Overcoming Challenges to Renewable Energy in Nunavut: A Path to a Just Transition
Nunavut faces significant challenges in adopting renewable energy, including harsh conditions, aging infrastructure, and diesel subsidies. Heather Shilton, Director at Nunavut Nukkiksautiit Corporation, discusses how a successful transition requires regulatory reform, energy storage solutions, and community involvement to reduce reliance on fossil fuels and promote long-term sustainability.
Developing renewable energy systems in Canada is no easy task. Remote, off-grid communities in the Arctic pose even greater challenges for implementation and operation of renewable energy systems – they are home to some of the harshest weather conditions in the world with requirements to integrate innovative technologies with aging diesel infrastructure in communities. Technical and regulatory solutions have been explored and in some cases, implemented, which has led to some successes in the renewable energy sector in Nunavut; however, some regulatory constraints rooted in diesel subsidization and restrictive utility mandates still require adjustment to truly enable a just clean energy transition in the Territory.
As recently as 2020, there was no regulatory path forward for community-scale renewable energy projects in Nunavut. There were a number of projects in various phases of early development, but challenges persisted to move forward with the implementation of these projects. Many were skeptical as to the economic feasibility of renewables in the Arctic and many suggested these technologies simply wouldn’t work.
In fact, there are numerous types of clean energy technologies that can operate effectively in the Arctic. From solar PV, to wind, to hydroelectricity, there are a number of very successful examples of clean technologies that have been effectively operating in Arctic conditions around the world for many years.
Perhaps the most common question raised when discussing renewables in the Arctic is “well how can you use solar PV if it’s dark there for half the year”? A valid question, but the typical response is something along the lines of “well we get a hell of a lot of sunlight in the summer to make up for it!” That said, the question is still an important one because as human beings, most people would indeed be aware that the sun is not always shining and the wind is not always blowing. Which in southern Canada, within an interconnected grid, is less of a challenge; in the North, where we’re reliant on isolated microgrids, it can actually pose a significant challenge. Energy storage technologies can help to close the gap between the intermittent renewable generation and the consistent electrical demand in communities, but (at least in their current iterations) they have yet to successfully close a weeks or months-long gap in generation in the Arctic.
So, what’s the point then? Why would we look at renewable energy solutions if they might not be able to meet 100% of the electrical demand in communities? Because they can still offset diesel usage in communities. If we can reduce our reliance on imported fossil fuels for electricity generation in the Territory, thereby improving energy security and system resiliency, why wouldn’t we?
Nunavut is the only jurisdiction in Canada that is 100% reliant on imported fossil fuels for electricity generation. This, of course, comes with inherent environmental and economic risk; spills occur almost monthly during some seasons, which can lead to biophysical harm, and the price volatility of diesel causes impossible challenges for our utility and government to predict (and subsequently bear) the cost. Fuel for electricity generation in the Territory is shipped up each year and the months-long supply is stored in tanks. Almost every year, one community or another comes close to running out of fuel; and in some extreme cases, fuel has to be rationed or flown in before the first ship can bring additional fuel.
“Nunavut is the only jurisdiction in Canada that is 100% reliant on imported fossil fuels for electricity generation. This, of course, comes with inherent environmental and economic risk”
-Heather Shilton
All this fuel is also heavily subsidized, which leads to challenges in understanding the true cost of continued reliance on fossil fuels in the Territory. Not only is the purchase, transport, and storage of fuel subsidized, but so are the capital and operational costs to maintain this status quo. This system of heavy diesel subsidization works, because Nunavummiut deserve access to safe, affordable, and reliable electricity; but without being able to fully understand the true cost of continuing to rely so heavily on diesel for electricity generation, it becomes even harder for Nunavummiut to add “clean” to that list of adjectives describing what type of electricity they want to see in their communities. To truly enable a just and inclusive energy transition in the North, subsidies for diesel need to be more fully understood and shifted to cleaner sources of electricity to ensure Nunavummiut are not burdened with even higher electricity costs as the energy transition occurs.
Beyond the economic challenges to the clean energy transition in Nunavut rooted in the subsidization of fossil fuels, there are as well, many a technical challenge for integrating renewables into a diesel microgrid. Aging diesel infrastructure in communities can lead to constraints related to the capabilities of integrating renewable energy into existing electrical networks. These challenges are not insurmountable by any means, but do indeed require extensive collaboration between renewable energy project owners and local utilities; and further, extensive coordination between renewable energy/energy storage assets and diesel assets to maintain delivery of safe, reliable, and affordable electricity.
The utility in Nunavut has an incredibly challenging task: that is, to operate and maintain 25 off-grid, remote diesel microgrids in some of the harshest Arctic conditions. Pair that with not enough funding and human capacity challenges, and you’ve got a virtually impossible task. That task only compounds when you’ve got others knocking on your door to integrate complex renewable energy and energy storage systems into aging diesel infrastructure.
That said, the power of partnerships and collaboration across the Arctic can de-risk this task and alleviate some of these burdens. One entity does not have to be generating, distributing, and selling electricity within the Territory, all while also being responsible for energy policy in the Territory, building new energy generation and distribution assets, and financing all of it. Working together with others in the Territory who may be able to contribute to the achievement of this mandate can lead to success.
“The power of partnerships and collaboration across the Arctic can de-risk this task and alleviate some of these burdens”
-Heather Shilton
In parallel, the mandate of utilities in the North also needs to be adjusted to incorporate environmental and social goals of communities. For decades, the mandate of a utility has been to provide safe, reliable, and affordable electricity to customers. Affordable, in this case, often refers to the “lowest cost” option for electricity generation, which, when taking into account the significant subsidization of fossil fuels in Nunavut, will almost always require diesel to be the electricity source of choice.
Indeed safe, reliable, and efficient electricity should remain paramount for Nunavummiut. However, this mandate needs to go further and incorporate long-term affordability (beyond simply the cheapest option today, incorporating subsidies), alignment with federal net-zero targets and perhaps most importantly, Free, Prior, and Informed Consent from Nunavummiut regarding how they want to see their energy future develop. Free, Prior, and Informed Consent (FPIC) goes beyond just asking Nunavummiut for feedback on a proposed project; Nunavummiut need to be a part of the decision-making process, from the very beginning of project inception. Even with so-called development experts providing advice, guidance, or funds to support project development, Nunavummiut still need to be in the driver’s seat on infrastructure development because at the end of the day, only Nunavummiut actually know how to responsibly develop their resources.
Only once these critical areas around long-term affordability, alignment with federal net-zero targets, and FPIC are incorporated into utility mandates, will a just clean energy transition truly be able to take place.
There has been a clear shift in the energy landscape in Nunavut in recent years, with regulatory adjustments enabling project successes across the Territory. That said, there remain challenges to fully enabling the energy transition, largely around the subsidization of diesel and restrictive utility mandates. As we continue to advance towards a just clean energy transition in Nunavut, these regulatory constraints must be addressed, with Nunavummiut leading these changes with Rightsholders, key stakeholders, and value-driven experts; what’s that saying about “alone, we go fast; together, we go far”?
