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Alaska is facing an “acute gas supply crisis” amidst a looming shortage while its Governor considers two large new coal plants to power mining operations and its electricity prices are amongst the highest in the United States.
It’s time for the state to get with the times on renewable energy.
A report released Wednesday by the Alaska Environment Research and Policy Center shows Alaska gets just 2.6% of its retail electricity from solar, wind, and geothermal sources, ranking it 44th in the nation. In 2023, 16% of total electricity generation in the U.S. came from renewable resources.
Renewables on the Rise 2024 contends almost all of Alaska’s tremendous clean energy potential remains untapped, and that’s a good thing when federal funding is readily available for clean infrastructure projects.
“We have a lot of reasons to develop a truly sustainable and resilient energy system in Alaska, and now is the time to dive in,” said the state director of Alaska Environment, Dyani Chapman.
The report’s dashboard documents the growth of six key clean energy technologies across the United States over the past decade: solar power, wind power, battery storage, energy efficiency, electric vehicles (EVs), and electric vehicle charging stations.
Although Alaska lags behind the national averages in many categories and IRA-driven investment has been slow to make its way up there, progress is being made.
The state has the 12th-largest battery energy storage capacity in the nation. Alaskan EV registrations increased by more than 5,000% in 2023 from a decade ago, thanks largely to the development of charging infrastructure. In 2014, Alaska had just one public EV charger, but by the end of 2023, 124 ports were open to the public. As the report points out, there was essentially zero grid-connected solar in Alaska ten years ago, but now it provides power for the equivalent of 2,191 homes.
According to Solar Energy Industries Association (SEIA) data, has just over 30 MW of installed solar, including 11.9 MW in 2023. SEIA tracked just $19 million in solar investment in 2023 but expects installations to continue on an upward trend through 2029.
In August, Alaska Governor Mike Dunleavy signed Senate Bill 152 into law, creating a framework for adopting community solar projects in the state. Dunleavy inked the legislation on the site of Chugach Electric Association’s proposed 500-kilowatt community solar project expected to become operational next year. Chucagh, Alaska’s largest utility cooperative, initially saw the project rejected by the Regulatory Commission of Alaska (RCA) in 2019 but it rekindled public interest. The utility aims to reduce its 2012-level carbon emissions by 35% by 2030 and 50% by 2040.
To harness Alaska’s potential, the authors of Renewables on the Rise 2024 recommend that state and local governments set clean energy goals with clear benchmarks and leverage federal resources to hit them. Lawmakers and regulators should ensure that utility policies fairly compensate investors in clean energy technology and adopt policies for permitting and interconnection that make adopting clean energy technologies hassle-free. They also suggest cutting energy waste by expanding efficiency programs and policies, including utility energy efficiency programs, energy codes for buildings, and appliance efficiency standards.
“This report offers a timely reminder that we have an immense, largely untapped opportunity when it comes to clean energy here in Alaska and we should take full advantage of federal tax credits, grants, and rebate programs to help realize our clean energy potential,” Chapman said. “Alaskans are already reaping the benefits of the progress we’ve made so far, but there is so much more we can do to usher in the clean, renewable energy future we need.”
