Assessing the potential for a wind power incentive for remote villages in Canada

This paper discusses the uptake potential for a wind–diesel production incentive designed specifically for Canadian northern and remote communities. In spite of having over 300 remote communities with extremely high electricity costs, Canada has had little success in developing remote wind energy projects. Most of Canada’s large-scale wind power has been developed as a direct result of a Federal production incentive implemented in 2002. Using this incentive structure as a successful model, this paper explores how an incentive tailored to remote wind power could be deployed. Micro-power simulations were done to demonstrate that the production incentive designed by the Canadian Wind Energy Association would cost on average $4.7 $Cdn million and could be expected to result in 14.5 MW of wind energy projects in remote villages in Canada over a 10 year period, saving 11.5 $Cdn million dollars in diesel costs annually, displacing 7600 tonnes of CO2eq emissions and 9.6 million litres of diesel fuel every year.