Five projects in Alaska have been selected under the Energy Improvements in Rural or Remote Areas (ERA) Program, announced today by Secretary Jennifer Granholm from the 2024 Clean Energy Tribal Summit in Temecula, California. The ERA program aims to improve the resilience, reliability, and affordability of energy systems in communities across the country with 10,000 or fewer people. 

“President Biden firmly believes that every community should benefit from the nation’s historic transition to a clean energy future, especially those in rural and remote areas,” said U.S. Secretary of Energy Jennifer M. Granholm.“Thanks to the President’s Investing in America agenda, DOE is helping revitalize communities across America—ensuring thriving businesses, reliable access to clean energy, and exciting new economic opportunities, now and for generations to come.” 

Alaska’s Senators have also welcomed this investment (see their press release here). 

“One of my priorities when crafting the bipartisan infrastructure law was cleaner and more affordable energy for Alaska,” Senator Murkowski said. “I see the opportunities we have to utilize more of our local resources, the hardships that high energy costs cause across our state, and pushed this innovative program as a way to tackle both. I thank Secretary Granholm and her team for recognizing this need, and for choosing more projects and awarding more funding to Alaska than any other state. These investments will create jobs, reduce emissions, and increase the use of renewable resources while decreasing electricity bills.”

“Alaska is an all-of-the-above energy power house,” said Senator Sullivan. “I’ve long advocated for taking advantage of Alaska’s untapped renewable energy potential to meet our communities’ energy needs, especially in our rural areas where Alaskans bear the exorbitant cost of diesel fuel to heat their homes and keep the lights on. This major investment—a result of our work in the Infrastructure, Investment & Jobs Act—will fund hydroelectric facilities, battery storage, transmission lines, and other energy infrastructure that will ultimately reduce costs and increase resiliency for Alaskans in Chignik Bay, Old Harbor, Nulato, Huslia, Kaltag, Grayling, Anvik, Shageluk, Holy Cross, Angoon, and villages across the Northwest Arctic Borough.”

Representative Mary Peltola has also spoken in support of this announcement. “For too long, rural Alaskan communities have needed to fly in heat oil and diesel to keep homes warm and lights on,”said Representative Mary Peltola.  “We’re making a once-in-a-generation investment in renewable energy to ALL Alaska, and these grants show our commitment to energy that’s better for the climate and for Alaskans’ pocketbooks.” 

Clean Energy in the Northwest Arctic 

Up to $54.8 million in Department of Energy federal funding is available for this project, led by led by the Northwest Arctic Borough. 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). As proposed, the Native Villages will be able to sell the power to their corresponding utility, potentially raising an estimated $970,000 in annual revenue. This four-year project is expected to displace more than 350,000 gallons of diesel fuel annually and save the region nearly $2 million in electricity and heating costs, while also demonstrating a new power-distribution technology for potential replication in other remote communities. 

As part of its Community Benefits Plan, the project would develop a Memorandum of Agreement with each of the 11 recognized Alaska Native Villages to ensure a clear framework for promoting local hiring, transferring ownership agreements, and creating meaningful engagement. Project partners may be expected to implement a local hiring preference of 50% for Alaska Natives and local job seekers, leveraging the University of Alaska’s Native Science & Engineering Program to source candidates. The project’s proposed work also provides 100% of its benefits to disadvantaged communities.

Thayer Creek Hydroelectric Project

Up to $26.9 million in DOE funding is available for this project, led by Kootznoowoo, Inc. based in Angoon, AK. 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, the ancient home of the Tlingit Xóotsnoowe’di people with a population of 357 residents. In 1980, as part of the Alaska National Interest Lands Conservation Act (P.L. 96-487), KI and the community of Angoon gave up the rights to their ancestral land to establish the Admiralty Island National Monument. As compensation for the loss of the lands, KI was granted the right to develop Thayer Creek Hydroelectric. However, the initial agreement did not include funding, and more than 40 years later, the Tlingit people are still entirely reliant on imported diesel which leads to energy costs that are 4.5 times the national average. This project aims to provide an avenue to address historical oversight and support access to reliable and affordable energy for the Tlingit people.

As part of its Community Benefits Plan, the project is expected to create 30 construction jobs and one full-time operation and maintenance position. Thayer Creek is expected to displace 12.9 million gallons of diesel and reduce carbon emissions. Once fully operational, the project is expected to reduce energy rates across five Alaskan communities.

Alaskan Tribal Energy Sovereignty

Up to $26,070,000  in Department of Energy federal funding is available for this project, led by the Tanana Chiefs Conference. This project will take place in Nulato, Huslia, Minto, Kaltag, Grayling, Anvik, Shageluk, and Holy Cross, Alaska.

This project aims to deploy high-penetration solar PV and battery storage systems into existing microgrids in eight remote tribal communities currently relying on diesel for 100% of their electrical production. All eight tribal communities are inaccessible by road and have limited seasonal accessibility by boat or small airplane, which leads to electricity costs that are more than four times higher than the national average. In collaboration with the Alaska Village Electric Cooperative, the project team plans to modernize grid infrastructure, provide job training to tribal communities and develop Alaska’s largest tribally owned and operated Independent Power Producer (IPP). 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.  

As part of its Community Benefits Plan, this project aims to improve grid reliability, enhance air quality, and decrease community energy burdens with potential savings of more than $100,000 annually. Moreover, the tribal ownership model is projected to generate a net income of $150,000 annually, which can be shared with tribal governments and used to develop future renewable projects in tribal communities across the region. The project team plans to engage with the communities through radio, online/print publications, and quarterly engagement meetings with village councils, and establish a utility board of tribal leaders from across the region to oversee the newly established IPP.  

Old Harbor Hydroelectric Project 

Up to $10 million in Department of Energy federal funding is available for this project, led by the Alutiiq Tribe of Old Harbor. 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, Alaska. 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. Old Harbor is a remote Alutiiq Tribal village on Kodiak Island, Alaska, approximately 50 air miles from the nearest social services in the City of Kodiak. There are nearly 200 residents in Old Harbor and 83% are Native Alaskans who rely on a subsistence diet, collecting berries, fish, and game meat for food. According to the Denali Commission, 88% of residents live below the federal poverty line, with a median household income of $13,181, and experience disproportionally higher cost energy bills. 

As part of its Community Benefits Plan, the Alutiiq Tribe and project partners will work to ensure stable sources of clean water and energy while reducing the negative health impacts of using diesel fuel. The Tribe intends to sell hydropower generated through the project to local utilities for 80% of the avoided cost of a gallon of diesel fuel. The project will ensure energy security and will provide benefits to each household. The Old Harbor Hydroelectric project seeks to demonstrate a tribal ownership business model that may be replicable in 209 similar rural villages within the region. 

Chignik Hydroelectric Dam and Water Source Project 

This project will receive up to $7.2 million in Department of Energy federal funding. The project, in Chignik Bay, Alaska, is led by the Lake and Peninsula Borough. This project plans to construct a new run-of-the-river hydroelectric facility, replacing a 70+ year-old wooden dam that is at risk of failure. Located in Chignik, Alaska, the project aims to improve energy and water security as the current dam leaks frequently, also jeopardizing the community’s only stable source of clean water. The proposed 2.1 MWh hydroelectric facility aims to replace 100% of the community’s diesel consumption. It also plans to provide excess power for heating, electric vehicle charging, and expansion of local economic activities like tourism and fish processing. The Chignik Bay Tribal Council will own the facility and plans to sell power to local utilities for 80% of the avoided cost of fuel, reducing total electricity rates by an estimated 7%. 

As part of its Community Benefits Plan, this tribally owned project aims to improve community energy resilience, lower utility bills, reduce greenhouse gas emissions, improve local air and water quality, and spur local economic development. The project team has secured over $6 million to rehabilitate the community’s water supply and anticipates creating up to 10 construction jobs with a tribal preference. This project represents the culmination of a multi-year collaboration among community stakeholders, the project team, and the fishing industry, to help determine how lower electricity costs can increase local economic development and ensure local salmon streams are preserved. 

The Arctic Energy Office congratulates these selectees and the other ERA selectees announced today. Read the full announcement here to get to know all 17 selectees. 

  Alaska, clean, energy, projects, remote, rural