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 villages 7 member Board 23,000 Population Villages range in size Anvik – 86 people Hooper Bay – 1,124 people

S YSTEM I NFORMATION 80 Anchorage- based Employees 7,800 services 48 power plants diesel generators 95 Village technicians fuel tanks Over 5 million gallons of diesel per year 11 wind systems serving 15 villages 34 wind turbines Gambell Cousins

AVEC B OARD 2018 G OALS 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…

C HALLENGES AND S UCCESSES Distance Fuel Permafrost Lack of infrastructure

AVEC’s power plants are far apart

AVEC’ S D ELIVERED F UEL C OST Average Average Average Average Average Average Average Average Average Average Average Increase $ %

Active layer is soft Contributes to poor soils conditions Presents challenging environmental conditions P ERMAFROST

L ACK OF I NFRASTRUCTURE Complex logistics Weather impacts Adds to cost

Hauling equipment between villages

And here’s the power pole!

C HALLENGES AND S UCCESSES Non fuel generation – wind Interconnection of villages Training Need 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

I NTERCONNECTING V ILLAGES R EDUCE THE NUMBER OF POWER PLANTS L ARGER 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

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

E CONOMIC B ASE 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.

W HAT IS AVEC D OING ? 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