- THE STUDY REFERENCED BELOW REFLECTS CONNECTING 16 COMMUNITIES, THE STUDY WAS
LAST UPDATED IN 2015. A 17th COMMUNITY (PIKANGIKUM FIRST NATION) JOINED
THE PROJECT SUBSEQUENT TO THIS STUDY.
PricewaterhouseCoopers (“PwC”) was engaged by Wataynikaneyap to assess
the financial feasibility of connecting 16 of Wataynikaneyap's member
communities (four communities are already grid connected) to the Ontario grid. The
connection of First Nations communities currently serviced by diesel generation
forms part of the two phase Wataynikaneyap Power project, a First Nations led
Continued Diesel Generation Case
The estimated cost for diesel generation for Wataynikaneyap's 16 remote
communities in 2013 was $43 million, and this cost is projected to grow with
load growth, fuel price, and other costs. Based on this current state (continued
diesel generation), the present value of avoided costs over 40 years is $3.4
billion. The largest avoidable cost element is fuel; this is also an input
characterized by substantial cost volatility and environmental risks. O&M
expenses are also significant.
Transmission Connection Case
The estimated capital expenditure required to build the 1500km of
transmission line to the 16 remote communities is $1.15 billion (in constant
2015 dollars, including HST). The final routing will be selected on the basis
of the results from additional engineering analyses as well as the outcome of
community and stakeholder engagement processes. Based on the assumptions
described in PwC's report, the net present value (“NPV”) of transmission
costs (including capital contributions), plus the cost of purchased energy, is
Comparison - Transmission vs Continued Diesel Generation
As can be seen below, the estimated annual cost of diesel generation is
expected to be much higher than the cost of transmission over the study period.
The table below shows the comparison of continued diesel
generation to transmission connection. Based on the current state and forecast
assumptions, PwC estimates that developing and operating a transmission line
connecting the 16 Wataynikaneyap remote communities to the grid will result in
a net present value of approximately
continued diesel generation during the analysis period (2021-2060).
Canada, Ontario Ratepayers (RRRP), and communities would see significant
savings from the project.
Due to confidentiality,
only an Executive Summary of the PWC Financial Feasibility Report is available
to the public. A copy of the Executive Summary can be downloaded below.