Image for illustrative purposes

Chugach Electric Association has approved a $26.4 million investment for the 10 MW-AC Beluga Solar Project, which will become Alaska’s largest solar energy installation once completed. The Board of Directors voted unanimously on October 22, 2025, to move forward with the project, located at the existing Beluga Power Plant near Tyonek.

The solar array will use existing transmission infrastructure to reduce costs and support Chugach’s decarbonization goals, which include cutting carbon intensity by 35% by 2030 and 50% by 2040.

According to Chugach CEO Arthur Miller, the federal Investment Tax Credit (ITC) will offset at least 30% of project costs, lowering the net investment to roughly $16.4 million. The cooperative estimates a levelized cost of electricity (LCOE) below $70 per megawatt-hour, positioning the solar power as a cost-competitive alternative to natural gas generation.

Siting the project at Beluga is expected to minimize environmental impacts while stabilizing long-term consumer rates. Construction is expected to begin following land use discussions with CIRI, the Alaska Native corporation that owns the site.

Source: adn.com