Energy

In the Northwest Territories electricity is generated in three ways: hydropower, diesel fuel and natural gas. Eight communities rely on hydropower, 23 rely on diesel and two depend on natural gas generation.

The energy resources of the Northwest Territories are largely untapped, and displacing diesel is a government priority for reasons of cost and greenhouse gas production. Currently the GNWT spends $20 million annually on community diesel power rate support.

Six hydro electric facilities generate some 254,000 megawatt hours of electricity.  Including the three diamond mines and the Norman wells oilfield, hydro accounts for just 35 percent of NWT electrical generation. However studies show that the NWT has approximately 11,500 megawatts of hydropower generation potential.

Expansion of the existing Taltson River hydro facility alone has the potential to replace 114 million litres of diesel and 320 kilotonnes of greenhouse gas emissions.

Other renewable resources such as geothermal, biomass and wind could also play an important role. Studies are underway to explore the potential to supply geothermal heat to Yellowknife’s downtown core from the former Con Mine workings.

A recent review of electricity costs has resulted in a rate rebalancing across the NWT, with significant benefits to businesses in smaller communities. Commercial and non-profit customers in communities served by thermal generation now pay as much as 80% less for electricity.  Rates in these diesel powered communities now more closely approximate those paid in Yellowknife, where power is supplied by hydro facilities.