Power Perspectives 2026: Atlantic Canada Regional Overview

This article was first published as a chapter in Power Perspectives 2026 and offers a retrospective analysis of notable developments within the power market throughout 2025. Power Perspectives 2026 delivers a comprehensive overview of major advancements in Canada's power industry and emerging energy sectors.

The Atlantic provinces entered 2025 with a focus on large-scale electrification, offshore wind, nuclear redevelopment, and interprovincial transmission, each a pillar in an emerging regional strategy to decarbonize supply, secure export revenues, and build durable energy infrastructure. This regional overview surveys Nova Scotia’s rapid offshore wind designations and procurement launch, Newfoundland and Labrador’s positioning around Churchill Falls/Gull Island and offshore renewables, New Brunswick’s nuclear and grid agenda together with procurement policy dynamics, and Prince Edward Island’s transmission priorities. It begins by highlighting one of the most significant regional initiatives, the East Energy Partnership.

Eastern Energy Partnership

The Eastern Energy Partnership is a proposed regional initiative among Canada’s Atlantic provinces which seeks to harness and integrate the region’s energy resources (wind, hydro, hydrogen, etc.) and link these into broader Canadian and North-American grids. The aim is to create a large-scale clean-energy corridor or network that enables electricity (and possibly other energy carriers) to be exported, shared internally across provinces, and connected to demand centres (including in Québec or the northeastern U.S.). It’s being promoted by Maritime provincial governments as a potential “nation-building” project under Canada’s federal Building Canada Act because of its potential effects on economic development, energy security, clean-energy transition, and export capacity.

Key components & activities

• Offshore wind and large renewables: For example, Nova Scotia’s “Wind West” campaign aims to develop large offshore wind generation capacity which would link into the partnership.
• Transmission infrastructure: A significant part of the partnership is building new or upgraded high-voltage transmission lines interconnecting Atlantic provinces among themselves, and toward Québec or other markets. The planning document notes options for an overland route or a subsea route, and estimates costs to be in the billions of dollars.
• Hydrogen and other clean-fuel pathways: In addition to electricity, the partnership contemplates hydrogen production (for export or domestic use) and other clean-energy carriers as part of the clean-energy transition.
• Natural-gas / pipeline linkage (in certain proposals): Some provinces (e.g., New Brunswick) have mentioned connecting a gas supply line from Québec into Atlantic Canada as part of broader energy integration.

The regional proposal is aimed at securing a spot on the Federal Government’s emerging list of key nation-building projects. Thus far, no energy projects in Atlantic Canada have been designated “nation-building projects”.

New Brunswick: Nuclear, Grid Modernization

Nuclear Power

New Brunswick is doubling down on nuclear energy as a cornerstone of its energy strategy. The province’s energy plan calls for adding 600 megawatt (“MW”) of small modular reactor (“SMR”) capacity by 2035, positioning Point Lepreau as a hub for next-generation nuclear technology. The province is actively courting federal support and private investment for SMR deployment, with the goal of exporting clean power to neighboring provinces.

Renewable Energy and Grid Resilience

While nuclear is the headline, New Brunswick is also advancing wind, biomass, and hydrogen projects.

The Port of Belledune has advanced plans to anchor a green energy and fuels hub, sequencing biomass, wind, and solar within the next two to three years, hydrogen in four to five years, and small modular nuclear reactors on a horizon of roughly eight to ten years, positioning the port for industrial decarbonization and export logistics. Hydrogen production has been targeted at approximately 60,000 tonnes per year by 2028, with prospective export corridors to Europe and the ability to wheel power across the provincial grid to reach the port; the port has also expressed interest in supporting New Brunswick’s first offshore wind development if sited in the Gulf. The Belledune coal plant is also scheduled to switch to biomass by 2030, and recent tests burning advanced wood pellets have shown promising results.

New generation and transmission projects

In the summer NB Power announced two major initiatives, a new 500 MW generating station in Westmorland County and more than $300 million in improvements to the utility’s transmission system. The new generating station will supply flexible power to support more renewables on the grid. Transmission upgrades will reinforce main lines and equipment throughout the province. NB Power states these measures are needed to meet “faster-than-expected” electricity demand growth and maintain reliable service for all users.

This is the first new generating station the utility has added in more than 20 years. The 500 MW peaking plant will be built in Centre Village, near the Nova Scotia border and the Maritimes & Northeast Pipeline to provide a secure supply of natural gas. The project is expected to be ready by 2028. NB Power has partnered with PROENERGY, which will design, build, own, and operate the facility under a 25-year contract.

The New Brunswick Energy & Utilities Board approved NB Power’s request to move forward with three large transmission projects. The upgrades include:

• Two new 138-kilovolt (“kV”) transmission lines between Coleson Cove and Fairvale, adding capacity to serve the growing Saint John region.
• A third 345/138 kV tie transformer at Coleson Cove Generating Station, which allows high-voltage power to be stepped down safely and reduces the risk of shortages during peak demand.
• A ±300 MVAr static synchronous compensator, which injects or absorbs reactive power to stabilize voltage when the grid is under stress. This is especially important during extreme weather or sudden shifts in demand.

NB Power’s 2023 planning assessment found that without these upgrades, the province could fail to meet North American Electric Reliability Corporation standards, which could lead to outages.

Prince Edward Island: Grid Resilience, Solar Growth, and Regional Pressures

On Wednesday, October 29th, 2025, the Government of Prince Edward Island released its new energy strategy, which calls for strengthened consumer protections, upgrades to infrastructure, and regional collaboration. The strategy outlines a long-term vision for the Government of Prince Edward Island’s energy priorities through 2035.

The strategy is structured around four key objectives:

• Reliability: Ensure a reliable and resilient energy system that can meet growing demand, withstand climate-related disruptions, and deliver consistent service to all communities.
• Affordability and Equity: Maintain affordability and embed equity across all energy policies and programs, ensuring no community is left behind in the transition.
• Economic Development: Leverage PEI’s local expertise and economic potential to grow clean energy jobs, businesses, and innovation in communities across the province.
• Sustainability: Build a balanced, low-carbon supply mix with clean fuels to accelerate the transition to a net-zero energy system that enhances energy security and reduces emissions.

The 2025 strategy builds on its previous energy strategy by developing a consumer advocate role, working with partners on expanding on-Island generation and storage, and helping people and businesses use energy more efficiently. However, PEI faces a looming supply crunch as energy demand outpaces available imports from neighboring provinces, which are themselves reducing exports due to plant closures and rising local demand.

PEI’s energy security is increasingly tied to regional developments, especially the fate of Nova Scotia’s coal retirements, and New Brunswick’s grid upgrades. The strategy recognizes that the rise in demand for electricity on PEI far outstrips generation capacity, including imports from neighbouring provinces, and projects a 27% deficit by 2033. Accordingly, the strategy prioritizes expanding clean energy production in PEI to enhance power supply security and support environmental objectives. Although PEI currently imports the majority of its electricity from New Brunswick, the updated plan underscores the importance of increasing on-island generation to strengthen energy independence and to achieve the goal of net-zero emissions by 2040.

The province is proposing the development of additional undersea cables and increased integration with the Eastern Energy Partnership to support reliable and affordable energy supply. Currently, subsea electricity cables connect PEI to New Brunswick under the Northumberland Strait. The province aims to double the current 560 MW capacity of the lines connecting New Brunswick to PEI, which would contribute to reducing greenhouse gas emissions and maintaining a dependable electricity grid as the population increases.

More recently, Prince Edward Island launched a Request for Expressions of Interest (“REOI”) to explore 10–50 MW of battery energy storage, aimed at strengthening grid reliability and enabling greater renewable energy integration. The REOI is intended to help inform future procurement decisions by identifying available technologies, project configurations and delivery models that can meet the province’s needs. Submissions closed on April 23, 2026.

Nova Scotia: Wind West, Offshore Ambitions, and New Procurement Frontiers

Wind West

Nova Scotia’s energy narrative in 2025 was dominated by the “Wind West” megaproject, which is a multi-billion dollar vision to transform the province into a clean energy superpower. Nova Scotia’s offshore wind ambitions are buoyed by world-class wind resources, a stable regulatory environment, and growing investor interest, especially as U.S. policy uncertainty under President Trump has stalled American offshore wind development, redirecting capital northward.

Key Features of Wind West:

• Scale: 40 GW of offshore wind, with 15,000 MW targeted for commissioning between 2033 and 2040.
• Transmission: $20 billion earmarked for new transmission lines, with two main routes under consideration—overland via New Brunswick and a subsea cable to Quebec or New England.
• Investment: Nova Scotia is seeking federal investment tax credits, low-interest financing from the Canada Infrastructure Bank, and support for Indigenous equity participation.
• Economic Impact: The project is expected to create tens of thousands of jobs, drive port and supply chain upgrades, and potentially end Nova Scotia’s reliance on federal equalization payments.

The term Wind West was coined by the federal government with an overarching goal of developing the over 60 GW of offshore wind energy potential in Nova Scotia and elsewhere in Atlantic Canada.

Premier Tim Houston’s plan aims to license up to 40 gigawatts (“GW”) of offshore wind capacity which would be enough to supply 27% of Canada’s total electricity demand. The bulk of this capacity is destined for export to Quebec, Ontario, and the northeastern United States, with transmission costs for a cross-country cable estimated between $5 billion and $10 billion in preliminary scoping.

In September 2025, the federal and provincial governments issued a strategic direction to the Canada–Nova Scotia Offshore Energy Regulator (“CNSOER”), launching a prequalification process for developers and setting the stage for the first call for bids on up to 5 GW of offshore wind by 2030 in specific regions of Nova Scotia.

The province initially identified five areas through regional assessment and engagement: French Bank, Middle Bank, Sable Island Bank, Emerald Bank, and Sydney Bight. Each maintaining a 25-kilometre coastal buffer to mitigate nearshore impacts and coordinate ocean uses.

The list was subsequently narrowed and ultimately four designated areas emerged: French Bank, Middle Bank, Sable Island Bank, and Sydney Bight (“Wind Energy Areas”), totaling 12,549 square kilometres. The Wind Energy Areas were selected based on engagement with Mi’kmaq communities, fishers, developers, and local stakeholders. Fisheries organizations in particular expressed concerns over pace and compensation protocols, prompting the province to adjust area selections and timelines, as reflected in the decision to defer Emerald Bank.

Call for Information

According to the Strategic Direction, Canada and Nova Scotia instructed the CNSOER to initiate a Call for Information to gather input on identifying parcels for use in the call for bids criteria, any specific terms and conditions to be included in the draft submerged land licence, and the regulatory process. The Call for Information was open from October 16, 2025 to January 13, 2026.

More specifically, they directed that feedback be sought on the following requirements:

• Eligible parcels should have a minimum cumulative generating capacity of approximately 3,000 MW (or 5,000 MW if feasible), be selected based on factors such as proximity to shore, existing port infrastructure, important marine habitat and future opportunities for expansion, and be located within Sydney Bight, Middle Bank and French Bank.
• Criteria should, at a minimum, be based on technical expertise and project delivery capacity, financial strength and financing plan, engagement and community benefits, local content, and environmental sustainability and coexistence. Canada and Nova Scotia also recommended that the Regulator implement a one-time non-refundable fee of C$250,000 for all bidders and a fee of C$750,000 upon issuance of a submerged land license for successful bidders.
• Canada and Nova Scotia would support inclusion of terms and conditions pertaining to community benefits, local content, monitoring and reporting, and coexistence with existing ocean users and uses, among others, in the draft submerged land licence.

Canada and Nova Scotia also recommended that the prequalification process focus on three key categories:

• Financial capability, assessed through factors such as bidders’ equity ratio, debt rating, annual turnover or net assets or funds under management
• Technical expertise, assessed based on direct experience with offshore wind or other relevant projects, including access to external offshore wind expertise
• Legal and social standing, assessed by a history of regulatory compliance, including with respect to health, safety, environment, human rights and ethical conduct

Nova Scotia will likely initiate the first call for development bids by February 2027 with an initial tranche of 2.5 GW and a broader objective of licensing five GW by 2030. Construction start on first projects is anticipated circa 2033 given typical offshore development lead times. Nova Scotia has outlined indicative phasing: pre-construction development through the end of the decade, major construction from 2031 to 2033, and progressive energization culminating in approximately 15,000 MW online between 2033 and 2040, contingent on market access and intertie delivery.

The province’s initial capital framing for the opening phase approximates $60 billion—$40 billion for generation and $20 billion for transmission—with a proposed royalty structure at 4 percent and expectations of investment tax credits and concessional finance through the Canada Infrastructure Bank to drive down levelized costs. Transmission routing options under scoping include an overland route via New Brunswick and a subsea alignment direct to Quebec or New England, each with permitting, cost, and system-integration variables to be resolved through detailed engineering and commercial negotiation.

Regulatory Changes

Nova Scotia’s regulatory landscape has been transformed by the Energy Reform (2024) Act, which took effect in April 2025. The Act established the Nova Scotia Independent Energy System Operator (“NSIESO”), a non-profit entity now responsible for grid operations, procurement, and planning. The NSIESO replaces Nova Scotia Power’s transmission branch and is tasked with integrating renewables, managing interconnections, and overseeing competitive procurement processes.

Additionally on November 10, 2025, Nova Scotia announced that Eauclaire Tidal Limited Partnership will expand its presence at the Fundy Ocean Research Centre for Energy by adding two new project berths in the Minas Passage, bringing its total tidal energy capacity potential to 16.5 MW. These wo additional berths were awarded through a competitive procurement process.

Newfoundland and Labrador: Churchill Falls, Gull Island, and Offshore Wind

Churchill Falls

The Churchill Falls hydroelectric project remains the cornerstone of Newfoundland and Labrador’s energy future. In December 2024, the province signed a memorandum of understanding (MOU) with Hydro-Québec. The new deal promises an average of $1 billion annually to the province until 2041, with escalating revenues thereafter, and sets the stage for joint development of the long-delayed Gull Island project and an expansion of the Churchill Falls facility.

Key Elements:

• Revenue: Newfoundland and Labrador will receive $1 billion per year until 2041, retroactive to 2024, with further increases after 2041.
• Churchill Falls Expansion: A new underground powerhouse will add 550 MW, with the Innu Nation granted employment priority for construction jobs.
• Indigenous Partnerships: The Innu Nation reached a reconciliation agreement with Hydro-Québec, including $87 million in payments and a framework for future collaboration on Gull Island.

Specifically, Gull Island the 2,250 MW hydro project, led by Hydro-Québec (project lead and construction manager), is targeted for commissioning in 2035. 60% of the Gull Island will be owned by Newfoundland and Labrador Hydro, and 40% by Hydro-Québec. Gull Island is projected to generate over $225 billion in revenue to Newfoundland and Labrador over its lifetime. Newfoundland Hydro is expected to operate and maintain the facility once committed and commissioning is targeted for 2034-2035.

Offshore Wind and Green Hydrogen

Newfoundland and Labrador is also positioning itself as a leader in offshore wind and green hydrogen. The passage of Bill C-49 and mirror provincial legislation, Bill 90, has created a regulatory framework for offshore renewables, with the province joining the Global Offshore Wind Alliance .

Conclusion: Atlantic Canada at the Crossroads

The Atlantic Provinces are navigating a period of unprecedented change. Nova Scotia’s Wind West project, Newfoundland and Labrador’s Churchill Falls and Gull Island developments, New Brunswick’s nuclear ambitions, and PEI’s grid modernization are all pieces of a larger puzzle that will determine the region’s economic, environmental, and social trajectory for decades to come.

The path forward is not without obstacles: transmission bottlenecks, regulatory complexity, stakeholder engagement, and the ever-present challenge of affordability. Yet, the region’s leaders are united by a vision of Atlantic Canada as a clean energy powerhouse—one that can supply not just its own needs, but help power the nation and other parts of the world. This is reflective in the Eastern Energy Partnership. As the 2025 outlook makes clear, the winds of change are blowing strong across Atlantic Canada.