Homer Electric Association has agreed to purchase 30 megawatts of solar power from a renewable energy project being developed in Nikiski, according to an Aug. 13 release from the association.
The Puppy Dog Lake project is slated for completion in late 2027 or early 2028, according to Keriann Baker, chief strategy officer with HEA.
Jenn Miller, CEO with Renewable IPP, told the Homer News that collaboration on the project between HEA and the company has been in the works for several years.
“We’ve evaluated multiple sites for the project and multiple sizes. … It’s years of work that people don’t necessarily see,” Miller said.
The project will create 60,000 solar panels that could power approximately 9,000 homes, according to Baker. The 300-acre project site at Puppy Dog Lake is located near Groleske Avenue, approximately 15 miles north of Kenai. Baker also said the project will create approximately 40 to 60 construction jobs over two seasons with expected attempts at local hires.
“This is pretty significant. It’s the largest solar project contemplated in Alaska, by far, about five times the next nearest size up in Houston,” Baker said.
The Houston Solar Farm is an 8.5-megawatt project developed by Renewable IPP in collaboration with the Matanuska Electric Association that started operation in 2023.
HEA President Dan Furlong said in the release that the board was “skeptical” when the idea of the solar energy agreement was first presented. After reviewing the power purchase agreement, however, he was impressed with the numbers negotiated because the price offered competes with HEA’s existing cost of power adjusted, the release stated.
“This is exciting for HEA because it is below our current cost of fuel today,” Baker told the Homer News. “We are actually going to double our renewable energy, which meets our diversification goal, from 12% to 24%, and we’re going to do it at a cost that is lower than what we’re paying today.”
The contract agreement is valid for several decades, so the lower cost of fuel will be available to future HEA members, Baker said.
Baker reported that HEA is also upgrading their Nikiski plant to use a more efficient natural gas generation unit. “We’ll reduce our consumption of natural gas by .7 billion cubic feet,” she said.
Baker said the project was made possible in part by the Alaska Mental Health Trust and state leadership, which made property available for development.
“Our state has always been a leader in letting its land be used for resource development and energy,” Baker said.
HEA has a long-term lease with the Alaska Mental Health Trust. Electricity revenue from the lease will provide mental health services in the state of Alaska.
Miller said that another way that the state is supporting the project is through the Alaska Energy Authority. “They have that Renewable Energy Fund, and the project was awarded a $2 million grant, that directly lowered the cost of the project, and then lowered the energy price for HEA members.”
