Remote communities increasingly turning to renewables for energy security

CALGARY — According to a new report released by the Pembina Institute, clean energy has emerged as a viable and increasingly necessary solution for longstanding issues with remote energy systems in communities across Canada.

The exclusive report, Restoring the flow, is the only national scan of clean energy policy in remote communities in Canada. It finds that over the past decade, local Indigenous leadership and effective government policies have been positive catalysts for energy security, job creation, and energy efficiency for remote community residents. Clean energy has addressed fundamental challenges in remote community energy systems, including high costs, unstable and inefficient electricity and heating, and pollution.

According to the report, a wide range of federal, provincial and territorial policies and programs have been critical in supporting more resilient energy systems for remote communities. These developments demonstrate the role clean energy, collaboration, and supportive policy play in addressing longstanding challenges including remote and arctic energy security, microgrid modernization, energy sovereignty, and remote diesel reliance.

To safeguard this progress, the report urges continued focus, funding, and action on the parts of utilities and both levels of government.

National map of remote community energy systems

The national scan offers insight into the current state of remote energy policy in each relevant province and territory. In particular, the report shows that:

The combined action of the federal, provincial, and territorial governments, spurred by remote and Indigenous leadership, is leading to transformative Indigenous-owned energy projects such as the Wataynikaneyap power transmission line, which has connected 17 remote communities to Ontario’s power grid, and the Anahim Lake solar project, which will be the largest remote solar array in Canada and displace over 60% of the communities diesel. These projects, among many others, are providing a roadmap for nation-building and reconciliation through Indigenous-led clean energy development.
Transformative federal initiatives such as Wah-ila-toos, the Indigenous Off-diesel Initiative, Clean Energy for Rural and Remote Communities, and Northern REACHE have been important tools for addressing the longstanding inertia that has stalled action across the territories and provinces for many decades. Recapitalization of these programs is required to ensure progress can continue.
Collaboration between the federal government, provinces and territories, utilities, and Indigenous leadership has emerged as a central and necessary tool for advancing clean energy development, diesel reduction, and energy security in remote communities.
Most Canadian jurisdictions are making progress on removing barriers to local clean energy development. Notably, B.C., Quebec, and the Yukon are showing strong leadership across several key metrics examined throughout the report.

While the national scan of policy shows progress, it also makes clear that these gains are hard-fought and delicate. The report urges swift action from utilities and all levels of government to ensure that growing momentum for clean energy in remote communities is met with necessary resources: consistent and reliable funding, collaboration with Indigenous governments, and ongoing investment in training and capacity building.

Restoring the flow comes at a time of deep economic uncertainty for Canada. In the face of this uncertainty, Canadian governments are mapping out a new economic agenda predicated on enhancing prosperity and interconnectedness through nation-building initiatives.

The findings in this report provide numerous examples of projects and initiatives that support Canada’s path to greater self-sufficiency, security, and development and, likewise, meet shared goals for a more unified and self-reliant nation. These developments are building on decades of local and Indigenous advocacy. When effectively implemented alongside Indigenous leaders, clean energy projects are leading to better community outcomes: more jobs, cleaner air, and more reliable and modernized energy systems.

As Canada maps out its new economic agenda, it will be critical to keep sight of the notable progress being made in remote jurisdictions and the nation-building projects that are already making a difference for communities across the country.

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Visit the Pembina Institute’s website to download a copy of Restoring the flow: Policies to support Indigenous-led clean energy in remote communities

Quotes

“Remote Indigenous communities have made a strong case for the types of policy change we see across this research. With aging diesel infrastructure, rising costs, and climate change threatening energy access, the shift to renewable energy isn’t just necessary—it’s already happening. Local and Indigenous leadership has been a strong and powerful catalyst for change, and it is reshaping the way we think about energy, community, and partnership. Now is the time to deepen our commitments to this important work.”
— Arthur Bledsoe, Senior Analyst, Renewables in Remote Communities, Pembina Institute

“Over the past decade, we’ve seen innovative policy and program design that has made a difference for many remote communities. The result has been job creation, diesel reduction, and energy sovereignty. Federal action has proven to be an important tool, and while there is room to grow, there has also been a lot of ground gained. The bottom line: If government is looking for tangible proof of success and impact, these programs offer standout examples of how strategic investment is driving real and meaningful results.”
— Lynne Couves, Program Director, Renewables in Remote Communities, Pembina Institute

Quick facts

Canada is home to more than 210 communities that are not connected to the North American electrical grid. The vast majority of these communities are Indigenous.
About 70% of remote communities in Canada still rely on imported diesel fuel for heat and electricity.
Remote consumers pay 6-10x more for energy than the rest of Canada. Canadian governments spend upwards of $300 million a year on diesel subsidies alone.
Many existing diesel generators have been inherited from the federal government in the 1960s and are nearing the end of their service life. These require significant investments from utilities and governments to maintain safe and reliable microgrids.
Federal funding programs directed at remote communities have funded over 475 projects, delivering critical energy infrastructure energy upgrades and building community capacity to champion long-term energy solutions.

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