The Department of Energy will spend $125.1 million for five energy development projects in rural Alaska. DOE awarded the funds under its Energy Improvement in Rural or Remote Areas program, authored in large part by Sen. Lisa Murkowski as part of the Infrastructure Investment and Jobs Act of 2021.
The math is breathtaking: For the 1,000 Alaskans served by these hydro, solar, and battery projects, the federal government is spending $125,000 per rural resident.
The program is aimed at improving “resilience, reliability, and affordability of energy systems in communities across the country with 10,000 or fewer people.”
The Alaska projects selected for funding include:
- Chignik Hydroelectric Dam and Water Source Project led by the Lake and Peninsula Borough (Chignik Bay)—up to $7.3 million. The project will replace 100% of the community’s diesel consumption with renewable energy, and reduce energy burden.
- Clean Energy in the Northwest Arctic led by the Northwest Arctic Borough—up to $54.8 million. This project aims to install over 4 MW of solar PV, over 7.1 MWh of battery storage systems, and approximately 850 heat pumps across the Northwest Arctic region. This project seeks to replace a 10-mile, overhead, distribution tie-line between the villages of Kobuk and Shungnak, allowing for greater interconnection in this remote region. Each of the 10 solar and battery storage projects will be owned and maintained by 11 federally recognized Alaska Native Villages, who will act as Independent Power Producers (IPP).
- Alaskan Tribal Energy Sovereignty led by the Tanana Chiefs Conference (Nulato, Huslia, Minto, Kaltag, Grayling, Anvik, Shageluk, Holy Cross)—up to $26.1 million. The project will strive to offset the region’s diesel consumption by 40%, which will lower energy costs and reduce greenhouse gas emissions by more than 1,550 metric tons per year over the project’s 25-year lifespan, the Department of Energy says.
- Old Harbor Hydroelectric Project led by the Alutiiq Tribe of Old Harbor (Old Harbor)—up to $10 million. This project plans to construct a run-of-the-river hydroelectric facility with a diversion structure, pipeline, powerhouse, and electric transmission line in Old Harbor on Kodiak Island. It is anticipated that the project will be capable of generating about 3,470 MWh of energy annually and offset diesel fuel use at the local power plant by 95%, enabling a year-round reliable energy source.
- Thayer Creek Hydroelectric Project led by Kootznoowoo, Inc. (Angoon)—up to $26.9 million. This project encompasses an 850-kilowatt, run-of-the-river hydroelectric project that has the potential to supply three times the community’s current electricity needs, providing additional power for heating, fish processing, electric vehicle charging, and tourism. Kootznoowoo, Incorporated (KI) is the Alaska Native Village Corporation for the community of Angoon, population 357 residents. The cost per resident is $75,630.
These projects will facilitate the development of more of Alaska’s abundant hydropower resources, solar energy, battery storage systems, heat pumps, electric interconnection, and more, the Department of Energy says. More information about the awards is available on DOE’s website.
While rural Alaska is getting hydropower, the Anchorage Assembly is trying to rip out the existing Eklutna hydropower project.
Rick Whitbeck, Alaska state director of Power The Future, noted the inconsistency, saying, “Hydro that replaces higher-cost energy in rural Alaska is wonderful but the lowest cost electricity in Southcentral is somehow evil? You’d think the eco-Left could be more consistent, but logic is not their strong suit.”
To date, roughly $7.4 billion from the bipartisan infrastructure law has been announced for Alaska, with over 1,600 projects identified for funding and investment around the state. That’s $10,100 of federal funding — and much of that is federal debt — for every Alaskan. Similar results can be found across the country.
Statista, a business data website, shows that in 2023, Alaska, even with its small population of about 733,000, did better than states with far larger populations in terms of obtaining these federal infrastructure dollars:
Find more statistics at Statista
