Local progress on energy, Arctic security must survive federal cuts

If federal programming is stripped down, remote communities will be limited in their pathways to achieve energy security.

September 16, 2025
Op-ed
Published in the Hill Times (September 16, 2025)
Photograph courtesy of Wikimedia Commons/Janne Wallenius

A diesel power station in Rankin Inlet, Nunavut.

This summer, as Canada’s new federal government has set out its ambitious economic and nation-building agenda, many of us have had a crash course on the big and muddy issues at play within our energy and infrastructure systems. Among them: how to ensure arctic sovereignty and energy security. 

With decision-makers headed back to the Hill, it’s critical this conversation doesn’t stop at major infrastructure projects as the only way to advance nation-building. In remote communities, many of which are in the arctic, local action to advance energy security has been building momentum for decades. Significant progress has been made in recent years thanks to innovative federal programs like Wah-ila-toos, Northern Responsible Energy Approach for Community Heat and Electricity (Northern REACHE), Clean Energy for Rural and Remote Communities (CERRC), and the Indigenous Off-diesel Initiative (IODI). Collectively, these programs have supported nearly 500 remote clean energy projects across Canada.

Projects in remote communities are hard – they take time, have challenging logistics and nothing in the North is cheap. Federal programs provide the predictability and stability necessary to support this important, but difficult work. This funding also fills long-standing gaps in capacity, jobs training, technology learnings and funding. Increased on-the-ground learning from these federally supported programs helps us  better understand the role energy plays in strengthening local economies, improving public health, and growing pathways for youth leadership and employment. In the upcoming federal budget, government must commit continued support for Wah-ila-toos, Northern REACHE, CERRC, and IODI because these programs ensure vital work can continue. They also they tell an important nation-building story about collaboration and partnership between local leaders and the public sector.

Let’s paint the picture a bit more: for most remote communities, electricity is generated almost exclusively from diesel fuel. Diesel systems come with enormous costs for consumers, who pay six-to-10 times more for energy than the rest of Canada, and for governments, who spend hundreds of thousands every year subsidizing diesel. These increasingly inefficient and outdated systems are in dire need of modernization and upgrading. 

For too long, the assumption has been that diesel is the single cheapest and most secure way to provide electricity and heat to remote communities. But consensus is changing, as more clean energy projects are being effectively built and integrated onto diesel microgrids. These projects – often proposed, designed, and owned by communities – challenge conventional thinking about what it means to provide reliable, affordable, and secure energy in remote communities. 

Over the past decade, continued development of clean energy on remote microgrids has led to cost savings, grid modernization and innovation, and community development. Heat pumps installed in homes in B.C. are saving remote consumers $1,500 a year. Solar arrays in the North are reducing hundreds of thousands of litres of diesel annually. Wind projects in the arctic are strengthening regional grids, and creating new jobs and training opportunities. 

These are a handful of powerful examples, and there are many more in development right now that will lead to equally positive outcomes, but there is still a long way to go to enable effective solutions for all. If federal programming is stripped down, remote communities will be limited in their pathways to achieve energy security. The reality is that many community-led projects can’t be built or sustained without consistent capacity building and funding support. This means that instead of creating employment, improved air quality, and modernized and efficient local energy systems, remote communities will remain stuck with the status quo while the rest of Canada speeds toward development and interconnectivity. 

At the provincial and territorial level, collaborative work between local and Indigenous energy leaders, utilities, regulators, and governments are leading to progressive projects and clean energy solutions for communities and regional electricity grids. Together, these groups are coming together to map out energy systems that support stability, health, and prosperity for generations. 

As a nation concerned about security and affordability, we can be proud of these developments. But the work is not done. It requires continued investment and focus. Without strong federal programs, a commitment to collaboration, and the funds required to facilitate change, we threaten the momentum that’s been building for years. 

If we are truly committed to building a unified, prosperous, and secure nation and economy, we will set our sights on ensuring that local leaders – no matter where their work falls on Canada’s map – have the tools and resources they need to make energy security a reality.