Institute of Social and Economic Research, University of Alaska Anchorage
Abstract
Most remote rural communities in Alaska use diesel to generate electricity. But the recent rapid
development of a worldwide commercial wind industry, along with the rise in diesel fuel prices,
has increased interest in wind power in rural Alaska—both to reduce energy costs and to provide
local, renewable, sustainable energy.
Wind is abundant in Alaska, and a growing number of rural communities are building winddiesel
systems, integrating wind into isolated diesel power plants. These systems have moved
from the initial demonstration phase a decade ago toward a technology available for many
communities. Even in places that have not yet added wind, some rural utilities are planning for
the possibility. For example, Alaska Village Electric Cooperative (AVEC) has committed to
making new diesel power plants “wind ready” by designing its electrical systems so that wind
turbines can be incorporated in the future without major reconfiguration.
But it is not clear under what rural Alaska conditions wind-diesel systems are more economical
than conventional diesel plant operations. The Alaska Energy Authority asked the Institute of
Social and Economic Research (ISER) and the Alaska Center for Energy and Power (ACEP) to
assess the performance of existing rural wind-diesel systems. We analyzed data available for
existing wind-diesel systems as of spring 2010.
Keep in mind that our analysis is preliminary; most rural wind-diesel systems are very new, and
more time is needed to evaluate them fairly. Only three wind systems (Kotzebue, Wales, and
Saint Paul Island) have been operating for more than a few years. Initial funding for the
Kotzebue and Wales projects came from the U.S. Department of Energy, which funds research
but does not subsidize utility operations. These early projects, built in the late 1990s, faced
problems but demonstrated there is hardware that can operate in arctic environments. The Saint
Paul village corporation funded the system on the island; it provides power for an industrial
complex and airport the corporation owns. It is a high-performing system, and the most
successful of the early demonstration systems, as measured by its capacity factor. However, it
should be noted that both the Kotzebue and Wales systems have provided valuable experiences
and lessons learned while integrating wind on a community-scale grid.
Beginning in 2004, the Denali Commission funded projects in five communities (Selawik,
Hooper Bay, Kasigluk, Savoonga, and Toksook Bay). In 2008, the Alaska Legislature created the
Renewable Energy Fund, a competitive program intended to invest in renewable energy. That
fund, which is administered by the Alaska Energy Authority, paid for construction of six projects
listed as completed in spring 2010.Alaska Center for Energy and Power
Alaska Energy Authority
National Renewable Energy Laboratory
Denali Commission AlaskaDefinitions / Executive Summary / Introduction / Alaska Wind-Diesel Systems / Technical Data Collection / Economic Analysis / Performance Analysis / Case Studies / Lessons Learned / Wind-Diesel Research Needs / Wind-Energy Financing Options / Reference
