Alaska s Renewable Energy Fund Chris Rose Executive Director Renewable Energy Alaska Project (REAP) Arctic Renewable Energy Summit Iqaluit, Nunavut September 16, 2016
Founded in 2004, REAP is a statewide non-profit coalition of over 75 electric utilities, Alaska Native Corporations, clean energy developers, conservation groups and other NGOs REAP s mission is to increase renewable energy development and promote energy efficiency in Alaska REAP has been facilitating the Islanded Grid Resource Center with the Island Institute in Rockland, Maine for the U.S. DoE since 2014. in
Alaska s Renewable Energy Grant Fund Established in 2008 $259 million in state appropriations have leveraged another $200 million in federal and private dollars In 2016, completed projects will displace the equivalent of 30 million gallons of diesel fuel
Why a Renewable Energy Fund? Highest cost energy in the U.S. Tremendous renewable resources No RPS or other comprehensive state policy
Clean Energy is Risk Management Fossil Fuel Price Volatility Energy Security Business Competitiveness Climate Change & Human Health
Precious Oil - Undervalued
Alaska s Energy Infrastructure
RE Fund Design Part I Worked with energy stakeholders across Alaska Determined that a Renewable Portfolio Standard (RPS) was not politically viable and a System Benefit Charge (SBC) would not raise enough money Decided to design a program funded with state appropriations (oil revenues)
RE Fund Design Part II Found the right champion in the legislative majority Worked for two years to educate lawmakers Tried to control legislative sausage making process The bill passed unanimously in 2008
RE Fund Design Part III Initial disappointments: Grant recommendation program Received $100 million instead of $50 million Loan component removed by State Energy Office Highest Energy Cost Community provision was traded for Statewide Spreading
Alaska Renewable Energy Fund Vetting Process: Strong Benefit-Cost Ratio required that includes economic and technical feasibility State Energy Office & Advisory Committee both take part in the process Eligible applicants: Utilities, local governments, tribal councils, Independent Power Producers Eligible projects: Wind, hydro, biomass, heat recovery, heat pumps, geothermal, solar, wave, tidal, river hydrokinetic, landfill gas, local natural gas, transmission of renewables
Totals So Far $259 million since 2008 Over 800 Applications evaluated 300 Grants made 200 Projects 60 Operating 90 Operating by 2018 All numbers rounded 12
Diesel Savings from Renewable Energy Fund 13
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Lessons Learned Part I Communities need skin in the game Loans are important Training is critical for O&M Need to evaluate operations and maintenance plans closely Energy literacy will pay future dividends Solid data is a must to optimize projects over time! Require instrumentation in grant proposals
Lessons Learned Part II Require stronger link to community energy efficiency Do regional energy planning first Aim for holistic community development Align all programs state subsidies still don t incentivize renewable energy development
Emerging Energy Technology Fund Installing cold climate heat pump make grants to eligible applicants for demonstration projects of technologies that have a reasonable expectation to be commercially viable within five years that are designed to: o o test emerging energy technologies or methods of conserving energy; improve an existing energy technology; or o deploy an existing technology that has not previously been River hydrokinetic device demonstrated in Alaska. 17
What Clean Energy Can Do For Alaska Reduce fossil fuel use and imports Decrease GHG emissions Stabilize energy prices Attract investment Diversify our economy and create jobs
Nakurmiik! Thank you! Merci! www.realaska.org