Alaska’s electric cooperatives, serving over 75% of the state’s population, are facing a critical need to enhance the reliability and resilience of their power grid. The existing transmission system, with limited capacity between regions, poses challenges to accessing the most cost-effective energy sources across the grid.
Recognizing the urgency, Alaska, through the Alaska Energy Authority and Railbelt electric utilities, secured a $206.5 million federal grant for Phase I of a transformative project to strengthen the grid between the Kenai Peninsula and the Interior. This first phase involves constructing an additional transmission line from the Kenai Peninsula to Southcentral, followed by an additional line from Southcentral to Healy in Phase II.
Beyond increasing reliability, these upgrades will facilitate the integration of more renewable energy sources into the grid, reducing reliance on fossil fuels. The modernized infrastructure will also enhance the state’s ability to attract and support new industries and businesses that rely on affordable and dependable energy.
Governor Mike Dunleavy has proposed budget amendments to fund the initial work, and the Senate has included funding in their proposed fiscal year 2025 capital budget for Phase I. The House is also working on securing matching funds to maximize the benefits of the federal grant.
The full project is expected to take up to 10 years and create numerous job opportunities for Alaskans. It will also lay the groundwork for the integration of future power sources, driving innovation and economic development while reducing energy costs for consumers.
The Railbelt grid has gained national attention thanks to the efforts of Governor Dunleavy and Senators Lisa Murkowski, Dan Sullivan, and Congresswoman Mary Peltola. With continued support from the Department of Energy and the Alaska Legislature, Alaska can showcase the positive impact of a modern electric grid on innovation, economic growth, and environmental sustainability.
