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Kotzebue Electric Association Waste Heat Recovery & Power 2.4. Project Benefit The proposed project will help stabilize energy costs, providing long term socio- economic benefits to Kotzebue. Alaska is a large state geographically with a very small population. In terms of energy this means huge distances between utilities with minimal loads. Most of Alaska is not accessible by roads. Access for most rural villages is by air or water, making energy costs extremely high – as much 250% above the national average. In 2007, the average cost of power in Anchorage-Fairbanks-Juneau for residential customers was 10 cents/kWh, whereas in rural communities, the average residential cost of power is $0.42/kWh for 2007. In Alaska, ninety utilities service 187 rural communities. Approximately 70,000 people, or 13% of the state’s population, live in communities whose primary source of electricity is diesel fuel. These communities are characteristically small (populations of 400 or less), remote and accessible only by air or by seasonal barge service. Efforts need to continue attempts to alleviate the burden in these communities of continued dependence on diesel fuel. In Kotzebue, 2008 residential power rates increased to $.48/kWh from $.39/kWh in 2007. The high cost of energy is forcing residents to choose between leaving village life behind in order to relocate to larger cities in search of affordable living. The anticipated benefits of this project are many; primary among these is reducing the negative impact of the cost of energy by providing a renewable energy option and increasing overall diesel efficiency. This technology will be able to be utilized in other villages across Alaska. Once successfully installed and demonstrated in Kotzebue, the way will be paved for others. 2.5. Project Cost & Benefit Summary 2.5.1. Total Project Cost: $1,215,627 2.5.2. Grant Funds Requested in this Application: $915,627 2.5.3. Other Funds To Be Provided: $300,000 2.5.4. Total Grant Costs (Sum of 2.5.2 and 2.5.3): Renewable Energy Fund Grant November 10th 2008 Page 9 of 48PDF Image | Alaska Energy Grant Renewable Energy
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