Diesel Reduction Progress II presents Canada’s most up-to-date analysis of diesel consumption in Canada’s 210 remote communities. The report, following our original analysis in 2021, outlines the outcomes of a decade of strong policy and local, Indigenous clean energy leadership.
Key findings:
- Clean electricity projects in remote communities grew 20 times faster between 2016 and 2026 than the previous decade, with most of this progress (about 92%) occurring between 2020 and 2025.
- Roughly three quarters of community-scale clean electricity projects built in remote communities are wholly or majority Indigenous-owned
- Altogether, remote communities have added more than 65 megawatts (MW) of clean electricity capacity over the past decade, and now produce over 126 GWh clean energy annually, with 35% from wind, 33% from hydro, and 30% from solar.
- Remote renewable electricity generating projects have reduced annual diesel consumption by more than 31 million litres, and now account for 7% of total electricity supply in remote communities.
- Since 2016 these projects have displaced over 142 million litres of diesel, - more than the annual diesel consumption of all three territories combined.
- Grid connection projects have also substantially reduced diesel use for electricity, with recent grid connections in Quebec and Ontario reducing diesel consumption by nearly 22 million litres annually.
- Significant progress has been made in reducing heating oil consumption; a total of 48 MW of bioheat projects have displaced roughly 11 million litres of heating oil per year.
Despite remarkable progress, the research also outlines the challenges at heart of continued gains in project development and diesel reduction: energy demand is rising faster than projects are being built.
As remote communities grow, the need for clean, reliable, and affordable energy will only increase. These findings make a strong case for continued investment in the people, programs, and policies that have made a significant difference since 2016.
