Energy Use
Energy use in the NWT, and elsewhere, is a driving force that affects our environment in many ways by increasing pressures such as air pollution, human activities, and landscape change. For example, use of fossil fuels (petroleum products) contributes to greenhouse gas (GHG) emissions, which in turn contribute to climate change.
Energy use per person in the NWT is nearly double the Canadian average with fossil fuels providing the majority of consumed in the NWT. While the per capita Canadian average is 227 Gigajoules (GJ) per year, the average in the NWT is 428 GJ. This high consumption is due to factors such as the long distances and long, cold winters.
As a response to this, the GNWT Ministerial Energy Coordinating Committee (MECC) released an Energy Priorities Framework in 2008 with a focus on reducing imported fossil fuels, mitigating the environmental impacts of our energy use and reducing the cost of living in the NWT. In support of this framework, the GNWT, in addition to existing energy programs and initiatives, made a multi-year $60 million commitment towards energy programs, projects and initiatives. As a result, the NWT currently leads Canada in the installation of commercial-sized wood pellet boilers and the development of renewable energy sources is on the rise. The following indicators track energy use and greenhouse gas emission levels in the NWT.
Renewable Energy: Energy generated from natural resources that are renewable (naturally replenished) within a human lifetime.
Renewable energy sources include water (hydroelectricity), biomass, wind, solar and earth energy (geothermal).
Non-Renewable Energy: Energy generated from finite resources that will eventually dwindle, becoming too expensive or too environmentally damaging to retrieve.
Non-renewable energy sources include fossil fuels such as coal, oil, natural gas, and methane, and nuclear energy fuel such as uranium ore.
Greenhouse Gases (GHGs): gases in the atmosphere that trap energy from the sun. Naturally occurring GHGs include water vapour, ozone, carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Without them, the Earth's temperature would be extremely cold. While these naturally occurring gases make life possible, a serious concern today is the enhanced effect on the climate system of increased levels of some of these gases in the atmosphere, due mainly to human activities (http://www.ec.gc.ca/pdb/ghg/about/faq_e.cfm#gases).
Gigajoules (GJ): A gigajoule is a metric for measuring energy use. For example, 1 GJ is equivalent to the amount of energy available from either: 277.8 KWh of electricity, or 26.1 m3 of natural gas, or 25.8 litres of heating oil (http://oee.nrcan.gc.ca/commercial/technical-info/tools/gigajoule-definition.cfm).
6.1 Trends in total energy development
This indicator measures the quantity of refined petroleum products sold in the NWT for the purposes of energy generation.
Energy from diesel, gasoline, aviation fuels, heating oil, natural gas, propane, biomass and hydro electricity sources are all included.
The data for this indicator are obtained from the NWT Taxation database at the GNWT's Department of Finance and the NWT Power Corporation. Interpretation of the information is provided by ENR and ITI, GNWT.
This indicator replaces 6.1 Trends in energy derived from petroleum products published in 2009.
NWT Focus
As outlined in the Energy Priorities Framework, released in 2008, the goals of the NWT are to reduce dependence on imported fossil fuels, mitigate environmental impacts of our energy use and to reduce the cost of living in the NWT.
Amongst other things, the GNWT and its partners such as NT Hydro are currently developing and promoting the use of renewable energies in the NWT including hydro electricity generation, biomass, solar, wind and geothermal energy sources. The GNWT has also invested heavily in energy efficiency retrofits for government buildings and provided substantial support to the Arctic Energy Alliance to help communities and residents reduce their own energy use.
Current View: Status and Trend
The use of energy in the NWT has increased by an average of more than 20% since 2001 - from a total of over 14.7 million GJ in 2000 to more than 18.5 million GJ in 2009. The observed increase in energy consumption is consistent with increased industrial activity and Gross Domestic Product in the same time period. (See Focal Point: ECONOMY).
Looking Forward
Based on current trends and planned projects, it is expected that the demand for energy in the NWT will double by 2020. The proposed Mackenzie Gas Project (MGP) is expected to increased fossil fuel consumption even more rapidly as it will be a large user of energy. However, projected rise in fossil fuel prices may lead to a shift towards alternative fuels and a reduction in fossil fuel use.
To date, about 7% of energy used in the NWT is from renewable sources with hydro and biomass amongst the most widely used renewable energy sources. The generation of hydro electricity, which is used in eight NWT communities, has dropped since 2001. This is due mainly to a reduction in demand caused by the shutting down of the Con and Giant mines as well as an increase in the adoption of more efficient applications and light bulbs in the NWT.
The use of wood pellets for heating purposes is on the rise and is expected to persist as the GNWT continues to promote the use of these technologies in the NWT. In 2006, 11,875 GJ of energy were derived from wood pellets and by 2009 this had gone up by more than 20 times (247,000GJ). The consumption of cordwood on the other hand has been stable in the same time period.
Looking Around
Overall demand for energy in Canada has been on the rise and so has the development of renewable sources of energy. However, the rate of increase differs between jurisdictions5,11,12.
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Other Focal Points
Technical Notes
6.2 Trends in electrical generation
This indicator tracks the sources of electrical energy in the NWT.
Most of the NWT’s electrical energy supply comes from three sources: diesel, natural gas and hydro. However, small scale wine and solar energy projects are on the rise across the NWT with the GNWT providing strong incentives for these projects through its Alternative Energy Technologies Program.
Data for this indicator is obtained from GNWT's Department of Industry, Tourism and Investment (ITI), GNWT. Interpretation is obtained from Energy Facts and Trends publications9 and the Department of Environment and Natural Resources, GNWT.
NWT Focus
Electrical generation is a major component of total energy use in the NWT. In 2009, about 36% of fossil fuels used in the NWT was for electricity generation8. Small scale solar projects are on the rise because they are providing cost effective in remote locations but still provide only a small fraction of total electricity generation.
Current View: Status and Trend
The demand for electricity in the NWT is on the rise, driven mainly by increased industrial development. Because most industrial sites are in off-grid locations, this increased demand is mostly being met by electricity generated from diesel fuel. In 2009, diesel generated electricity constituted 52% of total electricity generated in the NWT followed by 29% hydro and 19% from natural gas. In the same year, 85% of the diesel generated electricity was for remote mines with only 15% for communities.
re has been an increase in the demand for electricity in the NWT, driven mainly by increased industrial development. The increased demand is being filled with electricity generated from diesel fuel. As a result, diesel fuel is making up a larger percentage of the electricity generation mix in the NWT.
The graphic below shows the makeup of electricity generation in the NWT obtained from the GNWT's Department of Industry, Tourism and Investment8.
Looking Forward
Increased demand for electricity has mostly been coming from mineral development projects10. The growth in this sector is expected to continue over the next decade fueled by record high commodity prices. Four mines are currently operating in the NWT and a few others are expected to go operational in the coming years. While some mines have looked at renewable sources of electricity, most of the electricity needed for these projects will be generated from diesel combustion so the trend of growing diesel generated electricity in the NWT's electricity mix is expected to continue. One factor that may offset the growth of diesel generation is the expansion of the Taltson River Hydro facility. NT Hyrdo, in partnership with two Aboriginal companies, has plans to expand the Taltson River Hydro Facility and use it to supply electricity to the NWT diamond mines3. In addition, the GNWT has been investigating the potential for development of medium penetration solar or wind-diesel systems for communities across the NWT4. This initiative could also contribute to a decrease in the use of diesel for electricity generation.
Looking Around
Electricity demand across Canada will continue to rise into the future. Planned development in Canada's oil and gas industry are expected to increase its demand, which will likely be filled, for the most part, by conventional sources like gas and coal. In the provinces of Quebec and Ontario, where industrial growth is not as rapid as in the West, there is greater potential for changing the electricity generation mix. Ontario has taken action by implementing a conservation plan to curb demand growth and wants to phase out coal generation. Also, Ontario plans to double renewable energy generation capacity by 20256. Quebec plans on meeting further demand by development of wind and nuclear energy projects6.
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Other Focal Points
Technical Notes
- Medium penetration wind-diesel system is the combination of wind turbines with diesel generators to obtain maximum contribution from the intermittent wind resource while providing continuous electric power. Medium wind systems only compensate for half of the required diesel to operate the system at full capacity.
Updated August 2011
6.3 Trends in NWT greenhouse gas emissions
This indicator tracks Greenhouse Gas (GHGs) emissions in the NWT.
Greenhouse gas emissions are measured in carbon dioxide equivalents (CO2e)5.
The data is obtained from NWT and Environment Canada emissions inventories which is a record of the greenhouse gas emissions emitted and their sources in the NWT.
NWT Focus
The NWT has a part to play in reducing global greenhouse gas emissions and by so doing, helping Canada meet its international commitments. Like other Canadian jurisdictions, the NWT has set its own emissions reduction target which will be monitored and reported on in NWT greenhouse gas emission inventories. The NWT recently adopted a new target which will see emissions stabilized at or below 2005 levels by 2015 (NWT Greenhouse Gas Strategy 2011 to 2015).
Current View: Status and Trend
The most recent greenhouse gas inventory for the NWT showed that 1,230 Kilotonnes (Kt) of greenhouse gas emission were emitted across the NWT in 2009, which is significantly lower than the 1,570 Kt emitted in 2008. A decline in exploration activities and large construction projects is responsible for this drop in NWT emissions. The mining sector is currently the highest producer of greenhouse gas emissions but that may change if the Mackenzie Gas Project (MGP) goes operational. Most emissions in the NWT are from mining, space heating, transportation and electricity sectors, which jointly account for over 95% of NWT emissions. 
Annual NWT greenhouse gas emissions for years with complete data from 1999 to 2009.
Looking Forward
Without new sources of renewable energy, NWT emission are projected to increase dramatically if fossil fuels are used to supply growing demand for energy. In addition to the Mackenzie Gas Pipeline, there are other mining developments slated to take place in the upcoming years, forcing total NWT greenhouse gas emissions projections to rise even further. According to a recent GNWT study by Mark Jaccard and Associates (2011), NWT emissions could be more than 4,000 Kt by 2030 if the MGP goes operational and over 2,500 Kt without the MGP. Forecasts of NWT emissions by sector are shown below.
|
|
Units
|
2010
|
2015
|
2020
|
2025
|
2030
|
|
Demand Sectors
|
|
|
|
|
|
|
|
Residential
|
Kt CO2e
|
81
|
79
|
78
|
77
|
74
|
|
Commercial
|
Kt CO2e
|
228
|
222
|
221
|
215
|
219
|
|
Transportation
|
Kt CO2e
|
764
|
1,031
|
1,022
|
1,089
|
1,178
|
|
Mining Sector
|
Kt CO2e
|
94
|
126
|
192
|
221
|
252
|
|
Supply Sectors
|
|
|
|
|
|
|
|
Electricity Generation
|
Kt CO2e
|
442
|
498
|
556
|
694
|
835
|
|
Oil and Gas
|
Kt CO2e
|
115
|
87
|
63
|
41
|
28
|
|
Total
|
Kt CO2e
|
1,725
|
2,043
|
2,133
|
2,337
|
2,587
|
Greenhouse gas emissions forecast for the NWT. Source: NWT Greenhouse Gas Strategy.
Greenhouse gas emissions inventories are and will continue to be an integral tool for tracking and managing greenhouse gas emissions. They provide the NWT with a baseline to set goals for emission reductions and enable the tracking of progress toward reaching reduction goals. In addition, the inventories allow the GNWT to identify sectors with the largest emission sources, and to apply efforts to the areas where the most progress can be made.
Looking Around
Other areas in Canada are seeing similar trends in GHG emissions. National trends show an overall growth in GHG emissions5. However, emission levels have begun to fall in many provinces5. Canada has adopted a target to reduce national greenhouse gas emissions by 17% below 2005 levels by 2020.
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Other Focal Points
Technical Notes
- Carbon Dioxide equivalents (CO2e) are the concentration of CO2 that would cause the same level of radiative forcing as a given type and concentration of greenhouse gas.
- Emissions Factors are ratios developed by Environment Canada specific to certain GHGs used to calculate the CO2e for each specific gas.
- Carbon capture and Storage (CSS) involves the capture of CO2 at the source of emission and storing it in geological formations.
Updated August 2011
References
Ref 1 - National Energy Board, 2008.
Ref 2 - Northwest Territories Power Corporation, 2009.
Ref 3 - Northwest Territories Power Corporation, 2009.
Ref 4 - Environment and Natural Resources, 2009. Wind Prefeasibility Studies, GNWT.
Ref 5 - Environment Canada, 2007. National Inventory Report: Greenhouse Gas Sources and Sinks in Canada, Government of Canada.
Ref 6 - Gartner Lee, 2008. Newsletter Spring.
Ref 7 - GNWT Industry Tourism and Investment, 2009. Energy Page.
Ref 8 - GNWT, Industry Tourism and Investment and Environment and Natural Resources, 2006. Energy for the future - Energy planning for the Northwest Territories.
Ref 9 - GNWT Industry Tourism and Investment, 2007. Energy Facts and Trends.
Ref 10 - Investment and Economic Analysis, GNWT Industry Tourism and Investment, 2008. Economic Review and Outlook 2007.
Ref 11 - Natural Resources Canada, 2008. Comprehensive Energy Use Database.
Ref 12 - Stats Canada, 2009. Report on Energy Supply and Demand in Canada and Stats, Canada CANSIM Database.