OPINION: How 3 laws help pave the way for Alaska energy independence

Warming oceans, shorter winters and more dynamic weather patterns are fundamentally changing how Alaskans live and work. At the same time, energy costs continue to soar, affecting residents and businesses.

Adapting to change is something Alaskans are familiar with; innovation and resilience are in our DNA. We are uniquely positioned to leverage those qualities with a significant boost from three laws — two federal and one state.

In September, three federal agencies announced $64 million in funding for clean energy projects in our state. This funding comes from the landmark clean energy legislation Congress passed in 2022 as part of the Inflation Reduction Act, or IRA.

Sen. Lisa Murkowski had a significant hand in crafting another major revenue source, the 2021 Bipartisan Infrastructure Law, or BIL. Together, these federal laws resulted in hundreds of millions in awards and grants for clean energy and climate adaptation projects across the state.

For example, Newtok Village and the Native Village of Napakiak, received $25 million each from the Bipartisan Infrastructure Law to support relocation of homes and structures away from climate-driven erosion and flooding.

Recently, Spruce Root, a community lender in Southeast, was awarded a $10 million line of credit through IRA’s Greenhouse Gas Reduction Fund for investing in projects like refinancing the Hiilaangaay Hydro Debt on Prince of Wales Island. Spruce Root is also utilizing $5 million in grant funding from the BIL through the Department of Energy to install up to 240 heat pumps in tribally-owned homes and buildings. These projects will make Alaskans’ lives better by deploying clean energy technologies and decreasing energy costs.

Spruce Root’s award stands as one example of how these funds will benefit all Alaskans. Another recent example was the announcement of $125 million from the IRA’s Solar for All program, awarded to two Alaskan programs for solar projects.

The third law is from Gov. Mike Dunleavy, who worked with the Legislature to pass a bill forming the Alaska Energy Independence Fund, which will provide Alaskans with favorable investment opportunities for clean energy infrastructure to reduce cost and increase reliability of energy supply in Alaska.

Alaska’s high cost of energy has been a significant headwind for the business community, but investment in clean, affordable energy presents opportunities to create new jobs and spur economic growth. Established this summer, the Alaska Energy Independence Fund will further accelerate critical investment in Alaska’s clean energy future.

Currently, about a quarter of the state’s energy comes from clean, renewable sources. With investments from federal funding and the promise of the Alaska Energy Independence Fund, that number is expected to grow, which is great for communities paying way too much to heat and electrify their homes.

The best news of all is that renewable energy is now the most affordable source of new energy in Alaska. According to a 2024 study from the National Renewable Energy Laboratory, Alaska could get 76% of its electrical generation from wind, solar and other renewable sources by 2040, simply by leaning into lowest-cost options. Yes, you read that right: Renewable energy is now the lowest-cost path to energy security and independence for Alaska.

Alaska is leading the way in energy innovation and independence, and we have a once-in-a-generation opportunity to design Alaska’s energy infrastructure so future generations can thrive, while practically planning for the impacts of climate change.

These three laws are powerful vehicles for Alaskans to continue moving toward the clean energy future we need, and we have momentum toward that better future. Now it is time to build on the tremendous success of these new drivers of energy independence. Let’s continue saying “Yes” to the future.

Alana Peterson is the executive director of Spruce Root and believes that following in the footsteps of our ancestors by continuously innovating is the key to solving our most important problems. Ivy Spohnholz is Alaska director of The Nature Conservancy and served for seven years in the Alaska State House. They are both lifelong Alaskans.

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