Reducing reliance on diesel

Remote communities rely strongly on diesel fuel. This source of energy comes with negative impacts. Our government is working to reduce reliance on diesel fuel and transition to renewable energy.

Support to reduce reliance on diesel in Canada’s rural and remote communities

There are approximately 200 remote communities and industrial sites across Canada that rely on diesel fuel for electricity generation and heat. Many of these communities, which are not connected to the continental grid, are Indigenous or have significant Indigenous populations. While diesel generation is a well-known reliable source of energy in these communities, it comes with many environmental, social and economic disadvantages.

The Pan-Canadian Framework on Clean Growth and Climate Change (PCF) commits federal, provincial and territorial governments to work together to reduce greenhouse gas (GHG) emissions in Canada. Transitioning Canada’s rural and remote communities toward secure, affordable and clean energy will be supported by federal programming that will:

  • build more resilient electricity infrastructure and diversify the generation mix
  • demonstrate and deploy renewable energy technologies
  • implement energy efficiency and emission-reduction solutions and standards
  • build community skills and capacity

Our government is also working with key partners to develop a plan and timeline for deploying innovative renewable energy and efficiency alternatives to diesel in the Arctic as committed under the Joint Arctic Leaders’ Statement and is among the themes being discussed in collaboration with northerners in the drafting of a new Arctic Policy Framework. Deployment, demonstration and integration of energy efficiency and renewable energy technologies present opportunities to support a transition away from diesel. Energy efficiency and conservation measures reduce overall energy demand and can provide savings to communities ahead of adding new generation capacity. Renewable energy sources such as wind, solar, hydro, geothermal and biomass can make use of locally available resources while reducing environmental and health impacts, and create opportunities for local economic development.

Clean Energy for Rural and Remote Communities

$220 million over six years to support clean energy infrastructure projects that reduce reliance on diesel in off-grid, rural and remote communities, and industrial sites across Canada including:

  • demonstrating innovative technologies to reduce diesel use
  • deploying renewable energy technologies for electricity and forest-based biomass heating solutions
  • building capacity to support communities

Program: Clean Energy for Rural and Remote Communities: Natural Resources Canada

Northern Responsible Energy Approach for Community Heat and Electricity

$53.5 million is committed over 10 years for the deployment of renewable energy projects in northern communities to reduce their reliance on diesel for heating and electricity through the use of local renewable energy sources and energy efficiency.

Program: Northern Responsible Energy Approach for Community Heat and Electricity (Northern REACHE): Indigenous and Northern Affairs Canada

Related programs

Find out what else the Government of Canada is doing to reduce diesel reliance: Related programs for reducing reliance on diesel in remote communities.

Project eligibility

Find out if your project could be eligible for funding: Reducing Reliance on Diesel for Electricity and Heat in Remote Communities.

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