Renewable energy projects are helping remote communities strengthen vulnerable energy systems, but securing those hard-won gains requires continued investment and focused policy from all levels of government, says a new report from the Pembina Institute.

Pembina warns that federal funding for clean energy development could dry up when the government fiscal year ends March 31 without a commitment to continue the programs that support it.

“Over the past decade, we’ve seen innovative policy and program design that has made a difference for many remote communities,”  Lynne Couves, Pembina’s program director for renewables in remote communities, said in a media release.

Couves said remote renewable energy projects have helped communities create jobs, reduce the amount of diesel burned for power generation, and strengthen energy sovereignty. While there is still “room to grow,” federal action has helped move these projects forward and “a lot of ground [has been] gained.”

“The bottom line: If government is looking for tangible proof of success and impact, these programs offer standout examples of how strategic investment is driving real and meaningful results.”

The report, released Sept. 23, identifies existing remote renewable energy initiatives at the federal level and in each province and territory that are “helping to restore the flow of clean power back to communities.” The projects include transmission lines and local renewable generation projects like hydropower, wind, or solar power developments.

“But it’s about more than just electricity: ‘Restoring the Flow’ also refers to the flow of benefits of energy development, and the flow of decision-making power, returning to the community,” Pembina says in the report.

The report’s authors—Arthur Bledsoe, Emily He, and Rosa Brown—found that remote clean energy development relies on strong collaboration between the federal government, provinces and territories, utilities, and Indigenous leadership. Most community projects relied on both federal and provincial or territorial funding. Overall, federal remote communities programs support more than 475 major clean energy projects and initiatives, says Pembina, while provincial or territorial programs were generally more involved in supporting smaller community initiatives and the early stages of some large energy projects.

Remote renewable energy projects are found across the country, though the report shows that British Columbia, Quebec, and the Yukon have made the most progress in supporting Indigenous-led clean energy development. However, renewable energy development remains uniquely challenging in Canada’s northern territories due to high costs, small tax bases, outdated technology, and other constraints—which demonstrates why federal support is so vital for projects in these areas.

But although the federal government provided funding for remote community energy development from 2018 until the current fiscal year, the report notes that many of the most effective programs are no longer accepting applications, and the federal government has not announced plans to reinvest.

“As Canadian jurisdictions advance their goals of growing the clean economy and pursuing reconciliation with Indigenous peoples, supporting remote community energy must remain a central priority: restoring the flow of clean electricity and economic benefits to remote Indigenous communities,” the report states.