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News & Press Releases

Northwest Alaska Receives $54.8 Million in Clean Energy Funding From DOE

Feb. 28, 2024 – ANCHORAGE, ALASKA – Yesterday, the U.S. Department of Energy (DOE) Office of Clean Energy Demonstration (OCED) announced that Northwest Alaska was awarded approximately $54.8 million in clean energy funding as a result of the Clean Energy in Northwest Alaska grant request made in partnership with the Northwest Arctic Borough (NAB), NANA Regional Corporation (NANA), Alaska Village Electric Cooperative (AVEC), Kotzebue Electric Association (KEA) and Renewable Energy Alaska Project (REAP).

“I am thankful that we have been able to work collaboratively with our partners to receive this amazing award that will benefit all residents of the Northwest Arctic Borough,” said NAB Mayor Dickie Moto, Sr. “Working to lower the cost of living for our residents has always been one of our top priorities and this grant will make significant strides toward this longstanding goal.”

NAB is the awarded applicant, with NANA contributing $5 million local match with other contributions from regional partners. The federal grant award and all contributions total approximately $68.5 million for this region-wide project.

“This award is an incredible win for NANA shareholders and residents in Northwest Alaska,” said NANA Chief Executive Officer (CEO) and President John Lincoln. “The cost of energy in our region creates a burden on families and suppresses economic development. By exploring other energy sources with our regional partners, we are building a stronger tomorrow with more opportunities for our shareholders.”

The four-year clean energy project can potentially displace 350,000 gallons of diesel fuel annually and save regional residents $2 million in electricity and heating costs. It will include all 11 regional communities and establish:

  • 4 MW of solar PV and over 7.1 MWh of battery storage systems, 10 of which will be owned by regional Tribes, making them Independent Power Producers (IPPs). As a result,

Native Villages can sell power back to the utility, potentially creating a meaningful source of revenue.

  • 850 heat pumps for regional households
  • 10 miles of upgraded overhead distribution tie-line between Kobuk and Shungnak.

Currently, energy prices in Northwest Alaska are some of the highest in the nation with a gallon of diesel fuel as high as $18.00 in some communities. Most villages are powered by diesel generators.