The feasibility of reducing Nunavut's diesel reliance with a transition to renewable energy technologies, primarily solar and wind energy.
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2017-09-13
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Abstract
Residents in Nunavut have developed a complete reliance on fossil fuels for their energy needs; 100 percent of the territory's generated electricity is from diesel. Nunavut does not have a centralized grid system as all 25 communities are remote and separated by vast distances, making interconnection infeasible. Electricity needs are met with the use of diesel fuel purchased, shipped and stored in bulk. This dependency has high logistical and financial costs resulting in expensive energy that is heavily subsidized by the territorial government. There is clear motivation from an economic, technical, social and environmental standpoint to investigate the viability of alternative energy sources and decrease the widespread use of diesel in Nunavut. This study evaluates whether solar and wind energy can be part of the solution to begin transitioning Nunavut away from a complete diesel reliance. Furthermore, this study assesses the ability for renewables to reduce Nunavut's energy costs and provide social and environmental benefits for the territory.
Feasibility is assessed via a social cost-benefit analysis, whereby the costs and benefits of a renewable energy project are evaluated in comparison to the costs incurred by remaining solely on diesel. By quantifying the cost saved through decreased diesel consumption, this study determines if the initial capital cost of renewable technology can be recovered in a 20-year time frame and potentially result in a cost savings for five communities. Prior to performing the costbenefit analysis the number of communities was narrowed down to the five through a community selection process. This was based on comparing key characteristics of communities already using renewable energy in Arctic communities, as well as data on the availability of renewable resources for each community in Nunavut.
The results from the community selection process found that Arviat, Baker Lake, Iqaluit, Rankin Inlet and Sanikiluaq were the most promising communities. The cost-benefit analysis indicated that for all five communities, solar energy was not an economically viable option. Wind energy was found to be feasible as the net present value for all communities was positive. The wind project was able to breakeven and generated further savings the community due to decreased diesel purchases, lower diesel generator operation and maintenance costs and avoided carbon emissions. The wind-diesel system outperformed the solar-diesel systems because it was able to produce a higher level of annual renewable energy generation resulting in a greater reduction of diesel consumption. Although many barriers still exist due to the unpredictable and intermittent nature of renewables as well as the high initial capital costs, the results from this preliminary study indicate that wind energy has the potential to be economically viable in Nunavut.
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Gurm, Kiran. (2017) The feasibility of reducing Nunavut's diesel reliance with a transition to renewable energy technologies, primarily solar and wind energy. (Master's thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca.