Integrated Power System Plan

If you are unable to attend one of the community meetings but would still like to provide input into the future of electricity systems in the NWT:

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What is an Integrated Power System Plan, and why does it matter?

The Integrated Power System Plan (IPSP) is a long-term plan that will guide how electricity is generated, delivered, and paid for across the Northwest Territories. It looks ahead to identify the most practical and cost-effective ways to reliably and safely meet future energy needs while balancing affordability, with environmental and community goals.

The IPSP is being developed in stages:

A “Foundational” plan will be completed first (estimated 2027), which will including planning up to 2030.
Next, a more detailed plan will be developed (estimated 2030), which will include planning to 2050.

This process helps ensure decisions are based on both technical analysis and community input.

Why is NTPC doing this now?

Energy systems in the North are facing growing pressure from:

Rising and unpredictable diesel fuel costs
Aging infrastructure in many communities
Interest in renewable energy and reducing greenhouse gas emissions
The need to ensure reliable power in remote, northern environments

The IPSP will help NTPC plan for these challenges over the long-term, in coordination with the Government of the Northwest Territories and Naka Power Utilities.

Other energy policies being developed.

The Government of the NWT is working with utilities and the Public Utilities Board to develop the following changes to energy policy in the NWT:

Increase the Community Intermittent Renewable Generation Caps
Create clarity on how non-utility generators are regulated
Create a policy for calculating financial compensation for renewable generation programs
Update the current Net Metering Program
Standardize the process for Independent Power Producers
Adjust fixed charges for residential and general service customers
Levelize government rate classes
Establish guidelines for EV charging infrastructure
Develop a strategy for electric heating rates to utilize hydro surplus.
Create clarity on low water rider

Understanding Your Power Costs

Why are electricity costs high in northern communities?

Electricity systems in remote areas are expensive to operate. Unlike large southern grids, northern systems:

Serve small populations
Depend heavily on diesel fuel
Are located far from support resources required to maintain them

What makes up your electricity rate?

Your electricity rate reflects the total cost of providing electrical service, including:

Fuel (the largest cost)
Operations and maintenance
Equipment and infrastructure
Investments in new projects

NTPC is a regulated utility. This means it is only allowed to recover its costs and earn a set return approved by the Public Utilities Board – it does not set prices freely.

The role of diesel fuel

Diesel is the biggest driver of cost. When fuel prices increase, the cost to deliver power to customers also rises. This is one of the main reasons bills can change over time.

How renewable energy affects costs

Renewable energy projects can provide important benefits:

Reduced diesel use
Reduced environmental impact
Greater energy independence
Opportunities for community ownership, which brings other benefits

Renewable energy also has challenges:

Generation can be intermittent and not reliably available when customers need power.
They often require significant upfront investment
For NTPC projects, savings are shared across the entire thermal zone (the same way that costs are shared across the entire thermal zone).
Without government funding, they may not significantly lower overall service cost and customer bills.

Renewable Energy in your Community

What types of renewable energy are possible?

Depending on the location, communities may be able to use:

Solar energy
Wind power
Small-scale hydro
Battery storage systems

Each option depends on local conditions like weather, geography, and system size.

Why renewables don’t replace diesel

A common question is whether renewables can eliminate diesel entirely. The answer is no – at least not with current technology. This is because:

Solar and wind are intermittent (they don’t produce power all the time)
By contrast, energy demand must be met at all times, including when solar and wind power are not generating
Diesel generators provide reliable backup when renewables are unavailable

The role of batteries

Batteries can help store energy and reduce diesel use, but:

They are expensive
They cannot provide long-term backup on their own
They are one part of a larger system

Community Participation

There may be opportunities for communities to:

Develop and own renewable energy projects
Partner with NTPC through Independent Power Producer (IPP) models
Generate local economic benefits

These benefits may not always show up directly on power bills but can still produce benefits for the community in other ways.

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