Canada’s commitment to transitioning remote communities off diesel power is hampered by the way utilities operate in those areas. While the number of clean energy projects has increased, renewables are not being implemented at the speed and scale needed to meet climate commitments, while Indigenous energy proponents lack opportunities to implement projects. Our report presents alternative business models that can be adopted by utilities to support climate action and Indigenous-led clean energy.

In remote communities across Canada, low-carbon power sources such as hydrogen, nuclear, and energy generated by movement in the ocean are being studied more closely. Each of these clean energy technologies are options under consideration as remote Indigenous communities further their efforts to eliminate dependence on diesel power.

Nunavut is almost entirely dependent on diesel power for meeting its electricity and heating needs and has the highest diesel dependency of all territories and provinces. Policies that regulate the terms and conditions, as well as the rates paid to power producers, can be significantly improved so that producers are incentivized to develop clean energy projects that are sustainable, profitable, and contribute to reducing reliance on diesel power.

Between 2015 and 2020, the number of renewable energy projects in remote communities across Canada nearly doubled. Yet, despite this growth in renewables, as much as 79 per cent of the electricity used in remote communities is still generated using diesel fuel. Fair and equitable prices for Indigenous-led clean energy allow projects to be sustainable and account for the social and environmental benefits of using less diesel and advancing Indigenous energy sovereignty.

Supporting Indigenous leadership in B.C.’s renewable energy sector is critical to meeting B.C.’s commitment to reduce greenhouse gas emissions by 40% below 2007 levels in 2030, and to advance reconciliation with Indigenous People.