[4] Low population, severe weather, and remoteness of transportation and construction technology make long distance high voltage grids unviable.
This dependence on diesel presents its own set of environmental and economic impacts, leaving the territory vulnerable to world energy price fluctuations.
[7] However, Quilliq Energy does not have an adequate revenue surplus or borrowing ability in order to fund the project on its own, especially as 13 of the existing 25 diesel-fired power stations across the territory are in need of replacement.
[7] In numerous communities across the Canadian north, renewable energy projects using solar panels, wind turbines, and hydroelectric power plants are being pursued.
Additionally, Nunavut is also pursuing independent power production in the form of solar panels on schools, healthcare facilities, and municipal buildings.
[11] In 2023, a wind turbine was installed in the community of Sanikiluaq, making it the first in the territory to generate renewable energy without reliance on diesel plants when "system conditions permit."