A planned Alaska battery could let Shaktoolik’s diesel generators run 2,200 fewer hours annually as wind takes over
The wind does not stop blowing on the eastern side of Norton Sound, 125 miles away from Nome in Shaktoolik. There have been two turbines rotating consistently right next to a village of 215 inhabitants for years now. However, beneath them, the generators still work non-stop, throughout the day and night, during storms and when calm, since the electricity produced cannot be stored anywhere in the network.
Electricity in the region costs around $0.53 per kilowatt-hour, the most expensive rate in all of Alaska. A certain new technology is about to be introduced, which will help the generators get some rest.
A village at the edge of the wind
Shaktoolik is accessible via few roads in the world. There is no other way but by air or barges. The logistics of the place are such that everything revolves around the cost of energy. AVEC, a nonprofit organization supplies electricity to the village as well as to 58 other villages in Alaska. All these communities together constitute more than 95% of Alaska Native communities belonging to Athabascan, Aleut, Inupiat, Yupik, Siberian Yupik, and Tlingit cultures.
The Alaska Village Electric Cooperative needs to maintain a diesel generator that will be on standby constantly, working to absorb the variations and avoid outages.
The harsh reality about the power supply in Shaktoolik has always been evident to all those who look up. There is an abundance of wind. There are working turbines. But due to the lack of storage facilities, most of this energy cannot be utilized, and the cost of electricity is over $0.53 per kilowatt-hour.
Why the diesel engines can never fully rest—yet
The two 100-kilowatt wind turbines currently account for around 28% of Shaktoolik’s electricity requirements. This is significant, but far from what the wind turbines are capable of generating. The problem lies with the grid itself.
As the wind production fluctuates, the fluctuations in voltage become a destabilizing factor for the microgrid. The Alaska Village Electric Cooperative needs to maintain a diesel generator that will be on standby constantly, working to absorb the variations and avoid outages. This procedure is known as “spinning reserve,” and it is costly in terms of fuel consumption and mechanical stress.
More wind can lead to an even greater problem. As wind generation rises, the grid operators might need to use a bigger diesel generator, which consumes more fuel than the smaller generator would have. The turbines can create conditions where they themselves decrease in value.
The battery that bridges the gap
The solution being installed is a 320-kW / 361-kWh lithium-ion battery paired with a grid-forming inverter. Together, they’ll integrate directly into Shaktoolik’s existing wind-diesel hybrid microgrid, acting as a buffer between the turbines and the rest of the system. When wind output spikes or dips, the battery absorbs the change—and that stability means diesel generators no longer need to idle on standby around the clock.
The enhanced SCADA system, Supervisory Control and Data Acquisition, will integrate everything, allowing remote control and automated distribution of power. This project is funded through a grant from the DOE Office of Indian Energy: $759,656 in federal money, matched by $84,407 from AVEC, making a total of $844,063. The performance period ends in December 2025.
What 2,200 hours of silence would signify
It is estimated by federal officials that the battery storage system will cut down diesel generator operating time by about 2,200 hours each year. This equates to almost 90 days when the engines do not have to operate at all. Annual savings will be around $105,600–serious money for a community where each kilowatt-hour counts.
Wind turbine output is expected to increase by approximately 83% once the storage buffer is in place. The turbines can finally operate without the grid instability that previously capped their contribution. There’s also a benefit that had quietly gone dormant: Shaktoolik has an existing wind-to-heat system—electric boilers that convert wind energy into heat—but without sufficient storage, it couldn’t be reliably used. The new battery is expected to reactivate it, adding another layer of diesel reduction beyond electricity generation alone, as reported by the U.S. Department of Energy – Shaktoolik battery project.
A blueprint for 58 other villages
The generators at AVEC operate for a combined total of over 400,000 hours annually among its 59 village members. Shaktoolik represents just one of the many nodes in that extensive, fossil-fuel-dependent system—but it is being designed with replication in mind.
Other communities are facing the same combination of strong winds, outdated diesel systems, and expensive electricity costs. With an effective performance of the battery storage system, the blueprint is set to go. The project not only seeks to improve generator lifespan but also create local economic growth, something that goes way beyond the kilowatt-hour.
A mandatory 12 months of verification process will be conducted once the system is commissioned. Wait and see what the figures reveal. For Shaktoolik, and possibly other rural communities in Alaska, the figures matter.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
