Reducing Diesel Dependency in Isolated Labrador Communities

News release

May 13, 2021                           Newfoundland and Labrador                       Natural Resources Canada      

The Government of Canada is investing in clean energy projects across the country so that rural and remote communities, including Indigenous communities, have access to the knowledge necessary to make informed choices to transition away from diesel fuel for heat and power. The government has committed to support these communities as they transition to clean, reliable energy by 2030 while prioritizing reconciliation, self-determination and community-led clean energy projects as part of the path to a low-carbon future.

Yvonne Jones, Parliamentary Secretary to the Minister of Northern Affairs and Member of Parliament for Labrador, on behalf of the Honourable Seamus O’Regan Jr., Minister of Natural Resources, announced today an investment of $90,000 for a study that explores power system options to help reduce diesel dependency in Labrador’s remote and Indigenous communities.

Led by Newfoundland and Labrador Hydro, the study assesses the value of bringing more renewable integration to isolated communities in Labrador and investigates options including a fully integrated system, several large isolated micro-grids that could connect multiple communities, and pockets of small micro-grids.

The study complements ongoing initiatives involving Indigenous communities to advance community-led diesel-displacement renewable energy projects by seeking to enhance future renewable energy projects that can reduce reliance on diesel, lower operating costs and increase system reliability.

It was funded through Natural Resources Canada's Clean Energy for Rural and Remote Communities program. This eight-year, $220-million program aims to reduce reliance on diesel in rural and remote communities by deploying and demonstrating renewable energy, encouraging energy efficiency and building local skills and capacity. It is part of the Government of Canada’s Investing in Canada Plan, a more than $180-billion infrastructure investment over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes and Canada’s rural and northern communities.

As outlined in Canada’s strengthened climate plan, A Healthy Environment and a Healthy Economy, ensuring Canada is a world leader in clean power is a top priority. The government is investing an additional $300 million to give rural, remote and Indigenous communities currently reliant on diesel the opportunity to be powered by clean, reliable energy by 2030. 


“These communities are fighting climate change by taking control of their energy futures and being leaders in the clean energy economy.”

The Honourable Seamus O’Regan Jr.
Minister of Natural Resources

“We are working directly with communities in Labrador to explore the best possible power system options for the people who live there. Ultimately, this project helps inform future renewable energy projects in the area that will reduce diesel use and operating costs.”

Yvonne Jones
Parliamentary Secretary to the Minister of Northern Affairs
Member of Parliament for Labrador

“We are committed to working toward environmental sustainability while balancing our requirement to provide least-cost, reliable electricity service. Studies like this one, generously funded by Natural Resources Canada,  help to further inform our ongoing work to assess opportunities and ultimately reduce our reliance on diesel generation in our isolated Labrador communities where possible.”

Jennifer Williams
President, Newfoundland and Labrador Hydro

Associated links


Natural Resources Canada
Media Relations


Ian Cameron
Press Secretary, Office of the Minister of Natural Resources


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