In Alaska
Turnagain Arm. Photo by Kelly Findlay.
Alaska is characterized by a large number of people living in areas with little to no energy infrastructure. As a result, energy costs in a large portion of the state are significantly higher than those in more populated areas. A major priority for renewable energy policy in Alaska is to decrease the disproportionately higher energy costs of rural Alaska compared to the more standard cost of energy enjoyed by the communities located on the Railbelt. Diesel generators currently provide the majority of energy for rural Alaska, but recent spikes in oil prices have made renewable technologies more competitive economically and more desirable for the cost stability they provide. Interest in renewable energy development has increased dramatically as a way to hedge against future diesel cost spikes while providing clean and reliable power, in addition to education and employment opportunities, for rural Alaskans.
Alaska now has the potential to become a leader in renewable energy resource development. 2008 was a landmark year for renewable energy and energy efficiency in Alaska. The Cold Climate Housing Research Center published a report outlining recommended state programs, initiatives, and goals to reduce end-use energy demand and save up to $840 million over the next 5 years, and the State Legislature appropriated $360 million for home weatherization and rebate programs. 2008 also saw the passage of H.B. 152, which established the Renewable Energy Grant Program administered by the Alaska Energy Authority. In the Fund’s first two years the Legislature has appropriated $125 million for grants for qualifying projects, with the most weight given to proposals for projects that serve communities with the highest energy costs.
In 2009, the Alaska Energy Authority and the Alaska Center for Energy and Power completed a comprehensive survey of energy resources in Alaska entitled “Alaska Energy: A First Step Towards Energy Independence.” This survey can act as a tool for state and local leaders to use to educate and engage the public in building a new, comprehensive, and diversified energy policy for Alaska.
Sustainable Natural Alternative Programs (SNAPs) in Fairbanks and on the Kenai Peninsula currently provide access to renewable energy for Golden Valley Electrical Association and Homer Electrical Association customers and help mitigate the installation costs for producers. The Renewable Energy Grant Fund provides financial assistance to build renewable energy projects and transmission infrastructure throughout the state.
A growing awareness of the economic and environmental advantages of developing renewable energy resources both locally and nationally are contributing to advances in technology, policy, and economies of scale that will make renewable energy cost competitive in the near future. It is an exciting time for Alaskans as our representatives take more steps to ensure that residents are provided with stably priced, clean energy. Check back with REAP’s website often for the latest news on renewable energy development in the state.
Sources:
American Wind Energy Association
Alaska Energy Authority
Cold Climate Housing Resource Center
Further Resources
Alaska 25th Legislature H.B. 152: Renewable Energy Grant Fund
Alaska Energy: A First Step Towards Energy Independence
