July energy updates
Summer in Alaska is in full swing, which means the wildflowers are blooming, the fish are running, the sun is shining, and ... the Legislature is still in session?! Keep on reading for a rad story on balcony solar, aka plug-in solar, as well as an update on the AKLNG pipe dream pipeline project. 😎
The legislature nears another manufactured AK LNG tax cut deadline
As the end of the SECOND special session (July 19) looms, legislators are debating proposed property tax cuts for the Alaska LNG project worth billions of dollars. Crucial information about project cost estimates from developers — Glenfarne and the Alaska Gasline Development Corporation (AGDC) — is still speculative. That means the true impacts of any AK LNG legislation can’t be accurately assessed, but that hasn’t stopped Governor Dunleavy and other project proponents from pressuring legislators to pass tax subsidies anyways.
This is an important week to reach out to your legislators — write them a letter, or give them a call — and tell them not to give into the governor’s fabricated urgency.
The process in the second special session is a little different than the first time around. Because both the House and Senate passed their own versions of this legislation in the final hours of the first special session, there is a six-person conference committee made up of three members of each chamber attempting to reconcile those bills. So instead of allowing the full legislature the chance to propose amendments — which was how senators previously added a measure to make sure Glenfarne pays state taxes — legislators will only get to vote ‘yes’ or ‘no’ on whatever bill the conference committee presents.
Here are a few new revelations making the political rush to pass tax cut legislation even more alarming:
In addition to this proposed tax giveaway, the recent leak of a draft agreement between Glenfarne and AGDC shows that Alaska could end up paying the company billions of dollars to regain control of the project if Glenfarne walks away.
Glenfarne and AGDC have made a lot of promises about getting affordable gas to Alaskans, but the numbers getting tossed around are based on hypotheticals. On top of that, Glenfarne recently said they think it should be Alaskan consumers who pay for a spur line to get gas to Fairbanks, which could cost upwards of $250 million.
A recent report based on 20 other North American LNG projects says cost overruns for Alaska LNG could raise the price tag to $85 to 104 billion — that’s nearly double Glenfarne’s estimate of $44.5 to 54.5 billion.
And the Alaska Beacon uncovered a 2020 report commissioned by AGDC suggesting that 22 to 68 percent of pipeline jobs will go to out-of-state workers.
Take Action
How rad is plug-in solar? Extremely.
Rooftop solar is an amazing energy source, but has a major problem: the cost of admission. You have to own a house and be able to afford the upfront cost of solar panels (and a lot of other accoutrements) to get in, putting it out of reach for many. Plug-in solar can change that! Plug-in solar systems are small, cheap, and easy to install and move.
With rising electricity rates dependent on causes outside of our control, like the war in Iran, plug-in solar systems are an increasingly practical option for Fairbanks residents looking to lower their electricity bills and gain more control over their energy use. Unlike large rooftop solar installations, plug-in solar systems are compact and can be mounted on apartment balconies, decks, railings, or fences, or even just propped up on the ground! Most systems use two to four solar panels connected to a small microinverter that plugs into a standard household 120-volt outlet, making them much easier and less expensive to install than traditional solar arrays. This also makes them a good option for renters or anyone who cannot install panels on their roof.
With GVEA raising electricity rates, plug-in solar has become even more appealing. GVEA has recently increased both its base rates and fuel charges, causing many households to see noticeably higher monthly electric bills. Even a small solar system can help offset some of that cost by generating electricity during the day when the sun is shining.
Many people assume solar doesn’t work well in Alaska because of the long, dark winters, but that’s actually not the case! While solar production is much lower from November to February, the highest solar production here in Fairbanks actually comes in April when the reflection from the snow increases the amount of solar radiation. We also make up for the lack of sunlight in the winter with extremely long summer days, giving solar panels many more hours to generate electricity than panels in much of the Lower 48! A plug-in solar system can help power everyday appliances like freezers, fans, computers, and kitchen electronics while reducing the amount of electricity purchased from the grid.
Another major benefit of plug-in solar is energy independence. Every kilowatt-hour your panels produce is electricity you don’t have to buy from GVEA. While these systems are not large enough to power an entire home, they can reduce your dependence on the utility and provide some protection against future rate increases. Producing even a portion of your own electricity gives homeowners and renters more control over their monthly expenses.
For many Fairbanks residents, plug-in solar offers a simple way to lower utility bills, become more energy independent, and take advantage of Alaska's long, sunny summer days.
Email Lee Aeo at lee@fbxclimateaction.org or Phil Wight at wight.phil@gmail.com or listen to this podcast featuring Fairbanks’ own Gwen Holdmann for more info.
Project Updates
Check out our op-ed in the Alaska Beacon! As the second special session ends, legislators are being asked to pass a multi-billion-dollar tax break for the Alaska LNG project despite a glaring lack of transparency from developers.
Native Movement has put out an action alert to oppose North Slope data centers — the deadline for public comments to the Department of Natural Resources is July 17.
Alphabet Explainer
AKLNG: The Alaska Liquified Natural Gas project was first proposed in the mid-70s and has been resurrected multiple times since, but has yet to actually materialize. It would consist of an 800-mile pipeline from the Alaska North Slope to Southcentral. Some of that LNG may be used domestically for residential heating and electricity, but the project is not considered economical unless it is exporting a majority of the LNG to foreign end users. The current plan is being managed by Glenfarne (75%) and AGDC (25%), and has a 2-phased approach.
AGDC: The Alaska Gasline Development Corporation is an independent, public corporation owned by the State of Alaska created by the Legislature in 2013. They were the lead party developing the "AK LNG project" until March 2025, when they signed an agreement with Glenfarne to assume 75% of the equity of the project.
Energy nerds with instruments
Can you match each energy nerd with the band and venue? Email us! Free energy-related sticker to the winner!
Get Involved
Become a Member of FCAC!
By signing up for membership, you become part of the climate justice movement in creating a sustainable and equitable future for Alaska. As a member, you can join others and contribute to our coalition projects and campaigns while getting exclusive resources and engaging in opportunities for climate action, community gatherings, organizing training, and leadership development. Become a member here.
Subscribe to Keep Receiving our Energy Newsletter!
To make sure you get all our energy updates, subscribe here.
