HomeMy WebLinkAboutAlaska REF Evaluation Process Summary
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REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG
Alaska Renewable Energy Fund Evaluation Process Summary
The need for affordable, sustainable energy in Alaska is great. Relative to the rest of the nation, Alaska’s
rural communities pay the highest energy costs and include some of the poorest places. To help
communities reduce and stabilize their heat and electricity costs, the Alaska State Legislature
established the Alaska Renewable Energy Fund (REF), a competitive grant program, in 2008. The
program was established to help fund cost-effective renewable energy projects throughout the state.
The Alaska Energy Authority (AEA) administers REF evaluation process and manages all REF grants.
Since 2008, REF has funded over $260 million worth of projects. So far, these projects have displaced the
equivalent of roughly 150 million gallons of diesel — saving communities an average of $2.50 for every
project dollar spent. The program also creates jobs, utilizes local energy resources, keeps money in local
economies, and fosters economic development.
Although the State of Alaska has been the only funder, REF can accept funds from private and federal
sources. The REF program provides a unique, hassle-free mechanism for private-sector foundations,
corporations, federal funders, and others to invest in responsible renewable energy development in
Alaska.
With the guidance of the nine-member Renewable Energy Fund Advisory Committee (REFAC), AEA has
developed a robust and effective multi-stage evaluation process that is Alaska’s only statewide
evaluation of renewable energy opportunities. The evaluation process that assesses the technical and
economic risks and benefits of each proposed project to identify those projects with the highest
likelihood for success.
The assessment of projects’ technical and economic feasibility is at the core of REF’s evaluation process.
AEA has expert staff who are able to provide technical and economic analysis of the innovative
technologies and renewable hybrid systems being used in Alaska. AEA’s in-house staff of engineers,
mechanics and renewable-resource-specific technology experts works with other state personnel and
third-party contractors to provide unbiased assessment of renewable energy electricity-generating and
thermal projects for urban and rural communities.
When an application passes the feasibility review, AEA, in consultation with the REFAC, evaluates the
project’s merits according to criteria that reflect the intent and purpose of the REF grant program. These
criteria include the cost of energy in the community, the amount of matching funds supplied by the
applicant, with consideration given to balancing projects across AEA’s energy regions to ensure an
equitable distribution of grant funds statewide. A more detailed explanation of how projects are scored
for ranking is available at akenergyauthority.org/programs/renewableenergyfund in the most recent REF
Request for Applications document.
The final recommendation to the legislature is delivered in the form of the legislative status report that
includes the final funding priority list, an update on the program, and information on the performance
of all REF projects. Past status reports to the legislature can be viewed on the AEA website. The
legislature has broad discretion in how, or if, it funds the recommended projects presented by AEA The
legislature may choose to fund the projects in any order and in any amount.
Any entities interested in participating in REF as a funding partner should contact the Renewable Energy
Fund program manager, Neil McMahon, at (907) 771-3000.