Energy Efficiency and Renewable Power Sources K’enakannu Board Room

1. Alaska Forum on the EnvironmentEnergy Efficiency and Renewable Power SourcesDena’ina Convention CenterAnchorage, AlaskaFebruary 8-12, 2010

2. Energy Efficiency and Renewable Power Sources K’enakannu Board Room Tuesday, 9:00 A.M. – 11:45 A.M. February 9, 2010

3. Diesel Efficiency Diesel efficiency is definitely not the most popular or glamorous discussion topic but with proven techniques we can cost effectively reduce emissions output and lower the cost of power production in rural Alaska.

4. Alaska Energy Authority Rural Energy Group Rural Power System Upgrades and Technical SupportAlan Fetters Project Manager 907-771-3000 1-888-300-8534 toll free http://www.akenergyauthority.org/

5. Realities of Rural Power Generation Data from FY2008 Power Cost Equalization (PCE) report

6. Alaska Energy Authority RPSU Program • The Alaska Energy Authority (AEA) implements rural power plant construction, renewals, repairs and technical assistance via the Rural Power System Upgrade (RPSU) program • The program encompasses diesel powerhouses, alternative energy sources and distribution • The RPSU program is some of the most important work we do at the AEA for rural communities • The success of this program directly impacts the health, safety, economics and quality of life in rural communities

7. Alaska Energy Authority RPSU Program • Every RPSU project is designed to meet the unique needs of each community and take advantage of locally available resources in order to reduce emissions and lower the cost of power production • The RPSU program supports approximately 120 independent rural electric Utilities that are not part of a cooperative like AVEC, AP&T or the North Slope Borough • Diesel efficiency is one of the core values of this program along with long term reliability and safety

8. Rural Power Generation Data from FY2008 Power Cost Equalization (PCE) report

9. Powerhouse Project in Tuluksak Before After

10. Powerhouse Project in Chitina Before After

11. Electrical Distribution in Chignik and Napakiak

12. Electrical Distribution

13. Alternative Energy: Hydro in Ouzinkie

14. Alternative Energy: Hydro in Larsen Bay

15. Alternative Energy: Hydro in Pelican Existing Wooden Flume to be Replaced

16. Alternative Energy: Hydro in Chitina Stream Gauging for Hydro Power

17. Technical Assistance Fort Yukon

18. Technical Assistance Fort Yukon Fort Yukon Engine Selection Analysis kWh/gal kW3456C27250    15.3    11.7300    15.8    12.2350    15.7    12.6400    15.5    12.9

19. Technical Assistance Fort Yukon • The previous graph shows the fuel efficiency of a "typical" CAT 3412 genset, a CAT 3456 (500+/-kW) genset and the C27 (619 kW) • Their first choice after talking with sales was a C27. In simple terms, the fuel economy of the C27 is horrendously poor! • Based on Fort Yukon PCE data from FY2007 to generate 3,123,000 kWh: • it will take approx. 248,000 gallons of fuel using a C27 • it will take approx. 201,500 gallons of fuel using a 3456 • Estimated fuel savings of 46,500 gallons per year using the 3456 vs a C27 or 4894 tons of CO2 annually • The fuel savings in a single year will pay for the purchase and installation of two 3456 generator sets

20. Emergency Assistance for Chignik This was the powerhouse on the East side of Chignik Bay

21. Cumulative Fuel Savings from RPSU Program 2009 equal 14,735 tons of CO2 diverted

22. Inside the Typical Powerhouse

23. Typical Efficiency of an Older Diesel Powerhouse 20% Utilized 80% Wasted

24. Potential Rural Power System Efficiency Upgrades

25. Potential Efficiency of a New Powerhouse 63% Utilized 37% Wasted

26. Potential Efficiency of a New Powerhouse • With new modern electronically controlled engines, automated paralleling and dispatching switchgear we typically see a 20-25% increase in diesel efficiency or kWh generated per gallon of fuel consumed • If heat recovery is added to the system there is potential for another 10-15% saving in space heating • This can equate to a nearly 30-40% in total fuel savings. The payback improves if you consider the reduced maintenance costs associated with a new facility

27. Potential Efficiency of a New Powerhouse • Routine maintenance and technical support is required to keep these power systems running reliably and efficiently. • The next graphs convey what can happen to a new powerhouses efficiency without proper opeeration and maintenance

28. Challenges in Maintaining Efficiency New powerhouse constructed in 2000. Efficiency variation in kWh/gal Suggests inconsistent maintenance, sporadic repairs and some generator sets out of service for long periods

29. Challenges in Maintaining Efficiency New powerhouse constructed in 2003. Steady decline suggests low level of maintenance without timely repairs, overall engine efficiency decline and system out of tune

30. Training and Routine Maintenance is Important The RPSU program includes power plant operator training at Alaska Vocational Technical Center (AVTEC) in Seward and training on site during powerhouse construction or renovation

31. Training and Routine Maintenance is Important New paralleling, load sensing training switchgear was recently installed at AVTEC this past January by AEA just in time for the new class

32. Case Study at Akiachak Powerhouse After Before

33. Akiachak Efficiency Improvements • The community of Akiachak has realized efficiency improvements that has resulted in significant fuel savings and emission improvements from an AEA RPSU project completed in the fall of 2008 • AEA partnering with the Denali Commission and the community replaced the old diesel powerhouse with a new modern powerhouse as part of AEA’s RPSU program • The electric utility is Akiachak Native Community Electric Co.

34. Akiachak Powerhouse Improvements The above information was gathered from the Utility’s FY2008 & FY2009 Power Cost Equalization (PCE) reporting

35. Akiachak Powerhouse Improvements The above information was gathered from the Utility’s FY2008 & FY2009 Power Cost Equalization (PCE) reporting

36. AkiachakHeat Recovery The above information was gathered from the powerhouse SCADA system and PCE

37. Akiachak Combined Powerhouse & Heat Recovery Savings from reduced maintenance and the cost of the extensive electrical distribution portion of the project was not removed and would have a resulted in reducing the payback years

38. Akiachak Powerhouse Interior of the new powerhouse RPSU technician training and working with the local Akiakchak operators

39. Akiachuk Factors Contributing to the Efficiency Gains • Proper design and construction considering efficiency, reliability and maintainability • Analyzing the community electrical load and matching it to the proper generators • Automated paralleling load sensing switchgear with modern a Supervisory Control And Data Acquisition (SCADA) system • Heat recovery from the new powerhouse to the community’s municipal water system

40. Automatic Load Sensing Switchgear Higher Day Demands Lunch Dinner Low Night Demand Savings potential from dispatch of most efficient source to match demand

41. Matching Generation Source to Load

42. Automatic Paralleling Load Sensing Switchgear

43. Remote Monitoring Supervisory Control and Data Acquisition

44. Remote Monitoring Note efficiency of 15.78 kWh/gallon

45. Automatic Load Sensing Switchgear • The brain of the switchgear is a Programmable Logic Controller (PLC) • Source of majority of SCADA information • Monitors power demand and automatically dispatches most efficient generation source, diesel or alternative • Monitors maintenance intervals. Will automatically put replacement engine on line, shuts down and locks out overdue engine

46. Automatic Load Sensing Switchgear Modern Generator Control Package

47. Waste Oil Injection Injection of waste engine oil back into the fuel

48. Powerhouse Fire Protection Fogging water mist system

49. Heat Recovery & Receptor Equipment Wet exhaust manifold on Caterpillar 3456 generator set

50. Heat Recovery & Receptor Equipment Heat recovery system is expected to meet all the clinics needs Fuel tank with heat recovery loop to allow use of less expensive and higher btu content #2 fuel in the winter months BTU meter