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This paper reviews the electricity dependence of inhabitants in the western Arctic and provides an overview of past developments of electricity supply and how the current relation between the inhabitants and electricity is structured. In the Arctic, electricity takes on a special role due to its importance for security in addition to a matter of entertainment and productivity as seen in more temperate areas (Allen et al. 2016). This paper discusses the importance of electricity in the North, including the questions of what would happen to Arctic communities in the absence of an electricity supply. A hypothetical case of a blackout is presented. Furthermore, the burden of high electricity costs in the Arctic is discussed. The results of this research may contribute new knowledge for further research on the potential energy transition in the Arctic. Furthermore, the results emphasize the importance of energy and its supply security in the Arctic, which provides support for a focal point on energy security for energy transition policies.

This paper examines the various pathways toward energy transition available to remote Arctic communities. Inhabitants of Arctic communities often face significant cost burdens due to high energy prices. Electricity costs are particularly high, due in part to the predominant use of diesel for electricity generation in over 80% of remote Arctic communities. This study examines the different approaches for integrating renewable energy sources, with a focus on the different strategies that might be implemented to finance the energy transition toward greater use of such renewable sources. The high costs associated with project realization in the remote Arctic present special challenges. This study uses a system dynamics model to evaluate the various financing tools available to facilitate the energy transition. The model results indicate that the integration of renewable energy sources has the potential to yield long-term electricity cost savings for the remote Arctic communities in question.

Currently, the dominant energy source for electricity generation in the Arctic is diesel, which is well proven for Arctic conditions. However, diesel is expensive in the Arctic, often due to long and complicated fuel transportation routes, and so inhabitants of Arctic communities can face high electricity costs. This paper investigates whether renewable energy resources can be harvested in a feasible and cost-competitive manner. The paper highlights which renewable energy resources are generally available in the Arctic and analyzes how renewable resources, such as hydropower, wind, and photovoltaics, can be used. Furthermore, we present three specific case studies to provide in-depth insight. A simulation with different energy generation scenarios using different renewable energy sources and penetration levels was performed for each case. The results indicate that renewables can be a cost-competitive option and that the optimal mix of renewables varies for different communities. Stakeholders and experts from the case study communities were also interviewed and their responses indicated a general acceptance of renewables.