Alaska Sustainable Energy Conference explores future of statewide energy systems

The Alaska Sustainable Energy Conference opened May 19, 2026 in Anchorage. Nearly 1,000 energy industry leaders, investors, innovators and policymakers attended from at least 35 U.S. states and 10 countries. Day 2 programming will explore the future of renewable energy in Alaska and the transition from diesel to hybrid energy systems in rural Alaska.

Gov. Mike Dunleavy opened the conference with a keynote discussion with Assistant Secretary of Energy Audrey Robertson and National Laboratory of the Rockies Director Jud Virden. The panel discussed how Alaska is positioning itself as a hub for both traditional and next-generation energy. Alaska is leveraging its oil and gas resources, renewable potential and AI innovation to strengthen U.S. energy security and reduce reliance on foreign supply chains.

U.S. Secretary of the Interior joined Dunleavy on stage for a lunch keynote to discuss the role Alaska plays in the shifting global geopolitical landscape.

"There's just such a huge opportunity here," Sec. Burgum said. "I think that the future of Alaska is incredibly bright, and I want to thank Governor Dunleavy because he's been steadfast, both in fighting back against the Biden administration and now taking the opportunity with these tailwinds to get as much done as he can in terms of building out the infrastructure that's going to allow the U.S. to prosper, improve affordability and improve our relationships with our important allies across the Pacific."

Rural energy challenges

Rural Alaska communities rely heavily on diesel fuel for electricity generation. Remote villages face soaring fuel costs averaging $6.63 per gallon for unleaded gasoline in Winter 2026 across 99 surveyed communities, according to previously validated research. Diesel prices run similarly high due to barge transport costs and small delivery volumes. Many off-grid villages pay some of the highest energy costs in the nation.

Households in these areas face heavy fuel burdens. Alaska Village Electric Cooperative serves 53 villages. Annual fuel needs average around 1,200 gallons per rural Alaskan for heat, transport and electricity. In rural areas served by utilities like AVEC, fuel can account for roughly 20 percent of total household consumption costs. This strains budgets and increases dependence on Permanent Fund Dividend for utilities amid state budget pressures.

Hybrid energy systems offer potential relief. Solar and battery projects can save diesel fuel when a community runs on diesel alone. Biomass heating, hydropower upgrades and dam raise extension projects can make more power available. These projects could offset millions of dollars in costs to Alaskans.

Interstate agreements

Dunleavy was on hand for multiple agreements signed during the conference strengthening Alaska's relationships with organizations and governments. The State of Alaska and the National Laboratory of the Rockies signed a memorandum of understanding based on shared interest in advancing Alaska's role as a leader in critical minerals development, energy system innovation and Arctic infrastructure.