Op-ed in the NUNATSIAQ NEWS - Energy Challenges In Canada’s Territories: A Hot Topic, A Cold Reality

 

Energy challenges in Canada’s territories: A hot topic, a cold reality

"The committee found electricity systems are aging, underperforming"

SPECIAL TO NUNATSIAQ NEWS

Here's the fire that knocked out Pangnirtung's power plant this past April 2.
Here's the fire that knocked out Pangnirtung's power plant this past April 2. "It is strongly probable that this most regrettable situation could have been avoided if the electricity plant in Pangnirtung, which was constructed in 1971, and operating beyond its life expectancy, had been replaced or retrofitted," the Senate energy and environment committee says. (FILE PHOTO)

 

SENATORS RICHARD NEUFELD and PAUL J. MASSICOTTE

Two months ago, a diesel generation facility in the hamlet of Pangnirtung, Nunavut — a remote, northern community accessible by air only in the winter — caught fire, leaving its 1,500 residents in a state of emergency for nearly a month while authorities attempted to restore the community’s power.

This required the use of a cargo aircraft, one of the largest planes in the world, and a Sikorksy Skycrane helicopter which were sourced in Russia, costing the government an estimated $3 million — a price tag that does not include the four generators.

It is strongly probable that this most regrettable situation could have been avoided if the electricity plant in Pangnirtung, which was constructed in 1971, and operating beyond its life expectancy, had been replaced or retrofitted.

This is one of five recommendations the Standing Senate Committee on Energy, the Environment and Natural Resources makes to the federal government to help improve energy supply in the territories in its most recently published report entitled “Powering Canada’s Territories.”

The committee found electricity systems are aging, underperforming and at capacity and calls upon the federal government to assist territories in the acquisition, upgrading and installation of more efficient diesel generating facilities in remote off-grid communities.

For more than 12 months, the committee heard from more than 40 witnesses, held 18 public hearings, received countless written submissions and travelled to all three territories as it undertook an in-depth study on non-renewable and renewable energy development, including energy storage, production, distribution, transmission and consumption.

The facts and figures north of the 60th parallel are striking. The territories represent 40 per cent of Canada’s total landmass while only 116,700 residents call the territories home.

This accounts for roughly 0.3 per cent of Canada’s total population and 0.5 per cent of our national GDP. There are 80 communities in the territories; many are small, isolated, and only accessible by air in the winter or water in the summer.

All territorial communities are not connected to North American electricity or natural gas grids which mean they must ship fuels across long distances and-or rely on local energy sources for heating and electricity.

For the most part, the territories’ existing electricity facilities are a mixture of both diesel and hydro power. In total, 53 out of 80 communities rely exclusively on diesel generators.

While our committee heard witness testimony of the potential for renewable technologies such as solar and wind for electricity generation, the territories continue to be highly dependent on diesel, as it is often the only reliable option.

Wind and solar are certainly options in a limited number of communities, but could only complement the already existing facilities, not replace them.

This reality is likely not going to change in the foreseeable future — homes across the territories will continue to be heated by burning furnace oil. It is encouraging to note that biomass heating using wood-pellet furnaces is used in some communities in Yukon and the Northwest Territories and is rapidly emerging as a popular alternative to diesel.

However, moving forward, governments and utilities should also turn their attention to other options to tackle the territories energy supply challenges and its high cost. 

Energy efficiency and conservation is one such way of accomplishing tangible results in saving energy and reducing cost. As such, our committee feels that the federal government should develop a strategic plan to actively improve energy efficiency and conservation.

Residents of the territories need access to more government funding and incentives to provide for newer energy efficient appliances and the installation of new technologies as a way forward.

We believe energy efficiency and conservation is the single most important method to reduce energy costs in the territories.

Our committee was also surprised to learn that, for instance, the residential electricity rate in Nunavut varies between 30.14 cents per kilowatt hour (kWh) to 114.16 cents per kWh compared to the national average of 12.13 cents per kWh.

While rates in Nunavut are highly subsidized, consumers are usually not aware of the actual cost of energy. In our view, greater education and awareness of the real cost of energy are other key factors that could help increase energy efficiency and conservation. 

Furthermore, our committee has come to the conclusion that a lack of cohesion and communication exists between the many federal government departments and agencies that have specific responsibilities with respect to the territories energy challenges.

Considerable sums of federal resources are invested into 10 various government bodies, all trying to alleviate the financial burden related to these challenges. This can lead to the silo effect which, in most cases, does not deliver great results.

In an attempt to rectify this situation and increase the effectiveness and efficiency of these federal resources, our committee strongly supports and recommends that the federal government create a resource and knowledge hub to focus on territorial energy issues and conditions.

This new, single access, delivery point would help coordinate all territorial energy-related policies, programs, research and development, science and technology initiatives, and much more. 

It has become clear that a one-size-fits-all approach to addressing energy matters in the territories does not work because each territory has distinctive challenges and opportunities.

Only a strong commitment from our federal, territorial, municipal and aboriginal governments, along with dedicated financial and human resources will ensure Canada’s three territories have access to affordable energy for heating and electricity. 

However challenging this situation may be, Canada’s territories offer great opportunities with its considerable mineral and petroleum resources, which are currently mostly undeveloped, but pivotal to making Canada’s North, as a whole, prosper.

While complex and multi-faceted, the territories energy circumstances must be addressed in a concerted way to make energy resources, systems and assets more reliable, accessible and affordable.

Senators Richard Neufeld (Conservative — British Columbia) and Paul J. Massicotte (Liberal — Québec) are respectively chair and vice-chair of the Standing Senate Committee on Energy, the Environment and Natural Resources.

The Nunatsiaq News story on the Senate committee’s report is available here.

A copy of the report, Powering Canada’s Territories, is available here.

The report’s website is available here.

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