The Business Download previously covered Alaska’s largest solar project, the Puppy Dog Lake solar farm. Built by Anchorage-based Renewable Independent Power Producers (Renewable IPP) with an installed capacity of 45 megawatts, it is even bigger than the state’s previous biggest project, the 8.5-megawatt Houston Solar Farm, which was also developed by Renewable IPP. Its 14,400 solar panels are capable of providing energy to 1,400 residences annually.
The Houston Solar Farm, although no longer the largest, stands out for other reasons. Labeled by Renewable IPP as its “flagship project,” it also represents the first institutional investment in solar in the state. Jenn Miller, founder and CEO of Renewable IPP, noted, “It’s not the first in the state, but I will say, it’s the first of a material scale. It’s the first where we brought in outside investment. And with tying into the grid, you know, it’s a large enough scale that when it drops in and out, it will be noticed, it will be felt.”
Renewable IPP has faced numerous challenges in a state heavily focused on natural gas. Still, when nonprofit Launch Alaska introduced the developer to New York-based CleanCapital, it was a perfect match to bring a more diverse energy mix to the state. Renewable IPP and CleanCapital launched their relationship in 2022, with CleanCapital providing much of the funding for the project’s development and agreeing to serve as the long-term owner-operator.
Although CleanCapital has been working to speed the flow of capital into distributed generation since 2015, the Houston Solar Farm marked its first foray into Alaska. The project’s location in the state required a unique partnership. As CleanCapital explained in a case study, “Given the unique nature of this project and its location in the thus-far underdeveloped state of Alaska, it was clear that a traditional, hands-off project financing was not the best approach to getting this project over the finish line. As such, CleanCapital and RIPP embarked on a more fulsome partnership that included a corporate investment in the RIPP team and its future pipeline in addition to development capital.”
Photo Courtesy CleanCapital
Various organizations worked together to execute the project. The Matanuska Susitna Borough leased land to contribute to the project. The Alaska Energy Authority’s (AEA) Power Project Fund and tax equity financing from NelNet, Inc. also supported the project’s development with funding. The Matanuska Electric Association (MEA) agreed to purchase the power generated by the project for twenty-five years, thereby providing energy at lower costs for its members in the Matanuska-Susitna Valley community. The project will also help MEA meet its board’s goal of 50% clean energy by 2050, with 85% coming from natural gas in 2023. MEA CEO Tony Izzo explained, “Member surveys indicate people want MEA to produce more power with renewable energy, but not at an additional cost. We believe this project achieves that goal while helping MEA responsibly meet the board’s clean energy targets.”
This project is not only investing in clean energy, but also providing jobs for local residents. Renewable IPP trained and hired 30 to 40 local residents of the Matanuska-Susitna Valley to do the construction work for the project. While constructing the solar farm, the company made every effort to minimize disturbances to the soil and vegetation and added special touches to ensure the project could continue to deliver clean energy in even hazardous weather conditions. For example, bifacial panels benefit from the reflection of the sunlight off of snow and are placed three additional feet off the ground to avoid disturbance from below.
Photo Courtesy CleanCapital
On August 29, 2023, Renewable IPP and CleanCapital were joined by AEA and MEA for a ribbon-cutting ceremony attended by more than 100 people, including state and local leaders. At the RE+ 2023 event the following month, CleanCapital CEO Thomas Byrne said, “Since its inception, CleanCapital has been driven by a mission to accelerate the transition from fossil fuels to clean, renewable energy. I cannot imagine a better illustration of the importance of that mission than bringing solar to an oil and gas-centric state where the impacts of climate change are so vividly felt. This project demonstrates the viability and economic rationale for adopting solar in Alaska, and we are proud to have played a role in building such a historic project.”
Last year, the project was a stop on the Follow the Sun tour of Alaska, launched by the Alaska Agrivoltaics group and the National Center for Appropriate Technology. Glenna Gannon, principal investigator for an agrivoltaics project that has sprung up at the site, pointed out the lingonberries, birch sprigs, and fireweed flowers growing between the rows of panels. Alaska’s first institutional investment in solar will continue to deliver clean energy, economic growth and opportunities for the community for years to come.
