AVEC Challenges and Successes

USAEE / IAEE ConferenceAnchorage, Alaska

July 28, 2013Steve Gilbert, Manager, Energy Projects Development

Alaska Village Electric Cooperative

AVEC IS A NON-PROFIT MEMBER-OWNED

COOPERATIVEFormed in 1968 55 villages7 member Board23,000

PopulationVillages range in

sizeAnvik – 86

peopleHooper Bay –

1,124 people

SYSTEM INFORMATION80 Anchorage-

based Employees

7,800 services48 power plants

165 + diesel generators

95 Village technicians

530 + fuel tanksOver 5 million

gallons of diesel per year

11 wind systems serving 15 villages34 wind turbinesGambell Cousins

AVEC BOARD 2018 GOALSLower diesel use 25%

1,250,000 gallons 77% of our fuel is used in Wind Class 4+ villages Wind is 6% of generation capacity

Reduce power plants by 50% Interconnect another 24 villages

Reduce non-fuel costs by 10% Plant costs, depreciation, interest…

CHALLENGES AND SUCCESSES

DistanceFuelPermafrostLack of infrastructure

AVEC’s power plants are far apart

AVEC’S DELIVERED FUEL COST

• Average 2002          1.29• Average 2003          1.47    • Average 2004         1.98    • Average 2005      2.26    • Average 2006 2.26• Average 2007 2.93 • Average 2008  4.55   • Average 2009 3.02• Average 2010 3.30• Average 2011 4.27• Average 2012 4.02Increase 2002 - 2012 $2.73 +312%

Active layer is softContributes to poor soils conditions

Presents challenging environmental conditions

PERMAFROST

LACK OF INFRASTRUCTUREComplex logisticsWeather impactsAdds to cost

Hauling equipment between villages

And here’s the power pole!

CHALLENGES AND SUCCESSES

Non fuel generation – windInterconnection of villagesTrainingNeed for an economic base

Benefits of wind generation coupled with new diesel engines

Kasigluk

• Many of AVEC’s 55

villages are in class 4+ wind regimes

• A high-efficiency diesel generator yields 14 – 15 kWh/gallon

• A 100-kW turbine could produce 220,000 kWh/yr = 16,000 gallons displaced

• Four units (a wind plot) = 64,000 gallons displaced

INTERCONNECTING VILLAGES

REDUCE THE NUMBER OF POWER PLANTSLARGER LOADS MAKE RENEWABLES LIKE WIND

FEASIBLE Existing Interties

Kasigluk-Nunapitchuk St. Mary’s-Andreafsky Upper Kalskag-Lower Kalskag St. Mary’s-Pitka’s Point Shungnak-Kobuk Toksook Bay-Tununak Toksook Bay-Nightmute Emmonak - Alakanuk

TRAININGSome training has been accomplished however lack of jobs is a hindrance to people using new skills.

ECONOMIC BASE

Called the All Alaska Grid, is a concept to generate electricity with north slope or Cook Inlet natural gas and move it via a high voltage DC transmission line. The technology is in use around the world. Using otherwise stranded natural gas could lower electricity costs, spur economic activity and jobs in Alaska’s interior by opening mining prospects that are not economically viable when transporting diesel fuel is necessary.

http://allalaskaenergyproject.com/

WHAT IS AVEC DOING?

Collecting wind data Completing new diesel power plants Capturing recovered heat where

feasible Building Interties Welcoming new villages

Teller (2005), Kotlik (2007), Ekwok (2011) Kobuk (2012)

Alaska Village Electric Cooperative

Thank You

Wales, Alaska