Economic Performance

Civilian

Natural Resources Canada and the U.S. Department of Energy report that there are over 500 remote and isolated off grid communities in North America that depend primarily on diesel generators to produce electricity.

“Isolated communities need to increase generation efficiency, reduce their dependence on fossil fuels, and find cleaner sources of electricity. Most of these communities depend on government subsidies for electricity production. In most of these remote communities, unsubsidized electricity costs ranged from $0.45 to $1.55 per kilowatt-hour (kWh), with a majority on the higher end, and almost entirely generating electricity by the burning of fossil fuels.”  Aboriginal Affairs and Northern Development Canada

Remote communities’ electricity demand per capita is about 1/3 less than the national average. The lower electricity demand is in part a consequence of limited generation capacity. Currently, some of these communities are about to reach their limit, due to increasing demand and lack of capital funds for expansions. If the peak demand approaches 80% of the generation capacity, the community falls into a Load Restriction status (rationing). As the name suggests, this requires the community to suspend any building construction or economic growth projects that would increase the electrical load. This is commonly referred to as ‘energy poverty’.

Reducing the demand on generators through energy storage can dramatically reduce Load-Restrictions and fuel costs helping communities grow their populations, their enterprises and improve their quality of life. Diesel electricity generation is very expensive, emissions are toxic and this effluent is a known carcinogen.

The complex interrelations between energy poverty, the price of food, access to clean water and energy, disproportionately impacts remote communities; and these repercussions compound the more isolated they are.

Non-Civilian

In addition to civilian communities, there are over 400 Military, Coast Guard, National Guard and Royal Canadian Mounted Police (RCMP) facilities that could benefit from Vanion’s storage technology.

For national security reasons, it is imperative that these facilities can be powered independently of the local micro-grids and remote site diesel generation.

Isolated posts are defined by the Treasury Board of Canada as communities that face ‘unique challenges’ related to small populations, harsh climates, and/or limited access by commercial transportation or all-weather roads.