Canada Power Generation
In May 2026, Prime Minister Mark Carney launched Canada’s National Electricity Strategy (NES). The aim is to double Canada’s grid capacity, increasing hydro, renewable, geothermal, and nuclear power generation. With an estimated 80% of today’s electricity already generated from non-carbon emitting sources, Canada is well positioned to build a more reliable and affordable grid that coordinates major investments across all regions.
According to the NES, Canada will need to generate and deliver double the energy it does today. To achieve this, Canada must significantly increase the electricity system’s ability to generate and deliver electricity to areas where it is most needed. Meaning, interprovincial transmission capacity could rise by 27% by 2035 or 70% by 2050, allowing for greater electricity exchanges across provinces with diverse resources.
The federal government is committed to increasing investment and has established three types of financial support:
- Investment tax credits to provide businesses with financial support for clean technology and project investments, specifically: clean electricity, clean technology, and carbon capture, utilization, and storage.
- Strategic financing through the Canada Infrastructure Bank and Canada Growth Fund.
- Targeted programming, such as the $4.5 billion Smart Renewables and Electrification Pathways Program.
In addition, the government is launching the Canada Strong Fund, providing $25 billion to set up Canada’s first national sovereign wealth fund. The fund will support Canadian companies and national projects, including projects in clean and conventional energy, critical minerals, agriculture, and infrastructure, as well as the development of new trade and energy corridors that unlock resources, strengthen supply chains, and open new markets.
Although U.S companies do not qualify for the investment tax credits, they do qualify for the Scientific Research and Experimental Development (SR&ED) tax incentives as well as the Strategic Response Fund (SRF). With growing global interest in major Canadian energy projects, the federal government is taking an active role in supporting and advancing these investments, working with trade partners to diversify import and export supply chains for manufactured parts.
The NES places greater emphasis on Canadian manufacturing and Canadian energy security, while also creating opportunities for U.S. firms, particularly those involved in the clean energy technology and infrastructure development sectors, to participate in the supply chain.
The U.S. Commercial Service in Canada is closely following the developments in Canada’s energy and electricity strategy and is positioned to support advocacy and export promotion efforts. For further information, please contact: Commercial Specialist Philipp Fortin at Philipp.Fortin@trade.gov