Northern energy infrastructure not up to job, Senate committee hears

Nunavut's energy challenges make the territory seem like a foreign country, the territorys deputy premier told a Senate committee on Thursday.

Peter Taptuna is also Nunavuts minister of economicdevelopment and transportation. Taptuna told the senators that Nunavut wants to participate in the territorys economic development.

The federal senators are looking into the future of Canadas energy sector.

"Nunavut must have a role to play in oil and gas developments and we must benefit from them," Taptuna said.

He said the territory deserves a share of royalties from future development of fossil fuels currently beneath the surface both on land and offshore. The money could help pay for the development of green energy sources like hydro electricity, Taptuna said.

"Alternative energy ... we know costs a lot of money," he said. "That's why we're looking at oil and gas development and we're looking at that very seriously. Because without that we're at status quo. We can't move really anywhere to alternative energy."

Taptuna told the committee its an important issue because many of Nunavut's diesel power plants are nearing the end ofoperation and the territorys energy situation is "clearly not sustainable."

All of Nunavut's communities rely on diesel power.

Yukon looking for energy to develop mineral resources

Earlier in the week, the Senate committee heard from Yukons energy minister.

The territory gets most of its electricity from three hydro dams, with some communities relying on diesel generated power.

Energy Minister Brad Cathers told senators on Tuesday that the territory has vast mineral resources, but little surplus power to sell to mining companies who want to get at those minerals.

There is some interest in developing Yukons natural gas resources, Cathers said.

"Absent that development proceeding to an advanced stage liquefied natural gas still appears to be the best mid-term solution for us," he said. "To expand our grid capacity in the hydro projects require significant investment for large scale hydro projects, theyre beyond the resources of the Yukon government to make that investment. That is an area where federal investment in that infrastructure would open up opportunities."

One company looking at developing a large copper-gold mine in central Yukon has already to decided to import liquefied natural gas from Fort Nelson, B.C.