Small-scale biomass combined heat and power systems in remote indigenous communities: Economic, social and environmental sustainability challenges amid policy misalignment

Abstract

This study evaluates the sustainability impacts of small-scale biomass combined heat and power (CHP) systems in remote communities, focusing on the case of Kwadacha, a remote Indigenous community in British Columbia. The analysis compares the biomass CHP system implemented in 2016 with the community’s previous diesel power and propane heating systems, examining economic, social, and environmental dimensions while exploring the factors that led to the project’s cessation in 2021.

The biomass CHP system demonstrated a 5.15-fold increase in local employment, a 2.76-fold rise in community income, and an annual greenhouse gas emissions avoidance of 1113 tCO₂e. It also achieved a notable supply chain cost advantage, with the cost of biomass transport and processing being approximately one-third that of diesel and propane delivery. However, high operational costs, escalating maintenance issues, and persistent labor shortages posed major barriers to long-term viability. These challenges were compounded by entrenched diesel subsidies, which created economic disincentives for renewable energy adoption despite clear sustainability gains.

The findings highlight the potential of biomass CHP systems to contribute to wildfire mitigation, rural economic development, and decarbonization in forested, off-grid communities. However, realizing these benefits requires policy realignment, sustained technical support, and integrated funding mechanisms. The Kwadacha project provides critical lessons for future deployments, emphasizing the need for context-specific strategies that balance economic, environmental, and social goals in the implementation of renewable energy systems.