Last week, the federal government announced that the Iqaluit Nukkiksautiit Project will be fast-tracked through the major projects office, meaning it will be advanced as a project of national importance and significance.
This 15-30 MW hydro power project, led by the Nunavut Nukkiksautiit Corporation, will transform how energy is generated and used and Nunavut. For Nunavut—and for Canada’s remote energy landscape—this is a milestone well-worth celebrating and reflecting on.
Our research at the Pembina Institute closely follows the work of energy leaders in remote communities across Canada. Here are our 3 takeaways following last week’s announcement:
This project is a game-changer for Nunavut and the North at large
Nunavut is almost 100% reliant on imported diesel for heat and electricity. Once completed, this project will replace nearly 15 million litres of diesel used annually for electricity in Iqaluit, the territory’s capital.
Today, Nunavut and the federal government spend over $60 million every year subsidizing diesel. These costs are only rising - electricity rates in Iqaluit have increased by more than 22% in the past five years. .
By reducing diesel dependence, the project will:
- Cut federal, territorial, and consumer costs of energy
- Reduce environmental risks
- Modernize outdated infrastructure
- Diversify Nunavut’s energy system with cleaner, more reliable options
It cannot be overstated just how necessary and impactful a project like this is for the territory, which has long struggled against the headwinds of high fuel costs and outdated and inefficient energy infrastructure. As the largest renewable energy project to ever break ground in Nunavut, the project carries both local and national impacts which extend beyond climate, and beyond the region itself, with far reaching impacts for job creation and economic development, each critical for enhancing Canada’s climate competitiveness. The project’s myriad benefits demonstrate the significance of supporting clean energy development across the North, from arctic security and resilience to sovereignty and economic reconciliation.
Local leadership at the core
When we think about the federal government’s goals for a stronger, more self-reliant and climate competitive Canada, we cannot lose sight of the importance of local leadership and perspective in reaching these ambitions. After all, if communities aren’t integrated in project creation, then we have to ask: who is going to look after the infrastructure once it has been built?
This is a key question for clean energy development in remote areas where local leadership, community involvement, and local capacity make a big difference for the long-term success of any given project.
The Iqaluit Nukkiksautiit Project benefits from all these factors thanks in large part to the leadership of the Nunavut Nukkiksautit Corporation (NNC).
NNC has strong roots in Nunavut and has worked tirelessly for many years to improve the territory’s energy system through clean energy development, community engagement, job creation, and policy reform. Their work has already left an important mark on Nunavut’s energy system, paving the way for diesel reduction, stronger and more innovative energy policy, and energy sovereignty in the territory.
Across a number of projects in the territory, NNC has made it abundantly clear that without local leadership, we risk developing projects that don’t meet community needs and thus come with increased operational risk. Their quintessentially local approach to clean energy is a reinforcement of the critical role communities and local leaders play in creating lasting and generational projects that support people and a disproportionately climate-impacted North.
If want to see more projects like this, then we need to keep investing in local, ambitious, energy leadership
NNC is part of a growing national network of clean energy leaders working to build and plan renewable infrastructure in remote communities despite significant barriers. Our research shows that progress depends on local leadership, consistent funding and strong partnerships between governments, communities, and utilities. To achieve Canada’s clean energy goals, we must support Indigenous leaders like NNC, who bring vision and critical context to these projects.
Over the past decade, policy shifts have created the opportunities and supports needed for Indigenous and locally-led major projects such as the Iqaluit Nukkiksautiit Project, Watay Power Transmission Line, and Ulkatcho Solar Project. Federal programs like Clean Energy for Rural and Remote Communities, the Indigenous Off-Diesel Initiative, and Northern Responsible Energy Approach for Community Heat and Energy Program have been central to these developments and play a critical role in supporting Indigenous leadership, reducing diesel reliance, and advancing energy sovereignty. However, right now the future of these programs is uncertain, putting locally owned projects at risk. Continued support is essential if Canada wants to meet its clean energy ambitions and advance generational infrastructure.
We applaud NNC for their vision and hard work. Likewise, we commend the federal government for identifying their important role in a truly transformational project. The Iqaluit Nukkiksautiit Project, though in early planning, represents a major step forward for Nunavut’s energy system—showing what’s possible when strong policy meets ambitious Indigenous leadership.
