Modern Arctic Russia can be seen as several parallel realities coexisting within the same space. On one hand, there are industrial centers like Norilsk, Murmansk, or Arkhangelsk, where thousands of people live and work. Streetlights are on, cafes and museums are open — only during the polar night do you remember that you're beyond the Arctic Circle. On the other hand, the vast majority of settlements in the AZRF still rely on diesel supplies to power boiler houses and power plants. Living within the constraints of a "civilization outpost", they have an acute need for increased electricity volumes, not only for domestic needs but also for the establishment of new industries.

Building large nuclear power plants, hydroelectric power stations, and thermal power plants in the Arctic is impossible and inefficient — distributing energy between settlements is unfeasible, primarily due to the adverse impact of the climate on extended communications. What isn't blown away into the tundra by the wind will be covered in snow and ice. However, as always, there is a solution. In a dialogue facilitated by the Far East and Arctic Development Corporation, various companies and scientists put forth their ideas on establishing local energy systems.

Rosatom suggests constructing a network of small nuclear power plants (SNPP). A pilot project of a land SNPP is presently being built in the Yakutsk village of Ust-Kuyga. The project kicked off in 2021, with all necessary investigations completed, off-site infrastructure established, and a temporary workers' settlement built. It is anticipated that this experience will be duplicated — by 2030, a second SNPP will appear in Chukotka, and two additional similar power units have been commissioned by Baimsky Mining and Processing Plant. Ust-Kuyga will be powered by the RITM-200N water-cooled nuclear reactor, essentially a marine power unit adapted for land-based use. These will have a capacity of 50 MW. Rosatom is planning to construct 15 floating nuclear power plants for coastal settlements, drawing on the successful experience of the Akademik Lomonosov floating thermal power plant. These will service mining clusters in the Yamal-Nenets Autonomous Area, Yakutia, Chukotka, and the northern part of the Krasnoyarsk Krai.

Alongside nuclear power, hybrid power stations that combine gas piston and gas turbine units, solar panels, wind turbines, and batteries for electricity storage are also expected to serve the Arctic region. In 2021, Maxim Zagornov, the head of the Distributed Power Generation Association, noted that these types of power plants have a cost per kW/h that is 3–4 times lower than diesel ones. Moreover, having power generation facilities based on renewable natural energy increases the autonomy of isolated settlements — they will be extremely beneficial in case a fuel shipment is delayed.

Another potential solution is the construction of small hydropower plants. While this type of power plant isn't possible to have everywhere, considering the location of many Arctic settlements and villages near rivers, it could be quite profitable. A pilot project was initiated in 2023 on the Paz River in the Murmansk region. It's being constructed by Gazprom. The Arktika small hydropower plant will have a capacity of 16.5 MW, and the construction experience can be replicated across the entire Arctic Zone of the Russian Federation. In total, plans are in place to build 333 small hydropower plants in the Arctic region, as stated last February by Nikolai Safronov, the director general of the National Agency for Energy Saving and Renewable Energy Sources. Interestingly, the Energy Supply of Northern Territories program was developed as far back as 1996. Many of these small hydropower plants are planned to be automated and digital, with a capacity of approximately 1 MW each. In 2021, RZM Technologies JSC announced similar plans, intending to construct such facilities in collaboration with the National Agency to provide electricity to the production cluster of the Taymyr Dolgan-Nenets District in the Krasnoyarsk Territory. While small hydropower plants in the Arctic will only operate for 5–6 months a year, the introduction of other energy sources in the region will significantly broaden opportunities for businesses and residents.

However, the Arctic has no plans to abandon diesel, mazut, or coal just yet. In the harsh northern climate, where vast distances make cargo delivery a challenge, it's necessary to use all available methods of heat and electricity generation. It's also important to have a full range of options close at hand, ideally within the line-of-sight range.