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TD 299-19(2) TABLED ON FEBRUARY 9, 2021

NORTHWEST TERRITORIES Energy Initiatives Report Reporting on Actions under the 2030 Energy Strategy

Rapport sur les initiatives énergétiques Rapport sur les mesures prises dans le cadre de la Stratégie énergétique 2030

TERRITOIRES DU NORD-OUEST 2019/20

Le present document contient la traduction française du résumé et du message du ministre. Minister’s Message It has been quite a year. As the COVID-19 global pandemic encompassed the world, the Government of the (GNWT) was completing the second year of implementing its 2030 Energy Strategy. In 2019/20, the GNWT and its partners initiated and advanced projects and programs designed to ensure NWT communities, businesses and industry have access to secure, affordable and sustainable energy.

Balancing these priorities presents a challenge in the . Resilient, reliable and locally-produced energy is critical, as even short interruptions in energy supply can quickly become a public emergency in our cold climate. Ensuring our energy supply is secure and reliable while stabilizing or reducing energy costs adds another layer of complexity. The GNWT is also committed to meeting its 2030 greenhouse gas (GHG) Diane Archie Minister of Infrastructure emissions reductions targets, as part of a coordinated government effort to address the effects of climate change and deliver integrated reporting on its progress. This is no small task.

Starting with work that has direct and immediate impacts, the GNWT

in 2019/20. We continued to upgrade government buildings through expanded the reach of energy conservation and efficiency initiatives

funding—approximatelythe Capital Asset Retrofit $2.8Fund million—will (CARF) program, come making from the them 2020/21 more energy efficient. A continuing success story, 75 percent of CARF’s annual

Additionally,fiscal year’s operation thanks to savings funding in from utilities. the federal Low Carbon Economy

by the Energy Alliance (AEA). These programs doubled the numberLeadership of rebates Fund (LCELF), provided new from and the enhanced previous programs year—worth were almost launched one million dollars—creating energy awareness across the territory and affecting immediate change in NWT households and communities.

The GNWT also continued its GHG Grant Program. Designed for larger

approved applications for two local government projects this year and launchedGHG reduction a stream initiatives for privately that exceed owned the buildings AEA’s capacity, and industry the program projects.

2 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Work was advanced to for a new modular gas generating It has been quite a year. And plan the construction of a plant and LNG storage facility in despite the recent challenges transmission line from the of COVID-19, we will continue Taltson hydroelectric system advancing these initiatives, to bring surplus power to forFort power Simpson generation. that is expected to following our long-term vision to displace 85 percent of diesel use ensure a secure, affordable and This project will virtually As part of the Taltson sustainable energy future and an eliminateFort Providence diesel-generated and . Hydroelectricity Expansion economy less dependent on fossil electricity and reduce power Project, a research expedition and fuels. rates for these communities. study was conducted with our Meanwhile, planning for a similar partners at the Arctic Research Quyanaq, transmission line from the Snare The Honourable Diane Archie hydroelectric system to Whatì lakebed of Minister of Infrastructure was initiated. forFoundation two potential (ARF) submarine to map the

Upgrades to existing hydro infrastructure (Taltson and andtransmission the line routes. joinedFive Snare) began in 2019/20 to theyoung research students team, from gaining Łutselk’e an ensure this reliable source invaluable opportunity to learn of green energy. Plans were about exciting career paths and approved and funding secured help advance northern science. for diesel plant overhauls in Once constructed, this strategic infrastructure will provide the which will make them more resource industry with access Łutselk’e and , to green energy, and create incorporate renewable energy employment opportunities for our likereliable, solar efficient, and wind and into able their to Indigenous partners. systems. Also, design work began

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 3 Message du ministre La dernière année aura été mouvementée.

Pendant que nous étions confrontés à la pandémie de COVID-19, le gouvernement des Territoires du Nord-Ouest (GTNO) achevait la deuxième année de mise en œuvre de la Stratégie énergétique 2030. En 2019-2020, le GTNO et ses partenaires ont lancé et poursuivi des projets et des programmes conçus pour assurer un approvisionnement en énergie sécuritaire, abordable et durable aux collectivités et aux entreprises des TNO.

Dans le Nord, il est difficile d’établir un ordre dans les priorités énergétiques. Une production d’énergie locale fiable et souple est Diane Archie indispensable, car même une brève interruption de l’approvisionnement Ministre de l’Infrastructure en énergie peut rapidement provoquer une urgence publique dans notre climat froid. Toutefois, il est compliqué d’assurer l’approvisionnement énergétique de façon sûre et stable tout en stabilisant ou en réduisant les coûts. Conformément à l’effort pangouvernemental pour contrer les effets du changement climatique, le GTNO s’engage à respecter ses objectifs de réduction des émissions de gaz à effet de serre (GES) pour 2030 et à produire des rapports intégrés sur les progrès réalisés. Par contre, ce n’est pas une mince affaire.

D’abord, le GTNO a entrepris les travaux qui auront des effets directs et immédiats. En 2019-2020, il a étendu la portée des initiatives de conservation et d’efficacité énergétique. Ensuite, grâce au Fonds de modernisation des immobilisations (le Fonds), il a modernisé les immeubles gouvernementaux pour améliorer leur rendement énergétique. Pour l’exercice de 2020-2021, 75 % du Fonds (environ 2,8 millions de dollars) proviendra des économies réalisées dans les services publics. En outre, grâce au Fonds pour une économie à faibles émissions de carbone du gouvernement fédéral, l’Arctic Energy Alliance (EAE) a pu lancer des programmes nouveaux et améliorés. Ces programmes ont fait doubler le nombre de remises octroyées comparativement à l’année précédente (de presque un million de dollars) et ont contribué à sensibiliser les résidents des TNO aux économies d’énergie et à apporter des changements immédiats dans les ménages et les collectivités.

Le GTNO continue d’offrir son programme de subventions publiques pour la réduction des GES qui a été conçu pour financer les initiatives

4 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT assurer un approvisionnement deux lignes de transmission de réduction des GES plus grandes qui dépassent la fiable en énergie verte. Les plans sous-marines. Cinq étudiants gouvernementscapacité d’EAE. Lelocaux GTNO au a titre de remise en état des centrales des régions de Łutselk’e et de deapprouvé ce programme les demandes qui comporte de deux alimentées au diesel de Łutselk’e Yellowknife se sont joints à et de Sachs Harbour ont été pourl’équipe en apprendrede recherche, plus jouissant sur des approuvés et le financement ainsi d’une occasion inestimable industriels.maintenant un volet destiné aux nécessaire obtenu. Les centrales avancer la science dans le Nord. bâtiments privés et aux projets seront plus fiables et plus carrières intéressantes et faire renouvelable,efficaces, et pourront comme lesfaire de la ligne de transmission appel à des sources d’énergie Une fois terminée, cette centrale pourLes travaux transporter de planification les surplus plus, les travaux de conception stratégique fournira de l’énergie énergies solaire et éolienne. De pourverte lesà l’industrie partenaires des autochtones. ressources naturelles et créera des emplois électriques de la centrale d’une nouvelle centrale au gaz hydroélectrique de Taltson à modulaire et d’une installation de cesserFort Providence presque complètement et Kakisa ont la stockage de gaz naturel liquéfié Oui, la dernière année a été progressé. Ce projet permettra de à ont commencé. mouvementée. Malgré les Grâce à cette nouvelle centrale, récentes difficultés attribuables production d’électricité générée on s’attend à pouvoir remplacer à la pandémie de COVID-19, par le diesel et de réduire les 85 % du diesel pour la production nous continuons à avancer et tarifs d’électricité dans ces Dansd’énergie. le cadre du projet à poursuivre nos objectifs à lignecollectivités. de transmission Pendant cesimilaire temps, de long terme pour bâtir un avenir les travaux de planification d’une de la rivière Taltson, nous avons énergétique sûr, abordable et d’agrandissement de la centrale fossiles.durable, et une économie moins la centrale hydroélectrique Snare dépendante des combustibles Lesà Whatì travaux ont étéde modernisation amorcés. effectué des recherches et une Quyanaq, étude avec nos partenaires de Diane Archie existantes (Taltson et Snare) ont del’Arctic lac du Research Grand lac Foundation des Esclaves Ministre de l’Infrastructure des centrales hydroélectriques (ARF) pour cartographier le lit commencé en 2019-2020 pour afin d’y tracer l’itinéraire de

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 5 6 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Table of Contents

MINISTER’S MESSAGE...... 2 MESSAGE DU MINISTRE...... 4 EXECUTIVE SUMMARY...... 8 SOMMAIRE...... 10 INTRODUCTION...... 13 NWT ENERGY SNAPSHOT...... 14 2030 ENERGY STRATEGY...... 17 2019/20 ENERGY INITIATIVES STRATEGIC OBJECTIVE 1 – WORK TOGETHER...... 19 Outreach & Energy Literacy...... 19 Community Projects...... 20 STRATEGIC OBJECTIVE 2 – REDUCE DIESEL...... 23 Transmission Lines...... 23 Wind Energy...... 26 Diesel Plant Replacements and Efficiency Improvements...... 27 Liquefied Natural Gas (LNG)...... 28 Community Hydro...... 29 STRATEGIC OBJECTIVE 3 – TRANSPORTATION...... 30 GNWT Fleet Management...... 30 Electric Vehicle Promotion and Support...... 32 Biofuels Study...... 32 Clean Fuel Standard Monitoring...... 33 STRATEGIC OBJECTIVES 4 & 5 – HEAT & EFFICIENCY...... 35 Arctic Energy Alliance Programs and Services...... 35 Capital Asset Retrofit Fund (CARF)...... 38 GHG Grant Program for Government...... 43 STRATEGIC OBJECTIVE 6 – LONG-TERM...... 44 Hydroelectric Systems Upgrades...... 44 GHG Grant Program for Buildings and Industry...... 46 Small Modular Nuclear Reactor (SMR)...... 46 Taltson Hydro Expansion...... 47 A LOOK AHEAD...... 50 APPENDIX A: GNWT ENERGY USE AND UTILITY COSTS...... 54 APPENDIX B: CAPITAL ASSET RETROFIT FUND PROJECTS...... 57 APPENDIX C: COMPLETED BIOMASS PROJECTS...... 58 APPENDIX D: GHG EMISSIONS REDUCTIONS FORECAST...... 59

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 7 Executive Summary The 2030 Energy Strategy (Strategy) sets out the Government of the Northwest Territories (GNWT) long-term approach to supporting secure, affordable and sustainable energy in the NWT.

and updated previous technical and costing studies. Preparatory of implementing the Strategy. The Strategy work was also undertaken to isThe being 2019/20 implemented fiscal year in wastandem the secondwith the year plan formal consultations with affected Indigenous government organizations and project and the Carbon Tax. stakeholders. Climate Change Strategic Framework (CCSF) Projects to replace existing diesel- Along with ensuring that percent increase worth almost a electric power plants nearing energy in the NWT is secure million dollars. These initiatives the end of their operating life in and affordable, initiatives in the Strategy that reduce GHG Home Winterization Program, included a new Specified Income advanced in 2019/20. Modern emissions contribute to Goal which helps lower-income Sachs Harbour and Łutselk’e were homeowners winterize their and facilitate the addition of GNWT and its partners made homes, and the Community Wood renewableplants will energybe much technologies more efficient almostOne of thetwenty-six CCSF. In million2019/20, dollars the Stove Program, which purchases, to the local grid. Both projects in energy-related investments to delivers and installs new wood were approved by Infrastructure implement the Strategy and its six stoves to select communities on and contribution Strategic Objectives. a two-year rotating basis. This agreements were signed with year, 66 stoves were delivered the Northwest Territories Power Corporation (NTPC). approximately $230,000. The AEA aThe Community GNWT’s Department Microgrid of and 54 were installed, worth In 2019/20, a feasibility report Infrastructure (INF) initiated across the NWT, and through its was completed for the design of a electrical micro-grids in the has offices in six communities new modular gas generating plant territoryStudy, analyzing to understand the five the $800,000 to coordinate work and LNG storage and vaporization actual intermittent renewable includingRegional Office trade Program,shows, events invested and capacity limit for solar and wind other community engagement project is expected to result in installations and if any changes activities. facility in Fort Simpson. The should be made to the current twenty percent limit. The GNWT is proposing to 85% diesel displacement and a 27% reduction in GHG emissions. The Arctic Energy Alliance line from the Taltson of data has been gathered (AEA), with the addition of new construct a 170-km transmission fromIn Gamètì, a water over gauge a year’s that worth will be federal funding from the Low used—along with funding from Carbon Economy Leadership Point.hydroelectricity These communities system to are Fort accessibleProvidence by and road Kakisa/Dory and relatively for construction of a mini the number of rebates it provided close to the Taltson system, which hydroelectricINF—to assess facility. the potential inFund 2019/20 (LCELF), compared nearly doubledto the has surplus hydropower available. previous year, representing a 150 INF selected the highway routing

8 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Through 2019/20, work project to connect Whatì to the Grant Program for Government Snare hydroelectric system. A approvedIn 2019/20, two the projects GNWT’s for GHG study on the promotion of electric (MTS)continued tug toJock refit McNiven, the GNWT and to funding, including energy vehicles and the deployment Marine Transportation Services’ of a charging station network two 10-year-old engines. Work in three municipal buildings in the NWT is scheduled to be onreplace the Lafferty the ferry was MV completed Lafferty’s efficiency and heating upgrades initiated, and a scope of work in time for the 2020 operating the installation of wood pellet has been developed for a review season and will yield over boilersin the Town in two of YellowknifeFort Smith, andschool of the Net Metering Program, facilities. which allows utility customers to produce renewable energy for reductions.150,000 litres in fuel savings and A multi-year initiative to the electrical grid and receive more than 420 tonnes of GHG refurbish the components of a kilowatt hour (kWh) credit Work completed in 2019/20 the existing Taltson and Snare for their future consumption. The GHG Grant Program will be of the Electric Vehicle Rebate facilities continued in 2019/20. supporting the already approved Programwill lead toin the2020. AEA’s The launch Program OnceForks completed, hydroelectric these generating projects will ensure forty to sixty more new electric vehicles, and up to years of clean hydroelectricity forFort Mildred Smith Electric Hall and Heat Range Project Lake will provide a $5,000 rebate for from the 18-MW Taltson facility, Schools.and YK1 BothPellet streams Boiler Installations of the in hydropower communities. The and the continued reliability program will continue to accept $500 for charging infrastructure of the electricity supply from applications for potential projects.

Division—continuesGNWT—through INF’s to Energymonitor These upgrades will also avoid developmentsDivision and Fuel in the Services Government potentialthe 10 MW GHG Snare emissions Forks facility. from an unexpected shutdown, and

GNWTof Canada’s engaged Clean the Fuel Standard hydroelectricity supply. Research(CFS) program. Council In to 2019, conduct the a slightly increase the NWT’s study to assess the feasibility of In 2019/20, discussions continued transporting, storing and using with Indigenous Government biofuels in the NWT. partners towards developing a Memorandum of Understanding (MOU) on the Taltson Hydro Expansion Project. Technical The Capital Asset Retrofit Fund work is underway is on for(CARF) GNWT program facilities continued to reduce to transmission routing—including GHGdeliver emissions, energy efficiency energy use projects and bathymetry work to map a operation costs. Savings resulting portion of the lake bottom—as from projects completed in well as the remaining design 2019/20, including schools in Hay feasibility and the preliminary River and , the business case. Regional Hospital and the Stanton Legacy Building are estimated to Looking ahead, the GNWT will average $209,700 annually. linecontinue project, advancing as well asthe a Fortsimilar Providence/Kakisa transmission

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 9 Sommaire La Stratégie énergétique 2030 des Territoires du Nord-Ouest (la Stratégie) présente l’approche à long terme du gouvernement des Territoires du Nord-Ouest (GTNO) en vue d’assurer la stabilité, l’accessibilité et la durabilité de l’approvisionnement énergétique aux TNO.

En plus de garantir que autochtones et les parties

communautairehivernal pour les de propriétaires remplacement Les projets de remplacement des abordable,l’approvisionnement les initiatives en de la à faible revenu, et le programme prenantes du projet concernées. énergie aux TNO est fiable et des poêles à bois qui, suivant un centrales électriques alimentées Stratégie prévues pour réduire plan d’alternance de deux ans, au diésel de Sachs Harbour les émissions de gaz à effets facilite l’achat, la livraison et et Łutselk’e, qui approchent de serre (GES) contribuent à l’installation de nouveaux poêles de la fin de leur durée de vie 2020,l’atteinte le GTNO du et ses partenairesobjectif à bois dans certaines collectivités. nouvellesutile, ont progressé centrales serontau cours du Cadre stratégique. En 2019- Cette année, 66 poêles ont été de l’exercice 2019‑2020. Les livrés et 54 ont été installés, ont réalisé près de 26 M $ pour une valeur d’environ beaucoup plus efficaces et d’investissements en lien avec Territoires230 000 dollars. du Nord-Ouest L’AEA a des et, par faciliteront l’intégration des sixl’énergie objectifs. pour mettre en œuvre bureaux dans six collectivités des sources d’énergie renouvelable au la Stratégie et atteindre ses Canadaréseau local. et des Les accords deux projetsde ont 800l’intermédiaire 000 dollars de en son coordination programme été approuvés par Infrastructure Le ministère de l’Infrastructure de bureaux régionaux, a investi du GTNO a lancé une étude des ducontribution Nord-Ouest. ont été signés avec la microréseaux communautaires, d’activités comme des salons EnSociété 2019-2020, d’énergie un des rapport Territoires de analysant les cinq microréseaux communautaire.professionnels, des événements électriques du territoire afin de Leet autres GTNO activitéspropose lade consultation comprendre la limite de capacité centralefaisabilité modulaire a été réalisé de productionpour etréelle si des des changements installations devraient d’énergies la conception d’une nouvelle intermittentes (solaire et éolien), construction d’une ligne de stockage et de vaporisation de gaz transmission de 170 km pour de gaz et d’une installation de Arcticêtre apportés Energy àAlliance la limite (AEA), actuelle brancher Le projet devrait permettre une de 20 %. et Kakisa et Dory Point à la naturel liquéfié à Fort Simpson. sontcentrale accessibles hydroélectrique par la route de laet grâce à l’ajout de financement relativementrivière Taltson. proches Ces collectivités du système réduction de l’utilisation du diésel fédéral au titre du Fonds du de 85 % et une réduction des leadership pour une économie émissions de GES de 27 %. à faibles émissions de carbone, de Taltson, qui dispose d’un À Gamètì, plus d’une année de a presque doublé le nombre lasurplus ligne ded’hydroélectricité. transmission et aLe mis données ont été recueillies grâce de rabais qu’elle a accordés en Ministère a sélectionné le tracé de à une jauge d’eau qui sera utilisée, 2019-2020 par rapport à l’année grâce au financement octroyé précédente, ce qui représente à jour les études techniques et de par le Ministère, pour évaluer la deune dollars. augmentation Ces initiatives de 150 % coûts déjà effectuées. Des travaux Enpossibilité 2019-2020, d’y construire les travaux une se sont mini comprennentqui équivaut à un près nouveau d’un million préparatoires ont également installation hydroélectrique. organisationsété entrepris pour gouvernementales planifier des le remorqueur Jock McNiven du consultations officielles avec les poursuivis pour remettre en état programme d’aménagement 10 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Service de transport maritime du GTNO et pour remplacer des installations du GTNO. les deux moteurs du traversier et les coûts d’exploitation d’expansion du réseau hydroélectrique Taltson a été Les travaux sur le Lafferty ont Les économies découlant des techniquesencadrée par en l’adoption cours portent d’un MV Lafferty, âgés de dix ans. projets réalisés en 2019-2020, protocole d’entente. Les travaux notamment dans les écoles de ligne de transport (y compris été achevés à temps pour la et de Paulatuk, l’Hôpital sur le trajet proposé pour la saison d’exploitation 2020, et régional d’Inuvik et à l’ancien pour cartographier une partie permettront des économies moyenne.Hôpital Stanton, sont estimées des travaux de bathymétrie de carburant de l’ordre de à 209 700 dollars par an en 150 000 litres, et des réductions du fond du lac), l’étude de saison.des émissions de gaz à effet de En 2019-2020, le financement faisabilité restante, et l’analyse de serre de l’ordre de 420 tonnes par denécessaire subventions pour publiques deux projets pour a étéla derentabilité faire progresser préliminaire. le projet en 2019-2020 permettront autorisé au titre du Programme deÀ l’avenir, ligne de le transmission GTNO continuera vers leEn lancement 2020, les travaux du programme achevés réduction des émissions de GES : systèmesdes travaux de de chauffage mise à niveau dans de connecterFort Providence Whatì et au Kakisa, système ainsi programmede remise pour offrira les véhicules une remise l’efficacité énergétique et des qu’un projet similaire pour électriques de l’AEA. Ce trois bâtiments municipaux de la hydroélectrique du lac Snare. neuf,de 5 000 et une dollars remise à l’achat pouvant ville de Fort Smith, et l’installation Une étude sur la promotion d’un véhicule électrique Unede chaudières initiative pluriannuelleà granulés de visantbois stationsdes véhicules de recharge électriques aux TNOet infrastructures de recharge dans deux écoles de Yellowknife. le déploiement d’un réseau de atteindre 500 dollars pour les existantesà remettre deà neuf Taltson des élémentset de doit être lancée, et un cahier dans les collectivités desservies des centrales hydroélectriques dedes facturation charges a été nette, établi qui en vue par un réseau hydroélectrique. permetde la révision aux clients du programme des services Le GTNO, par l’intermédiaire de Snare Forks s’est poursuivie enla Division combustible de l’énergie du Ministère, et de la au cours de l’année 2019-2020. Division de l’approvisionnement Une fois terminés, ces projets publics de produire de l’énergie du programme de Norme sur permettront d’assurer de 40 à renouvelable pour le réseau lescontinue combustibles de suivre propres l’évolution du 60 années supplémentaires de leurélectrique consommation et de recevoir future. un Le gouvernement du Canada. deproduction 18 MW, et d’hydroélectricité de consolider Programmecrédit de kilowattheure de subventions pour Toujours en 2019, le GTNO a depuis l’installation de Taltson

Research Council de mener l’approvisionnement en électricité publiques pour la réduction des demandé au Saskatchewan à partir de l’installation de émissions de GES permettra Snare Forks de 10 MW. Ces d’appuyer le projet de chauffage une étude visant à évaluer la travaux de mise à niveau électrique de Fort Smith déjà biocarburantsfaisabilité du transport, liquides aux du TNO. permettront également d’éviter installationsapprouvé, ainsi de quela commission l’installation stockage et de l’utilisation des les émissions potentielles de GES de chaudières à granulés dans les attribuables à un arrêt inattendu, Le Fonds de modernisation des Enet d’augmenter 2019, la relation légèrement de travail la demandesscolaire YK1. de Enprojets outre, dans on les immobilisations a continué de ducapacité GTNO hydroélectrique avec ses partenaires des TNO. deuxcontinuera volets d’accepter du programme. des réaliser des projets en lien avec des gouvernements autochtones l’efficacité énergétique afin de réduire les émissions de GES, la consommation d’énergie dans l’élaboration du projet

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 11 Balancing Priorities and Decision Making THE GNWT WEIGHS THE FOLLOWING FACTORS WHEN MAKING DECISIONS ABOUT ENERGY INITIATIVES: • Community and Indigenous • Sustainability • Project complexity government engagement, • and likelihood of success participation, involvement and opportunities • Stakeholder interests approval Reflection of federal funding • Optimization of resources, and needs • Energy security and reliability including GHG reductions • Capacity within a sector • Affordability per dollar invested to achieve a successful result

Sustainable

Trade-offs

Affordable Secure

12 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Introduction The 2019/20 Energy Initiatives Report: Reporting on Actions under the 2030 Energy Strategy (Report) summarizes the key energy actions and initiatives undertaken by the GNWT and its partners over the past year, looks ahead to potential future projects, policies and programs, and provides a high-level review of the Northwest Territories’ current energy and greenhouse gas emissions situation.

All of the actions and initiatives (AEA). These initiatives create The Report begins with a in the Report fall under the 2030 energy awareness and provide snapshot of the current energy Energy Strategy (Strategy), which immediate energy savings situation in the NWT, including a breakdown of energy use and vision for transitioning to a lower- communities. emissions by various sectors carbonsets out economy the GNWT’s while long-term ensuring and benefits for people and over time. It then presents the the NWT has access to secure The Report also shows how the major 2019/20 energy initiatives. and affordable energy. 2019/20 GNWT is setting the stage for Each initiative is placed in a represents the second year of even more ambitious energy section that corresponds to one implementing the Strategy. projects, from community-led renewable energy solutions; to electric vehicle infrastructure; whereof the Strategy’s they are most six Strategic relevant. tremendous amount of energy to major infrastructure like TheObjectives Report (detailed concludes on with page a 7)look This year’s Report highlights the transmission lines, wind, hydro ahead on the projects, initiatives initiatives that were undertaken and power plant upgrades. As and programs the GNWT and its byconservation the GNWT andthrough efficiency programs these initiatives come online, they partners will be focusing on over will ultimately lead to greater 2020/21. energy reliability, dollar savings like the ArcticCapital Energy Asset Retrofit Alliance and GHG emissions reductions. Fund (CARF) and delivery agents

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 13 NWT ENERGY SNAPSHOT NWT Energy Supply and Use Providing reliable, affordable and sustainable energy to the NWT’s many small, isolated communities is a constant challenge. Historically, the NWT has been highly dependent on imported petroleum products for its energy requirements, which results in high energy costs and environmental impacts. Over time, Northerners are slowly increasing their use of alternative energy sources, such as wood for heating and solar panels for electricity, to help reduce energy costs and greenhouse gas emissions.

Figure 1: 2018 Energy Use by Sector (Terajoules) 2018 NWT ENERGY USE BY SECTOR 10% Community (Electricity), 1,959 25% Transport, 4,969 29% Community (Heating), 5,691 36% Industry (Heat, Electricity, Vehicles), 7,093

Total: 18,562 Terajoules

Figure 2: 2018 Energy Use by Sector, Excluding Industry (Terajoules)

2018 NWT ENERGY USE BY SECTOR, EXCLUDING INDUSTRY 16% Community (Electricity), 1,959 39% Transport, 4,969 45% Community (Heating), 5,691

Total: 12,619 Terajoules

14 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Figure 3: Total Energy Use Trend by Sector in the NWT

TOTAL ENERGY USE IN THE NWT (TERAJOULES) 25,000

20,000

15,000

10,000 TERAJOULES

5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Mining, Oil &Gas Agriculture, Forestry, and Construction Transportation Commercial, Institutional, and Public Administration

NWT ELECTRICITY GENERATION Unlike most of Canada, the NWT Most of the electricity generated an increased use of renewable is not connected to the North energy technologies, such as solar American electrical grid. Without access to electricity from the facilities,for NWT residentswhere the (Figure energy of North American grid, NWT 4) comes from hydroelectric usephotovoltaic diesel generators systems to(Figure produce communities must have their own into electricity. Communities not most5). The of territory’stheir electricity, mines with also source of full-scale electricity connectedflowing rivers to our is transformed hydroelectric the exception of one generation including redundant grid rely on diesel or natural mine that incorporates an on-site back-up, which adds costs that gas generators for electricity, wind farm to supplement diesel affect electricity rates. but are also transitioning to generation.

Figure 4: Power Generation Trend

COMMUNITY POWER GENERATION (MWh) Solar Hydro Diesel Natural Gas 450,000 400,000 350,000 300,000 h 250,000

MW 200,000 150,000 100,000 50,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 11 Year Average

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 15 Figure 5: 2018 Electricity Generation by Source (Megawatt-hours) 2018 NWT ELECTRICITY SOURCES IN NWT COMMUNITIES (MWh) 0.3% Solar, 1,081 15.7% Natural Gas, 66,057 23.9% Diesel, 100,470 60.2% Hydro, 253,266

Total: 420,874 MWh

NWT GREENHOUSE GAS EMISSIONS Under Goal #1 of the 2030 annual emissions were 1,260 kt

NWT Climate Change Strategic CO2 GHGTo reach emissions the 30% need reduction to be target, the NWT’s total annual e. Each year, the NWT’s GHG is committed to reducing 2e by 2030. depending on economic greenhouseFramework (CCSF),gas (GHG) the emissions NWT activity,emissions climatic fluctuate conditions somewhat and reduced to 1,094 kt CO investments in renewable energy systems, all of which affect the by 30% below 2005 levels by Figure 6 below shows the total demand for fossil fuels. 2030. In 2005, the NWT’s total NWT’s historical total annual kilotonnes (kt) CO2e. most recent year for which data GHG emissions were 1,563 GHG emissions. For 2018, the

is available, the NWT’s total Figure 6: NWT Historical Greenhouse Gas Emissions 1999 – 2018 kt CO2e

2500

2000

1500

1000

500

0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year Total Emissions (kt CO2e) GHG 2030 Target (kt)

Information on the projected decrease in total NWT GHG emissions due to implementation of the 2030 Energy Strategy can be found in Appendix D.

16 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT 2030 Energy Strategy Released in 2018, the 2030 Energy Strategy (Strategy) sets out the GNWT’s long-term approach to supporting secure, affordable and sustainable energy in the NWT. The 2019/20 fiscal year was the second year of implementing the Strategy, through Actions and Initiatives in the three-year Energy Action Plan. The Strategy has six (6) Strategic Objectives to guide decision-makers.

k Toget uce Die sportat & Effici ng-Term or he d se an io at en Lo W r Re l Tr n e c H y 10% 40% GHG 25% 15%

We also work with communities NWT communities and other KEY LINKAGES and Indigenous partners across utilities, NTPC leads conventional, TO THE CLIMATE the NWT on shared objectives alternative and renewable CHANGE STRATEGIC that advance the Strategy. electricity solutions to maintain a reliable and affordable electricity FRAMEWORK AND Government of the Northwest system, as well as reduce GHG CARBON TAX emissions from diesel-generated The Strategy is being Department of Infrastructure electricity. Territories (GNWT): Led by the implemented together with the Climate Change Strategic policy and designs and administers(INF), the GNWT application-based develops primary energy implementation Arctic Energy Alliance (AEA): A the Carbon Tax. Along with funding programs to support partner, the AEA provides ensuringFramework that (CCSF) energy and in the communities, commercial NWT is secure and affordable, enterprises and industry to renewable and alternative energy efficiency, conservation, initiatives in the reduce energy use and GHG energy programs and services Strategy that reduce GHG emissions. The GNWT also to residents, businesses and emissions contribute to Goal One partners with communities and communities on behalf of the other stakeholders to achieve GNWT. The AEA helps NWT the strategic objectives of the residents implement solutions, of the CCSF. Strategy. increasing the use of renewable energy for heating and reducing ORGANIZATIONAL Northwest Territories Power transportation emissions. ROLES Responsibility for implementing Crown Corporation, the NTPC Corporation (NTPC): A GNWT the Strategy is shared between the GNWT, the Northwest hydroelectric facilities and most owns and operates the NWT’s Territories Power Corporation and the Arctic Energy Alliance. facilities. Through its capital planof the and territory’s in partnership diesel electric with the

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 17 ENERGY Figure 7: 2019/20 GNWT Energy-Related INVESTMENTS Investments by Strategic Objective The GNWT and its partners— 2019/20 GNWT ENERGY-RELATED INVESTMENTS BY STRATEGIC OBJECTIVE including the federal government, STRATEGIC OBJECTIVE INVESTMENT NTPC, and the AEA, as well as 1. Working Together $103,000 residents, communities, business and industry—are making 2. Electricity $12,444,000

3. Transportation $421,000 implement the Strategy. significant investments to 4 & 5. Energy Efficiency and Space Heating $9,379,000

6. Long Term Vision $3,492,000 investmentsFigure 7 provides the GNWT a breakdown made of TOTAL $25,837,000 during$25.84 2019/20million in (including energy-related federal funding support) by strategic

objective: Figure 8: 2019/20 GNWT Energy-Related Investments by Funding Stream

2019/20 GNWT ENERGY-RELATED INVESTMENTS BY STRATEGIC OBJECTIVE STRATEGIC OBJECTIVE INVESTMENT GHG Grant Programs $159,000

Arctic Energy Alliance (Core Funding and LCELF Funding) $4,990,000

Federal Low Carbon Economy Leadership Fund Portfolios (Excluding AEA Supplement) $449,000

Federal Investing in Canada Infrastructure Program Projects $11,814,000

Indigenous and Northern Affairs Canada Funding (Taltson Expansion) $2,288,000

Energy Core Funding $843,000

Capital Asset Retrofit Fund (CARF) $3,800,000

Salaries and Admin Expenses $1,494,000 TOTAL $25,837,000

2019/20 by funding stream. Figure 8 provides a breakdown of $25.84 million in energy-related investments the GNWT made during

18 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT 2019/20 ENERGY INITIATIVES STRATEGIC OBJECTIVE 1 – WORK TOGETHER WORK TOGETHER TO FIND SOLUTIONS: COMMUNITY ENGAGEMENT, PARTICIPATION AND EMPOWERMENT

The GNWT understands being partners in developing The GNWT is working to that communities want to be solutions, undertaking projects ensure better communication, more engaged and involved in independently, and simply being engagement and support to the energy solutions. This includes updated on local solutions. communities.

OUTREACH & ENERGY LITERACY Energy Lesson Plans As we transition to a lower carbon to research, learn and discuss systems. When properly economy, energy production, community energy needs, and maintained, biomass heating distribution and reliability understand the process for systems can reduce costs in the are real-world challenges that producing energy for business students will have to face. Green and homes. By exploring to traditional fuel systems. The energy production and new perceptions and behaviours solidrange fuel of 10% is also to considered40% compared energy technologies can provide around energy usage, students greenhouse gas (GHG) neutral. solutions to future energy needs will be able to create projects that However, owners and operators for Northerners. are not only informative to them have said that maintenance and their classmates, but to their is more labour intensive and communities. technically challenging than energy-focused lesson plans fossil fuel-based heating systems. toIn meet2018, outcomes INF developed in the eight NWT In 2019/20, these lesson plans The GNWT wants to ensure high school experiential science were designed and produced into owners and operators have the . They encourage knowledge and skills to overcome students to learn how their can be taught conventionally or these challenges. communities generate energy, digitallya teacher’s through resource platforms package like that explore alternative ways of Google Classroom. Packages will producing green electricity, and be available to schools in the 2020 economic and GHG savings help them understand climate school year. realizedIn order tofrom benefit biomass from heating, the change mitigation and GHG a technical training course was reduction strategies. Biomass Training by the Department of Municipal Activities and projects are hands- developed by INF and delivered The Northwest Territories on and student-directed. They (MACA) School of Community continues to lead in the provide a venue for students Government.and Community Affairs’ deployment of biomass heating

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 19 Biomass Training Course in completed the course and there is Yellowknife.In March 2019, Several INF piloted local boiler a demandwere invited. for more Fifteen training students in 2020. doesmore the energy-efficient, power go out? why can’t operators with various technical we go 100% renewable, and why backgrounds audited the course. Due to COVID-19, airing of the These operators provided Energy Minutes was delayed. feedback to technical consultants Energy Minutes They are planned to air in 2020/21. the student workbook and testing radio screenplays called Energy who completed the final draft of materials. Minutes.In 2019/20, A cross INF developed between a eight radio ad and a public service announcement, the Energy Biomass Training Course was held Minutes were designed to address On September 14-15, 2019, the first in Yellowknife. Boiler operators frequently asked questions, such from NWT communities, different as where does our energy come levels of government, and industry from, how can I make my home

COMMUNITY PROJECTS Community Microgrid Study Out of the 33 communities in the renewable energy projects in recent years, several NWT is seeking to understand the not connected to an electricity communities are approaching, actualand Fort intermittent Simpson. The renewable GNWT grid.NWT, They 25 are are small, primarily isolated, reliant and capacity limit for solar and wind on fossil fuel (mostly diesel, some installations, the limiting factors natural gas) generated electricity. theor have amount met, of this diesel 20% that limit. can In be in maintaining grid stability The electricity loads in these displacedpractice, this by renewables20% cap means is quite that above the actual intermittent renewable capacity, what changes, solar this may typically amount communities range from 40kW to low. For instance, in the case of limit, and what combination of While4 MW. the GNWT promotes The GNWT has investigated the intermittentif any, should renewables be made to theand 20% the increased use of local and useto about of a battery 2% diesel solution displacement. (Colville stability/storage solutions are renewable energy for electricity Lake) that allowed installation optimal for these communities. production, it has also had to set a The study is scheduled to be cap on the amount of intermittent annual load, which resulted in completed in 2020/21. renewable energy that can be aof reduction solar panels in annual at 100% diesel average use installed in each community to ensure grid stability and battery solutions are extremely expensive.of approximately 15%. However, averagegenerator annual efficiency. load, Thiswhich cap means itwas is consideredset at 20% oflow the penetration. community system stability analysis on Due to increased deployment of eachIn 2019/20, of the as-built INF initiated electrical a power micro-grids within Inuvik, small scale (< 15kW) and medium scale (>15 kW) intermittent Łutselk’e, ,

20 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Specified Income Home Winterization Program (AEA) Winterization is a low-cost, high-impact way to save energy. With additional funding from the GNWT and the Government Fort Liard Geothermal of Canada through the Low Carbon Economy Leadership Survey engaged with the Acho INF and the NWT Geological able to deliver this program, Raised beds at Gamètì Greenhouse whichFund (LCELF), provides the lower-income AEA was Koe (ADK) First Nation of homeowners with the supplies, Gamètì Greenhouse understand and characterize theFort geothermal Liard to develop resource a study in the to knowledge and other resources to winterize their homes, as well as been operating a 1,600 square conducting an analysis of additional energy-saving products The Community of Gamètı̀’ has foot greenhouse and farm previousFort Liard seismic area. This data, included potential such as LED light bulbs. Based on operation (2 acres) since the lab/core reviews, outcrop a community partnership model, exploration as well as the each community partner hires a boiler, the greenhouse had the potential for a drilling program to community liaison worker trained capabilitysummer of to 2014. heat With growing a biomass space by the AEA, holds workshops and extend the growing season. for lower-income homeowners forobtain a potential temperature future profiles. geothermal This in their community, and helps In 2019/20, the Community development.work will remove significant risk ensure the contents of energy

Northern Agriculture Project Government’s Sustainable efficiency kits are properly (SNAP) received funding from the 2019/20 to fund the desktop home. In 2019/20 the AEA held installed in each participant’s workINF provided (Phase 1) $150,000 and committed in six community workshops and $100,000 in 2020/21 to fund the operation,GNWT’s GHG including Grant Program installing to make efficiency upgrades to the distributed 120 energy efficiency insulation, thermal curtains of 2020 (Phase 2). The work kits worth $41,000. and an energy management fromfield and both lab phases work wouldin the summerbe used system to the greenhouse, and to publish a study that would installing an anaerobic digester facilitate moving the project in a repurposed building. This towards an exploratory drilling resulted in increased capacity program (Phase 3). However, for local food production in the the COVID-19 situation led to the community and the ability to extend the growing season. cancelled. 2020 field season work being

discussing a recovery schedule, withThe GNWT Phase and2 delayed ADK are until currently at least the summer of 2021.

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 21 worth approximately $230,000. activities. They also partner Stoves that had been delivered with organizations throughout the NWT to inform Northerners installed in Behchoko, Gamètì, about AEA programs and the Wekweetithe previous and fiscal Whatì. year Additional were importance of responsible energy stoves were delivered to Deline, use. When people are energy conscious, they are more likely Whatì and Gamètì. They included , Sambaa K’e, energy practices. Engagement recipients with no previous stove. isto oneadopt of theefficient main and tools renewable the These52 replacement stoves are stoves anticipated and two to to AEA uses to foster that energy displace 10 tonnes of GHGs, along consciousness. Whatì resident with new wood stove.

Theywith 49will cords also ofsave firewood 3000 and Community Wood gigajoules2400 kg of ofparticulate energy. emissions. Stove Program (AEA) Biomass heating is an effective emissions. Under the Community Regional Office Woodway to Stove reduce Program, the NWT’s the carbonAEA Program (AEA) forms a two-year partnership While the Arctic Energy Alliance with a community government or is well known for its rebate and community-based organization to energy evaluation programs, purchase, deliver and install wood community engagement is stoves for residents. The AEA just as important. By engaging provides half of the funding for with community members, the each project and the community AEA can provide education partner provides the other half. and advice, and promote and coordinate its programs Many of the stoves installed are across the NWT. The AEA has replacements for older stoves. New stoves burn less wood for the same amount of heat, are installed Hayoffices River, in six Inuvik, communities Norman according to proper safety codes, Wells,across Whatìthe NWT: and Fort Yellowknife. Simpson, and produce fewer particulate connection to the communities did not have a wood stove, throughoutThese offices the allow territory a closer and installingemissions. one For reduces recipients heating that oil regional coordinators visit each consumption and greenhouse gas community in their at least emissions. Under this program, twice a year. stoves are purchased and second year, they are installed. Program invested $800,000 delivered in the first year. In the inThe 2019/20 AEA’s Regional to coordinate Office the In 2019/20, 66 stoves were trade shows, events and other communitywork of these engagement offices, including delivered and 54 were installed,

22 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT 2019/20 ENERGY INITIATIVES STRATEGIC OBJECTIVE 2 – REDUCE DIESEL REDUCE GREENHOUSE GAS EMISSIONS FROM ELECTRICITY GENERATION IN DIESEL COMMUNITIES BY 25%

Reducing reliance on diesel to implement renewable and reduce GHG emissions from diesel electricity generation in alternative energy solutions communities is a priority. The appropriate to each community below average historical levels by GNWT and partners are working and region. The intent is to 2030.electricity by 25%, or 18 KT,

TRANSMISSION LINES Fort Providence and Kakisa Transmission Line As part of its commitment to plan formal consultations with reduce greenhouse gas emissions affected Indigenous government (GHG) from electricity generation organizations and engagement in diesel-powered communities, activities with project the GNWT is proposing to stakeholders. The results of this TRANSMISSION LINES work will support the project line from the Taltson development activities planned construct a 170-km transmission for 2020/21.

Point.hydroelectricity These communities system to are Fort This project will reduce diesel accessibleProvidence by and road Kakisa/Dory and relatively fuel consumption for power close to the Taltson system, which generation by about 1,000,000 has surplus hydropower available. liters and reduce GHG emissions by 3,000 tonnes per year. project by selecting the highway Replacing diesel electricity with routingIn 2019/20, and INFupdating advanced previous the hydroelectricity will also help technical and costing studies to reduce the cost of power in these communities (see following page). work was also undertaken to reflect this decision. Preparatory

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 23 Fort Providence

Connection to NUL Dory Point

1

1

Kakisa L S ake Kakisa 1 Connection to NUL 1

Connection Points Proposed Transmission Line

5 Highway

S Substation Example of the type NUL Northland Utilities of transmissionke pole North toTa bethlina used. La 10 km

24 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT OUR PREFERRED ROUTE The GNWT is proposing to build the transmission line completely within the existing highway corridors to minimize any potential disturbances Fort Providence and Kakisa or impacts. The transmission Transmission Line line would connect to the Taltson hydroelectricity system south of Hay River (near the junction of Highways

2 and 5) and connect to Kakisa/Dory Point and Fort Providence (see map). PROJECT FUNDING Subject to federal support, the

cost of the project, which means theseGNWT communities will cover 100% will getof the reduced capital electricity rates. Once built, the transmission line will be operated and maintained by the NWT Power Corporation (NTPC).

WHO WILL SUPPLY MY POWER?

Great fromFort Providence, the existing Dory local Pointutility. and What willKakisa change will continueis that this to powerget electricity will no longer come from diesel power plants. Power will now be provided by NTPC to the local utility, which in this case is Northland Utilities (NUL), for sale in the community. The diesel power Hay River plants will remain in place to serve as back-up power generation units in the event of a power outage on the new transmission line. 5 Connection to TENTATIVE TIMELINE Taltson FOR CONSTRUCTION 1 2 Hydroelectricity Construction of the proposed Grid transmission line could start as early as 2022. However, before any construction begins, the GNWT will 2 work together with NTPC and NUL,

Enterprise Indigenousthe communities governments of Fort Providence and organizations,and Kakisa, all regulatorypotentially agencies,affected and the . WIND ENERGY Inuvik Wind Project The Inuvik Wind Project is a key initiative under the 2030 Energy

Investing in Canada Infrastructure Program (ICIP). Strategy and the first project in the NWT approved for funding under the turbine and a small battery storage system, a six-kilometer access road, This project includes the installation of a single 3.5 megawatt wind Zubko Airport. and a distribution line connecting to existing lines near Inuvik’s Mike Wind could reduce diesel consumption in our largest off-grid community WIND ENERGY by 30-percent by offsetting approximately three million litres of diesel

reduce greenhouse gas emissions by 6,000 tonnes, which would help us per year, and result in 3.4 million dollars in fuel savings. It would also

Watermeet our Board 25-percent to secure reduction project permits. target for diesel from electricity. In 2019/20, the project was undergoing review by the Gwich’in Land and

Sachs Harbour Wind plant currently being installed Wind Monitoring in Sachs Harbour) to determine Monitoring the potential for a wind energy A previous study from the project. The wind energy from the federal Northern Aurora Research Institute (ARI) integration study along with a ResponsibleIn 2016/17, INF Energy received Approach funding concluded that wind speeds could community visit was initially for Community Heat and be viable at eighty meters above planned for summer 2020. Electricity (REACHE) program ground level near the previous to investigate new sites for meteorological tower installed Recent technical issues have wind monitoring around the prevented the collection of the was selected, and with funding Hatchon the EngineeringKey Scarp. A to contract explore was monitoring equipment. The fromcommunity. the GNWT In 2017/18 and REACHE, a site a potentialawarded inwind September sites near 2017 the to currentfinal data NWT packet border from closure the wind 30-metre wind monitoring tower community and to perform due to COVID-19 prevents the was constructed in March 2018. integration modeling for turbine- The tower also houses research sizing options and energy- equipment for a University storage systems that could be staffcontractor’s is exploring technician other meansfrom of of Victoria research team. In integrated into a new power plant havingtraveling the to wind site for monitoring repairs. INF unit conjunction with a new diesel- investment in the community. repaired using local contractors. electric plant, the project is The community engagement expected to displace about 100 A site located near the town plan—including a Sachs Harbour tonnes of GHG emissions per year. to provide an update on the The data collected from a two- was identified and a field resultscommunity of the visit wind by monitoring INF staff year monitoring campaign will windverified monitoring as the optimal tower site with for campaign—is currently on hold. be analysed and used for a wind the installation of a fifty-metre energy integration study (in secured $100,000 in federal conjunction with the new diesel fundingheated sensors. to purchase In 2017/18, and deliver INF

26 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT wind monitoring equipment to resource and determine the travel restrictions are limiting Norman Wells. In April 2019, the potential for a wind energy the preventative maintenance tower was successfully installed, project. If the project is viable, an necessary for continued marking the start of a two-year application will be prepared for operation. ARI is working with monitoring campaign. federal ICIP funding to advance local contractors to develop the the renewable energy project. capacity for this work. Once the installation has two years of wind data, the data Although the wind tower is will be used to assess the wind currently operational, COVID-19

DIESEL PLANT REPLACEMENTS AND EFFICIENCY IMPROVEMENTS

Sachs Harbour This project involves the to displace about 100 tonnes of replacement of the existing GHG emissions per year. diesel-electric plant which is at the end of its operating life. A The new plant and auxiliary modern plant will also facilitate equipment is scheduled to arrive the addition of renewable energy DIESEL UPGRADES technologies to the local grid. 2020. Although the project has In 2019/20, the project was movedin Sachs into Harbour the construction in the Fall of approved by Infrastructure phase, work at the site has been Canada—through the Arctic suspended due to the COVID-19 shutdown, and the construction agreement was signed with NTPC. start date pushed back to the TheEnergy total Fund—and budget is $8,900,000a contribution Spring of 2021. NTPC is taking steps to ensure the existing plant federal funding means that NTPC can continue to operate until (75% ICIP + 25% NTPC). The 75% 2023. plan, which avoids electricity rate increases.saves $6,675,000 from its capital Łutsel K’e The existing power plant is Like Sachs Harbour, the existing at the end of its life and has a is also at the end of its operating considered to be very low. diesel-electric plant in Łutsel K’e fuel efficiency of 3.08 kWh/L, life. And similarly, a modern Installation of a new high- plant will facilitate the addition of renewable energy technologies to with the wind turbine will efficiency diesel plant combined provide the community with a the project was approved by reliable and cleaner supply of Infrastructurethe community’s Canada—through grid. In 2019/20, electricity. The project is expected

the Green Infrastructure Fund—

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 27 and a contribution agreement was addition of renewable energy signed with NTPC. A climate lens technologies to the local grid. The assessment was also completed. project is expected to reduce GHG emissions by 100 tonnes per year.

federalThe total funding budget means is $11,700,000 that NTPC The project is now in the (75% ICIP + 25% NTPC). The 75% construction phase, with the plan, which avoids electricity rate accommodation trailer and increases.saves $8,775,000 from its capital some construction materials scheduled to be shipped to site At the request of the community, in August 2020. The contractor the new diesel plant will be will complete some initial site relocated to a more appropriate excavation and prepare a site plan site. The new diesel plant will and preliminary building layouts. provide the community with The project is expected to be reliable power and will be able completed in 2021/22. to more easily accommodate the

LIQUEFIED NATURAL GAS (LNG) Fort Simpson In 2019/20, a feasibility report was completed for the design of transported over long distances a new modular gas generating to(CNG), locations and safely not supplied and efficiently by plant and LNG storage and pipeline or a local resource. vaporization facility on a parcel This project will consist of LNG LIQUIFIED NATURAL GAS of land outside of the downtown

was approved byInfrastructure asstorage, well as a are-gasification space for storage, system, Canadacore in Fort through Simpson. the Green The project andtruck workspace. offload, on Other site generation, elements would include a distribution interconnect to the main Infrastructure Fund. The total electrical grid, communications muchproject higher budget than is $15 the million LNG project and security. The site would be (75% ICIP + 25% NTPC). This is large enough to accommodate space needs for other generation existingin Inuvik gas because infrastructure. Fort Simpson should the downtown site not Althoughis a greenfield a fossil project fuel, naturalwith no gas is a cost-effective alternative to diesel fuel for electricity, heating lowermeet NTPC’s emissions future source needs. is and transportation. It burns Going to a more efficient and displacement with a reduction GHG emissions per unit of energy ofexpected 1,800 tonnes to result of GHGin 85% per diesel year, producedcleaner and than produces diesel. 25%Natural fewer gas is odourless, non-toxic, and can GHG emissions. representing a 27% reduction in

be liquefied (LNG) or compressed

28 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT COMMUNITY HYDRO Gamètì Mini Hydro As part of the 2030 Energy Strategy, there are funds available to support community-scale forwater a water flow togauge support to be the installed hydro projects in the NWT. This toproposed gather actualproject, data INF at arranged the right MINI HYDRO project involves the construction of a mini hydroelectric facility to of data is now available. displace diesel-generated power location. More than a year’s worth in Gamètì. (usingINF is fundingactual measured the completion water A pre-feasibility report was of an update to the 2015 report Gamètì applied for federal funding independent engineer hired by forflow the data) Phase and 2 thework community (technical of thecompleted community. in 2015 As bythere an was no and environmental). This funding was approved but the work has work was based on modeled data been deferred to 2021 due to the derivedactual water from flow other monitoring, regional data. this COVID-19 situation.

To confirm there is a sufficient

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 29 2019/20 ENERGY INITIATIVES STRATEGIC OBJECTIVE 3 – TRANSPORTATION REDUCE EMISSIONS FROM TRANSPORTATION BY 10% ON A PER PERSON BASIS vehicles and biofuels. In 2019/20, the GNWT continued preliminary work to reduce transportation emissions inDistances the NWT. and cold weather represent significant challenges in introducing viable options such as electric

GNWT FLEET MANAGEMENT Jock McNiven Through 2019/20, work engines. This will give the Jock more horsepower, make it more

(MTS)continued tug toJock refit McNiven. the GNWT The emissions. “Jock”Marine went Transportation into service Services’ for fuel efficient and reduce its GHG Northern Transportation Work will continue through 2020, Company Limited (NTCL) in the with the Jock expected to be

the late 2000s. After ten years alignment and sea trials will be MTS Tug Jock McNiven being1970s laidand up,stopped it was operating purchased in by completedoperational in by the early spring 2021. of 2021.Final If the trials go well, the Jock will assets. be in service for the 2021 barge MTS as part of the sale of NTCL’s season. Using $2.8 million in funding

from the LCELF, work began to refit the midlife vessel with new Fuel Saved 288,400 litres New engine to be installed. GHG Reductions 808 Tonnes

30 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT MV LAFFERTY The MV Lafferty ferries passengers and vehicles across the

Simpson to the Territorial Highway System. During the operating season, thenear vessel its confluence must be able with to the navigate MacKenzie in partially River. This frozen service waters, connects avoid a Fort sandbar and dodge debris that could clog the propellers.

GNWT Ferry MV Lafferty The goal of this project—funded by the LCELF—was to rebuild or replace the ferry’s two 10-year-old engines. The following factors about • No longer being manufactured the existing engines were considered: • • Required an overhaul every 8000 hours Becoming difficult to repair • Lengthy lead times on acquiring parts • • Parts increasingly expensive as supply decreased Increasingly difficult to source parts • Current horsepower struggled to meet northern operating season requirements New marine diesel propulsion engine. • Had to run the engines at full throttle to manoeuvre properly, burning more fuel • No longer met present-day emission standards Benefits of the New Engines

• Superior fuel consumption, reduced Replacement was the highest rated option. New John Deere marine exhaust emission, and increased diesel propulsion engines were selected to be installed, and arrived in power output for a comparably sized engine. and re-welded once the new engines were installed. The shafts/ • Significant more horsepower, engines/gearboxesJanuary. The vessel’s were hull alignedhad to be and cut monitoring open to remove gauges the installed old engines, in the eliminating the need to run at full wheelhouse and engineer deck compartment. throttle to manoeuvre the vessel across the river. To minimize costs and provide the required level of oversight, the job • Ability to control the ferry in a faster was completed by a combination of GNWT and contracted workers. current, avoiding shut downs during Work began in mid-November and was completed in time for the 2020 high water periods. operating season. • Manufacturer’s recommended maintenance schedule of 34,000 hours. This project has renewed the M.V. Lafferty’s main engines, extended the life of the ferry, and will yield over 150,000 litres in fuel savings and • Superior accessibility to engine com- ponents required for maintenance. more than 420 tonnes of GHG reductions.

• Ferry used approximately 25% less fuel in 3½ months of operations.

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 31 ELECTRIC VEHICLE PROMOTION AND SUPPORT Since 2018, the Government of the Northwest Territories has been working with the AEA to develop a program that would provide a rebate for the purchase of new electric vehicles and for charging infrastructure in hydropower communities.

Electric Vehicle Rebate Program in 2020. The Program will provide Work completed in 2019/20 will lead to the AEA’s launch of the infrastructure in hydropower communities. ELECTRIC VEHICLES a $5,000 rebate for new electric vehicles, and up to $500 for charging Switching to an electric vehicle in a community connected to the hydroelectric grid can help to reduce the amount of greenhouse gas emissions released to the atmosphere from motor vehicles, which

to a lower-carbon economy. It also increases the sale of electricity, which helpssupports stabilize the Strategy’s electricity goal rates. of transitioning the Northwest Territories

New battery electric vehicles, plug-in hybrid electric vehicles, or charging infrastructure may be purchased locally or in a jurisdiction outside of the Northwest Territories.

BIOFUELS STUDY Liquid biofuels, such as renewable diesel, are being used in other parts of the world to reduce greenhouse gas emissions. There are concerns about using liquid biofuels in the NWT, including security of supply, extreme cold weather suitability, long-term cold-climate storage suitability, cost premium and other factors unique to our geography and climate. LIQUID BIOFUELS However, the GNWT does see potential promise in the use of liquid biofuels, and in 2019, engaged the Saskatchewan Research Council to conduct a study to assess the availability, pricing, and technical feasibility of transporting, storing and using biofuels in the NWT.

completed and a draft report is expected in spring 2020. The second part of The study is being conducted in two parts. The first part has been

the study will begin soon after and is expected to be finished in early 2021.

32 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT CLEAN FUEL STANDARD MONITORING Since late 2016, the Government of Canada has been working to develop emissions through the use of lower carbon fuels, energy sources and technologies.a Clean Fuel Standard The regulations (CFS) that for would the Standard reduce Canada’swould be greenhouseimplemented gas in

2020 and the second regulations for solid and gaseous fuels in 2021. a phased approach with the first regulations for liquid fuels published in

The GNWT has concerns about the cost implications of the CFS, as the retainrequirements and attract of the business. CFS have There the potential are also concernsto impact regarding both the cost the long termof living storage for NWT stability residents, of certain as well types as theof low-carbon NWT’s competitiveness intensity fuels to in properly in the extreme cold environment and have long-term storage stability.the Arctic context, specifically the need for liquid fuels that function for remote communities, which would include all communities of the In the summer of 2019, Canada announced an exemption to the CFS

NWT. Despite this exemption, INF continues to monitor developments purchase,in respect transportof the CFS. and Such storage monitoring of bulk is petroleum being carried products out by for INF’s 16 NWT communities.Energy Division and Fuel Services Division, which manages the

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 33 2019/20 ENERGY INITIATIVES STRATEGIC OBJECTIVES 4 & 5 – HEAT & EFFICIENCY ARCTIC ENERGY ALLIANCE PROGRAMS AND SERVICES impacts of energy and utility services in the NWT. These services are provided directly to communities through The AEA is a non-profit society that provides programs and services to reduce the costs and environmental six regional offices. With the addition of new federal funding from the Low Carbon Economy Leadership Fund (LCELF), the AEA nearly doubled the number of rebates it provided in 2019/20 compared to the previous year. These rebates totalled almost a million dollars—a 150 percent increase over 2018/19. Energy Efficiency Incentive Program Specified Income Home Winterization Program Provides rebates on energy-efficient appliances Provides homeowners with the supplies, knowledge and and other products. other resources to winterize their homes and reduce the consumption of electricity and water.

Energy Rating Services Support Program Provides home energy evaluations and advice. Alternative Energy Technologies Program Provides incentives for NWT residents, businesses and community-based organizations to adopt renewable Deep Home Energy Retrofit Program and alternative energy systems, such as solar, wind, Provides rebates on major home energy-efficiency wood and more. upgrades, such as exterior wall insulation, windows and heating equipment. Biomass Energy Program – Provides Northerners with accessible technical advice on existing or potential Commercial Energy Conservation biomass projects. and Efficiency Program – Provides building energy audits and rebates to NWT businesses to make upgrades to conserve energy and improve their energy efficiency. Community Wood Stove Program – Provides homeowners with new, efficient wood stoves through partnerships with community organizations. Community Government Building Energy Retrofit Program – Provides building energy audits, rebates and project coordination to help community governments Regional Offices Program – Operates offices in across the NWT better manage their energy use. Fort Simpson, Hay River, Inuvik, Norman Wells, Whatì and Yellowknife to maintain a close connection to the communities throughout the territory. Non-Profit Energy Efficiency and Conservation Program – Provides building energy audits and rebates to NWT non-profit organizations to make upgrades to conserve energy and improve their energy efficiency.

34 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT BEAUFORT–DELTA AEA PROGRAMS Rebates / Incentives 222 Regional results Annual GHG Reductions 248 Tonnes Annual Electricity Reductions 396,000 KWh Annual Fossil Fuel Displaced -305 GJ

SAHTU Rebates / Incentives 104 Annual GHG Reductions 110 Tonnes Annual Electricity Reductions 181,000 KWh Annual Fossil Fuel Displaced -174 GJ

Tłıchǫ̨ Rebates / Incentives 67 Annual GHG Reductions 20 Tonnes Annual Electricity Reductions 24,400 KWh Annual Fossil Fuel Displaced 3002 GJ

NORTH SLAVE Rebates / Incentives 820 Annual GHG Reductions 422 Tonnes Annual Electricity Reductions 1,170,000 KWh Annual Fossil Fuel Displaced 3860 GJ DEHCHO Rebates / Incentives 114 Annual GHG Reductions 400 Tonnes

Annual Electricity Reductions 245,000 KWh SOUTH SLAVE Annual Fossil Fuel Displaced 2903 GJ Rebates / Incentives 252 Annual GHG Reductions 179 Tonnes SUM VALUE OF AEA REBATES Annual Electricity Reductions 476,000 KWh YELLOWKNIFE AREA $744,000 Annual Fossil Fuel Displaced 1825 GJ OUTSIDE YELLOWKNIFE $ 1,150,000

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 35 2019/20 ARCTIC ENERGY ALLIANCE PROGRAM RESULTS

BIOMASS ENERGY ENERGY EFFICIENCY PROGRAM INCENTIVE PROGRAM

Started pre-feasibility analyses for six communities on 1,266 heating systems. Two of these Provided rebates. have already been completed.

LED lighting continues Helped a client to be the most popular apply for a eligible product Combined, the energy-efficient rebate on a products purchased will save the relatively large 181 more NWT 700 tonnes of greenhouse biomass heating 385 than last year. gases annually—more than any system. LED Rebates other AEA program this year.

DEEP HOME ENERGY Combined, the seven clients with ENERGY RATING RETROFIT PROGRAM completed projects are expected SERVICES SUPPORT to save 140 GJ of heating fuel PROGRAM New program for 2019/20. a year—equivalent to bringing one of these homes to net zero home energy (offsetting all energy for heating, evaluations hot water and electricity). 105 Completed. Completed 46 home energy evaluations, and provided seven Performed final rebates worth $35,000, evaluations on plus an additional three interim new homes. 107 rebates valued at $16,000. The interim projects will be finalized in 2020/21.

COMMERCIAL ENERGY CONSERVATION AND EFFICIENCY PROGRAM

Provided 49 rebates Combined, all recommended upgrades on existing homes (up 58 percent over last year). Combined, annual could save homeowners electricity consumption avoided by all clients’ projects is roughly the The average client project will amount of annual electricity $34,000 pay for itself through energy used in the community and 160 tonnes of greenhouse savings in less than two years. of Sachs Harbour. gas emissions a year.

36 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT COMMUNITY NON-PROFIT ENERGY EFFICIENCY New program GOVERNMENT BUILDING AND CONSERVATION PROGRAM for 2019/20. ENERGY RETROFIT PROGRAM Distributed 11 rebates $130,000 valued at approximately $220,000 Distributed in rebates Combined, all client projects will avoid in five communities 190 kW in power demand—equivalent to (up 290 percent over last year). running 158 dishwashers at the same time.

Completed 22 desktop “yardstick” building energy COMMUNITY WOOD STOVE PROGRAM audits and 19 on-site Completed one two-year project that began in 2018/19, and began a new project. “targeted” building energy audits in four communities. Coordinated the installation of 54 stoves in four partner communities and arranged for 66 additional stoves to be delivered to five communities.

Combined, all installed stoves will save 2,400 kg of particulate emissions(an 89% decrease) and 10 tonnes of greenhouse gas emissions a year.

Energy audits Savings from the fifty-four(54) wood stoves installed in 2019 – 20 identified more than Heating oil Annual GHG $340,000 displaced in litres: reductions: Annual savings: in potential annual savings. 100,000 265Tonnes $150,000

SPECIFIED INCOME HOME WINTERIZATION PROGRAM ALTERNATIVE ENERGY TECHNOLOGIES PROGRAM

Worked with six partner communities Rebates provided to hire and train local liaison workers. 30 The 30 systems that the AEA’s clients installed are expected to save roughly 260 tonnes of Hosted educational workshops for lower- greenhouse gases a year. income homeowners in all six communities.

The average system is expected to pay Distributed 120 energy efficiency kits for itself in just over to workshop participants. four years.

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 37 CAPITAL ASSET RETROFIT FUND (CARF)

GNWT facilities to reduce GHG emissions, energy use and operation costs. Each year, approximately $3.8 Developed in 2007, the Capital Asset Retrofit Fund (CARF) program delivers energy efficiency projects for million is assigned to energy retrofit program projects. Savings resulting from projects completed in 2019/20 are estimated to average $209,700 annually.

DID YOU KNOW? Seventy-five percent (75%) of the Capital Asset Retrofit Fund’s annual funding, or approximately $2.8 million, will be funded by the 2020/21 fiscal year’s operation savings in utilities.

38 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT 2019 – 20 CARF PROJECT HIGHLIGHTS (see Appendix B for a full list of CARF projects)

INUVIK HOSPITAL LIGHTING

the Inuvik Regional Hospital was A complete lighting retrofit of to LED equivalent using roughly halfcompleted of the electricity to upgrade overall. all fixtures

Annual Electricity Reductions 307,397 kWh Natural Gas Displaced 84,000 Cubic Metres Annual GHG Reductions 159 Tonnes Annual Savings $233,622

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 39 PAULATUK SCHOOL

to reduce electrical consumption. The project was delivered combining anA LED upgrade lighting of the retrofit Direct of Digital the Angik Controls School (DDC) in Paulatuk system was and completed installation of Electrically Commutated Motors (ECM) driven pumps to reduce overall energy use of the mechanical systems. During the upgrade,

and ventilation system. commissioning of the new system led to an overall more efficient heating Annual Electricity Annual GHG Reductions Reductions 30,000 kWh 159 Tonnes Diesel Displaced Annual Savings 6,300 Litres $40,500

STANTON LEGACY

and installation of a large-scale biomassCARF funded system the at procurement the Stanton Legacy Building in Yellowknife. The system includes a total

system with the main source redesign of the building’s heating

boilers.of heat coming from two 1,250 kW KOB Viessman wood pellet

Wood Pellets Heating Oil Annual Burned Displaced Savings: 1,000 Tonnes 22,300 Litres $551,000 Propane Annual GHG Displaced Reductions 820,000 Litres 1,300 Tonnes

40 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT HAY RIVER SCHOOLS LIGHTING This lighting project, funded by

PrincessCARF, involves Alexandra, upgrading Ecole to LED Boreale,lighting inHarry 4 Hay Camsell, River Schools: Diamond Jenness. Although Hay River is powered by hydroelectricity, the project reduces energy use and electrical costs.

Annual Electricity Reductions 293,000 kWh Annual Savings $65,000

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 41 CARF PERFORMANCE INDICATORS

The infographic below shows how the CARF program has reduced GHG emissions by almost 15,000 tonnes since its inception, and in 2019/20 resultedTotal in cost GHG savings Reductions of almost from $4CARF million. Initiatives since 2007/08 14,883 tonnes

GNWT’s Total GHG Emissions in 2019/20

2019/20 Savings from CARF Initiatives

6,503 tonnes from Propane/Natural Gas Over $3.8 million GHG Conservation in savings Biomass REDUCTIONS and Efficiency from energy 10,101 tonnes 14,883 TONNES 3,935 tonnes conservation and efficiency

14,204 tonnes 10,245 tonnes from from Heating Oil Fossil Electricity Electric Heat 30,951 tonnes 847 tonnes

Figure 9: GHG Reductions Trends from CARF Initiatives

20,000

Biomass Electric Heat Energy Conservation Estimated 15,000

3935

3335 847 10,000

3251 841 2470 2218 2269 2868 592 974 763 1340 1056 614 974 562 5,000 541 570 696

84 131 436 476

1553 2455 2793 4744 5023 4995 4882 6070 5572 5601 6495 8385 10,102 16,000 0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

42 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT GHG GRANT PROGRAM FOR GOVERNMENT

non-repayable grant program designed to support greenhouse gas (GHG)The GNWT’s emissions GHG reduction Grant Program projects for and Government initiatives is for an NWT application community based BUILD YOUR governments, municipalities, GNWT departments, and Indigenous governments (which includes band or tribal councils, land-claim GHG organizations, development corporations and self-governments). EnvironmentFunding and resources and Climate for Change this program Canada have (ECCC) been under provided the Low jointly Carbon SOLUTION by the GNWT in support of the GNWT’s 2030 Energy Strategy, and by

Economy Leadership Fund (LCELF), in support of the Pan-Canadian Have an idea? Framework on Clean Growth and Climate Change. Let’s talk. there is a minimum grant size to be eligible for these funds. The GNWT [email protected] providesDesigned smaller to fill a gapgrants in funding through for the larger Arctic GHG Energy reduction Alliance initiatives, (AEA). (867) 767-9021 Contact AEA for more details on smaller grant initiatives (aea.nt.ca). In 2019/20, the GHG Grant Program for Government received applications for two projects that were approved for funding.

Fort Smith Electric Heat Project

The Town of Fort Smith was approved for $360,000 in early 2020. The shelterproject andproposal public included works garage. conducting The water energy treatment efficient andplant heating and public worksupgrades garage in three will municipalswitch to electric buildings: heat, a water taking treatment advantage plant, of the animal electric heating rate incentive in that region. This project is expected

to reduce up to 510 tonnes of GHG emissions annually and reduce operational costs by up to $67,000 per year. Construction is expected to YK1begin Pellet in Spring Boiler 2020 Installations and be completed for Mildred by Fall 2020.Hall and Schools

The project includes the installation of wood pellet boilers in two Yellowknife schoolEducation facilities. District Both No. installations 1 (YK1) was areapproved expected for to$1,050,000. reduce up

2020,to 578 with tonnes construction of GHG emissions expected annually to start and by Spring/Summerreduce operational 2021 costs and completionby up to $97,000 by September per year. 2021.Design is expected to occur over the winter of Funded in part by: Financé en partie par:

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 43 2019/20 ENERGY INITIATIVES STRATEGIC OBJECTIVE 6 – LONG-TERM A LONGER-TERM VISION: DEVELOP THE NWT’S ENERGY POTENTIAL, ADDRESS INDUSTRY EMISSIONS AND DO OUR PART TO MEET NATIONAL CLIMATE CHANGE OBJECTIVES HYDROELECTRIC SYSTEMS UPGRADES Taltson Hydro Overhaul Project Components of the existing Taltson hydroelectric generating facility are approaching or have exceeded their useful life. This project is a multi-year initiative to refurbish the existing facility and extend its

beingoperating provided life. $23,760,000 by NTPC. in funding has been secured, of which 75% is funded by Infrastructure Canada and the remaining 25% is This project is in the construction phase. The turbine and generator were being manufactured during 2019/20 but delays were anticipated due to Covid-19 lockdowns in Spain and Italy where the manufacturing HYDRO UPGRADES facilities are located. As a result of the expected delays, the schedule for completion of the project was being reviewed. These collective impacts may delay the project construction schedule by one year (i.e. from 2021 to 2022).

Once completed, this project will ensure forty to sixty more years of clean hydroelectricity from the 18-MW Taltson facility. It will also avoid any potential GHG emissions related to burning diesel due to an unexpected shutdown and will slightly increase the percentage of

requirements. hydroelectricity being supplied to meet the NWT’s annual electricity

Main generating unit at Taltson

44 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Snare Forks generating facility site

Snare Forks G1 & G2 Overhaul Project

facility are approaching or have exceeded their useful life. This project isComponents a multi-year of initiative the existing to upgrade Snare Forks the G1 hydroelectric and G2 generating generating units and extend the operating life. $18,880,000 in funding has been secured, of

is being provided by NTPC. which 75% is funded by Infrastructure Canada and the remaining 25% This project is in the construction phase. Work on the G1 unit progressed well during 2019/20 but Covid-19 delays were expected to delay the completion of the G1 component of the project to fall 2020. Work on the G1 turbine housing being overhauled. G2 unit is scheduled to begin in 2021 (once the G1 unit is completed) and be completed in 2021.

potentialWhen finished, GHG emissions this project related will ensure to burning the continued diesel due reliability to an unexpected of shutdownthe electricity of the supply facility from and the will 10 slightly MW Snare increase Forks the facility, percentage avoid any of

requirements. hydroelectricity being supplied to meet the NWT’s annual electricity

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 45 GHG GRANT PROGRAM FOR BUILDINGS AND INDUSTRY Like its sister stream for Government, the GHG Grant Program for Buildings and Industry is an application based non-repayable grant program designed to support greenhouse gas (GHG) emissions reduction

organizations. projects and initiatives for NWT businesses, industry and non-profit

projectBusinesses costs. and Just industry like the applicants program streammay receive for government, up to 25% of there eligible isproject no maximum costs. Non-profit grant request applicants per applicant, may receive and upa single to 40% applicant of eligible may seek the entire yearly allocation (see Program Guide for grant amount available). However, there may be other competitive applicants requesting funding and the GNWT may choose to support multiple projects over just one. There were no applicants and no approved projects under this program in 2019/20.

SMALL MODULAR NUCLEAR REACTOR (SMR) In July 2019, Natural Resources Canada (NRCan), in partnership with the provinces, territories, and power utilities in Canada, developed and released the Canadian Small Modular Reactor Roadmap for Canada (Roadmap). The GNWT is part of the SMR working group under the VERY SMALL NUCLEAR Energy and Mines Ministers Conference (EMMC) and contributed to the development of the Roadmap.

Smaller than conventional reactors, SMR technology can be manufactured at a plant and brought to a site fully constructed. Ranging from under one (1) megawatt (MW) up to 300 MW in size, SMRs have potential application in off-grid remote communities and industrial sites.

The GNWT does not currently have a position on nuclear power except for mention of very small nuclear as being an emerging technology that the GNWT will monitor during the implementation of the 2030 Energy Strategy. The GNWT will engage the public on the issue in the future as required.

46 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT TALTSON HYDRO EXPANSION The GNWT has a long-term vision of developing its hydropower resources by establishing an energy corridor that would provide clean energy to industry and eventually connect the NWT to the North American grid. Expansion of the Taltson Hydroelectricity site is key to

unlocking the territory’s renewable resource potential and associated andenvironmental opportunities and for economic Indigenous benefits. government The energy partnership, corridor allwould of which also provide important clean growth economic diversification of the NWT

Current Taltson hydro facility support the GNWT’s goals and commitments under the Pan-Canadian Framework on Clean Growth and Climate Change (PCF). (IG) partners for the development of the Taltson Hydro Expansion The GNWT’s working relationship with Indigenous Government Understanding (MOU). Project is being defined through the development of a Memorandum of Technical work is underway is on transmission routing that minimizes impacts and costs to the project, including bathymetry work to map a portion of the lake bottom (see following pages) and scoping of a major engineering contract to develop the remaining design feasibility. The preliminary business case for the project is expected to be completed in 2020.

In August 2019, the Canada Infrastructure Bank (CIB) announced it would provide advisory services on the Taltson Project. CIB is mandated

institutional investments to new revenue generating infrastructure projects.to use $35 Engagement billion in federal with thefunding CIB and to attract IG partners private is ongoing.sector and When both hydro systems are connected and mines have access, this project

could reduce GHG emissions by 227 kilotonnes.

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 47 (GSL) BATHYMETRY PROGRAM PHASE I transmission cable across GSL is one of two routing options being studiedConnecting for thethe TaltsonNWT’s twoHydroelectricity hydroelectricity Expansion systems project. via a submarine

In 2019, the Arctic Research lakebed along two potential routes. The preferred route, work highlighted additional direct to Yellowknife from Taltson surveyThe final work report that from is required this in asFoundation part of a phase (ARF) I successfully bathymetry unmapped areas of the alignment programdelivered and a 22-day results field report program on km of submarine cable and a and potential landing areas that shorterBay, would submarine require cableroughly crossing 140 will need to incorporate local use and traditional knowledge of GSL, at a cost of $650,000. The Gros Cap at the north end of GSL. the area in order to optimize the PhaseGNWT’s I provided MV Nahidik detailed was leased of approximately 70 km across to design. mappingby ARF for information the expedition. of the

It may look low in the water, but the Rigid-hulled Inflatable Boat (RHIB) supporting the Nahidik is virtually unsinkable. 48 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT NORTHERN STUDENTS EXPLORE LAKEBED In October 2019, in partnership with Nature United and the Arctic Research Foundation, Northern Youth Leadership piloted a new camp for NWT youth - the Youth Science Expedition.

Five NWT youth between the ages of 13 and 19 from Ndilǫ, , Yellowknife, and Łutselk’e spent five days aboard the research vessel Nahidik.

NYL participants with chief scientist, During the expedition, participants worked with the ship’s crew and scientists on two projects – a bathymetric survey of Great Slave Lake Eddy Carmack and installing a mooring in Christie Bay. Participants helped construct the mooring, deploy equipment, and learn one-on-one with the hydrographers and chief scientist. In addition, youth also shadowed the Northern Youth ship’s captain and engineer to learn about bridge operations, safety and Leadership student emergency duties, charting and navigation, and marine mechanics. watching the lake bed being mapped The expedition was a really positive experience for everyone involved, in real-time. and set the stage for future Youth Science Expeditions.

The MV Nahidik originally operated in the as a navigational aid vessel for the Canadian Coast Guard. After being surplussed, it was acquired by the GNWT in 2016. The Nahidik was re-launched in 2019 after major overhauls funded by the Arctic Research Foundation. With its large deck and cargo hold—and five foot draft—the Nahidik is ideal for shallow water surveying as well as deep water bathymetry work.

NOT YOUR AVERAGE FISHFINDER To map the lakebed, the ARF uses (backscatter data) determines the multibeam systems (multibeam hardness of the lakebed. A third echosounders or MBES) that acoustic measurement is performed emit sound waves in a fan shape by a sub bottom profiler (SBP), which beneath the ship’s hull. Multibeam determines physical properties of the bathymetry data—the delay between lakebed and geological information. sending the signal and receiving In Great Slave Lake, the SBP has been it back—determines the water able to identify bedrock located up to depth. The strength of that signal 100m beneath the lakebed sediment. NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 49 A LOOK AHEAD Moving into the post-COVID era, we will continue to lay the groundwork to ensure more secure and affordable energy while reducing GHG emissions. WHATÌ TRANSMISSION LINE The GNWT is proposing the construction of a 60-km transmission line to connect Whatì to surplus hydroelectricity from the Snare system. This project has the potential to displace up to

and500,000 save litresapproximately of diesel fuel, $600,000 reduce inGHG electricity emissions costs by 1,400 annually. tonnes

Government will be initiated to Consultations with the Tłı̨chǫ discuss/determine an acceptable routeconfirm for support the transmission for the project line. and Once the routing has been determined, and depending on Drummers at the Tłı̨chǫ All-Season Road groundbreaking ceremony in Whatì. available funding, work in 2020/21

will be prepared and submitted to • Preliminary environmental FORT PROVIDENCE Infrastructure Canada. Preliminary is expectedscoping to include: TRANSMISSION LINE environmental scoping work In 2020/21, work will continue on will be completed to develop a • Completion of the climate lens several key aspects of the project. comprehensive environmental • Preliminary engineering and The GNWT will initiate formal baseline and impacts program that design, including an updated consultation and engagement can be conducted during the 2021 capital cost meetings to introduce the proposed project, identify concerns and build support for the project. An field season. application to secure the federal

75% funding support for the project

50 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT Remote wind monitoring system’s operating light shines on the Arctic expanse in Sachs Harbour.

Gamètì Mini Hydro different wind measurement switchgear. The deployment towers indicate that average of a new diesel plant with wind The community of Gamètì is yearly wind speeds of six meters energy considered into its design interested in developing a nearby per second exist 30 meters above provides the NWT with a unique community-scale hydropower the ground level. This wind speed opportunity to demonstrate our project. A hydrology monitoring station was installed on the turbine integration. Indeed Sachs hybrid system. Camsell River near Gamètì in Harbouris considered had asufficient wind turbine for wind in first operational wind/diesel October 2018, and hydrology the 1990s. However, immature data from the gauge will help technology and some bad luck determine if the hydro resource Phase II Bathymetry resulted in its failure. Since then, Program advancements in cold weather development. Hydrological wind turbine technology have monitoringis sufficient wasto support completed further led to an increase in their use to in 2019/20. Preparations offset the diesel used to generate The Arctic Research Foundation’s are currently being made to power in remote communities theproposed water 2020with threePhase phases II field of update a previous study. This and mine sites. workprogram and involves a number 55 of days crew on shift will allow initiation of further changes to include a cross section technical work and preliminary In 2021 the Northwest Territories of northern and Indigenous environmental scoping. Power Corporation is scheduled groups. to install a new diesel plant in Sachs Harbour Wind Sachs Harbour. A wind integration Phase II will provide a more Wind monitoring campaigns over study will determine the optimal intensive hydrographic survey the last two decades in Sachs turbine size and amount of program that will include more Harbour have demonstrated it renewable energy to be imported detailed mapping, soil sampling to be one of the strongest wind into the local grid. Adding a wind regimes located near an NWT turbine to a diesel micro-grid A specialist in laying submarine and lake-bottom profiling. community. Long-term wind data requires advanced systems that cable has also been added to from the airport along with three may include battery storage, the team. power conditioning and advanced

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 51 The data collected from costs of the utility, every kWh this program will be critical that is generated through the to understanding the Net Metering program leads constructability and costs for the to a reduction of revenues and Taltson Project submarine cable earnings for the utility. Ultimately, alignment. It will also provide this extra cost is carried by other ratepayers unable to afford opportunity to build relationships alternative electricity generation withadditional Indigenous benefits, partners including and an system. In other words, it youth, community leaders and increases electricity rates. scientists involved in the project, and a wealth of hydrographic data that will advance northern Public Utilities Board (PUB) set science. In its decision 7-2016, the NWT Electric Vehicle charging station at Net Metering program. Above thisa cost threshold, threshold utilities of 1% for are the asked the AEA’s Yellowknife office. to come forward to the PUB for POLICY further direction.

Electric Vehicle Charging A scope of work has been Infrastructure developed for a review of the Net The GNWT participated in the Metering Policy. It is anticipated the federal-provincial-territorial Zero Emissions Vehicle (ZEV) Working Group which is developing a work will be initiated in Fall 2020. strategy to promote the uptake of ZEV in Canada. Building on this, PROGRAMS the GNWT also began drafting a scope of work for a study on the GHG Grant Program promotion of electric vehicles and the design, construction and Both streams of the GHG Grant deployment of a charging station Program will continue to accept network in the NWT. The study applications as long as funding is will be initiated in the 2020-21 available. There is approximate

$14 million funding available Netfiscal Metering year. 2020/21 the GHG Grant Program willfor both be supporting streams by the 2024. already In / Self Generation Net Metering is a program that allows utility customers to Boilerapproved Installations Fort Smith for Electric Mildred produce renewable energy for HallHeat and Project Range and Lake YK1 Schools. Pellet the electrical grid and receive a kilowatt hour (kWh) credit for their future consumption. Since the current rate structure uses kWh consumption to

PHOTOS ON RIGHT: 2019/20 ARCTIC ENERGY ALLIANCE PROGRAMS AND SERVICES “subsidize” some of the fixed

52 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 53 APPENDIX A: GNWT ENERGY USE AND UTILITY COSTS GNWT ENERGY Figure 10: GNWT Utility Expenditures, 2019/20 EXPENDITURES In 2019/20, the cost of heat 2019/20 GNWT UTILITY EXPENDITURES and power for GNWT facilities Waste Disposal 10 below shows that electricity 1% istotaled the largest $35.9 energymillion. cost Figure for 19% Heating Oil the GNWT, followed by heating. Propane/Natural Gas It should be noted that wood 8% pellet expenditures increased 6% Water/Sewer in 2019/20 versus the previous 7% Wood Pellet biomass heating. Electricity year, due to a 10% increase in 59%

GNWT ENERGY USE Figure 11: GNWT Energy Use by Comparison

Electric Heat/ Wood Fossil Hydro Propane/ Heating Residual Heat Pellets Electricty Electricty Natural Gas Oil useFigure by type.11 below Compared outlines with the thetrend 180,000 in the GNWT’s total annual energy 160,000 newprevious facilities year, being the GNWT’s added to energy the use increased by about 4% due to 140,000 GNWT’s assets. 120,000

100,000 h MW 80,000

60,000

40,000

20,000

- 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020

54 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT GNWT GHG Figure 12: GNWT Greenhouse Gas Emissions by Energy Type EMISSIONS In 2019/20, GNWT buildings GNWT GREENHOUSE GAS were responsible for about EMISSIONS BY ENERGY TYPE due to fossil fuel used for 46% Heating Oil 30,950 tonnes of GHG emissions heating and by using electricity 33% Fossil Electricity generated from fossil fuels 21% Propane/Natural Gas emissions(see Figure in 12). the This previous is almost year. identical to the GNWT’s GHG Total Emissions: 30,951 tonnes of CO2e

GNWT GHG Figure 13: GNWT GHG Emissions Reduction Trend

EMISSIONS Linear (Total) Fossil Electricity Propane/Natural Gas Heating Oil REDUCTIONS As a result of GNWT efforts to 35,000 increase the use of biomass heatingimprove in energy its facilities, efficiency the and 30,000 GNWT has been able to reduce emissions slightly from 2012/13 to 2019/20 despite an increase 25,000 in its overall energy consumption

in recent years (see Figure 13). 20,000 h MW 15,000

10,000

5,000

- 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 55 GNWT SPACE Figure 14: GNWT Space Heating Energy Sources, 2019/20 HEATING BY 2019/20 GNWT SPACE HEATING FUEL TYPE ENERGY SOURCES In 2019/20, space heating for GNWT facilities totaled 43% Heating Oil 3% Electricty/Residual Heat 131,177 MWh. As shown total was provided by Wood Pellets renewablein Figure 14, electric 34% of heat this and 31% biomass energy. This is a 23% Propane/Natural Gas previous year. 2% improvement from the Total Emissions: 30,951 tonnes of CO2e

GNWT GHG Figure 15: GNWT Renewable Heating Energy Trend EMISSIONS REDUCTIONS Electric Heat/Residual Heat Wood Pellets FROM RENEWABLE 45,000 HEATING 40,000 renewable heating for GNWT facilities.Figure 15 The shows amount the trend of electric in heating was virtually unchanged 35,000 from the previous year but wood

30,000 compared to 2018/19. pellet heating increased by 11%

25,000 h MW 20,000

15,000

10,000

5,000

- 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020

56 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT APPENDIX B: CAPITAL ASSET RETROFIT FUND PROJECTS

FACILITY LOCATION DETAILS

North Slave Region

Installation of two 30kW Viessmann Boilers and Kalemi Dene School Ndilo controls upgrade.

Installation of two 1250kW Viessmann KOB biomass Stanton Legacy Yellowknife boilers.

South Slave Region

Princess Alexandra, Diamond Jenness, Ecole Boreale and Harry Hay River LED lighting upgrade. Camsell Schools

Design and installation of two 56kW Okofen Boilers. Chief Sunrise School Katlodeeche Multi-year project to be complete Fall 2020.

Beaufort Delta Region

Installation of 300kW biomass boiler. Multiyear Kerr School project to be completed 2021.

Inuvik Regional Hospital Inuvik LED Lighting upgrade.

Angik School Paulatuk LED Lighting, Digital Controls, HVAC upgrades.

Sahtu Region

Chief Ts’elehye School Ft. Good Hope Building LED Lighting retrofit.

Chief Ts’elehye School and Chief Recommissioning project to improve operability and Ft. Good Hope and Tulita Albert Wright School reduce utilities. (Partnership with NRCAN).

Deh Cho Region

Health Centre and Long Term Care Wrigley and Ft. Simpson LED lighting Upgrade. Centre

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 57 APPENDIX C: COMPLETED BIOMASS PROJECTS FACILITY LOCATION DATE COMPLETED SIZE (KW) Stanton Legacy (Two 1250kW Viessman KOB Boilers) Yellowknife July 2020 2500 Kalemi Dene School (Two 30kW Viessmann Boilers) Ndilo March 2020 60 Inuvik Hospital (KOB Pyrot boiler) Inuvik May 2019 1250 Inuviital Inuvik May 2019 1250 ENR Lab/Warehouse Fort Simpson March 2019 40 Ecole Alain St. Cyr Yellowknife October 2018 540 School Tulita March 2017 150 School March 2017 200 Prince of Wales Northern Heritage Centre Yellowknife March 2016 300 Airport Terminal Building Yellowknife November 2015 400 Health Centre Hay River November 2015 1200 Deninu School October 2015 212 Health Centre Fort Providence July 2015 75 GNWT Office Building Yellowknife December 2014 650 Combined Services Building Norman Wells October 2014 212 Mackenzie Mountain School Norman Wells October 2014 212 Airport Terminal Building Norman Wells October 2014 159 *Health Centre Fort McPherson September 2014 *Behchokǫ̀ Longterm Care Facility Behchokǫ̀ March 2013 540 Deh Gah School Fort Providence March 2013 300 Combined Services Building Yellowknife October 2012 540 Central Heating Plant Fort Simpson October 2012 823 Elizabeth Mackenzie School Behchokǫ̀ October 2012 540 St. Josephs Secondary School Yellowknife November 2011 540 Health Centre Fort Smith November 2011 750 Central Heating Plant Hay River November 2010 900 College Fort Smith November 2010 750 Legislative Assembly Building Yellowknife October 2010 300 Highways Maintenance Garage Hay River October 2010 300 Paul William Kaeser School & Recreation Complex Fort Smith October 2010 750 Chief Jimmy Bruneau Behchokǫ̀ October 2009 750 Kalemi Dene School N’Dilo September 2009 69 *North Slave Correctional Facility Yellowknife November 2006 1,500 *Sir Yellowknife June 2005 750

(*) Purchased biomass heat for these facilities from a third party.

58 | 2019/20 REPORT | NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT APPENDIX D: GHG EMISSIONS REDUCTIONS FORECAST information comes from Environment and Climate Change Canada (ECCC). In 2018, the most recent year for The chart on page 16 (Figure 6) shows the NWT’s historical greenhouse gas emissions from 1999 to 2018. This 2e. By 2030, the NWT is striving to

2e. which data are available, the NWT’s total annual emissions were 1,260 kt CO reduce its annual GHG emissions to 1,094 kt CO the GNWT on various energy projects and initiatives but much of this work focused on re-building existing hydro- electric2019/20 and represents diesel-electric the second assets year and of planning implementation for other for large the capital 2030 Energy projects Strategy. such as $25.84 transmission million lines. was spent by

providesIn the next an several initial forecastyears, the of GNWT the GHG and reductions its partners expected will continue to occur to from make various significant energy investments actions and to projects improve the reliability of the NWT’s energy system, reduce energy costs and reduce GHG emissions. The table below forecast will be updated each year as new actions are implemented. (up to 2025). Annual GHG emissions reductions results are expected to continually improve up to 2030. This

2030 ENERGY STRATEGY - FORECAST ANNUAL GHG EMISSIONS REDUCTION (kt CO2e) Strategic 2019 2020 2021 2022 2023 2023 2023 Energy Initiative Objective (Actual) (Forecast) (Forecast) (Forecast) (Forecast) (Forecast) (Forecast) 1 Community Projects 0 0 2 4 6 8 10 Diesel Plant Replacements 0 0 0 0 0.1 0.1 0.1

2 Tranmission Lines 0 0 0 0 0 4.6 4.6 Liquefied Natural Gas 0 0 0 6 6 6 6 Community Hydro 0 0 0 0 0 2 2 Electric Vehicles 0 0 0.15 0.15 0.15 0.15 0.15 3 Clean Fuel Standards 0 0 0 0 12 12 12 Biofuels 0 0 0 0 0 TBD TBD AEA Programs 1.4 2 2 2 2 2 2 4&5 Capital Asset Retrofit Fund 3.8 4 4 4 4 4 4 GHG Grant Program (Gov’t) 0.5 1 3 3 3 3 3 Hydro Upgrades 0 0 0 0 0.7 0.7 0.7 GHG Grant Program (Bldgs & 6 0 2 4 8 0 0 0 Industry) Taltson Hydro Expansion 0 0 0 0 0 0 0 TOTAL 6 9 15 29 36 44 47

NORTHWEST TERRITORIES - ENERGY INITIATIVES REPORT | 2019/20 REPORT | 59