Alaska’s coal: A strategic anchor in an uncertain energy world

While much of the world is rediscovering coal’s strategic value amid global fuel shortages and geopolitical instability, Alaska has never forgotten it.

In a year marked by sharp swings in oil and gas prices, Alaska faces a familiar but urgent question: how do we secure reliable, affordable power for our communities when global energy markets remain unpredictable? The answer lies in a resource that has quietly powered our state for decades: coal.

Across the globe, nations are turning to coal out of necessity. When energy security is threatened, governments turn to the resources that offer stability, predictability, and resilience. For Alaska, this moment presents an opportunity to lean into a long-standing strength.

A Reliable Backbone in a Volatile Market

Coal-fired power remains a critical part of Alaska’s energy system. Unlike natural gas, which is tied to international LNG demand, or oil, which reacts instantly to geopolitical tensions, Alaska’s coal supply is local, abundant, and stable. That stability translates directly into predictable electricity costs.

Mounting concern over long-term fuel constraints in the Railbelt is driving a more urgent conversation about cost, system flexibility, and resource adequacy. At the same time, planners are confronting a more complex challenge: ensuring consistent, dispatchable power in a system facing both fuel uncertainty and growing demand.

Coal plants operate around the clock, unaffected by weather, shipping delays, or international bidding wars. At a time when global fuel prices are spiking, that reliability becomes even more valuable.

Energy Independence Can Be Alaska’s Strategic Advantage

Alaska’s vast coal reserves are among the largest in the world. They provide energy security and economic resilience. While other states and nations scramble to secure LNG cargoes or hedge against oil price spikes, Alaska can chart its own course.

The economic benefits support local jobs and keep energy dollars circulating within the state rather than flowing to foreign suppliers. In a period of uncertainty, that’s not just an energy strategy, it’s an economic development strategy.

A Bridge to a Balanced Energy Future

Modern coal facilities are cleaner and more efficient than ever, and ongoing advancements in emissions control and carbon management offer pathways to further reduce environmental impacts. Including coal in Alaska's energy mix allows for both short-term reliability and long-term sustainability.

Coal’s role in Alaska is not about resisting innovation or ignoring the need for a diversified energy mix. It’s about ensuring the foundation of our power system remains strong while we continue to add renewables to the mix, improve grid resilience, and explore emerging technologies.

A Practical Path Forward

A recent report by Energy Ventures Analysis found in 2025, coal generation delivered an estimated energy savings of $30-40 billion nationwide. Alaskans stand to benefit from tapping into the coal assets right beneath our feet — a 2024 report by Alaska-based McKinley Research found that the coal fleet delivers $273 million in avoided energy costs annually.

Alaska’s coal-fired generation stabilizes electricity prices during global fuel volatility; reduces dependence on imported fuels; supports local jobs and economic resilience; provides reliable baseload power to complement renewables; and enhances long-term energy security for Alaskan communities.

In a world where energy uncertainty has become the norm, Alaska’s coal offers something rare: certainty.

With global energy uncertainty on the rise, secure domestic resources are becoming increasingly important and hard to overlook. Alaska is not starting from scratch. We already possess a reliable, accessible, and strategic energy asset.

The path forward is not about choosing between the past and the future. It’s about building a system that is resilient enough to support the people and businesses who call our state home. Coal remains a cornerstone of that system — one that can help shield Alaska communities from volatility while anchoring a more secure and balanced energy future.

Lorali Simon is Vice President of External Affairs for Usibelli Coal Mine and has been with the company since 2010. Born and raised in Alaska, she holds degrees in political science and public administration from the University of Alaska Anchorage and serves on several industry and resource development boards.