OPINION: Renewable energy bills could help advance Alaska’s power future

Earlier this month, we got a preview of 43 bills legislators have pre-filed for consideration in the up-coming session. A major issue is how to plug our looming energy shortfall. The Alaska Division of Oil and Gas released a report last year indicating that the established gas fields in Cook Inlet will produce less than needed to fully power Southcentral by 2027. There are a number of options legislators will consider, including foreign imports, reduced royalties, and new pipelines. But if we want to reduce household energy bills, solve the problem long term, and protect our salmon, permafrost, air, and water, the top priority needs to be the suite of renewable energy bills.

Sen. Löki Tobin and Rep. Jesse Sumner have introduced SB101 and HB121 which would require Railbelt utilities to generate 25% of their electricity from renewable sources by 2027, 55% by 2035, and 80% by 2040. According to a report from the National Renewable Energy Laboratory (NREL), there are multiple ways to meet these standards, and they’re cost-effective, too. Additionally, right now, there is significant federal money available for renewable energy infrastructure through the Inflation Reduction Act and Bipartisan Infrastructure Bill. Passing a renewable portfolio energy standard will ensure we take advantage of these federal funds.

Along with clear requirements for our utilities, individuals need financial resources to build out our renewable energy infrastructure, including rooftop solar, battery storage systems, electric heat pumps, and electric vehicle charging stations. Last spring, Gov. Mike Dunleavy proposed HB 154 and SB 125 to establish the Alaska Energy Independence Fund, a “green bank” administered by the Alaska Housing Finance Corp. Green banks allow both individuals and rural utilities to obtain low-interest loans for improving efficiency and installing renewable energy infrastructure. The Inflation Reduction Act has allocated billions of dollars to green banks.

Another way for more folks to enjoy the benefits of renewable energy is through community solar, supported by Sen. Bill Wielechowski’s SB 152. Not everyone has the right roof for solar panels, owns their roof, or has the capital to invest in solar panels. Community solar is an easy solution, allowing folks to invest in a portion of a local project along with other people in their area and share the benefits.

Lastly, we should make it easier for people to reap the financial rewards of solar power. When individuals have rooftop solar, their electric bills decrease because they only pay for the energy they consume beyond what their panels produce. Net metering adds another benefit by compensating solar users for the surplus electricity they contribute to the grid. Currently, in Alaska, utilities calculate net usage monthly. This means that during the bountiful summer months, customers can sell their surplus to the utility at the rate it pays for electricity, but during the dark winter months they need to buy electricity from the utility at the higher customer rate — often leading to a small electricity cost over the course of the year. However, with annual net metering, if (during the course of a year) someone produces an energy surplus, they wouldn’t pay a dime, and the utility would pay them for the net excess sent back into the grid.

Renewable energy will almost certainly be Alaska’s energy future — and going big now, when there are funds available and a short-term deadline for change in place, is fiscally smart and will do the most to protect all the best parts of Alaska: our clean air and water, wildlife and healthy ecosystems.

Dyani Chapman is the state director of Alaska Environment, a statewide nonprofit environmental organization. She lives in Anchorage.

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