Diesel generators are used to generate electricity in remote communities and as back-up power in communities facing power failures. Because generators are rarely regulated, they are an important point source of pollution in the United States. Despite the health and environmental problems associated with diesel emissions, few alternatives have historically been pursued to provide emergency power.

Integrating wind energy into the diesel generator market can be a cost-effective way for municipalities to gain energy independence and reliability while cutting down significantly on noxious air pollutants and CO2.

Project Summary

Kotzebue Electric Association, a non-profit electric co-op, is the first US utility to use large-scale wind power to significantly offset diesel-generated power. Despite higher than average costs due to harsh conditions and the extreme remoteness of Northwest Alaska, the Kotzebue wind farm has successfully demonstrated that wind can be a viable alternative to diesel generation.

History and Description

Like many remote communities, Kotzebue Alaska relies on small diesel-engine-driven generators for its electricity. The Kotzebue Electric Association (KEA), a non-profit electric cooperative, operates six such generators to serve the residents of Kotzebue. Faced with the increasingly high cost of diesel fuel, which is shipped in from over 2000 miles away, and resultant increases in air pollution, KEA turned to wind generation in 1997. Three 66kW Atlantic Orient Corporation turbines were installed in 1995 and seven more were installed in 1999. The wind farm project is operated by KEA in cooperation with the US DOE, the Electric Power Research Institute (EPRI) and the Alaska Energy Authority. The project is also part of the National Renewable Energy Laboratory's (NREL) Wind Turbine Verification Program which is studying the turbines for their viability in the arctic conditions and the potential for the project to reduce consumer electricity costs. The 148-acre project site is located on land leased from Kikiktagruk Inupiat Corporation. The 15-year renewable lease agreement with the Corporation includes an annual flat rate of $400 and 1.5 % of the avoided fuel cost.

Financing

The cost of the wind project in Kotzebue was more than twice the industry standard for a utility scale wind-power plant because of the town's extremely remote location and severe climate. The first three turbines that were erected cost $2,985/kW to install and commission. KEA estimates that the remaining seven turbines cost between $2200 and $2,500/kW. The costs of the turbine hardware and installation amounted to 63% of the total for the three turbines purchased in 1997 and 50% for the 7 turbines purchased in 1999. KEA has contributed $300,000 towards the wind project, and the balance has been covered with grants from US DOE and the Alaska Energy Authority. Based on the average cost of diesel in 1998, the wind project was saving consumers about $86,000 per year, however as a result of increased environmental regulations, KEA had to raise electricity rates in 2001.

Success of the Project

The Kotzebue wind farm was the first successful utility wind farm in Alaska. Other remote communities in Alaska have since called upon KEA's expertise to help them establish their own wind projects. The viability of the turbines as well as the potential cost-saving benefits for consumers have demonstrated the potential for wind to supplement diesel in even the most remote and challenging contexts. Through its ongoing wind development program, KEA expects to eventually increase its wind generating capacity to 2-4 MW, which will be enough to meet the electricity needs of the community even at times of highest energy use.

Social/ Environmental Benefits

• 90,000 gallons diesel reduced/year
  
  
• 10, 000 barrels of oil reduced/year
  
  
• 3,522 tons CO2 reduced/year
  
  
• Potentially lower electricity costs for consumers
  
  
• Decreased environmental damage and health risks associated with using diesel fuel
  
  
• Decreased reliance on the State of Alaska’s Power Cost Equalization program to help make electricity affordable
  
  
• Increased self-sufficiency
  
  
• Local economic development and new construction and maintenance jobs for local residents
  
  
• Expertise on installation and operation of wind turbines in smaller village conditions and arctic environments

Relevant Links

• Kotzebue Electric Association Wind Page
  http://www.kea.coop/news/renewable-energy.php
  
  
  
• REPP Research Report: "Blending Wind and
  Solar into the Diesel Generator Market"
  By Virinder Singh, Winter 2001.
  http://www.repp.org/articles/static/1/binaries/
  diesel.pdf
  
  
  
• CADDET Technical Brochure No.143 on
  Kotzebue Wind Project.
  http://www.caddet-re.org/assets/no143.pdf
  
  
  
• Synergy Corporation's Wind-Diesel Hybrid System
  http://www.synergypowercorp.com/winddiesel.
  htm
  
  
  
• Danvest Energy Corporation's Wind Diesel
  Hybrid System
  http://www.danvest.com