Recent increases in energy prices have made alternative energy systems more economic in the Northwest Territories. Concerns about climate change and the need to reduce greenhouse gas emissions from the use of fossil fuels when producing heat or electricity provide a further reason to develop the use of alternative energy sources.
ENR administers a number of programs and initiatives to support the development of various alternative energy technologies in the NWT. The successful application of new technology in the NWT often depends on demonstration projects to test feasibility and develop local skills. Once a technology has been demonstrated feasible it can be incorporated into homes and businesses.