Canada Arctic Energy Projects
Canada’s North consists of the territories of Yukon, Northwest Territories, and Nunavut. These three territories make up 40% of the country’s total landmass. Despite the massive amount of land, Canada’s North has a population of just over 118,000. With a low, sparse and remote population, the current energy infrastructure is limited, and existing infrastructure is aging, which poses challenges to meet future energy needs. A large portion of Canada’s North depends on diesel generators for both electricity and heating, requiring fuel to be transported to remote communities—a process that is costly and poses significant logistical challenges.
To reduce the North’s dependence on diesel power generation, and to identify alternative energy sources, the Government of Canada has allocated a total of CAD 443 million in funding towards the Clean Energy for Rural and Remote Communities program since the program’s launch in 2018. The CERRC program provides funding to rural and remote communities across Canada for clean energy projects. Since 2018, the program has supported over 190 projects nationally. In March of 2025, the Government of Canada announced an additional CAD 11 million in funding to the CERRC program.
A key energy project in reducing the North’s dependence on diesel is the Iqaluit hydroelectric project. Nunavut Nukkiksautiit Corp., in cooperation with the City of Iqaluit and Government of Nunavut, is proposing to construct a large hydroelectric dam on a river north of Iqaluit. The proposed dam would generate 15 megawatts of electricity. The project is still in the consultation phase and is estimated to cost upwards of CAD 500 million. The Government of Canada recently invested CAD 6 million into the project. As of 2025, the projected completion date of the dam is 2033.
Nukik Corporation, in cooperation with the Government of Nunavut and the Government of Manitoba, have created a partnership to construct the Kivalliq Hydro-Fiber link. This proposal would see a link built between Western Nunavut to Manitoba’s hydroelectric grid and fiber network. The project is expected to cost CAD 1.6 billion, and construction is expected to begin in 2028.
The Government of Newfoundland and the Government of Quebec are working on a proposal to upgrade existing facilities and construct a new hydroelectric dam on the Churchill River in Labrador. The proposed Gull Island hydroelectric station would generate an additional 2,250MW of energy. The project is estimated to cost CAD 33 billion. The project is currently in the planning and consultation phase.
The above-mentioned projects, among other energy initiatives in Northern Canada, create many opportunities for U.S. manufacturers and engineering firms involved in the energy supply chain.
The U.S. Commercial Service in Canada is closely following the developments in Canada’s Arctic energy infrastructure. We stand ready to support advocacy and export promotion efforts. For further information, please contact: Commercial Specialist Philipp Fortin