Renewable Energy Grant Program

Summary

The original enabling legislation in 2008 ended the program after five years. In 2012, H.B. 250 extended the program an additional 10 years through June 2023. In 2023, H.B. 62 extended the life of this program in perpetuity, removing the sunset date of June 2023.

In 2024, S.B. 187 approved $10.5 million for five projects under Round 16 (FY 2025). Through FY 2025, the legislature has authorized over $328 million in grants across 924 grants.

In May 2008, Alaska enacted legislation authorizing the creation of the Alaska Renewable Energy Fund, a grant fund administered by the Alaska Energy Authority (AEA). The grant program is intended to provide assistance to utilities, independent power producers, local governments, and tribal governments for feasibility studies, reconnaissance studies, energy resource monitoring, and work related to the design and construction of eligible facilities. In order to be eligible for a grant, a project must be located within Alaska and be a new project not in operation on August 20, 2008, or an addition to an existing project made after the same date.  Projects should be constructed and operated for the public benefit. The list of eligible technologies includes solar, wind, geothermal, hydrothermal, certain types of biomass, biogas, wave, tidal, waste heat utilization, river in-stream power, and hydropower. Also eligible are: fuel cells that use hydrogen generated from an eligible renewable resource or natural gas; certain natural gas projects located in small communities; and, electricity or natural gas transmission and distribution infrastructure projects that link an eligible project to related infrastructure.

The AEA will not actually approve projects; it will issue recommendations to the state legislature, which will make funding decisions. The AEA evaluates projects on the public benefit of the project using an economic model for consistent parameters and assumptions between projects. There is usually one round of funding per fiscal year, and the first solicitation took place in September 2008. Solicitations accepted during one fiscal year are funded in the following fiscal year.

Applications are evaluated and ranked based on the burden of energy costs in the affected project area, the type and amount of matching funds committed, project feasibility, project readiness, public benefits, and the sustainability of maintaining and operating the project.

See the program website for additional details, including information on funding and eligibility questions.