A tiny Alaska village makes the wind pay
Craig Medred |
May 04, 2011
The tribal leaders of the small village of Perryville on the Alaska Peninsula in a far corner of Southwest Alaska believe the wind has saved them $66,000 to date. The wind in Perryville does not blow particularly hard, but it comes steady off the Gulf of Alaska to spin 10 Skystream 3.7 wind turbines. Villagers hoisted them into the air in November of 2008 using a winch mounted on a Ford F-250 pickup truck. Then they wired them into the grid connecting the village’s power to three, existing diesel turbines. The entire project cost $150,000. All of this comes at a time when other small communities are spending millions to harness the wind. The federally funded Alaska Village Electric Cooperative plans to spend more than $3 million to bring wind power to the Bering Sea coastal village of Shaktoolik and more than $4 million to hook up turbines in Mekoryuk on Nunivak Island in Southwest Island. Mekoryuk is a community of slightly more than 200 people about 400 miles northwest of Perryville, a community of about 100. Both communities, like others all across rural Alaska, are struggling with the ever rising costs of diesel to power generators. Diesel -- the tax-free kind for home heating and power generation -- was going for about $4.50 a gallon in the regional hub of Bethel on Friday. Perryville tribal leader Gerald Kosbruk said that if the village can get diesel shipped in there at a cost of $6 a gallon, it’s doing good. Given this, and the fact fuel prices are steadily climbing, he expects Perryville's low-budget community wind farm will have paid for itself in terms of diesel-fuel-cost savings by at least 2014 -- if not sooner. By then, the wind turbines will be about a third of the way into their expected life of 20 years. Technical issues to date have been minor, Kosbruk said, a couple computer chips that failed. “I was able to send them new ones by U.S. mail," said Jay Yeager, an engineer for Arizona-based Southwest Windpower, the turbine manufacturer. Villagers had no trouble using their Ford pickup and its winch to lower the 70-foot-tall, guy-supported tower on which each wind turbine sits, replace the chip and re-erect the tower, Kosbruk said. Maintainability and redundancy are the strengths of the Perryville system, said Kirk Garoutte, the Alaska dealer for Skystream. Why haven't other Alaska villages harnessed wind?In a worst-case scenario -- a total turbine failure -- Garoutte noted Perryville could take the broken, 170-pound unit down and ship it back to Anchorage even while he was shipping a new one out from his Anchorage business, Susitna Energy Systems. Garoutte struggles to understand why other villages haven't recognized this and gone the route of Perryville with its farm of small wind turbines. Instead, most have invested heavily in larger, more powerful turbines that are hugely costly. When U.S. Energy Secretary Steven Chu visited the village of Hooper Bay in the summer of 2009, he struggled to understand how it could be costing the community millions to install three Northwind 100 turbines. The Northwinds are state-of-the-art technology orders of magnitude more powerful than any of the turbines in Perryville. Because of that, however, they are also massive. Local officials accompanying Chu on his tour explained the costs in Hooper Bay by noting the expenses not only to ship the turbines there, but to ship out the heavy equipment -- including a crane -- needed to install them. The blades on each Northwind alone weigh 3,100 pounds. The tower on which the unit sits weighs 30,000 pounds. And the nacelle, the power generating unit, adds 13,000 pounds. And there, Garoutte said, is the problem. The way wind power is being done in rural Alaska today makes it as costly as the diesel it is designed to offset, and potentially more unreliable. Nobody in Hooper Bay is going to take down a Northwind turbine to fix it -- let alone ship it back to Anchorage -- if something breaks. Help is going to have to go to Hooper Bay to try to fix the turbine on-site in the event of a failure.
by Qayaq | May 14, 2011 - 3:28pm
Great Article...Great Points and Interesting Exchange of Comments. It's wonderful to see that RE Wind has matured enough that we are even having this discussion. The fact that we are able to debate performance, integration and village-based initiatives 'real-time' is extremely exciting. I have personally been involved with the dissemination of cutting edge technology in rural Alaska for 30 years...most recently, over the last few years, RE. I enjoy good engineering banter as much as anyone...or the volley of political innuendos surrounding energy paradigms. It's a little alarming that NO ONE...from research experts at ISER, to coop managers to sales specialists...NO ONE has shown any correlation to RATE PAYERS. We can talk til we are blue in the face about performance and beautiful machines and great foundations and blah blah blah...but how has any of the RE infrastructure that has been put in place affected the rates rural Alaskans pay for electricity. As a resident of rural Alaska...I could give a ferrets-ass about how much diesel has been displaced or the production characteristics of a Northwind 100...I want to know how it affects my bottom-line...how much money is it saving ME? Show ME the $. ___________ How is the deployment of these technologies affecting overall rate structures in rural villages? What are the AVECs and MLNPs and CHUGACHs doing to change the core values of the PCE which clearly is a disincentive for RE in rural Alaska. What are YOU doing to uphold Alaska's RE interconnection laws like 'Net Metering'? Electricity is a small energy cost to village home-owners...fuel for heating homes is a major expense...how is cost effective wind energy being used to augment some of THOSE costs? How are village-based resources being trained and utilized in the construction and operations of new RE plant facilities? __________ There isn't an RE facility in the State that has really changed the village energy paradigm...lowering base cost structures, employing RE technicians in 'real jobs', turning free wind energy into heat resources, allowing for small scale village-based RE initiatives...and thereby providing a stable and realistic economic structure for village residents. Prove me WRONG
by therese.umholtz | May 10, 2011 - 8:22am
Southwest Windpower is the manufacturer of Skystream 3.7 and we appreciate becoming part of the discussion around village power in Alaska. We recognize and applaud the work that AVEC has done over the past several years in bringing wind power to their village power plants. They have successfully negotiated the federal and state grant and loan process for the benefit of the residents of their villages, and continue to do so on an ongoing basis. The Northern Power NorthWind 100 installations have been very successful at cutting diesel usage in many of these villages, and this turbine has proven itself capable of standing up to rural Alaska's harsh climate. At the same time, we feel that smaller turbines should be considered in villages with small average and peak energy requirements. Perryville's 10 Skystream installation is just one example of what Skystream is capable of in a village of about 100 people with a moderate (some have said low) wind resource, where close attention is paid to overall installation costs vs. payback. We worked closely with Susitna Energy to supply, ship and oversee installation of the turbines in Perryville in November 2008, and as such can confirm that the complete installed cost of the 10 turbine system was $150,000 for 240 kilowatts of rated capacity. We have received information on the amount of energy produced and amount of diesel saved directly from Gerald Kosbruk and the Native Village of Perryville, but we did not have direct, reliable and consistent remote monitoring in place until very recently, so we cannot confirm or deny those numbers at this time. We would leave that part of the discussion to the individuals who are on the ground in that location, but we can certainly make available our data since mid-March 2011 which indicates that those turbines have produced more than 4,800 kWh from that time to the present. We would also invite anyone who is interested to review the daily production of the turbines in real time at the following site: http://track.windenergy.com/view/reports/sitevw/index.pl?site_id=117. Though I now live in Flagstaff, AZ and work for Southwest Windpower, I lived in Nome, Alaska for 17 years--more years than I have lived anywhere else in my life. Thus, I have also "walked the walk" and though I feel, for instance, that Skystream would not be appropriate as an energy solution installed on the supply side of Nome's power plant due to the size of the loads (though they are completely appropriate when installed by homeowners or businesses on the load side); I do feel that a multi-Skystream installation tied directly to the power plant could make a lot of sense in many of the smaller villages throughout the Bering Strait region (and Alaska as a whole) that have average energy loads of 50 - 100 kW and peak energy loads of 150 - 200 kW. There are many such villages in Alaska with an appropriate wind resource, both within AVEC's sphere of influence as well as outside. The ease of logistics to get Skystream and balance of materials to remote locations, the small/simple foundation requirements, the tilt-up nature of the turbine and tower (using only a winch mounted on a pickup) and the ability to maintain with locally trained, resident technicians make it very reasonable and affordable for village power projects in small, remote villages. It is also appropriate in villages with a moderate wind resource (like Perryville) because of its low cut-in wind speed and low installed cost. There are currently two Skystreams installed on the load side of the utility by the Shaktoolik Native Corporation and you are also welcome to view the behavior of these turbines in real time at the following website: http://track.windenergy.com/view/reports/sitevw/index.pl?site_id=105 We applaud Craig Medred and the Alaska Dispatch for taking the initiative to publish this article, and giving us, as well as AVEC, the chance to open a comprehensive discussion of the options available in wind energy for village power in Alaska. We would like nothing better than to work with AVEC in mutually agreed locations to prove Skystream's logic in village power scenarios. Therese Umholtz, Senior Technical Advisor
by schneidler | May 7, 2011 - 2:41pm
I wanted to add a couple of other points. I wondered aloud, years ago, about why you couldn't just put up tons of skystreams instead of a few behomoths. That is why this article caught my attention so quickly. Regarding the cost effectiveness, I think it is a good point that the little skystream requires so much less investment for the foundation (I'm referring specifically to installations in soggy/boggy western alaska), that it can gain a lot of ground on the northwinds. I would think that it would not take very much advanced math to figure out which produces the most power for the least $$. Suppose you had a skystream and a northwind side by side for 20 years. I realize that the northwinds are generally mounted FAR higher than the skystreams. So figure that in too. We have good wind data from several villages in alaska, including annual wind speeds at varying heights. Rather than a war of words then, we could just compare the numbers and let it be decided a bit more objectively. I would imagine that the northwind comes out on top as far as price per KwH. However, I bet the skystream is far closer than most might think, and as this article mentions you can have it up outside your house in the bush for around $15,000 with the help of a few handy friends. A bit more affordable for most of us than a cool $1M. As for the controversial cost of fuel delivered to Perryville, a call to Crowley could probably answer that question. Or if you're really motivated have Perryville find old fuel delivery invoices. I have to think Craig is right, $3.15 sounds suspiciously low, even for a bulk fuel delivery. I enjoyed the article and the spotlight on rural energy and the ingenuity Perryville has displayed in their effort to try and counter those high costs. I also appreciated Ms Kohler's transparency and her proud, strong defense of AVEC. Now how about an objective, 3rd party math person crunching the numbers on the northwind vs skystream cost effectiveness? You could use the manufacturer's stated power output figures, along with the $15,000-$20,000 for a skystream installed vs the $1m for the northwind, and put them in the same hypothetical location where we have good wind data, and compare the cost per KwH. Or has someone already done this? Off to google I go.
by schneidler | May 7, 2011 - 1:33pm
Wow! This thread has certainly gotten lively. I wanted to make a couple of comments. I live in an AVEC village that has the northwind 100 turbines, and just seeing them at work every day makes me smile. I salute AVEC, Ms Kohler, the Denali Commission and everyone else that helped make it happen (including the ratepayers!). However, the following quote from the article caught my attention: "The smallest of the diesels is, however, still required to throttle up at times as a sensor detects a greater community demand for electricity than can be provided by wind alone." As I understand it, in my village of Kasigluk at least one of the 3 generators is running at all times. Even when the wind is blowing powerfully for days at a time, supplying more power than Akula Heights (new side of Kasigluk) and Kasigluk and Nunapitchuk need. This is so that they can guarantee 100% up time. AVEC keeps one generator running at all times IN CASE the wind drops down, to avoid a temporary blackout. This has always struck me as an opportunity for big savings. A battery system that could power the villages for as little as 5 or 10 minutes could perhaps allow the generators to all be turned off when the wind is strong. The battery could send a signal when it is down to 2 minutes left, for example, and turn on one of the generators. I can tell you that in winter in particular we frequently have unrelenting winds for several days in a row. You might scoff at this. You wouldn't believe it until you live here. The summer time is far more calm. Anyway, doing it this way might allow for fuel savings far beyond the 20-30% mentioned by Ms Kohler. I know that battery technology is still coming along. They are heavy and expensive buggers. But isn't this worth a look? And according to the quote above, "the smallest of the diesel generators is still required to power up at times," that seems to indicate that sometimes they have NO generators running. How have they solved the problem of occasional down time?
by Meera Kohler | May 6, 2011 - 10:08pm
It's never a good idea to get into a spitting contest with an entity that buys ink buy the barrel, figuratively speaking, but I feel compelled to set the record straight. To respond to the author's comments I offer the following: a. Perhaps AVEC wasn't slammed per se, but there were a number of disparaging remarks denigrating our pioneering and successful projects in rural Alaska. b. The $3.15 a gallon that I quoted came from the Alaska Energy Authority, who reports the numbers provided to them by the utility. No doubt prices are higher today, a year later, but $6.00 is highly suspect. c. Perryville's data as reported to the AEA reflects that 4% of their power produced in FY10 came from wind. Not 4% one day and 20% another day - 4% for the year. Yes it varies from day to day and season to season, but 4% over the year means that 96% is generated using diesel. d. We are "largely government funded" because we have loans that we are paying for? I'd say that proves that our communities are demonstrating self-sufficiency by borrowing and paying back loans instead of relying on state and federal grants to build our facilities. Yes, AVEC has used money from the Denali Commission for the past 10 years to develop much-needed generation and fuel storage facilities in our 53 communities. More than twice the amount that our communities have received has been invested by the AEA and other partner utilities to develop energy infrastructure in non-AVEC villages. And yes, our members do receive PCE - as do residents in 178 Alaskan communities. PCE overall pays for less than 20% of the cost of providing power in rural Alaska. The rest comes out of the consumer's pocket. The PCE "subsidy" formula remains unchanged. Legislature increased the endowment fund this month so that we hopefully don't have to do battle every year to obtain full funding of the program. The consumer is not getting more PCE - it will just be coming out of the endowment fund rather than the general fund. e. We shouldn't be proud that the cost of our power is cheaper than Perryville's? I'd say that we should be proud. Our members use 390 kWh a month on average. I'd say they're pretty darn conservative already. f. We welcome inquiry into how we operate. AVEC is pretty darn transparent. Simply put, we combine our 53 villages to generate economies of scale. We don't rely on the state to provide technical support. We overhaul our engines (all 166 of them), we build new services to connect homes and businesses, we pay our bills...And we most assuredly don't provide our employees with memberships in any athletic clubs. g. AVEC doesn't work out of a box. That's downright laughable. We are nationally recognized for the innovation we have demonstrated time and time again as we pioneer workable solutions for our communities. Finally, you are now deriding us for being headquartered in Anchorage. Like it or not, Anchorage is Alaska's hub. We are here because it is the most practical and cost-effective location to deliver value to our members in 53 remote locations. I have lived 21 years in rural Alaska. I have walked the walk. AVEC is not the enemy. Please don't treat us as such.
by Craig | May 7, 2011 - 6:20am
Another aspect of rural utility behavior which I think is counterproductive is they and their employees ought not be located in urban centers where power is relatively cheap. I can imagine a lot more motivation by coop officials and employees if they were located in the villages instead of Anchorage The same could be said for Inside Passage Electric of Juneau, which doesn't serve Juneau but is headquartered there, instead of say Hoonah, Angoon, Kake or Klukwan. And I'm not saying that some employees don't live in the communities they serve. I just think that having these leaders living the life, facing the cost of electricity day in and day out would do something positive to their psyche - at least for some real compassion instead of just giving the high cost of power lip service. If nothing else their electric bills and facing the consumers day in and out would add some pressure to accomplish more cost reductions. It's a bit like having our senators and representatives living in our midst instead of Anchorage, Washington DC and Juneau. You can bet that if they are experiencing our pain, they will come to understand it more and really want to alleviate it as fast as possible. Again not Craig Medred
by Craig | May 5, 2011 - 5:29pm
A good article Mr. Medred. I'm glad to see another perspective being delivered. Not that utilities don't have good ideas, they do but they don't get it right all the time. And speaking of lobbyists, guess how many our state has in the electrical utility business? You can pretty much count with one finger. You got it only one who specializes in energy! This is not to say that folks don't hire lobbyists, Im sure they do. However, If anyone thinks that this sensible and isn't rife with conflict - you are a fool. And this is pretty foolhardy for the municipal and utility cooperatives. Imagine, joe utility goes into hire an energy lobbyist. Yes, I'll represent you, however you need to understand that there is a cue for requesting money from the state and feds. You'll need to wait your turn and that might be a while because you're behind municipality B. We'll I can't wait says joe utility, well then I can't help you. Can you tell me who else does this work? Sorry nobody else, just me. So you see, you need to be patient. We'll get there eventually. Whomever does't enjoy competition probably doesn''t enjoy low power rates. Signed not Craig Medred.
by Meera Kohler | May 5, 2011 - 3:33pm
The Skystream is a great little wind turbine and it ceertainly serves a useful purpose doing what it was intended to do - harness the wind in a small, consumer power application. But the numbers bandied around in this article are somewhat dubious. I have been asking in vain foryears for verifiable data on the Perryville project and none has been forthcoming, other than the unsubstantiated numbers reported by Garoutte. FY10 was the first year in many that the Alaska Energy Authority actually reported some data on Perryville, and the numbers in their report indicate 13,361 kWh generated by wind. That would have displaced about 1,100 gallons of diesel (reportedly 23,000 gallons were used for generation last year). The report says the fuel cost $3.15 a gallon, not $6.00. Generating 4% of electricity in Perryville sure doesn't sound like major progress to me. For some reason, AVEC was liberally slammed in this article, yet we were not even afforded the courtesy of a phone call to determine what our wind philosophy is. Our desire is to replace 20 - 30% of generating fuel in our villages. If Perryville's turbines cost $150,000 (they might have - not including installation cost) the $5,000 they saved last year equates to a 30 year payback. Our 100kW machines cost about $1,000,000 installed and have a 15 - 20 year payback. The Denali Commission has done amazing work in rural Alaska infrastructure. Their investment in wind turbines has been actually relatively modest - largely leveraging USDA High Energy Cost Grant funds to assist in building the projects. And, for the record, AVEC is a non-profit member-owned utility. We are not "federally funded." We compete for federal, state and other grant funds so that our villages (which are as poor as any) can get some capital investment that they don't have to pay back. We actually have more than $120 million non-grant-funded utility plant - and long-term debt - and competent management... Next time - come and talk to us. We can not only tell a good story, we have the records to back up our words.
by amanda | May 6, 2011 - 12:57pm
From Craig Medred: b. I'd guess the tribal folks in Perryville know more about what they expect to pay for diesel than someone working for AVEC. If it's getting diesel for $3.15, I'd like some. I just paid more than that for the fuel in my diesel truck here in Anchorage. c. Nobody involved with the Perryville project claimed the community was getting all of its energy from wind. It probably gets less than 4 percent on some days. Other days it may get 20 percent or more. There are wind variances and there are seasonal variances. For instance, there are fewer lights on in the summer, and thus there is less demand for power. d. AVEC is largely government funded. It is "financially backed by Rural Utilities Service, United States Department of Agriculture, and Denali Commission." I don't have a total on how much funding AVEC has received from the Denali Commission over the years, but I know it was up over $100 million a few years ago. The big AVEC investments have largely all been funded by the Denali Commission. And, of course, federal subsidies aren't the only subsidies. AVEC operating revenues do come in part from AVEC members, but the power-cost-equalization subsidy is $32 million per year in state revenues, and Western Alaska lawmakers are proposing to make it a whole lot larger this year. e. The cost of AVEC power probably is cheaper than that of Perryville power. That is not something of which to be proud. Lower costs drive up consumption. One of the things Perryville has done is make a concerted effort to drive down consumption. In Perryville as in much of rural Alaska, there is often a lot more to be gained by power conservation than power production. Some of this conservation, as the story noted, is as simple as unplugging the coffee maker left on all day or turning off the lights when you leave a room. People are a lot more likely to make an extra effort to conserve expensive power than cheap power. f. I didn't get into AVEC's perspective on Perryville because it isn't an AVEC project. I cited the costs of AVEC projects to illustrate the high cost of wind in most villages. Getting into AVEC issues would have required a lot more space and a lot more exploration into both how AVEC and the Denali Commission work. Is there waste there as in some government programs? Could the Denali Commission run more efficiently? Is it true Denali Commission employees receive memberships to the Athletic Club at the Hotel Captain Cook, and if so why? I know the poor struggling scribes in the private sector here at Dispatch aren't getting offered memberships to any athletic clubs. g. Lastly, this post kind of shows the biggest problem facing AVEC. The cooperative works out of a box. A suggestion that another village has found a different, cheaper way to do wind that might be worth a look is viewed not as an idea worth examining, but some sort of slam on AVEC. If this is the reaction to the idea there might be cheaper and better ways, how are you ever going to find cheaper and better ways?
by sierrahotel | May 5, 2011 - 8:48am
Garoutte just succeeded in obtaining something he couldn't afford - free advertising. He's interested in one thing and one thing only - selling his stuff. He's pretty good at it, but putting little 400kW units up in a small village that actually puts out about 140kW on average is not cost effective either. The $/kw equation is really upside down on small installations, and without government subsidies, they seldom pencil out from a ROI perspective (that's the case even on the large installations!). On a per unit basis, the numbers stated in the article of $5.75/watt for the 3.7kW unit is well over $2,300,000 ($5.75 x 400,000 watts). I certainly hope they're not paying that much, and I suspect it's on a kilowatt basis, making the cost about $23,000 per unit - much more in the realm of reality. Also Craig, with a little digging I think you'll find that the Denali Commission is MUCH larger than $15-20MM per year - maybe as much as four times that size. Their annual budget exceeds $75MM per year (http://www.allgov.com/Agency/Denali_Commission).
by kenryan | May 5, 2011 - 8:13am
Perryville is a good example of the contrast between the "do-it-yourself" approach and the "government-does-it-for-you" approach. One must work within the constraints of reason and logic; the other -- not so much. Government projects too often become the grandiose dream of a committee of bureaucrats, rather than a practical solution to a problem. Alaska Village Electric Corporation seems to be a shining example how things tend to go when an abundance of other people's money is available. One final point: Under the sub-heading "Make it yourself and sell it back to the government" the article seems to imply that it makes sense to install wind generators in midtown Anchorage, and that by doing so you can generate your own electricity and sell the surplus back to the utility. Don't get all excited and go out and buy a bunch of windmills! Unfortunately, when the variables are analyzed (average wind speed, system cost, cost of existing power, buy back rate) it makes no sense at all to install wind generators in midtown Anchorage -- at least no economic sense. A far better investment would be insulation and good windows.
by nsfhi | May 5, 2011 - 6:28am
Craig, well articualted on the political end. The Iditarod benifitted from the Internet to find its fan base around the nay sayers, I now the internet was used get around the information mungers on alternate energy. |













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