A major energy shift may be taking shape in Alaska, where the state's largest planned solar farm could soon deliver electricity at about the same cost as current gas generation, and potentially for less than imported natural gas in the years ahead.
That is especially notable in a state where long, dark winters and fuel supply concerns often dominate conversations about power, the Alaska Beacon reported.
During a May 14 appearance before the Alaska House Labor and Commerce Committee, officials with Chugach Electric said the utility's planned Beluga solar project, west of Anchorage, is expected to produce power at roughly the same price as electricity generated from natural gas at today's rates.
With Cook Inlet supplies tightening, gas prices are expected to rise, which could make solar the cheaper option during sunnier months.
Chugach Electric government affairs manager Trish Baker explained that power from the project should cost about the same as power produced from natural gas at current prices.
"With price escalation, the lines cross and some of these small renewable projects are cheaper," said representative Zack Fields.
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Chugach began work on the Beluga project in December so it could remain eligible for federal tax credits, and the solar farm is expected to be completed in 2027. Lawmakers also debated whether the project and two smaller hydro proposals should go through the usual regulatory approval process.
Solar output drops sharply during Alaska's darkest months, so it will not replace other forms of generation on its own. Even so, seasonal solar can still lower costs, reduce pollution from burning fossil fuels, and make the grid more resilient.
Julie Hasquet, manager of corporate communications with Chugach, said the project should have "essentially no meaningful impact to electric rates" over its lifetime while reducing the risk tied to dependence on natural gas.
Not everyone is convinced. Representative Julie Coulombe said she had not seen renewables "really bring the cost of anything down," citing concerns about subsidies.
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Alaska's solar math appears to be shifting.
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