Funding Sources
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Introduction: Funding Sources
Several programs provide financial support to assist Indigenous communities in developing renewable energy projects, such as:
Clean Energy for Rural and Remote Communities (CERRC) Smart Renewables and Electrification Pathways Program (SREPs) First Nations Major Projects Coalition (FNMPC) First Nations Climate Initiative (FNCI) Canada Infrastructure Bank (CIB) IESO Indigenous Energy Support Programs IESO Education and Capacity Building Initiatives Indigenous Energy Projects Indigenous Community Energy Plan (CEP) Program
The suitability of the program depends on the kind of project being undertaken. This lesson provides details about these programs.
Clean Energy for Rural and Remote Communities
About the program:
The Clean Energy for Rural and Remote Communities (CERRC) program provides funding for renewable energy and capacity building projects and related energy efficiency measures in Indigenous, rural and remote communities across Canada.
The program is working to reduce the use of fossil fuels for heating and electricity by increasing the use of local renewable energy sources and energy efficiency. This creates environmental, social and economic benefits to support healthier and more sustainable communities.
Investing in clean energy solutions in Indigenous communities is a small but important link to energy security, reconciliation, self-determination and economic development for Indigenous Peoples.
Funding available:
This program has provided $217.8 million in funding for capacity building, large capital projects, innovation projects, and bioheat projects since 2017. An additional $300 million is available until 2027.
Links:
Programs page: https://natural-resources.canada.ca/reducingdiesel
Contact information: nrcan.remoteenergy-energieadistance.rncan@canada.ca
Smart Renewables and Electrification Pathways Program
About the program:
The Smart Renewables and Electrification Pathways Program (SREPs) provides approximately $4.5 billion until 2035 for smart renewable energy and electrical grid modernization projects. This includes nearly $3 billion for the program announced in Budget 2023, which builds on hundreds of millions of dollars in successful funding to support projects that are actively supplying clean, affordable, and reliable power to Canadian electrical grids. This program will significantly reduce emissions and create sustainable jobs by continuing to support the deployment of energy storage and renewables in every region of Canada.
Funding available:
SREPs provides up to a maximum of $25 million to eligible renewable energy and grid modernization projects during the construction phase. Projects must use market ready technologies and apply workplace equity, diversity, and inclusion components.
Mandatory outcomes of the program are to: Decrease greenhouse gas emissions from Canada’s electricity system; Increase the number of electricity system assets that can contribute to system reliability; Generate economic and social benefits, including job creation and increased equity, diversity and inclusion in the energy sector; and Increase renewable energy capacity or increase electrical grid accommodation of renewable energy; Where applicable, the program will also increase meaningful Indigenous ownership of, and benefits from, smart renewable energy projects. Projects eligible for funding are large-scale renewable energy projects capable of providing grid services, energy storage or grid modernization projects. For information on eligibility, please refer to the Generation and Storage Applicant Guide or the Grid Modernization Applicant Guide.
Links:
Programs page: https://natural-resources.canada.ca/climate-change/green-infrastructure-programs/sreps/23566
Contact information: sreps-erite@nrcan-rncan.gc.ca
FNMPC and FNCI
About First Nations Major Projects Coalition (FNMPC)
FNMPC is a national non-profit organization established by First Nations for First Nations. Under our broad mandate, FNMPC provides our First Nation members with access to tools, knowledge, and advice used to make free, prior, and informed business decisions about First Nation involvement and participation in major natural resource and infrastructure projects. Our services focus on supporting the economic, environmental, and public policy interests of our members in a non-political and business focused way.
About First Nations Climate Initiative (FNCI)
The First Nations Climate Initiative (FNCI) is an Indigenous-led collaborative forum dedicated to the fight against climate change, alleviating First Nations’ poverty, restoring ecosystems in First Nations’ traditional territories, and enabling Indigenous people to be leading actors in the decarbonized economy. By bringing together First Nations, other governments, climate experts, industry, and other key stakeholders, FNCI is accelerating the development of climate solutions and growing economic opportunities for First Nations.
Funding
These initiatives have received funding to increase Indigenous participation in major project development, with $2.6 million for FNMPC and $1 million for FNCI.
Canada Infrastructure Bank
About Canada Infrastructure Bank (CIB)
CIB’s purpose is to invest in revenue-generating infrastructure which benefits Canadians and attracts private capital. They are a catalyst for private investment in projects that support economic growth, and are working on investment opportunities, from coast to coast to coast, which reflect our priority sectors for investment – green infrastructure, clean power, public transit, trade and transportation and broadband infrastructure.
Their priority sectors are: Public Transit Clean Power Green Infrastructure Broadband Trade and Transportation
Description of the Clean Power priority sector from their website:
“Clean power is particularly important in addressing the infrastructure gap in Indigenous and northern communities. New investment is required to improve electricity interties and advance clean power generation, distribution and use, such as with renewables and storage systems.
Through our innovative low-cost financing and risk balancing, we can help address gaps in the capital structure of projects such as renewables, district energy systems, energy storage and more.”
Description of the Green Infrastructure priority sector from their website:
“Green infrastructure investment supports Canada’s ongoing transition to a clean growth economy. Energy efficient building retrofits as well as electric and hydrogen refuelling infrastructure can have long-term impacts on Canada’s climate related goals and related outcomes.
Our Investment and Advisory teams work with a variety of public sector entities (particularly provincial and large municipal) and private sector partners to develop the next generation of green infrastructure.
Investment in large-scale projects crowds in private capital where investment from the private sector has traditionally been limited due to the uncertain nature of expected cost savings. Our experts developed a mainstream, broadly marketed debt product to attract new market participants.
We provide accessible debt financing for infrastructure which reduce GHGs over the projected life of financed assets. Our investments also create employment opportunities.”
Links:
Programs page: https://cib-bic.ca/en/work-with-us/investment-process/
Contact information: contact@cib-bic.ca
IESO Indigenous Energy Support Programs
About the program:
The IESO offers a range of Indigenous funding programs to help make Ontario’s electricity system cleaner, greener, and smarter. The funding programs of the IESO promote broad equitable participation in Ontario’s energy sector by supporting community capacity building, including energy planning and renewable energy development, as well as the building of energy knowledge and awareness, and skills related to energy projects.
Education and Capacity Building
The Education and Capacity Building (ECB) Program provides funding to support awareness, education, skills, and capacity building initiative that help prepare First Nation and Metis communities and organizations to fully leverage energy opportunities and contribute to cleaner, more reliable, and more affordable energy systems.
Indigenous Community Energy Plan Program
The Indigenous Community Energy Plan (ICEP) Program provides funding to support First Nation and Metis communities and organizations to develop and maintain an updated community energy plan designed to enhance community energy security.
Indigenous Energy Projects Program
The Indigenous Energy Projects (IEP) Program provides funding support to First Nation and Metis communities and organizations to assess and develop energy projects and partnerships.
Programs page:
https://www.ieso.ca/Get-Involved/Indigenous-Relations
IESO Long Term RFP
The Long-Term RFP by IESO seeks resources that can be in service between 2026 and 2028 to address global and regional needs. This procurement is part of the IESO’s broader Resource Adequacy Framework – an enduring approach to identifying the type of acquisition activity to use to resolve system needs. The framework contemplates a multi-pronged approach to secure resources, generally based on the length of the contract term.
Programs page:
https://www.ieso.ca/en/Sector-Participants/Engagement-Initiatives/Engagements/Long-Term-RFP-Community-Engagement
Net Metering
With net metering, you can generate renewable electricity for your use, while sending excess power to the grid for a credit.
How net metering works
1. Renewable energy systems generate electricity from renewable sources. For example, solar panels convert energy from the sun into electricity.
2. Your home or business uses electricity from the renewable energy system and your utility’s electricity grid when needed.
3. When the renewable energy system produces more electricity than you can use, the excess electricity flows into your utility’s grid.
4. Your utility measures the electricity you use from, and send to, their grid.
5. Your utility bills you for the electricity you consume from their grid, and gives you a credit on your electricity bill in return for the renewable electricity you sent to the grid. If you have credits left over, they can be carried over to future bills for up to 12 months.
To be eligible for net metering, you must be generating renewable electricity primarily for your own use. You will have to enter into a net metering agreement with your utility to send any excess renewable electricity to their grid in exchange for on-bill credits.
You will also need to apply to your utility to connect the renewable energy system to their grid and meet their technical, safety and inspection requirements.
Before investing in a renewable energy system for net metering purposes, contact your utility to confirm that you’re eligible and that the renewable energy system can be connected to their grid.
Learn more:
https://www.oeb.ca/consumer-information-and-protection/net-metering
Summary
We learned about several programs that provide financial support to assist Indigenous communities in developing renewable energy projects.
These programs are part of Ontario's broader efforts to support Indigenous leadership and participation in the clean energy transition, promoting sustainability, economic development, and energy independence for Indigenous communities.
Please note that program information and application processes change. For the latest information, consult the program website.