Canada takes action to advance a stronger grid and increase reliable, affordable energy

YELLOWKNIFE, NT, June 26, 2026 /CNW/ - The world is changing rapidly: global trade has been upended, artificial intelligence is scaling at speed, and climate change is intensifying. In response, the Government of Canada is focused on what we can control: building an electricity grid that can underpin Canada's energy security, affordability and competitiveness. Reliable, affordable, low-emissions power is only gaining importance as electricity demand in Canada is expected to double by 2050 -- presenting an enormous opportunity for Canada to build a sustainable, affordable, prosperous future.

To that end, on May 14, 2026, Canada announced a forthcoming National Electricity Strategy. To develop this strategy, consultations have been launched with provinces, territories, Indigenous Peoples, utilities and unions. A key pillar of our Strategy -- and area of consultation -- will be connecting Canada's fragmented grids through new and expanded transmission lines. Transmission lines are critical to our mission to build one economy out of thirteen, be our own best customer, and catalyze billions in investment. To catalyze these projects, the Government of Canada has referred the Transmission InterConnect Investment Strategy to the Major Projects Office, which will identify high-priority transmission projects, as well as possible financial solutions to help them move forward.  

Today, following discussions at the Energy and Mines Minister's Conference (EMMC), the Honourable Tim Hodgson, Minister of Energy and Natural Resources announced that the federal government will prioritize financial and regulatory support for the following transmission projects:

• The British Columbia–Yukon Grid Connect
  • The project is an approximately 800-km, +200-kV, high-voltage, direct current transmission line connecting Yukon's grid to British Columbia. The project would support industrial and economic development in Yukon, including the critical minerals sector. It has been supported by a $40-million investment from Natural Resources Canada.
• Restoring capability on the Alberta–British Columbia intertie
  • Restoring the Alberta–British Columbia intertie will increase electricity trade capacity by ~150 MW between the two provinces, enhancing reliability and affordability for British Columbians and Albertans.
• Upgrading the Alberta–Saskatchewan intertie
  • This project involves replacing and enhancing the McNeill converter station near Medicine Hat with updated technology to increase the existing intertie's trade capacity by ~250 MW and extend its lifespan.
• The Saskatchewan–Manitoba intertie expansion
  • The scalable project would expand that intertie's transfer capability by up to two gigawatts along the Regina–Winnipeg Corridor, significantly enhancing the energy partnership between the two provinces.
• The Prince Edward Island–New Brunswick Interconnection Expansion Project
  • The proposed project includes new sub-sea cables connecting PEI and New Brunswick while also reinforcing the transmission system linking Nova Scotia, New Brunswick, and PEI. The project would enhance regional system reliability and trade in the Maritimes.

Through the EMMC, the National Electricity Strategy, the Transmission InterConnect Investment Strategy, and other work being advanced, the Government of Canada is also:

• Moving forward with support for electricity projects, including interties, via the Clean Electricity Investment Tax Credit, the Canada Infrastructure Bank, and NRCan's Smart Renewables and Electrification Pathways program.
• Implementing a Federal-Provincial-Territorial Framework on Interties, as supported by Ministers at EMMC 2026. The Framework will establish collaborative mechanisms to support regional system planning and co-ordination and develop a standard cost allocation mechanism to guide and arbitrate costs among project participants, including the federal government.
• Examining federal supports, including targeted investments for infrastructure, energy planning and deployment of made-in-Canada technologies, such as advanced grid controls and digitalization, that contribute to reliability and affordability in the North.

Intertie projects will make Canada's electricity system more reliable, affordable, and sovereign. The federal government is committed to partnering with provinces, territories, Indigenous communities and utilities to build a connected, secure, affordable energy system for Canadians across the country. 

Quote

"It's simple: intertie projects build Canada Strong. Our government has moved assertively to build one economy out of thirteen and give ourselves more than anyone else can take away, and the electricity grid is an obvious next step. By working together, we can ensure every Canadian from coast to coast to coast can rely on secure, homegrown electricity to support our national security, economic growth and a sustainable, affordable future."

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

Quick Facts

• Today, approximately 80 percent of all electricity generation in Canada is non-emitting.
• Canada has the lowest residential electricity costs in the G7, the second-lowest industrial electricity costs in the G7 and the OECD, and the second-highest share of clean energy generation in the G7.
• Approximately $3 trillion is spent globally every year on electricity grids, efficiency, and electrification -- with clean energy deployment accounting for the majority of new additions to electricity generation. By 2030, renewables are set to contribute the highest share of global electricity generation, according to the International Energy Agency.
• Canada's new government is already advancing strategic investments in the modernization and expansion of Canada's electricity infrastructure, including:
  • Major clean economy Investment Tax Credits, such as those for clean electricity, clean technology and carbon capture, utilization, and storage.
  • Strategic financing through the Canada Infrastructure Bank (with a $20-billion clean energy target), the Canada Growth Fund and the Indigenous Loan Guarantee Program (envelope doubled from $5 billion to $10 billion).
  • Programming targeted at priority areas in the electricity sector, including the $4.5-billion Smart Renewables and Electrification Pathways Program.
  • A new Productivity Super-Deduction -- a set of enhanced tax incentives covering all new capital investment that allows businesses to write off a larger share of the cost of these investments right away.
  • The Electric Vehicle Affordability Program, which makes it more affordable for Canadians to buy or lease electric vehicles.

Associated Links

• Powering Canada Strong: A National Strategy for an Electrified Canadian

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SOURCE Natural Resources Canada

Contacts: Natural Resources Canada, Media Relations, 343-292-6096, [email protected]; Charlotte Power, Office of the Minister of Energy and Natural Resources, [email protected]