Alaska has some of the highest energy prices in the country and yet we are surrounded by a wealth of renewable energy resources. We can overcome this contradiction and expand our local economy; however, we will first need to face some hard facts.
Just because the winds blow or the tides swell doesn't mean we can just harness them when we want to produce affordable, reliable and safe energy.
In Alaska we are relying on a megaproject approach to clean energy delivered through electric utilities, but that will not carry us far enough, fast enough.
We need to create a level playing field for smaller-scale investments in residential and commercial projects. To do that, we need to establish common-sense building codes, net metering for small electrical systems tied into the grid, and modest but stable incentives for solar, wind and hydro.
Local investors are holding back on installing individual clean energy systems until we have a statewide net metering policy. A net metering policy would allow an individual to sell intermittent excess electrical power back to the utility at the retail rate.
The good news is that net metering is now being considered by the Regulatory Commission of Alaska. For every megawatt of new net metered systems installed in Alaska, an estimated $10 million will be spent locally on consulting, equipment and installation.
Many states, local governments and utilities in the Lower 48 offer small incentives to homeowners and businesses to install renewable energy systems. For example, in Colorado, the Governor's Energy Office has allocated rebate funds that will cover up to $3,000 for residential solar water heaters and $9,000 for small business solar water heaters. The Wyoming State Energy Office offers an incentive to cover half the cost of an off-grid or on-grid residential photovoltaic system up to $3,000.
These small-scale renewable energy projects keep the resource under local control, which ensures that benefits stay in the local economy. As we can see with the "local" resources of Cook Inlet natural gas and even refined gasoline, Outside interests can be quick to inflate the margin of profit leaving the state.
We can grow the clean energy economy in Alaska one concrete step at a time by helping the many motivated Alaskans who want to make their own renewable energy. It will take a change in vision and direction for Alaska to catch up with other states and the Europeans. We will need to invest in smaller-scale residential and commercial projects as well as utility projects to get it done.
Andy Baker, PE, is an independent clean energy consultant and a member of the Alaska Center for Appropriate Technology. Interested readers can learn more at The Business of Clean Energy Convention at the Dena'ina Center in Anchorage today and Tuesday.
By ANDY BAKER