind. Conversely, the
blades are turned into the wind when the wind drops
again. This maximizes output for all wind speeds. In
addition to the turbines, TDX considered adding a
secondary load system to the power plant to transfer
electricity to electric boilers in the school, clinic, and
community building.
Allocation of Funding
The Alaska Energy Authority’s Renewable Energy
Fund contributed $1,168,359 for the design and con-
struction of the project. The Department of Energy
contributed $945,136 and TDX power contributed
$875,800 for the same project phases.
Learning Experiences/Challenges
Rather than operating at 500 kW, the turbines have
been curtailed at 300 kW each until the new secondary
load system is integrated. In 2015, TDX Power and
SPG received $307,120 in legislative appropriations for
the $383,900 project. Construction is the only phase to
complete before operation can begin.
Community Benefits
Prior to turbine installation, electricity costs were
$0.39/kWh. With the displacement of fuel and AEA’s
Power Cost Equalization program, SPG has been able
to reduce electricity costs to $0.20/kWh. This shows a
cost reduction of 25 percent.
One of the benefits this project provides is that the
increase in local savings has allowed for improvements
to be made around the community. Infrastructure is
expanding to include new harbor development and
additional projects are also underway.
This project will serve to further demonstrate a suc-
cessful excess wind-to-heat application, leading to
project and operating experience that can be shared
across the industry.
The school, clinic, and community building also
benefit from the secondary load system; using excess
wind energy will allow them to displace a portion of
their diesel heating costs. With their savings they can
invest more money in community health, education,
and infrastructure projects. Installing the system in the
school also provides an opportunity to reach children
and influence their understanding of energy use and
impact.
Other non-economic public benefits include a reduc-
tion in atmospheric emissions and a reduced depen-
dency on fuel sources with volatile prices.
Project Contact Information
Parties Involved:
John Lyons, TDX Power
Email: jlyons@tdxpower.com
Case Study Author:
Zoe Tressel, AEA
Website: Akenergyauthority.org
Phone: 907-771-3000
Sand Point Wind Project
Vestas V39 turbines, photo courtesy of Rich Stromberg, AEA.
Vestas V39 turbines, photo courtesy of Rich Stromberg, AEA.
Published August, 2015