Alaska FY 2027 budget funds $4.95M in renewable energy for AP&T service areas

Nearly $5 million in state Renewable Energy Fund grants will support two renewable energy projects in communities served by Alaska Power & Telephone Company: a solar-plus-battery system in the remote interior village of Allakaket and a hydroelectric reservoir expansion at Goat Lake. Gov. Michael Dunleavy signed the funding into the FY2027 state budget as part of the Alaska Energy Authority's Renewable Energy Fund program, which provides grants for cost-effective renewable energy projects that reduce fossil fuel use. AP&T, an employee- and investor-owned utility founded in 1957, serves 40 remote communities in southeast and interior Alaska. The grants reflect the persistent challenge of delivering affordable energy across that footprint.

The larger grant, $2,953,085, funds a solar and battery system for Allakaket. Under a proposed independent power producer structure, Allakaket Village will own the REF-funded assets and sell power to AP&T as a lower-cost alternative to diesel generation. The Alaska Native Tribal Health Consortium will serve as the project developer. AP&T President and CEO Bill Marks said the grants would accelerate investments across the company's service areas. "We deeply appreciate the Alaska Legislature and Governor Dunleavy's support for rural and remote communities facing some of the highest energy costs in the nation," Marks said.

The second grant, $2 million, expands the Goat Lake Hydroelectric Project reservoir. The expansion is expected to increase water storage capacity, reduce reliance on diesel generation, and provide greater long-term energy cost stability for the region. Supporters say the project will prevent burning 7 million gallons of diesel and deliver benefits more than six times the cost.