https://www.pembina.org/blog/remote-microgrids-intro
[Again, please refer to RESTCo presentation at 2018 Northern Lights
conference
(https://www.restco.ca/RESTCo_NL2018_Housing_and_Infrastructure.pptx).
links and images in online article]
Diesel, renewables, and the future of Canada’s remote communities
Introduction to microgrids
Blog - Jan. 15, 2019 - By Dave Lovekin, Dylan Heerema
This is the first in a series of publications about challenges,
opportunities, and solutions in integrating renewable energy into remote
communities’ microgrids. These publications will cover the advancements
in technical, financial, and human capacity, energy policy, and
regulations needed to transition remote communities to clean energy.
Learn more about renewables in remote communities and our work.
The 250 or so remote communities scattered across the country are
collectively home to about 185,000 people. They are mostly located in
B.C., northern Ontario, northern Quebec (Nunavik), northern Labrador
(Nunatsiavut), Yukon, the Northwest Territories, and Nunavut. Remote, in
this case, refers to the fact they are not connected to North America’s
integrated electricity grid or natural gas infrastructure. While some
communities are accessible by permanent road, others are only accessible
by airplane, boat, or winter road.
Dependence on diesel
Most Canadian households are connected to the electricity grid, and the
electricity they consume is generated from multiple sources — hydro,
natural gas, coal, wind, solar, and nuclear — with hydropower being the
main source. In contrast, remote communities are cut off from the
national electricity grid and must produce electricity locally.
According to Natural Resources Canada’s Remote Communities Energy
Database, the large majority of remote communities, 70 per cent, rely on
inefficient diesel generators to produce electricity, while 13 per cent
rely on hydro, and 17 per cent use a combination of other fossil fuels.
Remote communities also use fossil fuels for space and water heating,
with diesel providing for the vast majority of heating needs.
Based on the best available data, remote communities in Canada
collectively consume more than 90 million litres of diesel fuel every
year for electricity generation. That’s equivalent to 36 Olympic-size
swimming pools of diesel being transported, stored, and burned. Nunavut,
Ontario, and the Northwest Territories consume the largest amounts. A
lack of data makes it more difficult to quantify how much diesel is used
for heating, but it’s estimated at two to three times more than the
amount used for electricity. In remote communities, energy consumption
is much higher than the Canadian average due to poor building energy
efficiency and cold climates.
Renewing the microgrid
Since remote communities are not connected to the North American
electricity grid, they make use of their own small-scale microgrids. A
microgrid encompasses the whole system that provides electricity to the
community; this includes diesel generators, distribution wires, and
control systems, plus any sources of renewable energy, such as wind,
solar (photovoltaic), biomass combined heat and power, and small-scale
hydro.
As renewable energy is added to a microgrid, operating the system
sometimes becomes more complicated, but the marginal cost of producing
electricity usually decreases. This is because electricity produced from
renewables displaces that from diesel. To put it another way, using free
energy from the sun, wind, and earth results in less diesel fuel being
purchased and burned. Depending on the situation, running diesel
generators less frequently may also decrease the cost of operating and
maintaining them. In many cases, renewable energy has the potential to
provide for the majority of a community’s energy needs, but diesel
generators may still be needed as backup. (For a more in-depth look at
remote microgrids, stay tuned for the second article in this series.)
High price to pay
Relying on diesel fuel is expensive — especially in remote communities
where everything already costs more, from housing and travel to food and
services. The average home in a representative northern Ontario
community consumes the equivalent of 40 barrels (each containing 159
litres) of diesel each year for heat and electricity. This translates to
an energy bill of over $3,000 per year — more than twice that of the
average Canadian household. Another Yukon community pays even more, with
households averaging $4,500 per year. It is difficult to paint a broad
picture of energy costs for all remote communities in Canada — mostly
because of the differences in climate (e.g. B.C.’s mild coast versus
Nunavut’s high Arctic), but generally, energy costs are very high.
High energy costs are typically addressed through government programs
that subsidize and equalize electricity rates and provide discounts for
heating fuels. The unique geographical and logistical constraints of
remote communities (i.e. how difficult it is to bring in fuel and
supplies) also have a major impact on energy prices. The following table
illustrates the high cost of diesel fuel in a few representative
communities, and shows how remoteness and access affect costs.
Regardless of location, solely relying on diesel in remote communities
means higher costs and complete dependency on a fuel that must be
transported from far away. Incorporating renewable energy into a
community’s microgrid can reduce that dependency — leading to lower
costs for residents and a more secure, local supply of energy.