Renewables Gaining Ground In Alaska Amid Challenges

Alaska is at a crossroads.

With rising costs for fossil fuel electricity generation, the state is beginning to embrace Renewable Energy sources such as Solar, Wind, and Small Hydropower.

Despite facing significant challenges, the move towards a greener energy future is showing promise, driven by the efforts of pioneering individuals and evolving utility strategies.

As Dan Bisset, Vice President of North America for Astute People Inc., puts it: “The energy transition in Alaska reflects the resilience and innovation of its people.

“The shift to renewables is not just about clean energy; it’s about securing a sustainable and affordable future for all Alaskans.”

A Solar Revolution in Southcentral Alaska

In 2017, Jenn Miller and her husband Chris Colbert took a bold step by installing solar panels on the roof of their Anchorage home.

As engineers in Alaska’s oil and gas industry, they leveraged their expertise to tackle the project themselves. That initial foray into solar power soon expanded into something much larger, a pilot solar farm designed to produce electricity for a local utility.

Now the CEO of Renewable IPP, Miller has taken her passion for solar energy to new heights.

Last year, the company began operating the largest solar project in Alaska, a 45-acre installation near the Matanuska-Susitna Valley community of Houston.

The solar farm generates enough electricity at peak capacity to power 1,400 homes.

However, the seasonal nature of Alaska’s sunlight presents unique challenges: over 90 percent of the solar farm’s energy production occurs between February and October.

“When we told colleagues, I think there was this shock value of solar and Alaska in the same sentence,” Miller said. “But we had run the numbers, and we were confident that it would work.”

Addressing the railbelt’s challenges

Alaska’s energy landscape is unique, particularly given its geographic isolation.

Unlike the Lower 48, Alaska cannot rely on interconnections with neighboring states to manage fluctuations in energy supply and demand.

Most of the population resides along the Railbelt, a 700-mile stretch from the Kenai Peninsula to communities north of Fairbanks, served by five utilities.

However, the connections between these utilities are outdated and frail, making it difficult to efficiently move power where it is needed.

Efforts are underway to modernize the grid.

One significant project aims to double the capacity of the lines running between the Kenai Peninsula and Anchorage, with plans for a second undersea line and battery storage to provide more flexibility.

Despite these upgrades, additional improvements are necessary, such as a second line connecting Anchorage to Fairbanks, which is estimated to cost over $700 million.

“We have a very old and outdated grid,” Curtis Thayer, executive director of the Alaska Energy Authority, noted. “This is our biggest challenge.”

The state is also grappling with declining natural gas production from Cook Inlet, a major energy source for power generation. By 2027, utilities expect to start importing liquefied natural gas (LNG), a costly endeavor compared to transitioning to renewable energy sources like wind, solar, and hydro.

Renewable pioneers face resistance

Despite the growing interest in renewable energy, those at the forefront of Alaska’s clean energy movement have faced obstacles.

Mike Craft, a land developer turned wind energy pioneer, began operating a wind power project in Delta Junction in 2010. Despite its success, expanding the project has been an uphill battle.

Craft’s wind project, which operates best during Alaska’s cold winters, has managed to withstand extreme conditions with specially designed turbine components.

But getting utility buy-in has proven difficult.

Golden Valley Electric Association, a utility serving the Fairbanks area, repeatedly rejected Craft’s proposals to expand, opting instead to build its own wind project at a different site.

Undeterred, Craft has partnered with Ameresco, a renewable energy developer, in hopes of finally expanding his wind farm.

“When you operate a turbine at minus 40, that’s an accomplishment,” Craft said. “A lot of people think I’m crazy that I’ve stayed on this, but I believe in the potential of wind power for Alaska.”

Micro Hydropower and Small-Scale Solutions

In the face of resistance from larger utilities, some Alaskans have turned to small-scale renewable solutions.

David Brailey, a former petroleum geologist, has focused on micro-hydropower, harnessing the power of mountain streams through the Juniper Creek project.

From June through October, the project produces enough electricity for several hundred homes. Brailey sells this power to the Matanuska Electric Association, although negotiations were far from straightforward.

Brailey had hoped to secure a premium price for his carbon-free energy, reflecting its environmental benefits. However, the utility offered a price tied to the cost of natural gas—a missed opportunity to properly value renewable energy, Brailey argues.

“The benefit that we give to the environment by producing carbon-free energy is worth nothing,” Brailey lamented. Despite these setbacks, he remains committed to expanding the role of micro-hydro in Alaska’s energy mix.

The path forward for Renewables in Alaska

The growing adoption of renewables in Alaska, while promising, still faces substantial barriers.

Alaska’s energy grid, long reliant on fossil fuels, requires significant upgrades to fully integrate renewable sources like solar and wind. Nevertheless, individuals like Jenn Miller, Mike Craft, and David Brailey are leading the charge, determined to overcome obstacles and create a more sustainable energy future for the state.

Renewable IPP, for instance, is already planning its next project on the Kenai Peninsula, which will be more than five times the size of the current solar farm near Houston.

Miller and her team are also looking to demonstrate the agricultural potential of the land beneath solar panels, a promising initiative that could make solar farming more appealing to local communities by cultivating food crops like potatoes alongside energy production.

“We need to save the planet. But most people can’t afford an increase in their power bill,” Miller said. “When we talk about an equitable transition, it has to be a cost-competitive transition so it makes sense for everybody.”

Alaska’s transition to renewable energy is still in its early stages, but the progress made so far points to a promising future. With improved infrastructure, supportive policies, and a willingness to innovate, Alaska could harness its vast wind, solar, geothermal, and tidal resources to become a leader in green energy.

As Dan Bisset summarizes, “The journey towards renewable energy in Alaska is a testament to the resilience and resourcefulness of its people. By investing in the future, Alaskans are not only protecting their environment but also securing long-term energy affordability for their communities.”