QEC is developing the upcoming Independent Power Producer (IPP) program that will allow producers outside of the utility to generate electrical power from renewable energy systems to sell directly to QEC.
The IPP Program is anticipated to have three streams of eligibility:
- Community power projects owned by municipalities, Inuit organizations, or Inuit-owned firms;
- Community power projects that are initiated by QEC through a call for power process; and
- Existing institutional and commercial customers for generation that takes places on site.
The corporation anticipates paying IPPs up to the avoided cost of diesel – the maximum price that QEC will pay for renewable energy without raising the electricity rates.
Municipalities and Inuit organizations will be given the first opportunity to own and operate community scale installations in their respective regions. QEC may procure renewable energy from external parties on a competitive basis using the NNI (Nunavummi Nangminiqaqtunik Ikajuuti) procurement process.
By including IPPs in the energy supply mix, QEC will be able to foster partnerships that develop clean energy with no increases to customer rates. Integrating renewable energy systems in the territory’s energy grid will help decrease Nunavut’s dependency on diesel fuel, enable QEC to reduce carbon emissions and help promote energy self-reliance.
We strongly recommend that potential IPPs do not purchase any renewable energy generating systems until program details and requirements are released. QEC anticipates this information will be made available by the end of 2019.