NUNAVUT - Eight power plants in Nunavut are scheduled to receive new fuel-efficient generators by spring 2011, according to an announcement in Iqaluit on Feb. 8.

President of Qulliq Energy Corp. Peter Mackey announces new generators for eight communities during a press conference at the Qulliq Energy Corp. head office in Iqaluit on Feb. 8. - Kassina Ryder/NNSL photo Communities receiving new generators Arviat Cambridge Bay Chesterfield Inlet Gjoa Haven Pond Inlet Rankin Inlet Resolute Bay Whale Cove

"Eight communities are going to receive new generators replacing old ones which is going to increase reliability," Qulliq Energy Corp president Peter Mackey said.

The new diesel-fuelled generators are low-emission and more dependable, Mackey said. They are scheduled to begin arriving in communities this summer and should be installed in all eight communities by March 31, 2011.

Nunavut MP Leona Aglukkaq and Finance Minister Keith Peterson joined Mackey during the announcement at Qulliq Energy Corp's Iqaluit office.

"The new generators are more fuel efficient than the old ones," Aglukkaq said. "The cost to operate the diesel generators is high and these new generators will also reduce the operating costs for businesses, individuals and the government."

The total cost of the project is approximately $14 million. The Canadian Northern Economic Development Agency (CanNor) will provide more than $5.8 million and the Qulliq Energy Corp will fund the rest.

Gjoa Haven Mayor Joanni Sallerina said he was not notified that his community is scheduled to receive a new generator, but Gjoa Haven has experienced at least eight blackouts this winter, including an outage on Christmas Day.

In February 2008, a state of emergency was declared in Rankin Inlet when three of the four diesel generators failed at the power plant.

The generators will cut down fuel use by an estimated 1.6 million litres each year. Fuel accounts for 47 per cent of Qulliq's operating costs, Mackey said.

The project will create temporary jobs in the communities, he added.

The project will create approximately 120 person months of employment for residents and Northern contractors, he said.

Cambridge Bay Mayor Syd Glawson said while he is skeptical about how fuel efficient the generators will be, he said Qulliq is "on the right track."

"We haven't got all of the details yet on it, but hopefully it's not just a case of smoke and mirrors," he said. "We won't know until we get all the information. It is a good thing that new equipment is coming into Nunavut."