Canada Infrastructure Bank invests in wind project to power hamlet of Sanikiluaq, Nunavut

A bit of history was made in the Inuit hamlet of Sanikiluaq on June 11. 

It was announced that the Canada Infrastructure Bank (CIB) has reached financial close on its first investment in Nunavut.

The $6.7 million loan will result in a life-changing clean energy project in Sanikiluaq. The initiative, which is called the Anuriqjuak Nukkiksautiit Project (ANP), will feature a one-megawatt wind turbine and a one megawatt-hour energy storage system. 

The project is expected to offset up to 70 per cent of Sanikiluaq’s diesel usage.

“In Nunavut all of the communities are relying on diesel,” said Hillary Thatcher, CIB’s managing director of investments. “So, this will be a community that will see a significant reduction in diesel consumption for electricity. And that’s good for the environment. It’s good for the community. And it’s good for human health and well-being. So, this is a really exciting project.”

Thatcher, who leads CIB’s relationships with Indigenous communities, believes others in the Canadian territory will try to quickly follow suit once they see the success of the ANP. 

“Because all of the communities in Nunavut are relying on diesel, this is a model than can then be replicated,” she said. “So, once you do one, you can see the other 25 Inuit hamlets looking at opportunities to significantly reduce their diesel consumption, whether it’s through solar and battery storage or a wind turbine.”

Thatcher said discussions are already underway to help move other projects forward in the territory.

This includes the Nunavut capital city Iqaluit, which is looking to construct a hydro project.

“That would hopefully offset diesel completely in the city of Iqaluit,” Thatcher said.

The ANP has been in development since 2016, but it was only last year that officials with the project entered into a Power Purchase Agreement (PPA) with the Qulliq Energy Corporation, the energy utility run by the Nunavut government, Thatcher said.

“Integrating renewables into the diesel grid in Nunavut is challenging, especially because of the remoteness, and because of the integration with diesel is not quite the same as integrating into a larger transmission system,” she said. “So, each community has sort of like a microgrid if you think about it. And the number one priority in Nunavut is reliability. And so, diesel is just the most reliable source of power.

“To shift up and to try to integrate renewables is challenging. So, it’s taking a long time to get an agreement and enter into a PPA to make an economic project.”

Thanks to the CIB investment, the project is now moving ahead. The power that will be generated from the project will be sold and integrated into Sanikiluaq’s grid.

“The turbine is on order and it shall be delivered in the near term,” Thatcher said. “And they’ll be able to begin construction. All of the permitting is completed. They’ll be able to begin construction and potentially have construction completed by end of next year.”

The funds being provided for the ANP is through CIB’s Indigenous Community Infrastructure Initiative.

Besides reducing diesel consumption in the hamlet, the ANP is expected to have other benefits as well, with about 20 jobs created during the peak of construction. And via a profit-sharing model, there will be long-term economic benefits. Revenues from the project are expected to provide equipment for schools, daycare and social programs.

Gregor Robertson, the federal minister of housing, infrastructure and communities, is among those heaping praise on the CIB’s investment for the ANP.

“This milestone represents transformative progress in Nunavut's transition to clean energy,” he said. “By integrating renewable energy into the local grid, this project will contribute toward reducing diesel consumption, lowering greenhouse gas emissions, and enhancing energy security for Sanikiluaq.”

Johnny Appaqaq, Sanikiluaq’s mayor, also endorsed the initiative.

“I fully support the wind project,” he said. “It benefits the community as a whole, socially, economically and environmentally. It also shows Sanikiluaq is willing to be a supportive partner of projects like these in the future.”

Ehren Cory, CIB’s CEO, is pleased to be helping a Nunavut community reduce its diesel reliance.

“Beyond reduced emissions in the region, there are also important community benefits which will improve education, social services and more,” he said.

Though the ANP is the first CIB-funded initiative in Nunavut, it is not the first one in one of Canada’s three territories.

This past February the CIB invested $100 million into the Inuvialuit Energy Security Project in the Northwest Territories.

Local Journalism Initiative Reporters are supported by a financial contribution made by the Government of Canada.