THE ALASKA STORY
Nov. 10, 2026 – The Alaska Energy Authority board unanimously approved a $4.9 million loan to help finance a solar and battery project at Red Dog Mine, aimed at reducing diesel use and providing additional power for the Northwest Arctic Borough operation.
The loan, through AEA’s Power Project Fund, will go to Tugliq Red Dog1 LLC for development and construction of an 8.8-megawatt solar project and battery energy storage system. The approximately $35 million project is scheduled for completion in late 2028.
Tugliq will develop, own, and operate the facility as an independent power producer, selling electricity to mine operator Teck Alaska Inc. under a power purchase agreement.
“Red Dog Mine is a major economic engine providing substantial long-term benefits to the Northwest Arctic region, and this project provides a low-cost source of energy to support its continued operations,” said AEA CEO and Executive Director Curtis Thayer.
“Through the Power Project Fund, AEA can provide financing for projects that expand Alaska’s energy infrastructure while supporting sustained economic activity in communities and regions across the state.”
The solar and battery system is expected to supply about 5% of the mine’s projected power needs under its current operating scenario. Diesel generation would continue to supply most of the mine’s electricity.
AEA said the project would also provide flexibility during summer, when power-intensive mill operations can require the mine to curtail other electrical loads to maintain system stability.
The facility is designed to serve several possible futures for Red Dog, including continued mining, a mine-life extension, and reclamation. Under a mine-closure scenario, AEA estimates the project could supply approximately 90% of the site’s annual power needs. That figure applies to the closure scenario, with its lower electricity demand, rather than an operating mine.
The board approved Resolution No. 2026-10, authorizing AEA to enter into the loan agreement. The Power Project Fund provides loans to eligible borrowers for development, construction, and improvement of Alaska power facilities.
Although the approval comes shortly after the Nov. 3 election, the project’s development predates the vote by months. In a February 2026 submission to the Alaska Department of Natural Resources, Teck requested amendments to its operating and reclamation plans to accommodate a solar array and battery center on part of its existing millsite lease.
Teck’s application said the location had previously been evaluated for a storage yard, but the company determined it offered greater long-term value for supplemental power generation. The company also said the land was already leased, had undergone an archaeological assessment, and offered a layout that could avoid wetlands.
