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The paper advocates for Indigenous-led electricity transmission projects in Canada, moving beyond passive equity stakes to active project leadership. It highlights the economic potential of a national grid, the role of Indigenous ownership in reducing diesel dependency and funding community services, and proposes a financing model using the First Nations Financial Management Board (FNFMB) and the Canada Indigenous Loan Guarantee Corporation (CILGC) to overcome capital barriers.

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  • Canada's electricity system is fragmented and underdeveloped, with over 80% of electricity directed south to the United States rather than east-west between provinces, which limits the ability of Indigenous nations to adopt clean technologies or develop economic projects.
  • Indigenous-led transmission ownership is presented as a solution to both regional grid reliability and Indigenous self-determination, offering stable, bond-like revenue streams that can reduce reliance on federal transfer payments.
  • The authors advocate for a transition from passive equity participation to 'project leadership,' where Indigenous Nations act as promoters who define the vision, select partners, and control strategic decisions regarding corridors and governance.
  • A 2023 report by the First Nations Major Projects Coalition estimated initial investment costs of $27.75 billion in the national transmission sector, with a potential $5.2 billion Indigenous participation specifically for transmission.
  • Ownership of transmission infrastructure provides direct community benefits, such as replacing environmentally harmful diesel generators in remote areas and funding essential services like housing, health centers, and schools through independent revenue.
  • Significant structural barriers exist for Indigenous equity participation, notably Section 89 of the Indian Act, which prevents First Nations from pledging reserve-based assets as collateral for loans.
  • The authors propose a financing model using the First Nations Financial Management Board (FNFMB) to create special purpose entities (ad hoc entities) that can access capital markets at sub-prime rates, supported by guarantees from the Canada Indigenous Loan Guarantee Corporation (CILGC).

Cite the original document

APA
Krupa, & Busch (2026). projets-transport-electricite-diriges-par-autochtones. Canadian Climate Institute. https://institutclimatique.ca/publications/projets-transport-electricite-diriges-par-autochtones/
Chicago
Krupa, and Busch. projets-transport-electricite-diriges-par-autochtones. Canadian Climate Institute, 2026. https://institutclimatique.ca/publications/projets-transport-electricite-diriges-par-autochtones/.
Wikipedia
{{cite report |last1=Krupa |last2=Busch |title=projets-transport-electricite-diriges-par-autochtones |publisher=Canadian Climate Institute |date=9 June 2026 |url=https://institutclimatique.ca/publications/projets-transport-electricite-diriges-par-autochtones/ |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{krupa2026projetstransportelectricitedirigesparautochtones, author = {Krupa and Busch}, title = {{projets-transport-electricite-diriges-par-autochtones}}, institution = {Canadian Climate Institute}, year = {2026}, month = jun, url = {https://institutclimatique.ca/publications/projets-transport-electricite-diriges-par-autochtones/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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