RIRC Resources

This briefing note provides context and recommendations for climate and energy related reports that are anticipated to be discussed at the Fall Sitting of the Legislative Assembly of the Northwest Territories from October 13 to November 3, 2022. We hope that the Government of NWT will commit to supporting Indigenous-led clean energy systems and consider the following recommendations while developing policies and programs.

Meeting the future energy needs of Nunavut’s growing population while also tackling climate change and the decarbonization of Nunavut’s energy systems will require a well-designed Independent Power Producer (IPP) Policy. The forthcoming IPP policy must match the speed and scale needed for the low-carbon energy transition, reduce the barriers to market entry for Inuit organizations, and prioritize Inuit ownership on renewable energy projects.

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.

The Government of the Northwest Territories (GNWT) created a 2030 Energy Strategy, which sets out the long-term approach to supporting secure, affordable, and sustainable energy in the Northwest Territories. Pembina Institute asked the public four simple questions about what they thought about progress on the strategy to date and how the government could improve. This paper highlights the discussion and recommendations that came forward.

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.

Nearly all of Canada’s remote Indigenous communities rely on diesel power plants for electricity. But, there’s an opportunity to successfully support these communities in developing their own clean power projects. This will not only bring secure, clean energy to the region, but also create local economic development opportunities. See our research on government policies to support renewable energy projects for remote Indigenous communities in Canada to learn more.

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

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

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.

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

As part of our Budget 2023 analysis, we’re turning our attention toward commitments made to remote Indigenous-led clean energy projects across Canada. Based on this review, we note that although Budget 2023 broadly showcases some positive investments for Indigenous clean energy projects, direct funding and program recapitalization for remote and community-led projects will create the necessary conditions for a faster and stronger transition in rural and remote communities.

Dave Lovekin, Director of Pembina’s Renewables in Remote Communities Program, made the following statement in response to B.C. government’s announcement of funding for clean energy projects in remote Indigenous communities.

Dave Lovekin, Program Director for Renewables in Remote Communities at the Pembina Institute, made the following statement in response to the Government of the Northwest Territories (GNWT) release of the 2022 to 2025 Energy Action Plan.

Dave Lovekin, Director, Renewables In Remote Communities at the Pembina Institute, responds to Microgrid Stability with Intermittent Renewables: “We are very encouraged by the results from the Government of Northwest Territory’s study that shows that the grids that power remote communities can safely and reliably use much more clean energy. This will influence the amount of clean energy used in many other remote communities in Canada now powered by diesel."

Between 2015 and 2020, the number of renewable energy projects in remote communities across Canada nearly doubled. Yet, despite this growth in renewables, as much as 79 per cent of the electricity used in remote communities is still generated using diesel fuel. Fair and equitable prices for Indigenous-led clean energy allow projects to be sustainable and account for the social and environmental benefits of using less diesel and advancing Indigenous energy sovereignty.

There is considerable momentum among Indigenous nations in B.C. pursuing self-government and a higher degree of energy independence. The current regulatory environment has the potential to restrict such goals. 

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.

Nearly all of Canada’s remote Indigenous communities rely on diesel power plants for electricity. But, there’s an opportunity to successfully support these communities in developing their own clean power projects. This will not only bring secure, clean energy to the region, but also create local economic development opportunities. See our research on government policies to support renewable energy projects for remote Indigenous communities in Canada to learn more.

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.