Renewable energy is pushed statewide

That is, if someone’s willing to pay for it.

Such an effort could reach into the billions of dollars.   

The main feature of the initiative — scheduled to be released Dec. 17 — will include a database that could help some 350 Alaska communities decide whether they should build renewable energy projects in their area, such as wind turbines, said Steve Haagenson, executive director of Alaska Energy Authority.

The effort to gather information for the database, launched earlier this year when fuel prices soared, will estimate the money communities can save if they generate electricity and heat from wind, water, wood, fish oil or other sources.

Rural Alaska communities generally rely on diesel fuel to power buildings and heat homes. In part because the communities are so remote, their diesel and gas prices often double or triple what the rest of the country pays.

The initiative doesn’t address the state’s Railbelt communities from Fairbanks to Homer, Haagenson said. That study will be released in 2009.

Haagenson, speaking Dec. 8 to business leaders at a luncheon sponsored by the Anchorage Chamber of Commerce, offered an example of how the database will benefit an anonymous town in Alaska. 

The amount saved, of course, would depend on the cost of diesel fuel.

The example — projected onto large screen — showed that the town might see little to no savings with crude oil at its current global price, which was around $40 a barrel last week.

But if the cost of oil rises, the community could save hundreds of thousands of dollars a year, even millions, depending on the renewable energy project a community builds. The savings could come despite capital costs that could reach into the tens of millions of dollars, according to the example.  

Crude oil prices will likely rise, and fast, Haagenson said.

“I’m not a petroleum predictor, but my gut’s telling me you have a very short window of time to get your act together and get off diesel,” he said.

The database will also estimate the amount of power each community will get from its renewable energy project. A community might decide to pursue hydropower instead of wind power because it will produce more electricity than the community needs. That excess power might be useful if a community plans to attract industry, such as a seafood processing plant.

Who will pay to build the projects?

Haagenson made no recommendations. He said the state should not pay operating costs.

It will be up to the communities to seek funding. They might decide to pool resources and provide power regionally, he said.

Reactions to the initiative were mixed.

Kate Troll, executive director of the Alaska Conservation Alliance, said it offers promise to increase the state’s green footprint. But she’d rather see a firm goal set rather than a “smorgasbord of options.”

Several other states, such as California, have benefitted economically by setting such goals, attracting investment from renewable energy companies, she said. 

Alaska, which receives 24 percent of its power from renewable energy if you count dams in Southeast, should shoot for 50 percent by 2025, she said.  

Helping villages break their oil addiction could make them sustainable, she said. High energy prices in villages and the higher cost of living that result are said to be factors in why villages are losing residents to larger cities. 

“If we want our villages to survive, we have to be steadfast,” she said.

Meera Kohler, president of Alaska Village Electric Cooperative representing 53 villages, said the information about local power resources will be helpful.

But she’s worried that much of the renewable energy technology will be less dependable than diesel fuel. During an Alaska winter, that could mean the difference between life and death.

“I would be very loath to move to what I know to be a predictable and reliable energy source, diesel fuel, to something that’s not been tested in a mainstream scenario,” she said.

The new systems might also cost billions to create, but could be so technically sophisticated that experts may have to fly into remote communities to repair them. 

The state could reduce its carbon footprint most significantly by creating a statewide power grid that connects every village, with regional transmission networks getting power from a combination of diesel and reliable renewable energy, she said.

AVEC’s board has set goals to reduce its diesel fuel use by 25 percent and to cut the number of power plants by 50 percent by connecting villages with electric ties, she said.

She has no idea what it would cost to build a statewide power grid, but said it should be part of the discussion.

Like Troll, Kohler also wants to see a plan, not just a list of options.

Now that the energy authority understands the potential power near many communities, the policy will be developed later with help from the Legislature and governor, Haagenson said.

Gov. Sarah Palin appointed Haagenson, former president and CEO of Golden Valley Electric Association in Fairbanks, as statewide energy coordinator in March. 

Haagenson said he was initially asked to develop a policy, but wanted to get a better idea of the state’s energy potential. He also wanted to create a process that would engage Alaskans, so the initiative wouldn’t end up on a shelf like so many other plans.

This summer, he and others visited 28 communities, seeking input from around the state.

Palin wasn’t ready to comment on the initiative last week, said spokeswoman Sharon Leighow. 

“The governor will hold off commenting on the energy plan until it’s released later this month,” she said. 

At the luncheon, Haagenson answered a question from the audience about why the state hasn’t set renewable energy goals.

He said if the room of business leaders wants to make it happen, Alaska’s power could be 100 percent renewable — with no carbon dioxide emissions — in the near future.

“The question is, do you have the money to do it and do you have the fortitude to stay the course on that one?” he said.