New $100M Fund Aims To Help Native American Communities Access Clean Energy Funding

The Alliance for Tribal Clean Energy has launched a $100 million fund to remove the financial barriers that often stall clean energy projects in Native American communities.

The Indigenous Power & Light Fund for Energy Sovereignty is supported by the John D. and Catherine T. MacArthur Foundation, the William and Flora Hewlett Foundation, and other philanthropic organizations.

Tackling Energy Inequities

Many Native American communities still lack access to electricity. A 2022 report from the Department of Energy revealed that nearly 17,000 tribal homes remain unelectrified.

On the Navajo Nation, the largest reservation in the US, about 30% of homes don’t have electricity, despite decades of coal and uranium mining on their land that offered little benefit to local residents.

Renewable energy technologies offer opportunities for tribes to access cleaner, locally controlled energy and new economic opportunities.

Given the long history of exploitative resource development on reservations, many also see these technologies as a road to energy sovereignty whereby Native American communities access and control their own power sources.

Closing the Financial Gap

While federal programs like the Inflation Reduction Act of 2022 offer grants and tax subsidies for clean energy projects, many tribes struggle to cover the upfront costs needed to get started.

For example, the Standing Rock Sioux Tribe’s Sage Development Authority has already spent $3 million on technical studies and fees for its wind farm project.

These expenses were necessary to keep the project in line for grid connection but there’s no guarantee the project will be approved.

“There’s federal money out there, but you need funding to access it,” Alliance CEO Chéri Smith told Tribal Business News. Smith likened the situation to being invited to a $75 dinner but only having $50.

“If you don’t have that $25, you can’t come to the dinner at all…[The Indigenous Power & Light Fund] is to cover the gap.”

Bureaucratic Hurdles Persist  

Even with funding, communities often face bureaucratic delays that slow or halt progress.

For instance, the Yakama Nation in Washington secured $32 million in federal grants and a $100 million loan for a solar energy project.

However, as ProPublica reports, delays from the Bonneville Power Administration, which oversees the electrical grid, have stalled the project. Connecting to the grid could take until 2027 or beyond, threatening to derail the project entirely if the funding expires.

A Path to Energy Sovereignty

Per a press release, the Indigenous Power & Light Fund has already secured over a third of its $100 million goal, with full funding expected by the end of 2025.

Its true impact, however, will depend on its ability to overcome the longstanding delays and roadblocks that have held back tribal clean energy projects.

If successful, it could help Native American and Alaska Native communities harness renewable energy, reduce reliance on fossil fuels, and create a more sustainable, self-reliant future.

Image: The very first solar array installed by the Alliance for Tribal Clean Energy. Credit: Rivian Foundation