$206 Million Federal Grant Will Strengthen Alaska’s Electrical Grid Resilience

Sullivan says the project will add resiliency throughout the grid.

“Alaskans contend with a host of natural disasters that can disrupt our basic infrastructure—earthquakes, wildfires, typhoons, volcanic eruptions, tsunamis and blizzards, not to mention the extreme fluctuations in temperature between our winter and summer months,” Sullivan says. “Maintaining access to electricity, especially for communities far from larger population centers, can be a matter of life and death during an emergency. I want to congratulate AEA on securing this major $200-plus million-dollar federal grant that we made available through the bipartisan infrastructure law. I look forward to AEA breaking ground on this important project that will have the potential to significantly expand hydroelectric power and other renewables, modernize our state’s electrical grid, help lower the cost of energy for thousands of Alaskans, and go a long way toward keeping our lights and heat on when we need it most.”

Peltola says the project boosts Alaska’s self-reliance and demonstrates the power of Alaska’s delegation working together.

“We’re taking our first step into a cleaner, stronger energy future, with more jobs and lower costs for Alaskans,” Peltola says. “Alaska is an energy powerhouse, from tidal to wind to LNG and more. We shouldn’t have to import expensive Outside energy when we have so many affordable options at our fingertips, and now we have the chance to make our energy grid truly work for Alaskans. This $206.5 million award, with another $206.5 million in matching funds, represents a sea change in Alaska’s energy grid. This project will fund redundant transmission and battery energy storage systems throughout the Railbelt, creating a stronger energy grid that will have more capability to accept and distribute energy from renewable sources throughout the state, bringing more domestic Alaskan energy to power more Alaskan homes and businesses. Once again, Alaskans have showed that when we are united, we can accomplish incredible things. Our utilities, state leadership, and Congressional delegation all worked in unison to advance this plan, and, just like with Willow, we achieved incredible results. I believe this project is central to Alaska’s just energy transition and spoke personally with President [Joe] Biden and [US Energy] Secretary [Jennifer] Granholm about it, emphasizing how Alaska can be an innovative model in grid development for the rest of the country.”

Matching funds are required for the grant, which is being administered by the US Department of Energy Grid Deployment Office, bringing the total project cost to $413 million. The project is estimated to be completed in eight years, and will include multiple battery energy storage systems throughout the Railbelt electrical grid.