In remote villages like this one, where diesel to power generators is shipped by barge and can cost more than $5 a gallon in bulk, electricity from renewable sources like wind is already competitive with power made from fossil fuels. In urban areas along the state’s limited road system, large wind and hydroelectric projects are also becoming attractive.

Alaska produces more oil than any state except Texas, but most of it leaves the state. Small markets and high transportation costs have kept local fuel prices high. As oil prices spiked last year, the state’s coffers overflowed with oil tax revenue, but the rising cost of diesel and other fuels became a local crisis.