Simulation of Pathways toward Low-Carbon Electricity Generation in the Arctic

Magnus de Witt (), Ágúst Valfells, Joan Nymand Larsen and Hlynur Stefánsson
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Magnus de Witt: Department of Engineering, Reykjavik University, Menntavegur 1, 102 Reykjavík, Iceland
Ágúst Valfells: Department of Engineering, Reykjavik University, Menntavegur 1, 102 Reykjavík, Iceland
Joan Nymand Larsen: Stefansson Arctic Institute, University of Akureyri, Borgir, Norðurslóð, 600 Akureyri, Iceland
Hlynur Stefánsson: Department of Engineering, Reykjavik University, Menntavegur 1, 102 Reykjavík, Iceland

Sustainability, 2022, vol. 14, issue 22, 1-22

Abstract: This paper examines the various pathways toward energy transition available to remote Arctic communities. Inhabitants of Arctic communities often face significant cost burdens due to high energy prices. Electricity costs are particularly high, due in part to the predominant use of diesel for electricity generation in over 80% of remote Arctic communities. This study examines the different approaches for integrating renewable energy sources, with a focus on the different strategies that might be implemented to finance the energy transition toward greater use of such renewable sources. The high costs associated with project realization in the remote Arctic present special challenges. This study uses a system dynamics model to evaluate the various financing tools available to facilitate the energy transition. The model results indicate that the integration of renewable energy sources has the potential to yield long-term electricity cost savings for the remote Arctic communities in question.

Keywords: Arctic energy; sustainable energy; energy transition; system dynamics; energy financing (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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