On October 22, 2025, Chugach Electric Association’s Board of Directors unanimously approved a $26.4 million investment for the 10 MW-AC Beluga Solar Project, set to be Alaska’s largest solar project. Located at the existing Beluga power plant near Tyonek, the project will leverage existing transmission infrastructure to minimize costs while advancing Chugach’s decarbonization goals. The projects reducing carbon intensity by 35% by 2030 and 50% by 2040, aligning with the cooperative’s sustainability objectives and the broader Alaska Railbelt’s clean energy transition.
The levelized cost of electricity (LCOE) is pivotal to the project’s profitability, enabling Chugach to compare solar costs against natural gas generation. Estimates suggest a solar LCOE under $70/MWh, competitive enough to displace costlier fossil fuel output. The federal Investment Tax Credit (ITC), covering at least 30% of capital costs, reduces the project’s net cost to approximately $16.4 million, minimizing ratepayer impact. “This project is a cornerstone of our commitment to affordable, sustainable energy,” said Chugach CEO Arthur Miller. “The ITC ensures negligible rate increases while diversifying our energy mix.”
By siting the project at Beluga, ongoing land use discussions with CIRI will enable Chugach to meet project objectives. The solar output is expected to offset volatile natural gas costs, stabilizing consumer rates long-term, especially during peak summer demand.