AVEC Challenges and Successes

AVEC Challenges and Successes USAEE / IAEE Conference Anchorage, Alaska July 28, 2013 Steve Gilbert, Manager, Energy Projects Development Alaska Village Electric Cooperative

AVEC is a non-profit member-owned cooperative • Formed in 1968 • 55 villages • 7 member Board • 23,000 Population • Villages range in size • Anvik– 86 people • Hooper Bay – 1,124 people

System Information • 80 Anchorage-based Employees • 7,800 services • 48 power plants • 165 + diesel generators • 95 Village technicians • 530 + fuel tanks • Over 5 million gallons of diesel per year • 11 wind systems serving 15 villages • 34 wind turbines Gambell Cousins

AVECBoard 2018 Goals • Lower 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 • Distance • Fuel • Permafrost • Lack 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 4.02 • Increase 2002 - 2012 $2.73 +312%

Permafrost • Active layer is soft • Contributes to poor soils conditions • Presents challenging environmental conditions

Lack of Infrastructure • Complex logistics • Weather impacts • Adds to cost

Hauling equipment between villages

And here’s the power pole!

Challenges and Successes • Non fuel generation – wind • Interconnection of villages • Training • Need for an economic base

Benefits of wind generation coupled with new diesel engines • 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 Kasigluk

Interconnecting VillagesReduce 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

Training • Some 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)

Thank You Wales, Alaska Alaska Village Electric Cooperative

AVEC Challenges and Successes