By: Kelsey Sonntag, Chad Eggerman, Janelle Anderson, Glenn Wright
This is the eighth and final article in the series, Renewable Energy in Canada 2024, which covers each provincial jurisdiction and the territories, released by the Energy Group at Procido LLP. The Renewable Energy in Canada 2024 series aims to provide an overview of the current state of renewable energy across the country. The seventh article Renewable Energy in Nova Scotia: From Coastlines to Clean Energy, reported on Nova Scotia. This article provides an update for the Canadian Territories.
Section 92A (1)(c) of the Constitution Act, 1867 of Canada grants exclusive powers to the provinces to enact laws related to the “development, conservation and management of sites and facilities in the province for the generation and production of electrical energy”.
The Canadian Territories—Yukon, Northwest Territories, and Nunavut—face unique challenges and opportunities in their pursuit of renewable energy frameworks. These vast, sparsely populated northern regions are rich in natural resources yet experience logistical and environmental constraints due to remote locations and extreme weather conditions. Historically reliant on diesel fuel for power generation, the Territories are now increasingly focusing on renewable energy sources to enhance energy security, reduce greenhouse gas emissions, and lower costs.
Yukon
Yukon has made significant strides in its renewable energy framework, prioritizing the expansion of hydroelectric power and biomass. Hydroelectricity is Yukon’s primary renewable energy source, accounting for the majority of the region’s electricity supply. Yukon Energy Corporation has invested in modernizing existing hydro infrastructure and exploring new sites for expansion. However, the Territory faces seasonal variations in water flow, which affect hydroelectric generation, particularly in winter when demand peaks. To address these fluctuations, Yukon has turned to biomass and wind energy as complementary sources. Biomass heating systems, especially for public buildings, have become increasingly popular, drawing on locally sourced wood products that support sustainable forestry practices. Wind projects are also underway, with feasibility studies assessing sites that could offer consistent power generation, especially during the colder, windier months.
Northwest Territories
Two hydro-based grids in the Northwest Territories (NWT) meet the majority of the Territory’s electricity demands, though several remote communities and mines still rely entirely on fossil fuel generation. New renewable projects are helping the Territory reduce its reliance on diesel fuel and lower costs for residents. These renewable energy initiatives have focused on solar, wind, and biomass, with a particular emphasis on solar energy. Many NWT communities are situated above the Arctic Circle, where sunlight is abundant during summer months, making solar power a viable option for part of the year. The territorial government has implemented several solar pilot projects, including solar-diesel hybrid systems that reduce reliance on diesel fuel during peak sunlight periods. Even though, the harsh winter conditions and high installation costs pose challenges for turbine reliability and maintenance, the NWT is exploring wind energy potential and has already completed construction on the Inuvik Wind Project. This stand-alone wind turbine is a key part of the NWT’s 2030 Energy Strategy and will help reduce diesel consumption in off-grid communities. Biomass is another important component of this strategy in the NWT, with several communities having adopted biomass heating systems for public buildings and residences, utilizing locally available wood pellets and chips. These systems not only reduce greenhouse gas emissions but also help keep energy spending within the local economy.
Nunavut
Nunavut, the northernmost and most remote of the three Territories, faces particularly challenging conditions for renewable energy development. Diesel fuel is used for energy generation in all communities, though solar and wind opportunities are increasingly being explored in the Territory. Its reliance on diesel fuel remains high due to the extreme Arctic climate and the lack of access to transmission infrastructure. However, the Government of Nunavut, in collaboration with Inuit organizations, has been exploring opportunities for solar and wind power, especially in larger communities where renewable energy can make a more immediate impact. In Iqaluit, for instance, a pilot project is underway to test solar photovoltaic systems in combination with diesel to reduce fuel consumption during sunnier months. Wind energy has also been studied and a number of wind projects are at various stages of project exploration and development, including the Anuriqjuak Nukkiksautiit Project under construction in Sanikiluaq, Nunavut. The high installation and maintenance costs in this extreme environment pose challenges for project development. The territorial government is also examining the feasibility of tidal and other emerging technologies that could leverage Nunavut’s coastal geography, though these options remain in the research phase.
Indigenous
Throughout the Territories, Indigenous partnerships are crucial to the success of renewable energy projects. Indigenous communities not only provide local knowledge and support but also have a vested interest in sustainable resource management. In many cases, Indigenous-led projects are fostering energy independence and creating economic opportunities in areas with limited access to traditional employment markets. For example, the Gwich’in Tribal Council in NWT has collaborated on solar and biomass projects, helping to provide cleaner energy alternatives that align with their environmental stewardship values. Similar partnerships in Yukon and Nunavut have enabled community-driven renewable energy projects that respect traditional land-use practices while advancing technological innovation.
The federal government has played an essential role in supporting renewable energy in the Territories by providing funding and incentives through programs such as the Clean Energy for Rural and Remote Communities Program. These funds have been critical in offsetting the high costs associated with renewable energy infrastructure in remote areas. Additionally, each territorial government has established policies and action plans aimed at reducing diesel reliance and increasing renewable energy production. In Yukon, for instance, the Climate Change, Energy and Green Economy Strategy outlines specific goals for renewable energy integration by 2030. NWT’s 2030 Energy Strategy includes targets for greenhouse gas reduction and sets a framework for increasing local energy production. Nunavut has established the Nunavut Climate Change Secretariat to support renewable energy initiatives, focusing on long-term energy sustainability and adaptation to climate impacts.
Despite these advancements, challenges remain for the Territories. The high costs of renewable energy installations, coupled with the technical difficulties of operating in extreme climates, can hinder progress. Many remote communities still rely heavily on diesel due to the lack of infrastructure to support large-scale renewable energy installations. Additionally, climate change itself poses new risks to hydroelectricity and biomass, with shifting ecosystems affecting resource availability. However, the resilience and innovation demonstrated by the Territorial governments, Indigenous organizations, and local communities reflect a growing commitment to clean energy and sustainable development.
The renewable energy frameworks in Yukon, Northwest Territories, and Nunavut underscore the determination of Canada’s northern regions to address climate change, reduce dependency on diesel, and harness local renewable resources. Through continued investment, federal support, and Indigenous partnerships, the Territories are building pathways toward a sustainable energy future that balances environmental responsibility with the unique needs and challenges of Canada’s Arctic and sub-Arctic regions.
Procido LLP’s Energy Group advises Indigenous groups, developers, suppliers, and landowners on renewable energy projects. The Renewable Energy in Canada 2024 series, with additional commentary focused on Canada, will be released as one document before the end of the year.
Disclaimer
This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice. Contact Procido LLP (www.procido.com) if you require legal advice on the topics discussed in this article.