Agreement aims to expand clean power capacity while leveraging Ontario’s nuclear expertise
Collaboration seen as key step toward economic growth and energy security in Canada’s North
TORONTO — The governments of Ontario and Yukon have signed a new partnership agreement to explore the deployment of small modular reactors (SMRs) in the North, marking a significant move to address energy constraints and support long-term economic growth in remote regions.
Ontario’s Minister of Energy and Mines, Stephen Lecce, joined Yukon’s Minister of Energy, Mines and Resources, Ted Laking, on April 22 to formalize the collaboration. The agreement sets out a framework for both jurisdictions to work together on the groundwork required to potentially integrate SMRs into Yukon’s electricity grid.
The initiative will see Ontario Power Generation and Yukon Energy collaborate on technical, regulatory and economic planning tied to nuclear deployment in the territory.
Ontario, which operates three nuclear generating stations and is currently advancing refurbishment projects, is positioning itself as a leader in nuclear innovation and clean energy exports. The province is also developing what it describes as the western world’s first SMR, a technology viewed as a potential solution for regions with limited grid capacity.
“Ontario is building the western world’s first small modular reactor, with a focus on exporting this clean technology across Canada, from coast to coast to coast,” said Stephen Lecce, Ontario Minister of Energy and Mines. “This agreement sets the stage for Ontario to support Yukon’s energy expansion to deliver affordable, reliable power for generations. As Ontario leads the continent’s largest nuclear expansion creating 150,000 jobs, we will continue to play an outsized role supporting Canadian economic growth and energy security.”
Addressing Yukon’s Energy Constraints
Yukon’s electricity system is under increasing pressure, with demand rising and infrastructure aging. The territory currently has just over 150 megawatts of installed capacity, limiting its ability to support industrial development, including mining projects, as well as population growth.
“Energy is a scarce resource in the Yukon and our electricity grid is under strain and will soon be unable to meet the needs of the territory,” said Ted Laking, Yukon Minister for Energy, Mines and Resources. “We were in a challenging position this past winter as it became evident, we require significant investment in new generation capacity that we can rely on in our coldest and darkest months of the year. That said we must also keep on eye on solutions to our winter energy challenges that do not rely on fossil fuels. That is why we are excited to partner with Ontario on taking the steps necessary to see if SMR technology can help the territory meet its energy needs and help achieve our objectives of population and economic growth.”
The partnership reflects broader concerns across northern Canada, where many communities continue to rely on diesel generation. Rising energy demand, combined with climate goals and economic ambitions, has increased interest in alternative energy sources such as SMRs and microreactors.
Scope of the Partnership
Under the agreement, Ontario and Yukon will collaborate across several key areas, including:
- Sharing expertise on SMR and microreactor technologies
- Aligning regulatory frameworks and best practices
- Exploring financing models and supply chain development
- Addressing nuclear waste management and public engagement, including with Indigenous communities
The two governments also plan to explore opportunities for deploying microreactors in off-grid locations, such as remote communities and mining operations, where traditional infrastructure is not feasible.
National Energy Strategy Context
The announcement builds on Ontario’s broader efforts to strengthen Canada’s energy network through interprovincial and territorial cooperation. The province has been working with multiple jurisdictions — including British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Yukon, Prince Edward Island, Nova Scotia and the Northwest Territories — to advance transmission infrastructure and improve electricity interconnections.
SMRs are a central component of Ontario’s “Energy for Generations” strategy, which aims to ensure long-term access to reliable and affordable power while supporting economic development and emissions reduction targets.
For Yukon, the agreement represents an early but potentially transformative step toward diversifying its energy mix and reducing reliance on fossil fuels.
Without new investments and coordinated action, officials warn that northern regions risk higher energy costs, reduced competitiveness and missed economic opportunities.
As both governments move forward with feasibility assessments and planning, the partnership signals a growing role for nuclear innovation in Canada’s clean energy transition — particularly in regions where conventional solutions remain limited.