Opinion: Why transmission is Alaska’s next big energy project

No matter what kind of energy we produce — natural gas, hydro, wind, solar or other legacy fuels — it is only as useful as our ability to deliver it where it is needed. The electricity we consume relies on the substations and distribution lines in our neighborhoods which is in turn dependent on high-voltage transmission infrastructure — the backbone of every electric grid. Any path forward for Alaska’s energy future depends on strengthening this backbone.

The Railbelt electric transmission system stretches 700 miles from Homer to Fairbanks powering roughly 70 % of Alaskans. Built piecemeal over decades, it remains a patchwork of transmission lines operated by five separate utilities. The resulting system is akin to a string of extension cords — some sturdy, others worn — but inadequate for our current and future needs. This fragmentation drives up costs, reduces reliability, and keeps the lowest-cost power from reaching customers when it is needed most.

Case in point: The cheapest electric energy in the Railbelt is generated by the Bradley Lake Hydroelectric plant near Homer. However, because of transmission bottlenecks, that energy can’t always flow north when demand peaks, forcing utilities to use more expensive fuel. Removing these bottlenecks will give Railbelt consumers full access to Bradley Lake’s clean, low-cost power.

Alaska’s Railbelt utilities and the Alaska Energy Authority (AEA) have identified a coordinated, multi-year roadmap to build a reliable, efficient and lower-cost energy backbone for the Railbelt. This plan can be implemented in stages, tackling the most urgent constraints first to deliver savings quickly. Some of this work is already underway.

The Sterling-to-Quartz Creek transmission link on the Kenai Peninsula is undergoing a major upgrade financed through AEA bonds to improve the system’s overall capacity and reliability and reduce power losses. New battery storage projects are also strengthening the grid by providing emergency backup and frequency control. These projects will pay dividends for decades.

In addition, AEA secured $206.5 million from a Department of Energy grant for the next phase of Railbelt modernization. The project will install a high-voltage direct-current submarine cable across Cook Inlet, creating redundancy and increasing capacity so utilities can better access Bradley Lake power. While these federal funds were thought to be in jeopardy in early 2025, they remain available. However, they require a dollar-for-dollar match to move forward.

As steps are taken to allow full access to Bradley Lake’s low-cost power generation, planning is also underway to supply more water to the dam’s generators via the Dixon Diversion project, which will boost power output by up to 50%. Getting more electricity out of existing infrastructure makes sense — especially if we can move that power to end users when they need it. Success with these projects will benefit rural energy users: because the Power Cost Equalization (PCE) program is tied to Railbelt rates, lower cost power on the Railbelt reduces rates across Alaska.

A stronger transmission system will also provide a means for new power generation to supply the Railbelt electric market. Better transmission removes the hurdle of geography, making the entire system more efficient, flexible and affordable — for whatever new generation comes online.

Finally, stronger governance will matter as much as stronger wires. We must also continue the state and utility effort to write fair operating rules for the Railbelt’s shared transmission system to ensure that these investments deliver long-term reliability and affordability for everyone connected to the grid.

Transmission may not be flashy, but it is the foundation of everything else. If we want affordable, reliable power and a stronger economy, we must invest in the infrastructure that makes it possible. What’s needed now is clear state leadership, coordinated utility action, and the backing of Alaskans to move these projects forward.

Gene Therriault served in the Alaska state House of Representatives and Alaska Senate from 1993 to 2009, and is a senior adviser of New Energy Alaska. Subsequent roles include serving as senior energy adviser to Gov. Sean Parnell, vice president of Golden Valley Electric Association and deputy director for statewide energy policy development at the Alaska Energy Authority. He lives in Fairbanks.

Brian Hickey lives in Anchorage and has over 40 years of experience working in construction, engineering and operations in the Alaska Railbelt electric grid. Most recently, he was executive director of Railbelt Regional Coordination and led Railbelt’s joint effort to obtain the $206.5 million Department of Energy grant for AEA. He is also the general manager of Seward Electric Systems in Seward.

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