On May 14, 2026, the Government of Canada announced Powering Canada Strong (the Strategy), a national strategy aimed at expanding Canada’s electricity system. The Strategy responds to growing electricity demand and outlines proposed measures intended to support economic growth, energy security and climate goals.
This bulletin outlines key elements of the Strategy, relating to Canada’s electricity infrastructure build-out, including federal financing support, interprovincial transmission and interties, regulatory reform, nuclear energy and identified major projects.
Background
Canada’s electricity demand is expected to at least double by 2050, largely due to industrial growth in energy-intensive sectors, increased electrification and home-building. The Strategy estimates that expansion and modernization of Canada’s electricity systems could require more than C$1-trillion in investment between now and 2050.
The Strategy is part of Canada’s broader shift towards prioritizing interprovincial infrastructure development and recognizes electricity as a foundational element of the economy. Expanding Canada’s competitive advantage, particularly in nuclear energy, is presented as an opportunity to position Canada as a global leader in electricity generation. The Strategy also highlights the role of transmission infrastructure and regional interties in supporting reliability, national energy security and economic growth.
Key Takeaways
Expanding the Electricity System and Infrastructure
The Strategy highlights the need for large-scale infrastructure growth to meet Canada’s projected electricity demand by 2050. The Strategy contemplates expanding electricity generation, transmission and distribution infrastructure while maintaining reliability through grid modernization and improved system resilience.
The Strategy estimates that interprovincial transmission infrastructure could increase by up to 27% by 2035 and 70% by 2050 to support greater electricity trade and coordination across provincial systems.
The Strategy identifies coordinated investment in generation, transmission, distribution and smart grid technologies as necessary to support affordability, reliability and long-term electricity demand growth. This is consistent with the federal government’s contemporaneous Implementation Agreement with Alberta to establish a joint Electricity Working Group to support a shared objective of achieving net-zero emissions in the electricity sector by 2050.
Federal Financing Support
The Strategy emphasizes the federal government’s focus on prioritizing projects of national interest. The federal government is proposing significant financial support mechanisms intended to accelerate electricity infrastructure development while maintaining affordability.
These measures include:
- Investment tax credits (ITCs), including extending the Clean Electricity ITC to certain intra-provincial transmission projects
- Strategic financing through the Canada Infrastructure Bank (CIB), Canada Growth Fund and Indigenous Loan Guarantee Program
- Targeted funding programs, including the C$4.5-billion Smart Renewables and Electrification Pathways Program
Canada’s 2025 federal budget also increased the CIB’s capital envelope from C$35-billion to C$45-billion, with clean energy remaining a key investment priority.
This is all in addition to the recently announced Canada Strong Fund, providing C$25-billion for Canada’s first national sovereign wealth fund, with a focus on nation-building projects, including energy corridors and enabling access to new markets.
Canada further intends to prioritize projects of national interest supporting electricity system growth through the development of a comprehensive Transmission InterConnect Investment Strategy to be referred to the Major Projects Office.
Strengthening Interprovincial Interties
The Strategy demonstrates the federal government’s commitment to expanding regional integration through increased interprovincial transmission development and greater coordination among provinces and territories. The federal government intends to work with provinces and territories to address barriers to regional integration and support future intertie development.
Proposed initiatives include prioritizing nationally significant intertie projects for federal support and review processes, developing new coordination frameworks for regional planning and project development, establishing cost-sharing approaches for project participants, and improving regional grid planning and information sharing.
The Strategy highlights the new partnership between most provinces and the Northwest Territories to advance strategic interties across Canada and electricity transmission projects. To learn more, read our Blakes Bulletin: Powering Canada’s Future: National Energy Corridor Partnership Announced.
Enhancing Regulatory Frameworks
The Strategy proposes amendments to the Clean Electricity Regulations (CER) intended to introduce greater flexibility and better reflect anticipated growth in the electricity sector. This is subject to the federal government’s Implementation Agreement, which allows Alberta to continue its current legal challenge and to repeal the CER if the courts ultimately find it unconstitutional.
Proposed CER amendments include greater use of credible carbon offsets, measures intended to avoid stranded assets and additional flexibility to support near-term generation growth and system reliability while maintaining the net-zero by 2050 objective. This includes a continued strategic use of natural gas.
Northern Energy Security
The Strategy highlights the importance of Canada’s North in advancing national energy security and sovereignty, particularly given the challenges of delivering reliable and affordable power in remote regions. In this context, the Strategy contemplates targeted federal support for energy infrastructure, planning, and the deployment of made in Canada technologies, while advancing collaboration with Indigenous communities to support resilient, community-driven energy systems.
Nuclear Energy and Major Projects
Nuclear energy is identified as a key component of Canada’s long-term electricity strategy and a competitive advantage in supporting future electricity demand growth, energy security and economic development.
Canada is developing a new Nuclear Energy Strategy intended to support future nuclear development and position nuclear power as part of a modern and better-connected grid. The Strategy also highlights Canada’s domestic nuclear capabilities, including Canada Deuterium Uranium (CANDU) technology, uranium reserves, and production and small modular reactor development — including the Canada Growth Fund’s recent C$2-billion investment to be the first G7 country to deploy small nuclear reactors at Ontario’s Darlington Nuclear Generating Station.
The Major Projects Office is expected to continue accelerating identified nationally significant electricity infrastructure projects, including the Darlington New Nuclear Project, the North Coast Transmission Line, the Iqaluit Nukkiksautiit Hydroelectric Project, the Taltson Hydro Expansion Project and projects associated with the Atlantic Energy Strategy.
Looking Ahead
The federal government will undertake consultations with the provinces and territories, Indigenous Peoples, utilities and other interested parties as implementation measures continue to develop.
Alongside targeted consultations, the federal government is seeking input on expansion, financing mechanisms, supporting regional integration and improving the regulatory landscape. Stakeholders are invited to contact [email protected] to provide input.
For more information, please contact the authors or any other member of our Power or Energy Regulatory groups.
