GNWT absorbs NT Energy
Alternative energy planning consolidated under public works department
Evan Kiyoshi French
Northern News Services
Wednesday, March 25, 2015
SOMBA K'E/YELLOWKNIFE
If somebody wants to pitch an alternative energy source to the territorial government they have to make at least three different phone calls - but this will change April 1.
On this date alternative energy planning and implementation bodies - including the NT Energy Corporation, the energy planning division from the Department of Industry, Tourism and Investment and the alternative energy specialist from the Department of Environment and Natural Resource - will fall under one entity within the territorial government's Department of Public Works and Services.
The NT Energy Corporation is the sister corporation to the NWT Power Corporation, which both fall under parent company NWT Hydro Corporation, with its single shareholder being the GNWT. The energy corporation carries out research into alternative energy options such as solar, wind, biomass (wood pellet fuel), geothermal and natural gas and works with the power corp. to integrate new power sources into its grid, according to its website.
The re-organization could help the territory save money and reduce its carbon footprint, said Nicole Bonnell, public works department spokesperson.
"Bringing together those energy activities ... is expected to result in further opportunities to improve upon our current success of reducing greenhouse gas emissions and operational costs," she stated by e-mail.
"The residents of the NWT may fully benefit from this very important government work."
Yellowknife Centre MLA Robert Hawkins said he supports this shift because it will help streamline the process of finding renewable energy sources, adding that it will mean greater efficiency in government power research and will ultimately lead to savings for residents.
Yellowknife Centre MLA Robert Hawkins said he supports this shift because it will help streamline the process of finding renewable energy sources.
At present, the power corp. - which in 2013 generated 97 per cent of its power territory-wide through hydro and diesel - is at odds with the energy corp., which is tasked with finding alternative energy sources, said Hawkins.
"Because it's not (power corp.'s) mandate to find better ways for the power," said Hawkins.
Andrew Stewart, manager of business development for NT Energy, told Yellowknifer at least four employees from the energy corporation will become public works employees after the move, which will also dissolve the corporation's board.
"It just so happens that the NT energy board is made up of the same personnel that are on the power corp. board," said Stewart.
Stewart said NT Energy received around $700,000 per year from the GNWT to pay for staffing and to maintain its facilities, and another $500,000 to $1 million annually for specific projects. He said funding varied depending on what was proposed. They included a project researching the viability of using liquid natural gas to power Fort Simpson.
Hawkins said the GNWT is now on a path toward converting diesel power plants in the village to using liquid natural gas after the NT Energy project found it was indeed a viable fuel.
Pam Coulter, spokesperson for the power corp., said the corporation will continue to work with the GNWT on its alternative energy strategy beyond the April handover.
Energy consultant Richard Lafferty, of Flash Point Facilitators, said he's excited that the energy divisions are going under one roof because he expects it will help him move his project along. Lafferty is pitching a natural gas pipeline to connect the territory with the North American natural gas network, and said up to this point he would have needed to get the power corp. on board as a partner.
After the handover he'll be able to sell his idea directly to the GNWT through its new alternative energy division. At present, he has to pitch the idea to the NT Energy board as a supplement to the power corporation's grid.
"The government had a Crown corporation controlled by a third-party board," he said, adding that the energy corporation's board could have viewed his project as competition.
With NT Energy's board dissolving, and the GNWT's alternative energy division free to pursue alternative energy schemes without any conflicts with power corp., he said he may be able to move his proposal - now 13-years old - along at a much faster rate.
"Now the government can become a client to my project and I'll no longer be a competitor," he said.
The move to consolidate the various bodies was announced last year by Premier Bob McLeod, said Stewart.
The new public works division will be headed up by John Vandenberg, previously director of Public Works' petroleum products division.
