Alaska offers $5 million in grants for alternative energy projects

The Denali Commission and Alaska Energy Authority are offering grants totaling more than $5 million for alternative energy projects in Alaska, including projects powered by water resources. Proposals are due Feb. 12.

The commission and AEA previously invited letters of interest in developing renewable or alternative energy projects, including resources such as hydroelectric, river, and ocean projects. (HNN 8/9/07)

The December 2007 call for proposals defines alternative energy projects to include projects that produce electrical or thermal energy from resources other than fossil fuels, including water resources, wind, solar, geothermal, and biomass. Applicants must agree to own, operate, and maintain the project over its expected useful life.

The Denali Commission is offering up to $4.4 million in grant funds for alternative energy projects that serve rural Alaska. AEA is offering up to $1 million in grant funds for alternative energy projects anywhere in the state. Grants are available for pre-construction, including such tasks as feasibility studies, environmental studies, licensing and permitting, and preliminary design, and for construction, including final design.

Of the commission’s allocation, up to $1 million is to be made available for pre-construction grants; no single pre-construction grant can exceed $100,000. Applications for construction funding must be based on, and include, a feasibility study that demonstrates the project’s technical and economic feasibility. Grants equal to 50 percent of approved construction costs could be awarded. However, in most cases, no construction grant is to exceed $1 million.

The commission and AEA added they would consider providing additional grant funds depending on the quality and quantity of proposals received and available funding.

The Denali Commission, which delivers federal government services in Alaska, previously awarded a $1.6 million grant to Alaska Power Co. to help develop the 100-kW Eagle River Turbine hydrokinetic project on Alaska’s Yukon River.

Copies of the call for applications are available from the commission’s Internet site, www.denali.gov. Applications are due by 4 p.m., Feb. 12, to AEA, 813 West Northern Lights Blvd, Anchorage, AK 99503. Direct questions to Rebecca Garrett at AEA, (1) 907-771-3000.

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