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Amidst the wild ride of recent national headlines, it’s easy to miss some big stories — and even easier to miss the broader pattern. So here’s the bottom line: Alaska is entering a new era of energy growth, fueled by our massive renewable resources.
Southeast Conference and Alaska HeatSmart recently secured $38 million in federal funds to bring air-source heat pumps to 6,100 homes in Southeast and Southcentral Alaska. Alaska HeatSmart has already helped more than 100 households install heat pumps, reducing household heating bills by 25-50% using clean local energy.
In the Interior, Golden Valley Electric Association was awarded a $100 million federal loan — with $60 million forgiven — to install a battery energy storage system and interconnectivity for a 16 MW solar farm at Nenana. Doyon Ltd., a regional Alaska Native corporation, is a partner in the project, which has potential to be a game-changer in a region that experiences the highest energy costs along the Railbelt.
The Alaska Energy Authority and Tanana Chiefs Conference were awarded $62 million each in federal funds to install solar technology statewide, saving households money and creating new jobs. “This program will not only offer Alaskans further access to renewable energy, but also provide funding to develop the local Alaskan workforce,” the U.S. Environmental Protect said in awarding the funds.
Across Alaska, communities have long harnessed wind, geothermal, hydroelectric and solar energy. Alaska is endowed with some of the most abundant clean-energy resources on the planet — and we now have access to the funding, technology, and policy tools to develop them at scale.
Alaska ranks No. 1 in the U.S. in installed microgrid capacity, and we are recognized as a global innovator in microgrid technology. In rural Alaska, we are ready to overhaul our rickety, risky, costly diesel systems with the integration of clean and reliable local energy.
On the Railbelt, renewables offer the best opportunity to stabilize long-term costs and supply risks. A recent report from the U.S. Department of Energy found that a 76% renewable system is the cheapest way to power Alaska’s Railbelt, the interconnected grid running from Homer to Fairbanks. Renewables can provide steady, stable, local generation, reducing our dependence on dwindling Cook Inlet natural gas supplies — critical for staving off the need to import natural gas.
Gov. Mike Dunleavy recently signed legislation providing funding and policy tools to smooth the path for renewables. These include a bill and initial matching funds to facilitate transmission and governance improvements on the Railbelt grid — to make sure the cheapest energy can get to consumers. The governor also signed a bill creating the Alaska Energy Independence Fund to help residents and businesses finance energy efficiency and clean energy projects. And he’s set to sign legislation allowing for community-owned renewables projects, so people who don’t own homes can get a share of the financial benefits of solar.
If you haven’t heard about these developments, perhaps — to mangle an old adage — it’s because bad news travels halfway around the world before good news can get its shoes on. And in a time when polarization and conflict tend to grab headlines, Alaska’s clean energy renaissance is a bipartisan victory that reflects leadership from state lawmakers, our congressional delegation, and Gov. Dunleavy.
“Get ready for this coming year,” Gov. Dunleavy said when he signed these energy bills, foretelling accelerated progress in diversifying and strengthening our energy system.
Good things are already happening. Juneau sells excess hydropower to cruise ships in what the mayor calls a “win, win, win, win” arrangement. In Northwest Alaska, a tribally owned Independent Power Producer won a national award for its solar project. Alaskans are energy innovators, and we are on the cusp of a new era of renewable-powered energy prosperity.
Learn more and sign on to our open letter at New Energy Alaska. The time is now to build a more affordable and reliable energy system for Alaska.
Lesil McGuire, Charisse Millett and Harry Crawford are former Republican and Democrat state legislators. They are senior advisors to New Energy Alaska, a broad coalition of Alaskans working to bring the benefits of clean energy to Alaska.
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