HomeMy WebLinkAbout03062019 City Council Work Session Lowell Creek HydroPowerPoint Presentation
CONCEPT DESIGN / ECONOMIC EVALUATION
PRESENTATION TO PACAB / COUNCIL MARCH 6, 2019
BY ANDY BAKER, PEYourCleanEnergy LLC
LOWELL CREEK HYDRO PROJECT
Affordable, Reliable, & Safe Energy for Seward
YourCleanEnergy LLC - Mission
History: Providing clean energy consulting (financial evaluation & design) services to commercial and municipal clients in Alaska since 2006.
First evaluation of Lowell Creek Hydro for PACAB was in 2007 and 2008. Specialize in sea water heat pump evaluation & design. Career experience in public water systems and water source
clean energy projects.
Successful clean energy projects are ones that are:
Affordable Reliable Safe
2019 COST OF POWER FOR CITY OF SEWARD
SEWARD PURCHASES 1% OF BRADLEY LAKE HYDRO GENERATION AT WHOLESALE PRICE OF @ $.045 / KWH - VERY ATTRACTIVE - CAN’T BUY MORE
SEWARD PURCHASES CHUGACH ELECTRIC ASSOCIATION (CEA) GENERATION VIA LONG DISTANCE TRANSMISSION AT WHOLESALE PRICE OF @ $.108 / KWH - HIGH FUEL & TRANSMISSION COST
SEWARD EMERGENCY DIESEL POWERED GENERATORS CAN PRODUCE POWER AT COST OF @ $.30 / KWH - HIGH FUEL, LABOR COST, EPA REG’S
CAN SEWARD GENERATE WITH LOCAL HYDRO WITH FIXED COST LOWER THAN CEA WHOLESALE??
Two Options for Locating Hydro Plant:
Bottom of Jefferson St in Campground
Next to ASLC – where large load exists
New intake @ elev 460 ft
New 48 Inch Diameter Penstock Below Jefferson Street
Existing Bear Mountain Tunnel Outlet Waterfall
Ideal Location For New Hydro Plant
New Tailrace
Project concepts that allows maximum hydro power to be harnessed
SELECT CONCEPT THAT IS STRAIGHT RUN DOWN ON CITY LAND
BENEFITS TO CITY FROM LOWELL CREEK HYDRO PROJECT
Seward develops its own source of affordable and stable electrical power - hedge off increasing cost of CEA power from fossil fuel sources – LOCAL HYDRO ELIMINATES LINE LOSS!!!
Electrical costs in Seward will be reduced and stabilized over the 40 year project life with local hydro power, especially if majority of capital costs are funded by grants
Reduced cost in emergency power generation when hydro is available, every unit of hydro power produced will offset expensive fuel consumption by City’s back up diesel generators
Hydro power does not have the liabilities of pollution, and low impact hydro projects like Lowell Creek are very favorable to the public & agencies, Lowell Creek has no salmon species.
City will be eligible for federal and/or state appropriations and/or grants for clean energy projects – once DNR & FERC permits are applied for.
BENEFITS TO CITY FROM LOWELL CREEK HYDRO PROJECT
City will generate the most low cost local power when creek flow and population is highest in summer months and electricity rates in Seward are highest
Lowell Creek Waterfall can retain minimum flow even when hydro is operating, this will keep its historic and scenic character preserved, reduce normal wear and tear on tunnel.
Hydro plant could be located in Waterfront area and become power and heat source for district heating project now in design phase, construction planned for fall of 2019. 6% of energy
produced by hydro generator is waste heat, all of which can be used by district heat system, or campground showers in summer
Fresh water stream outfall from hydro turbine building will enhance the Waterfront Park experience and create a salmon release area for recreational fishing.
INTAKE WILL BE LOCATED ONE MILE UP CANYON
RUN OF RIVER SCREEN INTAKE + INFILTRATION GALLERY
PROJECTED FLOWS BASED ON EXISTING DATA
Duration curve of 1979 CH2M Hill study was based on flow measured at tunnel entrance, not at higher elevations (gaging of stream flows was not done at upper intake locations proposed
in the study)
1979 Study observed that 60% of flow is lost to underground gravel aquifer before it ever reaches the tunnel entrance, some of this underground flow can be intercepted year round with
an infiltration gallery
It appears possible to collect @50 cfs at least half the year (6 months), with normal rainfall and snow melt flows allowing @60 cfs for up to 2 months in summer
PELTON WHEEL TURBINE IS BEST CHOICE
PROJECTED FLOWS BASED ON EXISTING DATA
Initial turbine sizing would be one vertical shaft five jet pelton wheel, rated for 60 cfs flow = 1.8 MW capacity
During low flow periods in winter, a single turbine can be run as low as 10% capacity and still produce efficient power (6 cfs = 0.18 MW = 180 KW)
Groundwater infiltration gallery at stream intake may allow continuous minimum winter flows of 10 cfs, enough to keep one turbine running from December through March and keep intake
and penstock from freezing
ESTIMATED POWER BASED ON PROJECTED FLOWS
Total head available above sea level = 460 ft elevation
minus screen intake loss (5 ft), minus pipe friction (35 ft),
minus tailrace drop to MSL (15 ft) = @405 ft net head
Hydro mechanical/electrical system efficiency (turbine to grid)
= 92% (turbine) x 96% (alternator) x 96% (grid tie) = @84.7%
For 8 months avg flow @ 40cfs =6,692,300 kwh
For 2 winter months, avg flow @10cfs =418,300 kwh
- For remaining 2 months, avg flow @ 60cfs= 2,509,600 kwh
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TOTAL ANNUAL HYDRO POWER = 9,620,200 kwh
Average retail value 2019 in Seward @ $0.21 / kwh = $2,020,200/year
CONTRIBUTION OF HYDRO TO CITY POWER SYSTEM
% OF CITY LOAD COVERED BY HYDRO:
AVERAGE CITY DEMAND = 6.0 MW
AVERAGE HYDRO PRODUCTION = 1.2 MW
% OF AVERAGE DEMAND COVERED BY HYDRO =20%
% OF ANNUAL ENERGY USE COVERED BY HYDRO:
SEWARD AVERAGE ANNUAL USAGE = 50,000,000 KWH
PROJECTED HYDRO ANNUAL ENERGY =9,620,200 KWH
% OF ANNUAL USAGE PROVIDED BY HYDRO = 19.2%
CITY R.O.W. AVAILABLE FROM CANYON TO OCEAN
100 FT R.O.W. EXTENDS INTO WATERFRONT PARK
FRESH WATER OUTFALL CAN BE SALMON RELEASE STREAM
TURBINE HOUSE FOOTPRINT OF 32 FT X 40 FT
TURBINE HOUSE CAN BE PRACTICAL & ATTRACTIVE
TURBINE HOUSE WILL BLEND INTO WATERFRONT PARK
TURBINE HOUSE ALSO ATTRACTIVE FROM BIKE PATH
EVALUATING HYDRO PROJECT COSTS vs BENEFITS
Hydroelectric projects can be evaluated two ways:
A. Life cycle cost (how many years to fully pay back initial capital investment?)
Annual energy costs ($ per kwh over project life)
Typically, once a hydro power resource is developed, they are run as long as the community can maintain them!
What is most important is keeping the annual energy costs as low as possible to stabilize overall grid power costs.
Use 30 - 50 year project life to evaluate annual energy costs
ESTIMATE PROBABLE CAPITAL COSTS - 2019
DNR land lease and land easements $40,000
Access road to new intake site$416,000
Intake screens and collection channel$500,000
Groundwater Infiltration gallery piping and collection$300,000
Penstock (7,200ft x 42 inch dia), inc utility relocation and road resurfacing $4,320,000
Power plant building$2,100,000
Turbine and generator equipment$1,200,000
Electrical control equipment$300,000
Misc power plant equipment$84,000
Pad Mounted Transformer $40,000
Buried conductors and devices $60,000
Overhead conductors and devices$60,000
Communications equipment$80,000
48” Diameter Tailrace and outfall stream to ocean $500,000
CONSTRUCTION SUB- TOTAL @ $10,000,000
ESTIMATION OF PROBABLE CAPITAL COSTS (cont.)
CONSTRUCTION COST SUB-TOTAL$10,000,000
CONTINGENCY AND UNLISTED ITEMS (15%) $1,500,000
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TOTAL DIRECT COST $11,500,000
INDIRECT COSTS: TEMP FACILITIES, BOND, INSURANCE, OHEAD (17%)$1,955,000
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TOTAL CONSTRUCTION COSTS$13,455,000
ENGINEERING,LEGAL, ADMINISTRATION (15%)$2,018,250
NET INTEREST DURING CONSTRUCTION (7%)$941,850
LESS STATE (@$4 MILLlON) AND FEDERAL (@$6 MILLION) GRANT FUNDS($10,000,000)
TOTAL INVESTMENT$6,415,100
BOND ISSUE (110% OF TOTAL INVESTMENT)$7,056,610
ESTIMATION OF PROBABLE ANNUAL COSTS - 2019
BOND ISSUE (110% OF TOTAL INVESTMENT)$ 7,056,610
INTEREST & AMORTIZATION (40 YEARS @ 4% INTEREST RATE)$356,330
INTERIM REPLACEMENTS (1.0% OF TOTAL CONSTRUCTION COSTS) $134,550
INSURANCE (0.4% OF TOTAL CONSTRUCTION COSTS) $53,820
OPERATION AND MAINTENANCE$300,000
ADMINISTRATIVE AND GENERAL (50% OF O&M COSTS) $150,000
LESS INTEREST EARNED ON RESERVE FUNDS (@ 6%)($21,380)
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TOTAL ANNUAL COSTS $973,320
TOTAL KWH PRODUCED PER YEAR (FROM PREVIOUS SLIDE) 9,620,200 KWH
ANNUAL ENERGY COSTS = TOTAL ANNUAL COSTS / KWH PER YEAR$0.1012 / KWH
HOW TO GET YOUR HYDRO PROJECT MOVING AHEAD
SUGGESTED PLAN OF ACTION FOR HYDRO PROJECT
Prepare DNR Water Rights applications, coordinate with agencies, supervise flow data collection and prepare pre-design report.
Prepare and submit Preliminary Applications with Federal Energy Regulatory Commission, request waiver if possible
Schedule scoping and coordination meeting(s) with state and federal agencies that may be involved in the hydro permitting process, including Army Corps of Engineers.
Once Preliminary DNR Water Rights Permit application is made, begin stream flow and underground flow monitoring program to collect data - pursue state and federal grants!
HYDRO = AFFORDABLE RELIABLE AND SAFE POWER FOR SEWARD* Theoretical Power (kW) = HEAD (feet) x FLOW (cfs) 11.81 Hydro Power = Elevation
Drop x Flow Thru Turbine specifically: Energy losses thru screen intake & collection channel Energy losses thru penstock, bends, valves, nozzles Energy losses in turbine, shaft, drives,
generator, wiring Actual power must account for: *