Canada invests in the Prince Edward Island–New Brunswick Interconnection Expansion Project

Canada’s economy and security depend on reliable, affordable electricity, and national electricity demand is expected to double by 2050. To seize this moment, the Government of Canada is working with provinces and territories to build an interconnected electricity grid that can underpin Canadian energy security, affordability and competitiveness for the long run.

To build a stronger Maritime grid, today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced $5.9 million for PEI Energy Corporation to advance the Prince Edward Island–New Brunswick Interconnection Expansion Project. This investment supports engineering studies, marine surveys, environmental assessments, stakeholder and Indigenous engagement, regulatory work and preliminary transmission route and substation design — laying the groundwork for construction by 2028.

Prince Edward Island relies on transmission connections with New Brunswick to meet much of its electricity demand. The project would strengthen this connection by building two new 200-megawatt, 138-kilovolt submarine cables and undertaking transmission upgrades and the modernization of substations in both provinces. Once complete, this project will improve regional reliability, help the Maritimes meet future electricity demand and contribute to a stronger, more connected electricity system for Atlantic Canada.

This investment follows the Government of Canada identifying the Prince Edward Island–New Brunswick Interconnection Expansion as one of five priority transmission projects at this year’s Energy and Mines Minister’s Meeting in June 2026. The project is aligned with the Transmission InterConnect Investment Strategy, which was referred to the Major Projects Office in May 2026, and supports the objectives of the federal government’s forthcoming National Electricity Strategy.

Transmission projects like this one are critical to our mission to build one economy out of thirteen, be our own best customer and catalyze billions of dollars in investment. The federal government is committed to partnering with provinces, territories, Indigenous communities and utilities to build a connected, secure, affordable energy system for Canadians in Atlantic Canada and across the country. 

Quotes

“Building a stronger, more affordable, better connected electricity system is essential to Canada’s energy security, economic growth and long-term climate competitiveness. This investment is our government doing what we said we would do by advancing a priority transmission project. Strengthening the connection between Prince Edward Island and New Brunswick will help us meet electricity demand with the reliable, affordable electricity Canadians need to thrive.”

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

“Reliable energy is the foundation of a strong economy and thriving communities. By investing in critical infrastructure today, Prince Edward Island is preparing for future growth and increasing energy demand. This project will help create a stronger, more resilient energy system that Islanders, businesses and communities can count on for generations.”

The Honourable Rob Lantz
Premier of Prince Edward Island  

“Energy infrastructure does not stop at provincial borders, making strong partnerships essential for long-term planning and investment. By working together with the Government of Canada, provinces and partners, our critical infrastructure investments are co-ordinated, effective and positioned to meet the future energy needs of Prince Edward Island.”

The Honourable Ernie Hudson
Prince Edward Island Minister of Transportation, Infrastructure and Energy

“New Brunswick is the Maritimes’ energy hub. Securing and strengthening our electricity interties with PEI will help us build a cleaner, more affordable, reliable and resilient electricity system for our entire region and country. Working together with our neighbours, New Brunswick will power Canada's energy future.”

The Honourable Susan Holt
Premier of New Brunswick

Quick facts

  • This investment is from Natural Resources Canada’s Smart Renewables and Electrification Pathways Program (SREPs), a $4.5-billion program that supports grid modernization, energy storage and non-emitting electricity generation projects across Canada. 
  • Canada has one of the cleanest electricity systems in the world, with approximately 80 percent of its electricity generated from clean sources. Investments in electricity infrastructure will help meet growing demand while maintaining reliable, affordable electricity for Canadians.
  • Canada has the lowest residential electricity costs in the G7, the second-lowest industrial electricity costs in the G7 and the OECD, and the second-highest share of clean energy generation in the G7.
  • The federal government is already advancing strategic investments in the modernization and expansion of Canada’s electricity infrastructure, including:
    • Major clean economy Investment Tax Credits, such as those for clean electricity, clean technology and carbon capture, utilization and storage
    • Strategic financing through the Canada Infrastructure Bank (with a $20-billion clean energy target), the Canada Growth Fund and the Indigenous Loan Guarantee Program (with an envelope doubled from $5 billion to $10 billion)
    • Programming targeted at priority areas in the electricity sector, including the $4.5-billion Smart Renewables and Electrification Pathways Program
    • A new Productivity Super-Deduction — a set of enhanced tax incentives covering all new capital investment that allows businesses to write off a larger share of the cost of these investments right away
    • The Electric Vehicle Affordability Program, which makes it more affordable for Canadians to buy or lease electric vehicles

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