Many First Nations rely on oil, large-scale hydroelectric power, and nuclear power to meet their energy needs. Many communities located in the south are connected to a large grid system. This grid system is usually fed from a large-scale energy production plant, such as large-scale hydroelectric dams (in Manitoba and Ontario), coal or natural gas (in Alberta and Saskatchewan) or nuclear (in Ontario, Quebec). Climate change will affect the cost of energy in First Nations and the supply of energy to these communities.
In some hydroelectric-dependent First Nation ‘on-grid’ communities, the production of energy may decrease if water flow levels decrease. If precipitation levels are lower where hydropower production originates, capabilities of production will decrease. This is particularly a concern in potentially drought-prone areas such as the Prairies and in the Great Lakes – St. Lawrence region, where higher evaporation rates due to warmer temperatures would likely lower present water levels (Mayer 1998; IPCC, 2001). It is also a concern in British Columbia as a result of melting glaciers and decreased snow cover in the Rockies (C-CIARN, 2006). As the amount of energy produced decreases, the need to import energy from other grids increases. This increases costs to receive energy and would likely add to the financial stress First Nations are currently experiencing.