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Kotzebue Electric Association Waste Heat Recovery & Power 4.4.5.Business Plan Kotzebue Electric Association is a known wind industry leader whose knowledge has been relied upon for operations and maintenance on renewable energy systems. KEA already has in place standard protocols for operations and maintenance which have been successful in Kotzebue. To further guarantee optimum performance KEA will create a business plan using templates created by the Alaska Department of Commerce and Economic Development to enhance KEAs existing business plan. 4.4.6.Analysis and Recommendations Kotzebue Electric Association has created a Cost of Energy Reduction Plan, CERP, which collectively addresses many aspects of our current energy crisis. The CERP is detailed here to provide a more complete picture of how the proposed project fits into KEAs ‘big picture’. 4.4.6.1. Increased Wind Capacity 4.4.6.1.1. Objective Kotzebue Electric Association’s current wind plant has an installed capacity of 1.14MW which provides the city of Kotzebue with 1.2 million kilowatt-hours. This meets roughly 8% of the community’s electrical demand and displaces an average of 140,000 gallons per year. KEA is planning to increase the installed capacity to 4.59 MW by fall of 2010 in order to further reduce diesel dependency. 4.4.6.1.2. Benefits There is no doubt of the urgency to reduce diesel dependency. Kotzebue’s current load averages 2.7 MW. A 4.59 MW wind plant will exceed the electrical demand of Kotzebue. In addition to electricity, thermal energy needs also to be addressed. When the wind allows the turbines to operate near capacity excess electricity, will be ‘dumped’ into thermal loads which can then be used for space and water heating in the homes and businesses of Kotzebue. The overall goal will be to drastically reduce diesel consumption both for electric and thermal generation. 4.4.6.1.3. Scope of Work: Adding 3.25 MW of wind will be done by installing five Fuhrlander 650kW turbines. This will be done in conjunction with the utilities of Nome and Unalakleet. Larger turbines need to be purchased in batches of ten or Renewable Energy Fund Grant November 10th 2008 Page 40 of 48PDF Image | Alaska Energy Grant Renewable Energy
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