Individual Research and International Projects

Understanding and defining the various ways Indigenous communities and businesses can participate in the renewable energy industry is important for Indigenous communities and businesses, but also for the renewable energy industry. One example of the ways in which Indigenous communities have used a community energy “vision” and moved forward with projects is the Pic River First Nation in Ontario and the development of Pic River Energy. Pic River started their journey with the understanding that economic development and politics can and should be separated in the community (Krupa, 2012). Their community had a vision for their renewable energy future in which they could address various social and environmental issues as well the high unemployment rate in the community and establish ways to create economic wealth for community members and the community as a whole. Over the past 30 years, Pic River First Nation has blazed a trail forward in energy and renewable energy and has successfully become a renewable energy developer and created a wealth of opportunity for their members (Krupa, 2012). Pic River Energy is rooted in principles from their Elders such as water is sacred, no projects shall interfere with their relationship to the land, community members are heard, and the importance of future generations (Pic River Energy, 2019). These values are combined with the

an organization that has been hugely successful. Being 100% Indigenous-owned means the company retains the benefits that come from the development process all the way through to the income from the generation of electricity (Pic River Energy, 2019). While this example provides an equity and development participation opportunity for the Pic River First Nation, this model is not necessary the best starting point for all communities.

Participation in a renewable energy project can take three main forms; however, within these three areas is flexibility in how the projects are structured to maximize participation. Figure 12 illustrates the main structures for Indigenous participation (First Nations Power Authority, 2019). The first is equity participation, which is often talked about as being the goal. While equity participation is excellent in terms of providing returns to the community, it also comes with risks. Depending on the community’s financial capacity, experience, and risk tolerance, a pure equity participation in a project may not be the best option. The second is economic participation, which can be in the form of a royalty or other type of payment. Economic participation can also include contracting opportunities for Indigenous businesses as well as employment and training opportunities for community members (First Nations Power Authority, 2019). A large renewable energy project has a variety of contracting opportunities and being the successful proponent on the contracts could lead to millions of dollars in economic development opportunity for the Indigenous business or economic development corporation involved. The third form of Indigenous participation is through governance and decision-making. Renewable energy projects are governed by boards and committees at each stage of the project from

development through to construction and commercial operations (First Nations Power Authority, 2019). Creating opportunities for Indigenous participation throughout the governance process is important to ensure knowledge transfer and capacity building for future renewable energy

opportunities. In a perfect world, true Indigenous participation in a project would include all three aspects: the community would have an equity participation in the project where a return on investment is aligned with the community’s risk tolerance; they would have opportunity to secure 50% or more of the contracting opportunities with companies or contractors that are capable of conducting the work (First Nations Power Authority, 2019); and they would have a seat on all boards and committees making decisions regarding the project. Early and ongoing participation throughout the project is the best way to ensure genuine capacity building and knowledge sharing. This serves two purposes: for the Indigenous community members to learn

and, even more importantly, for industry and developers to understand the needs, visions, and culture of the community and ensure it is included in the project (First Nations Power Authority, 2019).

Figure 5-5: Indigenous participation in renewable energy projects (First Nations Power Authority, 2019).

Developing a CEP can be the first step to preparing a community to participate in large-scale renewable energy projects. Developing a CEP according to the concept map in Figure 11 can assist a community in understanding the opportunities and risks associated with various renewable energy projects available to them. As noted above, Krupa (2012) describes the barriers to Indigenous participation in renewable energy development in Canada as being cash, capacity, clarity for the long term, circumstances, and lack of legitimacy. A CEP can support a community in addressing these barriers in a variety of ways. A CEP can be used as a tool for understanding and accessing financing for renewable energy projects. Starting with a CEP will ensure the community has a vision for renewable energy development for the long term. Through community engagement and collaboration with other community planning processes, the CEP can help to address some of the major social and economic challenges in Indigenous

communities. The CEP process can be used as educational tool to provide communities, leadership, and staff with education with respect to the benefits and challenges of various renewable energy technologies. This can reduce the challenge of lack of legitimacy and well equip the community for genuine participation in a large-scale project.