Arctic: ecology and economy
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Home Archive of journals Volume 12, No. 1, 2022 Economic feasibility assessment of connecting remote eastern Arctic consumers to the power grid


JOURNAL: Volume 12, No. 1, 2022, p. 19-33

HEADING: Economics and management in the Arctic zone

AUTHORS: Shakirov, V.A., Ivanova, I.Y., Ivanov, R.A.

ORGANIZATIONS: Melentiev Energy Systems Institute of Siberian Branch of the Russian Academy of Sciences

DOI: 10.25283/2223-4594-2022-1-19-33

UDC: 338.001.36:620.98

The article was received on: 01.09.2021

Keywords: Eastern Arctic, the development of mineral resources, power lines, off-grid power supply, autonomous power plant, boundaries of economic feasibility

Bibliographic description: Shakirov, V.A., Ivanova, I.Y., Ivanov, R.A. Economic feasibility assessment of connecting remote eastern Arctic consumers to the power grid. Arktika: ekologiya i ekonomika. [Arctic: Ecology and Economy], 2022, vol. 12, no. 1, pp. 19-33. DOI: 10.25283/2223-4594-2022-1-19-33. (In Russian).


The article deals with the problem of power supply to remote consumers in the Eastern Arctic. The authors present a methodology for assessing the economic feasibility of connecting remote consumers to the power grid in comparison with power supply option from autonomous fossil or nuclear fuel based power plants. The methodology is focused on the analysis of consumers, the connection of which requires the construction of power transmission lines with a voltage of 35—220 kV. The authors give the results of assessing the feasibility of connecting promising enterprises for the development of deposits of the Chukotka Autonomous District: the Klen ore gold deposit, the Pyrkakayskie stockwork tin-tungsten deposit and the Amaam coal deposit. They consider three scenarios related to different periods of the tariff equalization mechanism in the Far Eastern Federal District. Estimates of the levelized electricity cost show that the construction of power transmission lines is economically feasible only with a reduced electricity tariff. If in 2028 the tariff equalization mechanism is canceled and an economically justified tariff begins to operate, then it is advisable to build autonomous power plants. The research results are summarized for the possibility of analyzing the feasibility of connecting remote consumers of the different Eastern Arctic regions to the power grid via power lines with a voltage of 35—110 kV under various technical options and economic conditions. The levels of electricity tariffs, fuel prices, and specific capital investments in the construction of small-scale nuclear power plants, at which the construction of 35—110 kV power transmission lines to connect consumers to the power grid is effective, are determined.

Finance info: The study was carried out according to the project of the state assignment Comprehensive study of the spatial development priorities of the energy sector in the Asian regions of Russia, taking into account the trends in the technological development of the countrys fuel and energy complex and energy cooperation with the Northeast Asian countries (No. FWEU-2021-0004, reg. No. -21-121012090010-7) of the Fundamental Research Program of the Russian Federation for 2021-2030 using the resources of the High-Temperature Circuit Multi-Access Research Center (project No. 13.TsKP.21.0038).


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DOI 10.25283/2223-4594