Mahsi, Mr. Speaker. NTPC has had its work cut out for them since its inception in 1988. Supplying power to a vast territory covering the large landmass with a small population sure has its challenges. Can the Minister elaborate on how NTPC expects to cut greenhouse gas emissions when they are increasing diesel generating plants on top of what they currently have? Mahsi.
Thank you, Member for Deh Cho. Minister responsible for the Northwest Territories Power Corporation.
Thank you, Mr. Speaker. First, I wish to thank the Member from Deh Cho for providing me with somewhat technical questions in advance so I would be able to answer the question that the Member is asking for. It's very appreciated. Renewables cannot be relied on to provide power when it is needed. NTPC must maintain enough diesel generation in each of the communities to ensure that lights stay on. That's very important. We also have a large number of diesel generators, and they do age and need to be replaced occasionally. Last week, Mr. Speaker, I did a statement on aging infrastructure, and we recognize that. When we do replace them, however, we use more efficient generators, which result in lower greenhouse gas emissions. Again, that's important, as well. Under our 2030 Energy Strategy, the GNWT has a plan to reduce greenhouse gas emissions from diesel generation by 25 percent by 2023. Thank you, Mr. Speaker.
Mahsi to the Minister for that. The GNWT Infrastructure Department has an energy division that looks at alternate sources of energy. Perhaps they have information on biomass generating electricity. Can the Minister ensure NTPC collaborates with the energy division to come up with greenhouse gas emission-cutting alternative sources of generating electricity?
It just happens to be that I'm Minister of Infrastructure and Minister of NTPC, so of course, our departments are going to continue to work together. I do want to add that we have looked at a feasibility of biomass-based electricity generation recently for combined heat and power in Fort Simpson. It is technically challenging and also very expensive, and I do want to note that this study is freely available on our infrastructure website.
I note that NTPC has incorporated LNG use at the Inuvik power plant and the soon-to-be new electricity generating plant at Fort Simpson. Can the Minister elaborate as to why these have gone to LNG rather than diesel?
Again, I just happen to be MLA from Inuvik, so this is right up my alley. Natural gas has been used for generation in Inuvik for a long time, for as long as I can remember, because there is a gas well that has allowed us to take right of the grant for power generation. We've been clearly happy with that. Recently, we have had to truck LNG to Inuvik due to loss of local supply. Even with the trucking cost, LNG is cheaper and cleaner option than diesel, and it also has fueled GHG emissions. For roads connected to diesel communities of a certain size, NTPC and the GNWT look at the option to use LNG for power generation. We are currently looking at LNG for Fort Simpson as well as Tuktoyaktuk.
Thank you, Minister. Final supplementary. Member for Deh Cho.
Mahsi, Mr. Speaker. I've been known to state that when the price of diesel goes up, so does my power bill. Can the Minister confirm or elaborate whether power rates go down when the price of diesel drops? Mahsi.
Part of your electricity rate is based on the average price of diesel which fluctuates over time. We recognize that. In general, if the cost of diesel drops over an extended period of time, the portion of electricity rate that includes diesel will go down but not immediately. If there is a large change in the cost of diesel, then NTPC may put in place what is called a rate rider that either adds or subtracts costs from your bill for a set period of time. Again, this doesn't happen immediately as it is best to average out the cost changes over time to be able to keep rates from going up or down too quickly. Thank you, Mr. Speaker.
Thank you, Minister. Oral questions. Member for Tu Nedhe-Wiilideh.
