Remote community deep electrification scenario analysis: A grid extension case study in Kivalliq Canada

Abstract

Renewable-diesel hybrid systems are increasingly common as remote communities, powered primarily by diesel fuel, seek alternatives to reduce costs and emissions while improving energy autonomy. This study goes beyond plug loads to include options for a northern remote community to eliminate imported fuels used in stationary combustion by displacing diesel electricity while electrifying heating loads. Four scenarios are developed using HOMER for a case study in the Kivalliq region of Canada to examine high renewable penetration potential energy systems, including heating loads. A 1200 km power line extension from a hydroelectricity grid in southern Canada has been proposed in the region. The powerline is compared to on-site renewables, such as wind and solar, and to the base case with increasing carbon prices. The highly seasonal nature of heating loads, and the acute risks of power loss in the winter results in high capacity, but low usage back-up infrastructure requirements. District heating is considered as a novel way to assist in increasing the renewable fraction in remote contexts to minimize fossil fuel back-up requirements. Assuming the grid extension can be developed on budget and that diesel prices inflate, this analysis shows the powerline presents the lowest cost path to full decarbonization, and lower costs than business as usual. Using a combination of local renewables and district heating, 60% renewable penetration could be achieved with comparable net present costs to the powerline. In high priced diesel fuel scenarios, increasing renewable energy either with onsite generation or the power line extension present lower cost options than continued reliance on imported fossil fuels.