As remote communities switch from diesel to renewables, smart policy changes can advance ways to reduce the carbon intensity of existing generators, lower emissions, and pave the way to a clean energy system. This issue paper reviews some options.

Indigenous communities that are transitioning from diesel energy face barriers in financing their clean energy infrastructure. But governments can create the policies and programs that will give Indigenous communities better access to the money they need, either by providing financing themselves or by fostering the conditions that promote private investment.

A well-designed independent power producer policy with a fair and equitable power purchase agreement rate promotes the adoption of locally led renewable energy projects in remote communities. A fair and equitable energy price must capture the full costs of building and operating a diesel-based energy system within an accurate PPA rate structure for renewable-energy projects. As well, energy developers in remote communities must include community- and Indigenous-led electricity developers.

The widespread adoption of renewable energy could displace the centralized system of generating and distributing energy to customers and provide opportunities to unlock a more decentralized (distributed) way of managing energy. But reducing reliance on diesel, and empowering communities to produce their own energy, depends upon the support of governments, utilities, communities and consumers for the shift from centralized microgrid systems to more distributed energy generation.

Through policy work done under our Renewables in Remote Communities program and the Indigenous Off-diesel Initiative, we are advancing work in two overarching and eight specific policy areas to support energy projects being led by Indigenous champions involved in the IODI program.

In the past few years, important progress has been made toward reducing diesel dependency in remote communities. As a result of years of leadership and work within Indigenous communities to build capacity, impressively large renewable energy projects are coming on-line, and communities are leading their own energy transition. Increases in government funding programs that support diesel reduction projects have been important to recent progress.

Of the 300-plus distinct First Nations reserves in British Columbia, 27 are remote communities, and most of these rely heavily on diesel generators as their primary energy source. But rather than depending on shipments of diesel into their hard-to-reach communities, they could harness abundant local renewable energy resources such as sun, wind, water and biomass to create local energy solutions that contribute to economic independence while creating local jobs.

This is the moment to create a roadmap for a society that is more resilient to these macro shocks – whether they are brought about by a pandemic or climate change. Canada’s response must support a more resilient, healthier economy that is competitive and shows economic strength in a decarbonized global market.

In Canada, both utilities and proponents of renewable electricity projects face many challenges when working together to transition remote communities to clean energy.

There are many successful examples of renewable energy sources being integrated in remote communities to create hybrid microgrids — and the list continues to grow as projects demonstrate they reduce operating costs, carbon pollution, and reliance on imported diesel fuel.

This backgrounder breaks down some common fuel cost terms that are important for conversations around transitioning remote communities away from diesel.

Since remote communities are not connected to the North American electricity grid, they make use of their own small-scale microgrids.

This report collects and quantifies cumulative national diesel reduction progress from 2015-2020, outlining the progress made so far, and the opportunities to advance renewable energy and energy efficiency measures to reduce diesel use in Indigenous remote communities in Canada.

In this report, we conduct a cross-Canada scan to evaluate the current policy environment for community-led projects in each province and territory with remote Indigenous communities.

A well-designed IPP policy in Nunavut would create valuable opportunities for Indigenous communities and project proponents in developing renewable energy projects.

This report examines strategies for enhancing collaboration and partnership between Indigenous power proponents and utilities and territorial / federal governments.

This report discusses how Indigenous leaders, government representatives, business, experts and the nonprofit sector shared insights into how to advance diesel reductions in remote communities.

Our research indicates that a meaningful effort and focus is needed to improve relationships and create new opportunities between utilities and Indigenous power proponents.

It's is an exciting time for renewable energy development possibilities in Canada’s north.

Budget 2016, the first budget tabled by the Trudeau government, committed $8.4 billion over five years in new funding to Indigenous communities across Canada. This represented a significant increase from previous government commitments.

Despite progress made in recent years in Canada’s move toward cleaner energy production, many remote Indigenous communities still rely on dirty and expensive diesel fuel for their energy needs. Of Canada’s 292 remote Indigenous communities, 257 of these rely entirely on their own micro-generation networks for electricity.

Ottawa has announced that it will provide welcome financial support to help ramp up clean energy capacity in Indigenous communities in B.C.

Renewable energy technology can reduce the use of diesel fuel in remote communities. Wind, solar, micro-hydro, geothermal and biomass are substantially cleaner and reliable forms of power generation.