Rural and renewable power, especially in extreme remote areas

The quality of life for Arctic residents is highly dependant on the availability and the cost of power. Because of the rural acrtic's sparse populations, long distances between settlements, and the lack of transportation infrastructure, the cost of power is a significant issue for residents. In rural areas of Alaska , for example, the kilowatt-hour charge for electricity can be three to five times higher than the charge in more urban areas of the state. Since diesel generated power costs so much , residents in rural areas have been very proactive in utilizing alternative and renewable forms of fuel for power generation.

Centralized power generation and transmission to villages is not always an option as the best and most cost effective way to generate power and distribute it to users primarily due to the distances between villages. In some areas, fuel for power generation must be flown in or shipped by barge during the open ice season. Accordingly, rural residents have adapted by utilizing many non-hydrocarbon fuel sources.

Renewable and alternative erergy sources are sometimes used to suppliment diesel fired power generation. The substitution of these non-hydrocarbon usually result in lower costs for power.

One alternative to a diesel generation is a hybrid combination of diesel generation and wind generation. This combinaion is in operation around the world in such locales as Kotzebue , Alaska , USA .

Iceland is renown for utilizing its geothernal energy. 85% of Iceland 's homes are heated by geothermal energy. Geothermal energy is Iceland 's second largest source of energy, second only to hyroelectic. In Russia , there is geothermal energy being produced on the Kamchatka peninsula. In August 2006, a small plant became operational in Chena Hot Springs, Alaska.

Hydroelectric power generation is utilized around the Arctic . Hydro power is currently the world's largest renewable source of electricity, accounting for 6% of worldwide energy supply or about 15% of the world's electricity.

Wind has been used as an energy source in combination with diesel generators or as a stand alone. Most modern wind power is generated in the form of electricity by converting the rotation of turbine blades into electrical current by means of an electrical generator . Currently wind power accounts for 23% of electricity use in Denmark .

Ocean energy covers a series of emerging technologies that use the power of ocean currents, waves, and tides to create energy. While very few of these technologies have been implemented on a commercial scale, they show much promise for future development.