Mr. Speaker, 74 percent of the electricity that powers homes, businesses, buildings in the Northwest Territories comes from hydroelectricity. However, there is more we must do as a government and a territory. That is why in the 2030 Energy Strategy we committed to reducing greenhouse gas emissions from electricity generation in dieselpowered communities by an average of 25 percent.
Mr. Speaker, one of the projects that will help us reach this objective is the Inuvik Wind Project. This project was the first in the Northwest Territories approved for funding under the Investing in Canada Infrastructure Program. The Government of Canada is committing $30 million to the project and the GNWT is committing $10 million.
The Inuvik Wind Project is a key initiative within the 2030 Energy Strategy. Once operational, it will reduce greenhouse gas emissions by 6,000 tonnes annually and offset diesel consumption in Inuvik by three million litres per year. This will reduce diesel consumption in Inuvik, our largest dieselpowered community, by 30 percent. We are making significant progress on this project.
Construction of the 6kilometre access road to the High Point site, where the 3.5megawatt wind turbine and battery storage system will be located, started in January. That work is progressing and is expected to be complete by August.
Despite the recent flooding in Hay River, the wind turbine equipment is still on track to be sent by barge to Inuvik for installation later this summer. NT Energy is working with Marine Transportation Services to get the turbine shipped safely to the Beaufort Delta. Right now, the construction schedule remains on track and we anticipate the project to be completed by the winter of 2023, barring any unexpected delays.
Mr. Speaker, not only is this project critical to helping us meet our greenhouse gas emissions target and the objectives in the 2030 Energy Strategy, but as we emerge from two years of responding to the COVID19 pandemic, infrastructure projects like Inuvik Wind will aid the territory's economic recovery.
Contract work flowing from this project during the construction phase will significantly benefit Gwich'in businesses, as the project is in the Gwich'in settlement area.
Mr. Speaker, investment in alternative and renewable energy can reduce the territory's reliance on diesel. It is a priority for our government. It is good for the environment. It is good for the North as we adapt to our warming climate and try to realize the 2030 Energy Strategy's vision of providing NWT residents with secure, affordable, and reliable energy. Quyananni, Mr. Speaker.
Thank you, Minister. Ministers' statements. Minister responsible for Environment and Natural Resources.
