A Path Forward for Collaboration on the Iqaluit Water Power Project: MOU Signed Between QEC and NNC

Press Release

Memorandum of Understanding Signed Between Qulliq Energy Corporation and Nunavut Nukkiksautiit Corporation for Developing a Commercial Framework

The Iqaluit Nukkiksautiit Project (INP) achieved an important milestone on August 29th, 2025, with the signing of an MOU between its owner, Nunavut Nukkiksautiit Corporation (NNC), and the territorial electricity utility, Qulliq Energy Corporation (QEC). Both parties have been working towards this achievement for more than a year, and with its execution, now have a strengthened foundation from which to define a detailed commercial relationship for the potential future sale of water power.

“I’m very happy to see both organizations continuing to find common ground and working together for the betterment of Qikiqtani Inuit. The INP is a nation-building project, the study of which QIA fully supports. It is an enormous opportunity to make sure that as Iqaluit grows, it does so in an environmentally and culturally sensitive way. This MOU demonstrates that projects can be advanced through collaboration between Inuit Organizations and the Territorial Government, in a way that prioritizes and respects the Rights of Inuit,” said Olayuk Akesuk, President of the Qikiqtani Inuit Association.

With an estimated 15 – 30 MW capacity, this traditional hydroelectricity development proposed for the river near Kuugaluk, (~60km north of Iqaluit) aims to replace diesel power as the primary source of electricity for Iqaluit, Canada’s Northernmost Capital City (population: ~7,500). In response to feedback from public engagement this year, the project will also explore opportunities to provide electricity for heating and potential industrial uses. So far, the development has included a rigorous review of all possible renewable energy options for Iqaluit, the selection of a preferred site and technology via public ranked ballot vote (with 76% consensus), preliminary engineering and geotechnical work, and the first season of field data collection programs, which are currently still underway.

Harry Flaherty, CEO of NNC and Qikiqtaaluk Corporation shared, “This is a very encouraging achievement for the relationship between NNC and QEC. There are still several phases of approvals this project must go through before it can be considered for construction, so Qikiqtani Inuit still have many opportunities to share feedback, voice concerns, and help shape the development. Getting an early start on agreements like this helps to ensure smooth and timely development once we have a clear understanding about any potential environmental sensitivities at Kuugaluk, and consent from Inuit. It’s our priority to follow the community’s lead and deliver clean, renewable power as efficiently as we can, and to end the dependence on diesel, which we know has many harmful effects on the land, air, and water.”

Nunavut Nukkiksautiit Corporation, a wholly-owned subsidiary of Qikiqtaaluk Corporation (Inuit Birthright Development Corporation under the Qikiqtani Inuit Association), was created in response to the desire and opportunity to develop renewable energy in partnership with communities across the Qikiqtani Region. The 100% Inuit-owned company is taking the lead on realizing Inuit-owned major clean infrastructure, in a way that prioritizes respect for the environment and wildlife, Inuit societal values and knowledge, and free, prior, informed consent.

The MOU states that, should the INP be built, a power purchase agreement (PPA) between the owning entity and QEC will serve as the main commercial document, dictating the sale and price of both water power, and ancillary services. The MOU itself does not provide basis for a binding agreement between NNC and QEC, but rather, an outline of the parties’ mutual objectives and intentions at this stage. Its goal is to establish the key agreements that will be negotiated between the parties, creating an overall commercial framework for the INP.

“This MOU marks a significant step in our shared journey toward a cleaner energy future for Nunavut. QEC is proud to partner with NNC in exploring a reliable, renewable alternative to diesel power for Iqaluit. By working collaboratively with Inuit organizations and respecting community input at every stage, we’re helping to lay the groundwork for energy solutions that reflect the values and aspirations of Nunavummiut,” said Ernest Douglas, President and CEO of QEC.

The MOU also states that “QEC acknowledges the importance of transitioning to clean energy and is committed to collaborating with NNC in development of the INP in a manner that incorporates feedback from community Rightsholders and that is in the best interest of electricity users, the community, the environment generally, and the River at Kuugaluk.”

Minister John Main, Minister Responsible for QEC, remarked, “The signing of this MOU is a meaningful example of how the Government of Nunavut and Inuit organizations can come together to advance infrastructure projects that benefit both people and the environment. As Minister responsible for QEC, I fully support this continued collaboration and the potential of the Iqaluit Nukkiksautiit Project to contribute to energy security, economic development, and environmental stewardship in Nunavut.”

The next step in this process is developing a “Heads of Terms” document, that will include the essential terms of all key agreements defined in the MOU, with respect to generation and transmission components of the INP. The MOU is in effect until September 30, 2026, at which time it will be up for renewal, and likely involve incorporation of progress made over the coming year.

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