DEVELOPING RENEWABLE ENERGY IN ARCTIC AND SUB-ARCTIC REGIONS AND COMMUNITIES

RECOMMENDATION #2:
CREATE A TRANSPARENT INFORMATION-SHARING SYSTEM ON
ENERGY COSTS AND SUBSIDIES
RATIONALE AND BACKGROUND
| DEVELOPING RENEWABLE ENERGY IN THE ARCTIC AND SUB-ARTIC
A continuing hurdle in supporting the development of renewable energy is the
lack of publicized data on energy, energy costs, energy consumption, utility
rates, and energy subsidies. This information is especially lacking for Indigenous,
Northern, and Remote communities. While publicly accessible international
data on renewable and non-renewable energy do exist, 18 access to current and
historical data regarding non-fuel costs (management, distribution system, etc.)
and government subsidies of power production in the North is inconsistent
across Arctic states. This information void makes it difficult for investors,
researchers, and the public to understand how energy costs compare across the
Circumpolar Arctic. A better and more accessible baseline data on true energy
costs (fuel, non-fuel, and subsidies) would help address many of the challenges
in developing renewable energy in the Arctic, including identifying economic
opportunities, obtaining financial capital to invest in renewables at the local
level, empowering communities in negotiation processes, and understanding
and addressing the technological challenges of producing power in the Arctic. 19
For instance, a consistent argument for the development of renewables in
Indigenous, Northern, and Remote communities is the high cost and inefficiency
of diesel generating stations. 20 However, in many cases, the true cost of diesel
power production is poorly documented and cannot be easily calculated. 21
Comprehensive databases, such as Alaska’s Alaska Energy Data Gateway (AEDG),
would allow residents to better understand the components of the cost structure,
the investment each respective government is making to offset high-energy
costs, and where these subsidies are being applied, and how their energy costs
compare to other similar communities in the Circumpolar Arctic. For potential
investors, including the communities themselves, this would facilitate first-hand
analyses to understand where opportunities for investment in renewable energy
systems potentially exist.
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