Carney says Canada will double grid capacity by 2050
Thu, 14th May 2026 (Today)
Canada has launched consultations on a National Electricity Strategy to double the country's grid capacity by 2050.
Over the coming months, the federal government will consult provinces, territories, Indigenous Peoples, utilities and unions on how to expand generation and transmission.
The strategy is central to a broader push to reshape Canada's energy system around electricity as demand rises from industry, transport and heating. Electricity demand is expected to double by mid-century, said Prime Minister Mark Carney at a press conference on Thursday.
He said the work will focus on four areas: building new infrastructure, linking provincial and territorial systems through east-west-north transmission lines, increasing the supply of skilled workers, and expanding domestic manufacturing of grid equipment and components.
One element of the plan is a review of clean electricity regulations to allow more flexibility in energy mixes, including some natural gas. That change is intended to help maintain reliability and affordability while ensuring emissions decline over time.
Ottawa said the strategy could generate up to CAD $15 billion in total energy savings by 2050 and cut overall energy costs for seven in 10 households. It also plans to expand support for energy-saving retrofits to as many as one million homes through grants, financing and other measures, including help for households switching from propane, oil and electric baseboard heating to electric heat pumps.
"Our sovereignty, our sustainability, our prosperity will depend on our ability to supply and control our energy. We have to unlock Canada's full potential as an energy superpower," added Carney.
Grid expansion
Canada's electricity system is divided among provincial and territorial grids, a structure that, according to the government, contributes to outages, duplicated infrastructure and wasted power. A central aim of the consultation is to identify barriers to interprovincial transmission links and ways to finance new lines over longer periods so costs are spread more evenly.
More than 130,000 skilled workers will be needed by 2050 to build and maintain an expanded grid. Ministers linked that requirement to a broader skills agenda that includes training, retraining and retention in the trades.
Several projects are already moving through the federal system, including the Taltson Hydro Expansion in the Northwest Territories, the Iqaluit Nukkiksautiit Hydro Project in Nunavut, the Darlington New Nuclear Project in Ontario, the North Coast Transmission Line in British Columbia and Wind West in Nova Scotia.
Ottawa also plans to refer the development of a new Transmission InterConnect Investment Strategy to the Major Projects Office as it seeks to advance more intertie projects.
Cost and competition
Federal support for the sector already includes tax credits for clean electricity, clean technology and carbon capture, as well as financing through the Canada Infrastructure Bank, the Canada Growth Fund and the Indigenous Loan Guarantee Program. The announcement also pointed to the CAD $4.5 billion Smart Renewables and Electrification Pathways Program and a new tax allowance for capital investment.
Energy Minister Tim Hodgson said the consultation will focus on system reliability and new connections between regions.
"Countries around the world are waking up to the fact that a modern economy needs a modern power grid, and that energy security is national security. When it comes to electricity, Canada starts from a place of strength - but it's time to build on that so we have a strong, affordable, sovereign grid for years to come."