Power Project Loan Fund

October 09, 2024

Summary

Created by the Alaska State Legislature and administered by the Alaska Energy Authority, this fund provides loans to electric utilities, regional electric utilities, municipalities, regional and village corporations, village councils, and independent power producers. It is designed for the development or upgrade of small-scale power production facilities of less than 10 megawatts, conservation facilities, and bulk fuel storage facilities. This includes energy production, transmission and distribution, and waste energy conservation facilities that depend on fossil fuel, wind power, tidal, geothermal, biomass, hydroelectric, solar or other energy sources.

The loan term is related to the life of the project, but may not exceed 50 years. Interest rates are the lesser of the average weekly yield of municipal bonds for the 12 months preceding the date of loan, or a rate the Alaska Energy Authority determines will allow the project to be financially feasible. Maximum loan amounts may be determined by available funds in the program, and loan requests over $5 million require legislative approval. Application fees, effective April 2015, are based on the loan amount requested, and vary from $200 for projects up to $100,000 to $5,000 for projects over $1 million.

Contact the Alaska Energy Authority for more details and current restrictions on maximum loan amounts.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Alaska
Incentive Type:	Loan Program
Web Site:	https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Power-Project-Fund
Administrator:	Alaska Industrial Development and Export Authority
Start Date:
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Space Heat Solar Thermal Electric Solar Photovoltaics Wind (All) Hydroelectric Municipal Solid Waste Combined Heat & Power Custom/Others pending approval Wind (Small) Hydroelectric (Small)
Maximum Loan:	No maximum but loans over $5 million require legislative approval.
Loan Term:	Based on useful life of project. Maximum 50 years.
Interest Rate:	Vary, with highest rates tied to average yields of municipal bonds.

Authorities

Name:	AS § 42.45.010
Date Enacted:	1993, subsequently amended

Name:	3 AAC 106.100 et seq.
Effective Date:	02/16/1996

Contact

Name:	Cady Lister
Organization:	Alaska Energy Authority
Address:	813 West Northern Lights Blvd Anchorage AK 99503
Phone:	(907) 771-3039
Email:	clister@aidea.org

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.