Renewable Energy in the Canadian Territories: 15 Facts

Renewable Energy in the Canadian Territories: 15 Facts

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Canada’s territories – the Northwest Territories, the Yukon, and Nunavut – are some of the coldest and most remote regions on the planet. While accounting for 40 per cent of Canada’s total landmass, these relatively untapped resource-rich regions represent just 3 per cent of the Canadian population – which is why it can be a surprise renewable energy is alive and well in the far north.

The Northwest Territories, for example, relies heavily on two hydro-based electrical grids to meet most of its power demand. The Yukon is also a renewable powerhouse, with hydro plants accounting for a large majority of the territory’s electricity supply. And, while Nunavut is arguably the least developed part of Canada, it too is making moves in advancing renewable power capacity.

Below we explore several interesting facts and statistics on renewable energy in the Canadian territories of the Northwest Territories, the Yukon and Nunavut. Also see:

15 Canadian Territories Renewable Energy Facts

#1 - Yukon electric utilities generated 561,667 megawatt-hours (MWh) of electricity in 2023, of which 489,355 MWh was grom hydropower — or 87.1% of all power generated that year [1]

#2 - Yukon’s Micro-Generation Program included a total of 804 solar electric systems, which added 3,667 MWh of electricity to the grid in 2023 — up 29.2% year-over-year [1]

#3 - Of the Yukon’s total installed power generation capacity of 180 MW in 2023, hydro plants accounted for 94 MW — or 63.5% of the territory’s total capacity [1]

#4 - In 2022, renewable electricity generation accounted for 88.4% of Yukon's total electricity generated by electric utilities, the sixth highest proportion of all provinces and territories and 18 percentage points above that for Canada (70.4%) [1]

#5 - During winter, the generation capacity of Yukon hydro plants significantly declines as water flows drop [1]

#6 - In the Northwest Territories (NWT), two hydro-based grids meet the majority of the territory’s electricity demands, while new renewable projects are helping it reduce its reliance on diesel fuel and other fossil fuel generation [2]

#7 - A majority - 52.8% - of NWT’s electricity was generated through hydro in 2018 [2]

#8 - NWT’s Diavik Diamond Mine produced 3.8% of the territory’s electricity generation in 2018, but are not connected to any communities or regional grids [2]

#9 - between 2010 and 2017, NWT added a net 11 MW of renewable capacity, primarily from wind (9.2 MW) [2]

#10 - Upon closing the Diavik Diamond Mine in 2026, NWT is expected to lose a net of 6 MW of renewable capacity as a result of the shutting down of the four wind turbines [2]

#11 - NWT is home to a handful of recently developed renewable energy projects including a 1 MW solar farm in Inuvik, and another 3.5 MW wind project that came online in the same area by the end of 2023  [3][4]

#12 - Nunavut generates 0.2% of its electricity supply from solar, a sector that has seen investments for growth over the past several years [5]

#13 - Five Nunavut communities shared a $4.1 million federal government grant for solar projects in 2023, which will help Arctic Bay, Clyde River, Pond Inlet, Whale Cove, and Frise Fiord further advance renewable power generation capabilities [5]

#14 - Qulliq Energy Corporation (QEC), Nunavut’s main utility operator, has had solar modules installed at its power plant in Iqaluit since March 2016 as part of a pilot project; solar has also been installed at the Arctic College and the Arctic Winter Games Arena, both in Ilaquit [5]

#15 - QEC offers a Net Metering Program which allows residential and municipal power consumers to produce their own electricity through various small-scale renewable energy source; by integrating any surplus power to QEC’s local grid, they are provided with credits for future electricity use [5]

Renewable Energy Growth in Canada’s Territories

It’s no secret that Canada is already a global leader in renewable energy production. Accounting for about two-thirds of its current power supply, Canada’s vast and diverse landscapes provide Canadians and Indigenous Peoples with many opportunities to generate power from renewable sources.

However, unlike in other parts of Canada, several distinct challenges of developing renewable energy in the northern territories remain, which include:

Cold Weather: The harsh weather conditions of Canada’s territories, including freezing temperatures and blade icing, make it difficult to operate renewable energy systems

Seasons: Canada’s territories see significant changes in temperatures and sunlight depending on the time of the year, only making hydro and solar able to generate at full capacity for about half the year

Cost: Renewable energy installations are expensive and take longer to build in the territories than in other parts of Canada; the cost to transport goods and services for project installations can be extremely high

Reliance: Many communities rely on diesel as a main fuel source because the loss of intermittent power can have serious consequences

Despite these challenges, Canadian governments are investing in advancing the development of renewables in the territories.

For example, Northern REACHE is the most prominent federal government-funded program, which set aside $300 million over five years to advance rural, remote, and Indigenous communities that rely on diesel, which may have an opportunity to be increasingly powered by renewables by 2030 [6].

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SOURCES:

1 - https://yukon.ca/sites/default/files/ybs/fin-yukon-energy-facts-2023.pdf

2 - https://www.cer-rec.gc.ca/en/data-analysis/energy-commodities/electricity/report/canadas-renewable-power/provinces/renewable-power-canada-northwest-territories.html

3 - https://www.cbc.ca/news/canada/north/1-megawatt-solar-farm-coming-inuvik-1.6552147

4 - https://canada.constructconnect.com/dcn/news/infrastructure/2023/09/inuvik-wind-turbine-achieves-major-milestone-as-first-power-delivered-to-grid

5 - https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/provincial-territorial-energy-profiles/provincial-territorial-energy-profiles-nunavut.html

6 - https://www.rcaanc-cirnac.gc.ca/eng/1481305379258/1594737453888