Renewables for Decarbonization and Resiliency of Remote and Arctic Communities in Canada: Policy and Economics Review

Most remote and Arctic communities in Canada have the highest carbon intensity of electricity and heating in the country. There is increased interest from many individuals and organizations to successfully integrate renewable energy systems, but many policy and technical barriers persist. This paper presents the current state of the policies and economics affecting the successful installation and operation of renewable energy projects in the three territories in Canada, the northernmost regions. There is a companion paper in the same conference proceedings focusing on the technical and logistical challenges of renewable energy in these locations. Successfully growing the installed capacity of renewable energy in these regions will lead to substantial decarbonization of the energy supply and improve resiliency. This paper summarizes available sources estimating the installation and operating and maintenance costs of solar photovoltaic and wind turbine systems in northern and remote communities in contrast to locations in southern Canada and also in contrast to the cost of diesel-generated electricity. An overview of funding programs is presented, along with description of some of the issues that arise in interfacing funding with current policies. The policies enabling or inhibiting the generation of electricity by independent producers are reviewed in detail, including personal experiences of multiple applicants. Shortcomings and issues with the policies are examined, with recommendations to better enable decarbonization and increased resiliency of building energy in remote and Arctic communities in Canada.