90
Arctic Yearbook 2015
results from residential combustion remediation. Notably, “nearly 50% of the remaining mitigation
potential for black carbon emissions in the UNECE region is to be found in the residential heating
sector”. Although the U.S. and Russia are responsible for nearly 50% of these emissions, the U.S EIA
Annual Energy Outlook (2015) reports that federal tax credits and state renewable portfolio standards
have driven a relatively robust growth of non-hydropower renewable sources. Renewable energy
generation is projected to increase by “72% from 2013 to 2040, accounting for more than one-third
of new generation capacity” (Energy Information Administration 2015: ES-6).
In Alaska, renewable energy generation investment increased “dramatically,” driven by both a desire
for energy security and as a means of reducing the high cost of energy delivery, particularly in remote
‘islanded’ locations where infrastructure is lacking, according to the Implementation Plan for Alaska’s
Arctic Policy (2015). These drivers have prompted a wealth of research and development in new energy
technology, public-private partnerships and a knowledge-based community. As an example, in the last
ten years innovation has led to the growth of over 100 microgrid and related businesses designing
techniques to feed renewables into isolated energy grids. The Plan seeks the support of the legislature
to promote Alaska’s potential as a “global leader in microgrid deployment and operation to advance
a knowledge-based export economy, creating new jobs and revenue for the state,” an aspiration
potentially within reach given new alliances in the microgrids market such as that between ABB and
Samsung SDI (Energy Industry Times 2015: 9).
Indeed, technology, logistics and economics are both drivers and conversely deterrents to clean energy
development, particularly in remote Alaska locations where diesel-dependent indigenous communities
are “facing an unprecedented crisis” (Sikka, Thorton & Wori 2013: 1), thus prompting communitydriven renewable energy projects. By transforming the energy system a community not only reaps the
benefit of reliable and cost effective energy delivery, but renewable energy development contributes
to local decarbonisation and can also create a pathway to local economic development and job creation
(Sikka, Thorton & Wori 2013). Conversely, numerous challenges limit rapid expansion of Alaska’s
renewables – integration logistics with existing power grids is difficult given the highly limited
infrastructures; fossil fuel subsidies deter investment into renewable energy; initial investment is often
costly and investors are less likely to commit financial backing to projects that are yet commercially
viable.
Access to affordable energy is uneven throughout Alaska ranging from reasonable pricing in ‘urban’
areas to exceedingly costly in rural communities disconnected from the central grid. Wh