A federal program aimed at installing clean energy systems in First Nations communities has spent nearly $1.88 billion since 2016, averaging more than $9,000 per resident, according to a submission to the Senate agriculture committee. Blacklock's Reporter says the disclosure comes as critics note that diesel generators remain a primary source of heat and electricity in many Northern communities.The Department of Indigenous Services reported that its funding supported 237 energy system projects, 161 of which are completed, benefiting 186 communities and roughly 207,000 people. “These projects will benefit 186 communities serving approximately 207,000 people,” the submission said, equating to $9,083 per capita.Senators were told the program has been successful in helping communities transition from fossil fuels to alternative energy sources including solar, hydroelectric and wind. “The department is supporting First Nations efforts to transition from fossil fuel to clean, reliable and affordable energy systems,” officials wrote. “The department is also working with communities to improve and optimize energy systems,” though no further details were provided.The spending follows earlier reports showing the federal program to replace Arctic diesel generators remains far from its goals. .A 2023 Departmental Plan confirmed the Department of Crown-Indigenous Relations had not come close to eliminating diesel use in Northern hamlets.Originally launched in 2017 as Northern REACHE (Responsible Energy Approach for Community Heat and Electricity), the program was budgeted at $53.5 million to reduce diesel consumption and later expanded to $340.4 million. Managers had pledged to cut diesel use by two million litres by March 31, 2023, but consumption fell by only one million litres, including 368,000 litres in 2021 and 700,000 litres in 2022.Officials noted that hydroelectric and grid interconnection projects can take more than 10 years to develop, leaving many of the federally funded projects at early or pre-development stages. Diesel still fuels 100% of energy production in Nunavut and 50% in Northwest Territories, with roughly 200 Northern hamlets relying on generators for electricity and heat.Darlene Bess, chief financial officer with the Department of Crown-Indigenous Relations, told a 2023 Senate finance committee hearing that phasing out diesel remains a central priority. “A lot of our work is about getting off diesel,” she said, underscoring the slow pace of transition despite billions spent.
