Government of Canada Invests to Modernize Ontario's Electricity Grid -- Ensuring More Reliable Power for Ontarians

MARKHAM, ON, Aug. 15, 2025 /CNW/ - Canada's energy security and economic strength depend on our ability to scale up clean, reliable and affordable power. That means advancing next-generation solutions like hydrogen, nuclear, renewables, geothermal and biofuels and integrating our electricity systems so that energy can move seamlessly and efficiently across provincial borders. We're getting more reliable clean energy to market, cutting emissions and delivering for Canadians.

To that end, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced today over $13 million in federal funding to support five clean energy projects in Ontario that will help modernize existing electricity systems.

Funded through the Energy Innovation Program – Smart Grids Demonstration Call for Proposals, these projects will advance clean electricity generation in Ontario, and allow customer-owned devices such as solar panels and batteries to access and benefit from electricity markets, by generating and selling energy. This will drive down energy costs for Canadians while ensuring our grids are smarter, more sustainable, more resilient and ready for the economy of the future. 

Quotes

"This is how Canada becomes an energy superpower — by working with partners and by investing in the modernization and optimization of our electricity system. These efforts are essential to creating a more reliable and resilient network and reducing electricity bills for Canadians."

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

"We're proud to partner with NRCan on Centricity to help shape the future of Ontario's electricity system. This initiative supports a more resilient, responsive and customer-focused grid, modernizing our planning and control room operations and enabling new markets for our customers as we move from limited distribution system operator (DSO) trials to full-scale implementation."

Brian Bentz
President and Chief Executive Officer, Alectra Inc.

"We're excited that this federal support for our distributed energy resources project in Ontario will provide real benefits to our customers, including lower energy costs and greater flexibility in how they manage power. As load growth continues to outpace supply and with large generation assets still many years away, the need for flexible DER solutions has never been greater. This project funding from Natural Resources Canada is a crucial step in creating a cleaner, more-resilient grid while reducing costs for consumers." 

Derek Lim Soo
CEO, Peak Power Inc. 

"We are excited to be collaborating with GridS2, an Ontario-based cleantech startup, and partnering with Natural Resources Canada on this initiative. This project will enhance Enova's ability to plan and optimize the distribution system through AI-based tools. It will also lay the foundation for local energy procurement and unlock the potential of distributed energy resources for our customers — supporting Enova in creating the electricity system of the future." 

Greig Cameron
President and Chief Executive Officer, Enova Power Corp. 

Quick Facts

• The Energy Innovation Program (EIP) advances clean energy technologies that will help Canada maintain a competitive, reliable and affordable energy system while transitioning to a low-carbon economy.
• The EIP – Smart Grid Demonstration Call for Proposals provides support to projects that demonstrate innovation in smart grid technologies/solutions and in market or contract mechanisms (innovations may be jurisdiction-specific). The objectives include accelerating grid modernization; improving customer accessibility of grid-integrated solutions; sufficiently representing a given electricity system to meaningfully inform future deployment considerations; addressing well-defined market gaps to build business solutions; and advancing inclusivity, diversity, equity and accessibility (IDEA) in the electricity sector.
• One project was also selected for a grant under Mission Innovation's (MI) Green-Powered Future Mission (GPFM), which aims to demonstrate that power systems in different geographies and climates can effectively integrate up to 100-percent variable renewable energy in their generation mix by 2030 while maintaining a cost-efficient, secure and resilient system.
• The MI GPFM International Collaboration Grant supports proponents engaging stakeholders internationally on the successes and learnings of their EIP – Smart Grid Demonstration project. This is Canada's contribution to the "five demonstrations in five continents" flagship project, representing both Canada and the North American continent.

Related Products

• Backgrounder: Government of Canada Invests in Electricity Grid Modernization in Ontario

Associated Links

• Energy Innovation Program – Smart Grids
• Energy Innovation Program Smart Grid Demonstration Call for Proposals
• Mission Innovation - Green-Powered Future Mission

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SOURCE Natural Resources Canada

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