Canada’s largest off-grid Inuit-owned hydro project replaces most diesel in Arctic community

Innavik Hydro on the Innuksuak River. This 7.5-MW, Inuit-owned facility is Canada’s largest off-grid hydropower project. (Photo by Lina Forero)

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It was mid-November 2023 in Inukjuak, Nunavik, when the unthinkable happened.

Nine snowmobiles crashed through the ice and plunged into the dark, Arctic waters. Miraculously, all the drivers, who had been out hunting caribou, managed to scramble to safety. Three skidoos, however, disappeared beneath the surface, too deep to retrieve.

Eric Atagotaaluk, who has spent most of his life in the community, says he has never seen anything like it. The ice — long the foundation of Inuit life — is no longer predictable.

“We used to think that the ice was thick enough to go on it by then,” he says, “but even the fall was so mild that the lakes’ ice was still very thin. It’s hard to predict now because of climate change. It’s getting scary.”

For Inuit hunters, the consequences of climate change stretch far beyond damaged or lost snowmobiles. Thinning, unreliable ice conditions threaten not only their safety but also the community’s access to traditional country food—such as caribou, seal and fish—central to Inuit cultural identity and essential to physical health and emotional well-being.

“We depend on our country food regularly,” says Tommy Palliser, President of the Pituvik Landholding Corporation, and a hunter himself. “But now we can’t hunt comfortably. We’re always worrying about the ice — something we never had to think about before.”

Thinning ice is shortening hunting seasons and making them significantly more dangerous.

Aware of these changing patterns, the community began to think about the world they will leave for their children and grandchildren. Protecting the land — and the ability to live from it — means finding ways to adapt that honour tradition while embracing new possibilities.

“That’s when we started becoming concerned about it and started learning that we have the opportunity to change that. We’re fortunate to have a river that has continuous flow throughout the year, even in wintertime, which allowed us to develop a hydro project,” explains Atagotaaluk, Director of Pituvik Sarvaq Energie Inc., which oversees the Innavik Hydro project, an Inuit-led run‑of‑river hydroelectric plant that is replacing diesel with clean local power.

A clean energy dream realized

Since the 1960s, Inukjuak — ᐃᓄᒃᔪᐊᒃ in Inuktitut, meaning “The Giant” — has relied on millions of litres of imported diesel for electricity, heating and hot water. Its geographic isolation made the idea of a cleaner energy future seem like a distant dream.

Now, that dream is becoming a reality with the Innavik Project, a 7.5-megawatt run-of-river hydroelectric facility, which has reduced the community’s reliance on diesel by 80 per cent, according to Atagotaaluk. Residential electricity needs, including home heating, have now been fully transitioned to hydro power.

Commercial and institutional buildings — about 20 per cent of the total demand — still rely on diesel. Chris Henderson, the founding executive of Indigenous Clean Energy and the project’s primary advisor, explains that converting larger facilities, such as schools, remains challenging because their heating systems are more complex and costly to replace.

Pituvik Landholding Corporation is currently looking for funding to complete those upgrades.

Unlike large hydro dams, run-of-river systems generate electricity from a river’s natural flow without creating major reservoirs, reducing environmental disruption.

The trust-building journey behind the project

The Innavik project required years of environmental studies, negotiations and community consultation.

“You have to study the environment, understand the wildlife and bring the community on board. You have to find partners, negotiate with the local utility (Hydro-Québec), get governments on side and secure funding,” says Chris Henderson, founding executive of Indigenous Clean Energy and the project’s advisor. “It takes fortitude to push through all of that. But ultimately, it’s the community that makes it possible. Without the community, none of it happens.”

One of the biggest challenges was ensuring the safety of Inukjuak’s drinking water throughout construction and after the hydro project became operational. Project leaders described a lengthy process of community consultation and communication to make sure that all concerns were addressed. Without any previous or similar northern hydro examples to show the community, they were asking residents to trust in a vision that had never been proven in a place like Inukjuak, making the project a real risk, but one that ultimately paid off.

“We were trying to look for other examples or other projects that are on their drinking water source, and we couldn’t find any in Canada. So, we sort of used ourselves as guinea pigs… hoping that this project would be as minimally impactful as possible to our drinking water source,” reveals Palliser.

Palliser said many community members feared that construction and the hydro project itself could pollute the river with mercury, affecting both the water supply and fish.

Sarah Lisa Kasudluak, vice president of the Pituvik Landholding Corporation, also recalls that many of the concerns focused on land, water, and animals. “Their concerns were right, and we addressed each question with an answer with consultants, specialists… each question that they had, we made sure to get the right answer. And that was how things got rolling.”

Updates were shared through the local radio station, Tuulliup Nipingat FM — the community’s primary source of information.

“It is an outlet for the community, for all that’s happening. That’s our number one source for information — It’s our information station.”

During construction of the Innavik Project, a team member visited the local radio station each week to update the community on daily water-quality testing. Since completion, testing has moved to a weekly schedule with public updates provided annually, according to Atagotaaluk. The project team still submits weekly water-quality reports to the Quebec government, and any unusual results are immediately communicated to the community via radio.

“In 2019, before the project began, we studied the fish species in the area and assessed their health,” he explains. “We conducted two fish surveys,” says Atagotaaluk. “The first was in September 2009 and the second in July 2019.” He recalls that each lasted about two weeks.

“Now that the facility is in operation, we’re required to conduct follow‑up studies at the five‑year, 10‑year and 15‑year marks to track any potential contamination.”

Still, some community members have mixed feelings about the project.

Former Inukjuak mayor Pauloosie Kasudluak feels the initial fish studies should have been conducted for a longer period to gather more data.

He explains that the river is home to many species — lake trout, brook trout, whitefish, Arctic char, suckerfish and others. Species like Arctic char may migrate upstream, but not every year. Kasudluak worries that important information about these fish and their movements may have been missed due to the short study period.

While fish studies were conducted in 2019, additional research is ongoing to assess the environmental impacts of building a dam on permafrost in Inukjuak. Researchers at the University of Montreal are continuing environmental monitoring, including an assessment of the impacts of infrastructure development on permafrost.

Atagotaaluk says the concerns were understandable.

“I understand in a way they were afraid that we were going to damage the river. We ourselves were questioning it, even though we were part of the development team. We were kind of unsure. Are we risking damaging the river? It’s our water source. There’s fish there. We still use it for fishing.”

Yet over time, he says, the community has been learning that it is possible to develop a hydro project responsibly.

“As hunters and fishers who depend on the land, we had fears about the environmental impacts.

And now that [the project] has become a reality. We’re starting to see, at least in the earlier stages, that impacts have been very minimal so far,” Atagotaaluk says.

A milestone of community pride

Another marker of this transition to cleaner energy is the quiet. The constant hum of a diesel-powered generator, which not long ago characterized the community’s energy production, has finally faded into silence.

“This is the power plant that is no longer running since our run-of-the-river has been producing electricity,” says Kasudluak. “This plant burned millions of litres a year to sustain the community’s electrical needs and heating. It was our main source of electricity.”

The Innavik Hydro project, fully operational since the fall of 2023, is cutting emissions and stabilizing long-term energy costs.

“We are very proud,” she says. “We’re not 100 per cent yet — but we’re getting there.”

Learning by doing

It took 20 years for this project to finally get off the ground — so long that many people began to doubt it would ever happen.

“There was a time, during the development stage, when it was kind of dormant, when there was nothing happening. It was people saying that it wouldn’t happen at all,” recalls Atagotaaluk

He remembers that at the beginning, they had no idea how to develop a project like this, but thanks to the guidance and support of the people around them, they learned as they went. And because it was such a learning experience, they are now eager to share it with others.

“With all the challenges we went through, it makes you want to share that experience,” Atagotaaluk reflects. “If someone else is going to go through this, we’re happy to share what we learned and the challenges we faced.”

Patience was perhaps the most important factor. As Sarah Lisa puts it, “You have to be hopeful if you want things to change. I think patience is key to that.”

Powering economic growth

Rooted in the community’s commitment to reducing greenhouse gas emissions, the project is expected to create lasting environmental, social and economic benefits for nearly 2,000 residents.

Under a 40-year power purchase agreement signed in 2019, the community sells surplus electricity to Hydro-Québec.

Palliser says the project is projected to generate about $4 million annually in its first seven years, then about $2 million per year for the following 15 years, before declining to roughly $1 million annually.

Those revenues — expected to total tens of millions of dollars over four decades — will be reinvested locally.

“We want to use that money as seed funding,” Palliser says.

Their vision is to grow the initial $4 million to $40 million by attracting additional resources and supporting local organizations — all while ensuring a reliable, clean energy supply that can sustain Inukjuak’s growth for the next four decades.

The project’s revenue will support educational, social and infrastructure programs, as well as traditional cultural initiatives for children, youth and elders.

One such initiative is Unaaq, the Men’s Association of Inukjuak. Founded in 2004, the program pairs young men with Elders to reconnect them with traditional skills and cultural knowledge.

“This is where our young men are taught traditional carpentry skills and how to make traditional equipment they will use throughout the winter, as part of the programs we teach,” Palliser says, standing in Unaaq’s workshop. “They learn how to use it to provide country food for their families and the community. It builds pride.”

Like the Unaaq, other initiatives aim to strengthen intergenerational knowledge-sharing and cultural continuity.

“We will decide on how we want to use the – whether it’s for traditional practices, training, cultural activities, our language protection, our own [Inuktitut] language,” explains Atagotaaluk.

Kasudluak also shares her dream of having a dedicated space where everyone can learn about traditional knowledge and come together for community events. “I always talk about the cultural centre, which can also be a healing centre,” she says. ”With the funding we are going to be receiving, there’s the social aspect, the education aspect, and the socio-economic development aspect.”

“This is going to be a big change for the community, and it will really enhance our lives.”

Partnerships that made it possible

The $125 million project was financed through a mix of loans, grants and partnerships. In 2020, Pituvik entered a 50–50 partnership with Innergex, a Québec-based renewable energy producer with experience working alongside Indigenous communities.

“We found a partner experienced in renewable energy projects — not just hydro — with a history of working alongside Indigenous communities,” says Atagotaaluk. “That experience mattered because we needed someone who understood our priorities.”

Innergex supported the Pituvik Landholding Corporation in navigating the power purchase agreement with Hydro-Québec, the construction process, and environmental assessments required to move the project forward.

From Innergex’s perspective, the partnership was built on respect and collaboration. “We were invited to support the community in building their project. We would not have gone there to impose anything, and that makes a world of difference,” says Michel Letellie, former President and CEO of Innergex. “This is their project. They are the ones who initiated it and who will live with that infrastructure in their territory. We’re proud to contribute, but our role was to support.”

Building trust was key to the partnership’s success. Letellier notes that many communities have had difficult experiences with companies that made promises they did not keep. “We knew we had to be fully transparent,” he says. “It wasn’t easy at the beginning, but as we’ve worked together and delivered strong projects with [other] communities, that experience has helped build trust and made it easier for communities to see Innergex as a partner.”

Beyond financing and technical expertise, Letellier thinks the partnership contributed to something less tangible but equally important: self-confidence. “There’s one thing that is not necessarily dollars, but it’s their ability to believe in themselves, to think that they should allow themselves to dream of their ability to own and to be a partner on a project like that. “That sense of pride is powerful, especially for younger generations who can now look at this project and say, ‘That’s ours. That’s what powers our community, our village.”

While construction began in 2020 and the project was completed in 2023, it was nearly a decade in the making, from the first conversations in 2014 to the first kilowatt produced. The timeline reflects the realities of working in a remote region, ensuring community understanding and support, and navigating unexpected challenges, including building through the COVID-19 pandemic.

The path to 2030

For Inukjuak, the shift to hydro is not only about energy — it’s about sovereignty, resilience and building safer futures for generations to come.

“It’s a very exciting thing for our community, and for future generations too. Now, as the world moves toward cleaner energy, I think we have an important role to play,” says Aleashia Echalook, a mother of three and the youngest board member of the Pituvik Landholding Corporation.

To ensure transparency and accountability, the corporation is establishing a trust fund and committee to manage revenues.

“We want to make sure that we’re responsible, that we spend the money responsibly and transparently to make sure that the community understands and is a part of the decision-making process on what the money will be used for,” adds Palliser.

The community is also exploring next steps — partnering with Concordia University’s Voltage program to research electric and hybrid vehicle options and working with Quebec’s transport ministry to secure funding for electric minibuses.

But their plan goes beyond vehicles: they envision building a complete local EV ecosystem — training technicians, creating a dedicated garage and installing charging stations to serve as a hub for all electric vehicles in the community.

“We want to be net-zero by 2030,” Palliser says. “And I think we’re off to a good start.”