A Solar First for Canada's Remote Communities

Ulkatcho First Nation and BC Hydro aim to cut diesel use by 64% through new solar-battery project

12 Jun 2025

A major renewable energy project has begun in Anahim Lake, British Columbia, where BC Hydro and the Ulkatcho First Nation are constructing Canada's largest off-grid solar and battery microgrid. The system is designed to sharply reduce reliance on diesel power in the remote community.

The partnership agreement was signed in April 2024, with construction starting on June 11 this year. Completion is expected in summer 2026. At its core will be a 3.8-megawatt solar farm combined with large-scale battery storage and a digital control platform to manage supply. Once operational, the project is forecast to displace about 1.1mn litres of diesel annually, equivalent to 64 per cent of current use.

Supporters say the development will cut greenhouse gas emissions, reduce fuel shipments and improve reliability of electricity supply. Engineers involved argue it could serve as a model for other isolated communities where extending the provincial grid is uneconomic. "Digitally enabled microgrids are no longer pilots, they are becoming critical infrastructure where conventional solutions fail," said a representative of engineering partner Hatch.

For BC Hydro, the scheme represents an investment in renewable infrastructure, while for the Ulkatcho Energy Corporation it marks progress towards energy sovereignty and greater local control. Policymakers have highlighted its alignment with national climate goals and reconciliation commitments, which could attract further public funding for similar ventures.

High upfront costs remain a challenge for solar and storage projects in remote areas, alongside the need for training to support community-led operations. Diesel generators will continue to provide backup during prolonged cloudy weather.

Despite these constraints, the Anahim Lake microgrid is being viewed as a milestone in Canada's clean energy transition and a possible template for future projects in hard-to-reach regions.