Recently, the U.S. Department of Energy's Office of Clean Energy Demonstrations provided an early grant of nearly $65,000 to the Alaska Chignik Hydroelectric Project to initiate its Phase 1 planning and development work. Led by the Lake and Peninsula Borough, the project is located in Alaska's Chignik Bay and aims to construct a new run-of-the-river hydroelectric plant.

The hydroelectric project plans to build a 2.1-megawatt power station to replace a wooden dam that is over 70 years old and poses safety risks. The new plant aims to fully meet the electricity demands of the local microgrid, replacing the existing diesel generation. Surplus power will be used for heating, electric vehicle charging, and other purposes, with the goal of reducing energy costs and promoting community economic development. The project was previously included in a federal grant program totaling over $366 million and received federal cost-share funding support of up to $7.27 million.

During Phase 1, the project team will focus on planning, design, securing easements, and initiating community and labor engagement activities. Upon completion, the facility will be owned by the Chignik Bay Tribal Council. The electricity generated is planned to be sold to the local utility company and is expected to reduce overall electricity rates by approximately 7%.