In recent years, technologies related to energy storage and other distributed energy resources (such as renewable microgrids) have significantly improved and become more economical. Several projects across
These trends of decreasing costs and maturing technology, and the potential for the use of this technology in circumstances where a connection to the main energy grid is not available, are creating more opportunities for remote Indigenous communities to reduce reliance on diesel fuel and enhance energy security by investing in energy storage and distributed energy resources.
What you need to know
- Connections to the power grid may not always be viable. Many remote Indigenous communities depend on diesel generation or long radial power lines for electricity, which are subject to significant reliability, safety and environmental limitations. While transmission lines may be built to connect certain remote communities (e.g., the Wataynikaneyap Transmission Project connecting 17 remote First Nations in northwestern
- Energy storage facility development on the rise. Across
Canada , Indigenous communities and project proponents have deployed, or are considering developing, energy storage facilities, often coupled with renewable generation from solar, wind or hydro resources, as a way to reduce diesel reliance and provide much needed supply diversification and reliability. - Collaboration key to integration. While battery systems have declined in price and improved in performance over time, their integration with generation facilities remains a technologically complex task, requiring considerable investment and expertise. Widespread adoption of energy storage in remote Indigenous communities may require governments and industry participants to work together to adapt existing regulatory and business models.
Discussion
Reliance on diesel fuel
There are approximately 170 Indigenous communities in
Even in areas where a grid connection is available, a conductor outage (which typically involves radial single circuit lines strung over long distances) requires significant efforts to troubleshoot and restore supply. While back-up diesel generation can fill short-term supply gaps, it is often not a reliable replacement for lost capacity during a prolonged blackout.
Growing adoption of energy storage
Distributed energy resources (including renewable microgrids and battery storage) are increasingly being seen as a viable solution for stable electricity supply. In fact, after Crown and private utilities, Indigenous communities and Indigenous-owned enterprises are now in aggregate the largest owner of renewable energy assets in the country2. Given the intermittent nature of wind and solar resources, storage is considered by many proponents to be essential to the penetration of such renewable technologies in off-grid service areas. The adoption of energy storage may make further renewable energy development by remote communities more attractive.
Two utility-backed energy storage projects have recently been implemented in
Other provinces and territories have also seen remote energy projects that leverage storage to enhance reliability of supply, including the
Integration challenges
The reduced cost and improved technology of energy storage infrastructure may be an attractive option for remote communities, particularly when coupled with distributed energy generation (i.e., generation near where electricity is consumed), to form a sustainable microgrid. Proponents will have to consider a number of factors, including applicable technical issues, accessibility of funding, regulation of microgrids, and the importance of meaningful Indigenous consultation.
While the cost of energy storage itself has fallen, the integration of battery systems with renewable generation is still complex and requires expensive technologies as well as operation and maintenance costs over the project lifecycle. This has led some utility proponents and Indigenous independent power producers (IPPs) to explore alternative ownership and operational models, including a split between utility-control of storage/control systems and IPP-control of generation assets4.
Accessibility of funding is also important to jumpstarting these projects. A
Regulatory barriers also need to be addressed. Given the growing interest in community-based microgrids, regulators across
As with any project that may affect Indigenous communities or rights, early and meaningful two-way consultation will be essential. As noted in another
Footnotes
1. Power Shift in Remote Indigenous Communities: A cross-
2. Accelerating Transition: Economic Impacts of Indigenous Leadership in Catalyzing the Transition to a Clean Energy Future Across Canada (PDF), p. 3.
3. For the Possibilities of Tomorrow -
4. Renewable Energy Partnerships and Project Economics: Research supporting Indigenous-utility partnerships and power purchase agreements (PDF), p. 33.
5. Supra, note 5, pp. 35-36.
6. Jurisdictional Review of the Regulation of
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Box 270,
M5K 1N2
Tel: 416865 0040
Fax: 416865 7380
E-mail: Jweed@torys.com
URL: www.torys.com
© Mondaq Ltd, 2021 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source