TORONTO — EMILY HE, manager of the Pembina Institute’s renewables in remote communities program, made the following statement in response to new Government of Northwest Territories (GNWT) direction on clean energy regulation.
“This GNWT directive is an encouraging signal for accelerated clean energy action in the territory; but, its true success will depend on how these policies and reforms are implemented.
“The announcement, which directs the Northwest Territories Public Utilities Board (PUB) to initiate regulatory reforms in favour of clean energy development, has the potential to bolster local action, support Indigenous government priorities, and diversify remote energy systems. It also signals the government’s commitment to meeting its net-zero by 2050 target, announced last fall.
“We welcome the government’s direction to undertake integrated power systems planning, implement an independent power producer (IPP) policy, increase the intermittent renewable generation cap to 30 per cent (potentially more with batteries), and establish utility billing mechanisms to incentivize the adoption of electric vehicles and heating. Depending on their design and implementation, each measure will be critical to ensuring the NWT is well equipped to meet the future needs of its energy system.
“We are keen to learn more about each measure, with special interest in the IPP policy which has the potential to accelerate remote and Indigenous clean energy leadership. Our research on remote clean energy shows that strong IPP policies — which set a fair price for clean energy (at or above the avoided cost of diesel) and prioritize Indigenous ownership — support local clean energy action. We look to the successes of the Yukon’s IPP policy, which prioritizes First Nations ownership and has an innovative price structure that allows communities to retain the benefits of clean energy. Nunavut’s IPP top-up subsidy also demonstrates government support for Inuit-led clean energy projects, reducing diesel reliance and building local energy sovereignty.
“We strongly encourage the GNWT, PUB, and territorial utilities to work with Indigenous leaders to establish policies that respond to years of local advocacy and reduce barriers to clean energy action. We welcome any opportunities to collaborate with the GNWT, regulator, communities, and utilities as they design policies that meet the needs of communities across the territory.”
Quick facts
- Four of 10 jurisdictions in Canada have IPP policies. These include the Yukon, Nunavut, Alberta, and Ontario. The Northwest Territories is the only territory without an IPP policy.
- The Northwest Territories is home to about 45,000 people, approximately 50 per cent of which are Indigenous.
- There are 33 communities in the NWT, none of which are connected to the North American electricity or natural gas network.
- There are four signed power purchase agreements in the Northwest Territories. The projects, all solar PV installations, have a combined capacity of 1,231 kW, representing less than one per cent of total community electricity generation in the territory. These have been signed in absence of an IPP policy.
- The current renewable integration limit is capped at 20 per cent and has been reached or exceeded by at least 10 of the Northwest Territories Power Corporation (NTPC)’s thermal communities. Higher penetration levels are feasible with battery energy storage systems sometimes required to maintain micro-grid stability.
Contact
Brendan Glauser
Senior Director, Communications, Pembina Institute
604-356-8829
Background
Submission: Recommendations on the Northwest Territories 2030 Energy Strategy
Media Release: For the first time, Northwest Territories commits to net-zero by 2050 target
Publication: Power Purchase Agreements: A two-part guide
Blog: Why we need fair prices for Indigenous-led renewable energy
Publication: Rethinking energy purchase agreement rates in Nunavut
