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

2. 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

3. S YSTEM I NFORMATION 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

4. 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…

5. C HALLENGES AND S UCCESSES Distance Fuel Permafrost Lack of infrastructure

6. AVEC’s power plants are far apart

7. AVEC’ S D ELIVERED F UEL C OST 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%

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

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

10. Hauling equipment between villages

11. And here’s the power pole!

12. C HALLENGES AND S UCCESSES Non fuel generation – wind Interconnection of villages Training Need for an economic base

13. 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

14. 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

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

16. 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. http://allalaskaenergyproject.com/

17. 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)

18. Alaska Village Electric Cooperative Thank You Wales, Alaska