The decarbonization of transportation systems is crucial to reducing diesel reliance and achieving Canada’s net-zero targets. In many northern and remote communities transportation-related emissions represented over half of total greenhouse gas emissions in 2019.

Over half of the total diesel consumed in remote, often northern, communities is associated with heating buildings and homes. For federal and provincial governments to meet their commitments to support Indigenous communities to get off diesel, they must take a quality housing first approach.

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.

Systemic barriers continue to prevent clean energy projects from moving ahead in remote communities across Canada. This paper presents six Energy Service Models that offer options for clean energy proponents to develop, build, and operate projects by alleviating some of the challenges associated with lack of capacity and capital.

The way utilities deliver energy to remote communities and generate revenue discourages the purchase of renewable energy as well as the implementation of energy efficiency measures. For Indigenous communities to realize a clean energy future this needs to change.

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.

A summary report of the Renewables in Remote Communities (RiRC) 2022 conference, which brought together Indigenous and non-Indigenous participants from across Canada, and focused on partnerships in clean energy projects; youth engagement; regulatory policies; access to capital; and pathways to successfully transition away from diesel dependency.

Indigenous-owned clean energy projects in remote areas face chronic barriers to accessing private capital to help fund the development of renewable energy. In this report we summarize the key barriers facing renewable energy deployment in remote communities as they relate to accessing capital and recommend government policies, programs, and tools that could be used to attract market capital and improve the business case for renewables in remote areas.

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.

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.

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.

Subsidies for diesel fuel use in remote communities have kept prices artificially low, disincentivizing efforts to find efficiencies or alternative, renewable, energy sources. Diesel Subsidies Simplified Part I explains the critical role of subsidies as an obstacle to transitioning to clean energy systems, how subsidies work, and how financing can be redirected to open up opportunities for energy alternatives that lower emissions and improve social, environmental and health outcomes.

This briefing note was submitted by WWF-Canada, Nunavut Nukkiksautiit Corporation and the Pembina Institute in response to QEC's Commercial Institutional Power Production policy proposal (May 2020). While we appreciate QEC’s effort to develop this CIPP policy, the policy as laid out will do little to encourage the adoption of renewable energy systems in Nunavut and therefore contribute little to put Nunavut on a path of transition away from diesel.

The Pembina Institute reviews the Qulliq Energy Corporation’s (QEC) commercial institutional power production (CIPP) application. Although it is encouraging to see this application, it is the Pembina Institute’s opinion that the proposed policy will do little to encourage renewable energy uptake for commercial and institutional customers in Nunavut. Several statements do not appear to meet the stated mandate of QEC to support renewable energy.

 

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.