Rural Clean Energy Grants
Alaska Approved $4.95M to Expand Renewable Energy Access
Adam Harrie — July 11, 2026
The Alaska State Legislature approved two Renewable Energy Fund grants totaling more than $4.95 million to expand renewable energy access in rural Alaska communities served by Alaska Power & Telephone Company.
The funding includes $2 million to expand the Goat Lake Hydroelectric Project reservoir, reducing diesel reliance and avoiding the use of an estimated 7 million gallons of diesel, along with $2,953,085 for a solar and battery energy storage system serving the remote community of Allakaket. Under the proposed project structure, the village will own the solar and battery assets and sell electricity to AP&T as a lower-cost alternative to diesel generation, with the Alaska Native Tribal Health Consortium serving as project developer.
The grants show how targeted public funding can help remote communities replace diesel generation with locally owned renewable energy systems that improve long-term affordability and energy resilience.
