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Challenges Facing Renewable Energy in Northern Canada

I N S I G HT

Challenges Facing
Renewable Energy in
Northern Canada
BRANDON NGUYEN | APRIL 23, 2020 S HAR E O N

FOSSIL FUELS, RENEWABLES

In the remote northern territories of Canada, a legacy of off-

grid systems and limited infrastructure makes energy
transition difficult.

There is seemingly a dichotomous rhetoric between environmental progress and

economic development. Historically, there has never been a substantial increase in
welfare or GDP that has not been coupled with an increase in carbon emissions per
capita. However, increasing economic competitiveness of green technologies like
solar panels has opened up the possibility of sustainable development. This blog
post aims to summarize some of the barriers to the widespread adoption of clean
energy in Canada’s rural northern communities, which have historically been more
dependent on cheap fossil fuels than the rest of Canada.

Overcoming a Legacy of Diesel

Canada’s northern regions have been dependent on diesel for as long as energy has
been available in the area. Historically plagued by remoteness, these territories
consist of predominantly off-grid systems powered by diesel fuel and lack any
significant energy infrastructure projects. For context, the population density in
Nunavut (one of Canada’s three northern territories) is 0.017 people per square
kilometer as of the 2011 census.

Any effort to increase renewables adoption in the North will inevitably revolve
around breaking this harmful dependence on diesel. Whether in the form of
subsidies for renewable energy projects, or funding for the research and
development of resources such as a technical guide on renewable integration into
remote off-grid systems. Canada’s federal government will have to dedicate
significant resources to make clean energy a reality. Simply put, the market has
failed Canada’s remote northern communities. 

Intermittency on an Extreme
Level
While competitive solutions to short-term intermittency have begun popping up all
over the world, there still lacks a persistent solution to long-term intermittency.
This is particularly harmful to the widespread adoption of renewables in the Arctic
region, which can face months of darkness at a time. Government policies and
programs should continue to incentivize the research and development of long-
term storage solutions outside of traditional but expensive lithium technologies,
and aim to deploy diverse portfolios of cleaner energy solutions such as wind and
geothermal to overcome intermittency gaps.

Lack of Indigenous Perspectives

Canada’s three northern territories have populations that are composed of
anywhere from 20 to 85 percent aboriginal peoples. Considering the unique
political, economic, and social conditions in which indigenous communities are
governed, it is important that Canadian policies and incentive programs take into
consideration traditional knowledge and local implementation capabilities. While
there are efforts to better integrate indigenous perspectives, there is still
unarguably lots of work to be done if we are to end northern Canada’s dependency
on diesel. 

Looking into the Future

While switching to renewables is inevitably a requirement of creating a sustainable
future in Canada’s northern communities, it is also important to not undermine
short-term solutions that may be more immediately applicable, such as improving
energy efficiency in buildings. However, there is a lot to be hopeful about. There
have been recent increases in independent power producers and indigenous-owned
renewable assets that can be bolstered with more government incentives.
Furthermore, policy can help solve the complicated procurement funding streams
for subsidized diesel that currently makes it difficult for clean energy companies to
structure similarly compelling financial incentive systems. These are all issues and
opportunities that policy makers ought to be thinking about if Canada’s northern
and remote communities are to achieve environmental and economic sustainability.

Brandon Nguyen
U N D E R G R AD UATE S E M I NAR FE LLOW

Brandon Nguyen is an undergraduate student studying economics and political science at

the Wharton School and the College of Arts and Sciences. Nguyen was also a Kleinman
Center 2020 Undergraduate Student Fellow. 

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