Nunavut - Energy Challenges

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1 Nunavut - Energy Challenges Nunavut Trade show and Conference Iqaluit, NU September 20th, 2017 Presentation by: Taufik Haroon, P. Eng., PMP, PE Manager, Mechanical and Energy Management, Qulliq Energy Corporation (QEC)

2 Presentation Overview Challenges Aging Infrastructure Capital Program Community Rate Debt limitation 100% dependency on imported fossil fuel Plans Sustainable Planning Integration of Renewable and Alternative Energy Supply Side Management Investment / Partnership Successful initiatives Conclusion Q & A

3 Qulliq Energy Corporation 100% owned by the Government of Nunavut 2 Main Corporate Offices & 3 Regional Offices 25 Power Plants in 25 communities kms O/H and 1.786kms U/G distribution lines

4 Power for Nunavut Largest of 13 provinces and territories in Canada with total landmass of approximately 2m Sq Kms (1,936,113 km 2 ) No Grid Primary power diesel generation 100% reliant on imported fuel Reliability 99.85% Fuel Efficiency 3.71Kw/Liter 95 Gensets 76 MW total installed capacity total generation 184,280,530 KwH 15,000 customers across the territory

5 Challenges Aging Infrastructure Capital Program Community Rate -Small rate payer Debt limitation 100% dependency on imported fossil fuel

6 Plans Sustainable Planning Integration of Renewable and Alternative Energy Supply Side Management (SSM) Investment / Partnership

7 Sustainable Planning 5 Year Capital plan: 1-3 plants in plan poles replaced annually 5-7 gensets replace annually based on hours.

8 Integration of Renewable and Alternative Energy QEC continues to pursue alternative and renewable energy opportunities throughout the territory in an effort to decrease the reliance on imported fossil fuels without compromising Reliability Technical suitability Financial viability Generation cost CO2 emission reduction

9 Iqaluit Hydro Jaynes Inlet site estimated at 12.5 MW (Megawatt). Armshow South site estimated at 7.3 MW (Megawatt). 84 km of transmission line required, likely at 69 or 138 kv. Approximate construction cost is $400m Other Alternative / Renewable Energy QEC continues to explore photovoltaic and wind energy. The intermittent nature of these energy sources present control and reliability challenges i.e. power needed on-demand. QEC is also aware of other longer term possibilities such as tidal, geothermal. Despite the challenge of high capital costs coupled with a small client base, federal investment in our projects presents tremendous opportunity for Canada to become a world leader in export ready, cold climate, alternative energy technology.

10 Supply Side Management ( SSM) Economic dispatch - Generation will be managed by current system demand Energy storage to manage pick load Energy conservation initiatives Investment / Partnership Affordable energy is an economic development enabler Federal support needed for infrastructure Partnerships and strategic investments could allow nation building projects ( IPP, P3 etc.) Non commercial / residential participation (Net metering)

11 Successful Initiatives

12 District Heating System (DHS) QEC is having DHS in five communities - Iqaluit, Rankin Inlet, Arviat, Pangnirtung, and Kugluktuk. Customers are minimizing diesel consumption by using DHS for their heating. Significant amount of CO2 reduction can be achieved. Data from our performance tracking shows just for the month of April 2017, fuel savings is 161, liters and CO2 reduction is tons.

13 Solar and Wind Recently QEC installed 2.86 Kw demo grid connected solar panel in the Iqaluit main plant. Initial performance analysis is very promising. Due to colder temperature and dry environment, PV panel generating more power than rated capacity sometimes. After this successful demonstration project, QEC is looking for funding options to install community scale renewable facilities in communities. Recently QEC performed territorial mapping regarding potential wind energy. Five communities shows significant potential for future project. QEC is also coordinating with other interested proponents by providing QEC generation data.

14 Energy Conservation Initiatives For the first time in Nunavut, by the end of this year four communities ( Iqaluit, Rankin Inlet, Cambridge Bay and Kugluktuk) will be having 100% LED street lights with financial support from INAC Indoor light replacement project is in progress with technical and financial support from NRC

15 Conclusion QEC is implementing small scale pilot projects to test equipment, technology & acquire technical knowledge to successfully initiate utility scale projects. Due to unique environmental challenges, QEC is committed to ensure the delivery of safe, reliable, economic energy through out the Territory. QEC is developing a road map to integrate renewable and alternative energy with its diesel generation and also to reduce its dependency on imported fossil fuel and to reduce carbon emission QEC net metering will be announced soon for residential customers to participate in micro generation through renewable. QEC started preliminary work on IPP/ P3 process development, so that others can join with QEC to integrate Renewable and Alternative energy generation with diesel generation

16 There is no solid reality, but only potential of reality P(a,c) P( b,a) P( b,c) <= 1 John Bell (1964) Questions?

17 Thank YOU