Ontario leads historic deal to connect Canada’s power grids

Key Takeaways:

• Ontario has launched a first-of-its-kind collaboration with nine other provinces and territories to build transmission infrastructure and electricity interties across Canada, aimed at modernizing the grid and strengthening national energy security.
• Canada’s electricity grids were built within provincial borders and weren’t designed for today’s needs — Ontario alone expects demand to grow by up to 90% by 2050, driven by population growth, industrial expansion, and electrification, while limited interprovincial connections prevent efficient power sharing.
• Beyond grid resilience, the agreement aims to expand electricity trade, advocate for federal investment in transmission corridors, and partner with Indigenous communities — all underpinned by the $324 billion in interprovincial trade that depends on reliable, affordable energy.

The Whole Story:

Ontario has launched a first-of-its-kind interprovincial-territorial partnership to build transmission infrastructure across Canada, bringing together B.C., Alberta, Saskatchewan, Manitoba, New Brunswick, Yukon, Prince Edward Island, Nova Scotia and the Northwest Territories to advance new electricity transmission projects and strategic interties.

The agreement, initiated following Ontario’s Connecting Canada – Building an Energy Superpower Summit in September 2025, reflects a shared commitment to modernize electricity systems and strengthen energy security as demand surges across the country.

“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,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries, in a news release. “With this historic new agreement, we’re showing world-class leadership as a reliable partner to jurisdictions both within Canada and around the world.”

The partnership will identify and advance new interprovincial and territorial transmission infrastructure, expand electricity trade within Canada, advocate for federal support including investment to accelerate transmission corridors, and partner with Indigenous communities in energy development.

Officials explained that Canada’s electricity grids were designed within provincial borders for a different era, limiting the ability of regions to share reliable, clean power efficiently. According to the North American Electricity Reliability Corporation, several jurisdictions across North America are currently labelled at elevated risk, requiring more power. Rapid population growth, major industrial expansion, critical mineral development and electrification are driving unprecedented demand, while limited interprovincial connections prevent efficient power sharing.

Ontario’s demand for electricity is forecast to increase as high as 90 per cent by 2050, according to the province’s Independent Electricity System Operator. The province currently operates 14 interties with two neighbouring provinces—three with Manitoba and 11 with Quebec—representing a total export transfer capability of about 2,385 megawatts (MW) and a total import transfer capability of about 2,580 MW. In 2025, Ontario exported 8.8 terawatt hours (TWh) of electricity to Quebec.

Two-way trade in goods and services between Ontario and other provinces and territories was valued at more than $324 billion in 2024, underscoring the scale of economic activity that depends on stronger internal connections and reliable, affordable energy.

“Access to clean and affordable energy is a priority – period,” said René Legacy, Deputy Premier and Minister of Energy, New Brunswick, in the release. “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.”

Quebec supports enhanced collaboration between provinces and territories to identify promising projects that meet market needs, provided the collaboration respects provincial jurisdiction, and is open to discussing concrete, economically viable projects that comply with North American market rules.

The partnership is part of Ontario’s ​Energy for Generations​ long-term strategy to ensure the province has reliable, affordable power to drive economic growth and energy security.