Nunavut set to replace two more 'extremely old' power plants by 2019

The Qulliq Energy Corporation says Cape Dorset and Grise Fiord will have new diesel power plants by 2019, but replacing every plant beyond its life expectancy will take many years and more than $250 million.

A 2015 Senate report expressed an urgent need to replace more than a dozen power plants operating beyond "the end of their useful lives." 

The committee wrote that it was "surprised" by the number and argued that the increased risk of power outages "posing a risk to public safety and resulting in costly repairs." 

Bruno Pereira, who became Quilliq's CEO earlier this year, says upgrading its infrastructure is still the utility's top priority.

"Our philosophy is this: we want to make sure our customers have reliable power," he said. "The first thing we need to do is rebuild the diesel plants."

53-year-old plant set to be replaced

Since the Senate report was released, QEC has opened two new power plants — in Taloyoak and Qikiqtarjuaq — and a facility to replace one which caught fire in Pangnirtung is set to be finished by March 2017. 

Next on the list to be built are new diesel power plants for Cape Dorset and Grise Fiord. 

Pereira says both have "seen better days," but the plant in Nunavut's northernmost community is "extremely old."

It was built in 1963, making it the oldest plant, although the majority of the territory's 25 communities still use power plants built prior to 1980. 

With no roads between communities and air travel often stymied by unpredictable weather, Pereira says getting to remote hamlets during emergencies can be a real challenge. 

"If the weather doesn't accommodate us, reaching Grise Fiord can be a problem," he said. "It's one of the plants where we want to make sure we have the latest and greatest to be able to service the community."

High costs for new power plants

In 2015, the fire at Pangnirtung's diesel facility prompted a month-long state of emergency in the hamlet. Specialized aircraft were tasked with bringing four generators to the community.

The Senate report says the entire operation — not including the price tag for the generators — cost $3 million.

But replacement of aging plants is also a significant expenditure, which Pereira says is a main reason why projects need to be spaced out. 

"We have to fund the projects and we need to make sure that we have resources dedicated to these projects."

According to QEC's most recent corporate plan, maintaining the integrity of existing infrastructure will mean a new plant should be built or a existing facility should get an overhaul every two to three years. 

In the past, the utility has gotten into trouble for underestimating the cost of projects. 

Pereira says the corporation won't have an exact budget for the two new projects until contracts are awarded, but he estimates the Cape Dorset plant will cost $20 to $25 million and the Grise Fiord will cost less. 

With building costs expected to rise, Pereira says it's more difficult to put a dollar amount on replacing every plant, but he estimates the price at more than $250 million.

• Most of Nunavut's power plants need replacing, says Qulliq Energy Corporation
• Cape Dorset, Nunavut, residents debate new power plant at public meeting