Energy Cost in Remote Canada
We know that electric transmission companies want to grow: that is their nature. The energy cost in remote Canada and in particular, Ontario electric transmission lines are estimated to cost over $3 billion.
In Ontario, there are 38 remote communities with a population of 21,342 (2006 Census). Of these communities, 25 are Aboriginal communities with a total of 14,236 peoples or two/thirds of the remote communities’ population for an average of 570 residents per reserve.
If the native population were 15,000 that would be a cost of $140,000/person. Of course, this represents a savings of $5 billion because of the present status of high cost of diesel power with a price tag of $8 billion over the next 50 years. The payback period is 25 years for this new proposed venture in Northern Ontario. Yet, a lot of innovations can happen during those 25 years, which will make large grids obsolete – like the HUG.
TWO words: EXCESSIVE & EXORBITANT
In Ontario, ratepayers cover 34.5% of the costs of diesel generation and the Government of Canada covers 55.9% in its remote communities for a total subsidy of 90.4%
Fuel Purchased: 90 millon liter/year x $0.46 liter =$41.4 million.
Electricity Rate to household: $0.32 x 12,000 kWh = $3,840
Diesel purchased in 2006 amounted to 40 million liters with a utility cost averaging 50 cents per liter (2006): $20 million. Electricity rate to consumers averages 60 cents/kWh.
Diesel Fuel to be Purchased: $8.3 billion to 2054
Transmission Cost: $3.35 billion to 2054
Let’s replace a new 6 MW Diesel Turbine with HUGs:
- A typical 6 MW diesel turbine unit cost 6000 kW x $450/kW = $2.7 million: replaced by 977 HUGs
- The annual fuel cost of $0.36/kW/hour x 12 hours x 365 days = $1,566/kW/year: $9.4 million/year: replaced by 3,400 HUGs
How long would it take to replace this costly system gradually with the more economic HUG? The cost/kw is $2,765/kW.
In just one year, the cost of replacement of a diesel turbine unit would be used to build 4,377 HUGs for that many households that were previously served by a large 6 MW Diesel Turbine.
- A Micro Hydro Electric System: no dams: HugENERGY.us
- An Irrigation System: NORTHydro.com
- An Agroforestry Intercrop System: LivingWaterIs.com
- The Charitable Arm: SunnyUp.net
- Living Water Micro Finance: LivingWaterMicroFinance.org
- Thunder of Justice: ThunderofJustice.com
- God’s Loveletters: Godloveletters.com
- A Rabbit and Fish Farm: Africapitalism.us
- Deliverance Is:com