A recent report from the National Renewable Energy Laboratory shows that as natural gas supplies from Cook Inlet decline, renewables offer Alaskans the surest, most cost-effective energy solution. However, bringing enough renewables online is a complex endeavor, not least because of our state’s unique geography and climate. This excellent article by Hal Bernton highlights the progress made thus far, the potential pathways ahead of us, and the challenges that may hinder our progress.

Alaska’s vast clean energy potential includes not just wind, solar, and tidal power, but also naturally occurring hydrogen. A local geologist with a distinguished career in the oil and gas industry is leading efforts to identify underground hydrogen reservoirs and tap into this resource. If successful, Alaska’s hydrogen reserves could become a major source of carbon-free energy, complementing other renewable initiatives and helping deliver reliable, affordable local energy to Alaskans.

Former oil industry veterans are spearheading new efforts to expand Alaska’s clean energy sector, focusing on wind, geothermal, tidal and hydrogen opportunities. These leaders see renewable energy as a way to diversify Alaska’s economy, create jobs, and secure the state’s future as an energy leader. Amid declining local gas supplies, Cook Inlet is becoming a focal area for these initiatives. While challenges within the economic and political landscape remain, recent successes, like wind and tidal energy projects, highlight the state’s growing capacity to lead in energy innovation.

The Alaska Energy Authority has accepted a $206.5 million federal grant, part of the bipartisan infrastructure bill, to build a 38-mile submarine transmission line across Cook Inlet. This project will quadruple the transmission capacity from the Bradley Lake Hydroelectric Project near Homer and future renewable projects on the Kenai Peninsula, increasing renewable energy distribution along the Railbelt grid. The total $413 million project, likely the largest construction project outside the North Slope oil fields, will support Alaska's clean energy infrastructure and help stabilize Alaska's energy prices and supplies.

Alaska regulators have conditionally approved a $57 million pipeline extension by Alaska Pipeline Co., an affiliate of Enstar Natural Gas, to potentially import natural gas into Alaska via Port MacKenzie, addressing anticipated shortages in the Cook Inlet basin. Enstar forecasts a local gas supply shortage starting next year, prompting the move to diversify supply sources despite the expected increase in power and heating bills. The final decision on importing liquefied natural gas has not yet been made, but Enstar is urgently evaluating the feasibility and plans to file a gas sales agreement by the end of the year.

In March 2022, the Southwest Power Pool (SPP) in Arkansas met over 90% of its electricity demand with renewable energy, primarily wind power. This demonstrated that high renewable penetration can be achieved without compromising grid reliability. Despite challenges, regions like Texas and California are also successfully integrating large amounts of renewable energy, and Alaska can too.

The Renewable Energy Alaska Project (REAP) is offering technical assistance and up to $50,000 for Alaska communities interested in moving to more sustainable energy sources. REAP’s Energy Transitions Initiative Partnership Project (ETIPP) emphasizes community-led approaches and education to reduce reliance on costly and unreliable fuel sources and boost local economies. Applications are open until July 10, 2024.

Giant batteries are transforming U.S. electricity by storing excess solar and wind power to extend the availability of these “intermittent” renewable sources. These batteries stabilize grids, manage renewable energy variability, and support peak demand, advancing the shift to sustainable energy across the nation.

Tidal energy from Cook Inlet could power half of Anchorage, according to a National Renewable Energy Laboratory (NREL) report. With grid upgrades to enable integration, Cook Inlet Tidal can help Alaska achieve its target of 80% renewable energy powering its main grid by 2040.

The U.S. Department of Energy awarded over $20 million to six Alaska communities for clean energy projects. These projects, part of the Energy Improvement in Rural and Remote Areas (ERA) grant program, will install solar PV systems, battery storage, and heat pumps to reduce energy costs, enhance climate resilience, and support local economies.