TORONTO — Ontario has launched a major interprovincial partnership aimed at transforming Canada’s electricity infrastructure, with multiple provinces and territories agreeing to collaborate on new transmission projects designed to strengthen energy security and meet rapidly growing demand.
The initiative, announced Wednesday by Ontario’s Ministry of Energy and Mines, brings together British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Yukon, Prince Edward Island, Nova Scotia and the Northwest Territories in what officials describe as the first coordinated national effort to expand electricity transmission links across provincial and territorial borders.
The agreement follows discussions at Ontario’s Connecting Canada – Building an Energy Superpower Summit held in September 2025, where energy ministers concluded that stronger electricity connections between jurisdictions are essential to power economic growth, support electrification and maximize the country’s clean energy resources.
Ontario Energy and Mines Minister Stephen Lecce said the deal represents a significant step toward building a more integrated national power system.
“With the backdrop of global uncertainty, Ontario is emerging as a reliable partner at home and abroad focused on protecting jobs and our economy,” said Lecce. “Ontario has secured a landmark agreement to build an energy corridor that will strengthen our grid using Canadian materials, expertise and workers. This first-of-its-kind partnership lays the foundation for thousands of jobs, billions in investment, and a modernized grid that advances Canada’s long-term energy future. Together, we are advancing Made-in-Canada energy solutions to meet unprecedented energy demand and keep Canada’s economy strong.”
Under the agreement, participating jurisdictions will work together to identify and accelerate new transmission projects and interties that link provincial and territorial power systems. Governments will also expand electricity trade within Canada and advocate for federal investment to build major transmission corridors connecting the country east–west and north–south.
Officials say the partnership will also emphasize collaboration with Indigenous communities, including participation in project development and shared economic benefits.
Canada’s electricity grids were largely designed decades ago to serve individual provinces rather than a highly integrated national economy. As a result, many regions have limited ability to share electricity during periods of high demand or supply shortages.
According to the North American Electricity Reliability Corporation, several jurisdictions across North America already face elevated reliability risks as electricity consumption grows. Rapid population increases, industrial expansion, electrification and critical mineral development are all contributing to rising demand.
Ontario’s Independent Electricity System Operator forecasts that electricity demand in the province could increase by as much as 90 per cent by 2050.
Associate Minister of Energy-Intensive Industries Sam Oosterhoff said the new partnership reflects a broader strategy to support economic growth and industrial expansion.
“Ontario is laser-focused on building an energy grid that not only supports our industries and our people here in the province but also supports our national economic interests through Canadian-made energy solutions. With this historic new agreement, we’re showing world-class leadership as a reliable partner to jurisdictions both within Canada and around the world. This is the innovative energy planning that will support good-paying jobs, economic growth, and energy security in Canada for decades to come.”
Electricity demand pressures are not limited to Ontario. Provinces and territories across the country are seeking new ways to strengthen grid reliability and secure additional supply.
René Legacy, New Brunswick’s deputy premier and energy minister, said stronger transmission links will help address growing power needs across the country.
“Access to clean and affordable energy is a priority – period. No matter where you live in this country, we rely more and more every day on electricity to accomplish many of the important things we need to do. We recognize the need to strengthen our ability to share that power to create a more resilient electrical system that supports the swell in demand in New Brunswick and across Canada.”
Officials in northern jurisdictions say improved grid connections could also reduce reliance on diesel generation and support resource development.
“This agreement recognizes the importance of electricity interties to Canada’s strategic position in a rapidly changing world. The Yukon-B.C. Grid Connect would provide needed reliable winter electricity to the Yukon, reduce diesel dependence in remote communities, create partnership opportunities for First Nations, unlock the Northwest’s significant critical mineral development, and support Arctic Sovereignty,” said Yukon Energy, Mines and Resources Minister Ted Laking.
Industry groups and business organizations also welcomed the initiative, saying improved transmission infrastructure will strengthen Canada’s competitiveness.
“By expanding interprovincial transmission, we can both meet rising demand and strengthen Canada’s energy security. Success means more reliable, affordable power for businesses and a more competitive Canadian economy. The Ontario Chamber and its members stand ready to work with governments to advance these projects,” said Daniel Tisch, president and CEO of the Ontario Chamber of Commerce.
Canada’s internal trade relationships underline the importance of reliable energy infrastructure. Two-way trade in goods and services between Ontario and other provinces and territories alone exceeded $324 billion in 2024.
Energy experts say stronger interprovincial connections could allow regions with surplus clean electricity to supply areas facing shortages, reducing costs and improving reliability across the country.
Lesley Gallinger, president and CEO of Ontario’s Independent Electricity System Operator, said a more interconnected grid will benefit the entire country.
“Being part of an interconnected grid provides all of Canada with an opportunity to have a stronger, more efficient and resilient electricity system. Navigating the unique needs and strengths of each province and territory requires a strong commitment to partnership, allowing us to find shared solutions and unlock a better energy future for all Canadians.”
While Quebec was not listed among the initial partners, the province indicated it supports stronger collaboration provided provincial jurisdiction over energy is respected and projects remain economically viable.
Ontario currently operates 14 electricity interties with neighbouring provinces, including three connections with Manitoba and eleven with Quebec. The lines provide about 2,385 megawatts of export capacity and roughly 2,580 megawatts of import capability.
Officials say additional interconnections could allow Ontario to become a major long-term supplier of clean electricity as new nuclear, energy storage and other low-carbon projects come online in the coming years.