OPINION: Diversify Alaska’s energy sources to power our economy

A recent Anchorage Daily News story noted that a proposed wind farm near Anchorage could provide a much-needed boost to the area’s energy supplies — and will be most productive in the coldest conditions, when demand is highest. The project, Little Mount Susitna Wind, could have met 20% of the city’s electric demand during January’s extreme cold snap, according to developers.

This is great news given the uncertain outlook for Cook Inlet natural gas. Executives from Southcentral Alaska’s natural gas utility told lawmakers last month that Cook Inlet natural gas supplies could fall short of need as early as next year - and that the utility came “extremely close” to being unable to deliver gas to homes in January.

The Little Mount Susitna Wind project is just one example of Alaska’s world-class clean energy opportunities. These resources can help buffer supply risks and boost our energy independence. But there are broader benefits. As former Alaska legislators, we see the potential of clean energy to drive new economic vitality in Alaska and a better future for everyone in the state we love.

Clean energy jobs are driving growth nationwide. In 2022, clean energy employment grew in all 50 states. West Virginia, Oklahoma and New Mexico led this job growth, suggesting traditional energy states are well situated to expand into clean energy. Texas produces the most renewable energy of any state.

Clean energy jobs include jobs related to renewable energy, grid storage solutions, manufacturing, and electric transmission and distribution upgrades. They require linemen, construction workers, and electricians; engineers, utility operators, project managers and others. Much of this workforce already exists in Alaska, and the skills are highly transferable. These are good-paying jobs that can help keep our young people in Alaska.

Alaska has globally significant opportunities in hydropower, wind, geothermal, solar, biofuels, and tidal, among others. Thousands of megawatts of clean energy projects have been identified in both rural and urban Alaska. With 97 known thermal springs, Alaska is geothermally active, and is one of only eight states generating electricity from geothermal energy. We have 90% of the nation’s tidal energy potential.

We have the resources.

Is it feasible to translate these resources to reality in Alaska? Absolutely. Kodiak generates more than 99% of its electricity from hydropower and wind, and offers lower rates than Anchorage consumers pay. In Northwest Alaska, communities led by the Shungnak and Kobuk Tribes are offsetting diesel use and stabilizing costs with solar-battery installations. Bradley Lake Hydropower in Homer is producing the most affordable power in the Railbelt, the interconnected electric grid running from Homer to Fairbanks.

These successes did not come without planning and investment. Meaningful growth in the clean energy industry in Alaska will require further investment - and right now, there are significant federal funds available.

In some cases, federal funds could cover up to 80% of the cost of a renewable project, dramatically improving project economics. Hundreds of millions of federal dollars are on the table for much-needed Railbelt transmission upgrades.

Other programs are targeted at rural and tribal communities. The U.S. Department of Energy recently announced $125 million in grants to Alaska for clean energy projects benefiting more than 20 rural communities.

Alaska is at a crossroads. Cook Inlet natural gas supplies are dwindling and the energy system that serves 70% of the state’s population is at risk. Rural communities are staggering under high costs and unreliable diesel delivery. Our working-age population is falling.

Now is the time for vision and leadership. We have a wealth of untapped clean energy resources and, for a limited time, access to significant federal dollars to develop them. That’s why we are excited about New Energy Alaska, a new coalition to ensure Alaska reaps the multiple benefits of clean energy.

We are calling on Alaska policy makers, utility boards, and business leaders to work together to build a robust clean energy sector. Together we can create a more resilient energy system and a vibrant economic future for all Alaskans.

Lesil McGuire, John Coghill, Harry Crawford, Beth Kerttula and Charisse Millett served a combined 72 years in the Alaska Legislature. They are senior advisors to New Energy Alaska, a nonpartisan coalition working to bring the benefits of clean energy to Alaska.

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