The Alaska State Legislature has approved two Alaska Energy Authority (AEA) Renewable Energy Fund (REF) grants totaling approximately $5 million to advance hydro and solar energy projects in areas served by the Alaska Power & Telephone Company (AP&T) headquartered in Ketchikan, AK. The appropriations, included in the State of Alaska’s FY2027 budget recently signed by Governor Mike Dunleavy, provide $2 million for the expansion of the Goat Lake Hydroelectric Project reservoir in Southeast Alaska and $2,953,085 for a solar and battery system serving Allakaket located in the Interior.
Goat Lake Reservoir Expansion – $2,000,000
The $2 million REF grant for the Goat Lake Hydroelectric Project will help fund an expansion of the reservoir. The Goat Lake project has been licensed since 1996 and occupies land in the Tongass National Forrest. The project’s powerhouse uses a Pelton turbine generator with a 4.0-megawatt capacity and generates approximately 15,000 MWh per year. AP&T uses power generated by the Goat Lake project to provide electricity for about 1,000-1,5000 homes, primarily located in Skagway.
Senator Jesse Kiehl (D-Juneau) stated: “This project has it all: low-cost, local electricity that’s fish safe, already plugged in, and prevents burning 7 million gallons of diesel. With benefits more than 6 times the cost, this makes total sense for Alaska. I’m proud to play a role in the Goat Lake Hydro expansion.”
“AP&T’s efforts to develop additional clean energy at Goat Lake are particularly timely as communities pursue greater electrification through heat pumps, electric vehicles, and shore power for marine vessels,” said Representative Andi Story (D-Juneau). “The reservoir expansion presents a unique opportunity to combine public investment with private sector expertise and efficiency to support the region’s energy needs for decades to come.”
Allakaket Solar Project – $2,953,085
Under a proposed independent power producer (IPP) structure, Allakaket Village will own REF-funded solar and battery assets and sell power to AP&T as a lower-cost alternative to diesel generation. ANTHC will serve as the project developer, working in conjunction with AP&T’s engineers.
“Having grown up and lived in rural Alaska, I understand firsthand the challenges created by high energy costs,” said Senator Mike Cronk (R-Tok/ Northway). “Due to the high cost of transporting diesel fuel to the community, Allakaket residents face some of the highest energy costs in the state. This project represents an important step toward reducing those costs and improving opportunities for local families, community facilities, and businesses.”
“Renewable energy projects are essential to rural Alaska,” said Representative Rebecca Schwanke (R-Glenallen). “Being able to bring a solar and battery project to Allakaket with the support and technical expertise of the Alaska Energy Authority could not come at a better time given the high cost of fuel.”
