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Home » Energy Market Update: February 2026

Energy Market Update: February 2026

Alberta

Alberta Invests $28 Million to Advance Industrial Transformation and Accelerate Clean Technologies

Alberta is investing $28 million in six projects worth more than $172 million to strengthen the province’s energy future. These projects will advance technologies that help reduce emissions, improve the energy sector’s environmental performance, strengthen Alberta’s competitiveness, and create jobs. These initial six projects encompass a range of technologies in Alberta’s energy sector, from enhancing resource production to implementing solutions for cleaner operations. They include projects that aim to improve oil recovery efficiency, enhance pipeline safety, and install advanced equipment to capture emissions from natural gas engines. Other projects include cleaning up legacy sites by removing soil contaminants and producing renewable natural gas from agricultural byproducts. If successful, they are estimated to deliver average annual greenhouse gas emissions reductions of 72,000 tonnes of CO2, 260,000 cumulative tonnes by 2030, and more than 1,675,000 tonnes by 2050. Projects are also estimated to create approximately 1035 person-year jobs and $166.5 million in GDP for Alberta by 2027.

Source: Emissions Reduction Alberta

Electricity Prices for Alberta

The Alberta power pool price averaged 2.239 cents per kWh in February 2026. This price is 1.705 cents lower than last month’s average of 3.944 cents. The pool price has averaged 4.185 cents per kWh over the last 12 months.

As of March 1, 2026, the forward market was predicting electricity prices for the calendar years of 2026, 2027, 2028, 2029, 2030, and 2031. These prices are 4.312, 5.176, 6.125, 6.425, 6.725, and 7.025 cents per kWh respectively.

Gas Prices for Alberta

Direct Energy’s gas rate for February 2026 was $2.422 per GJ in Alberta. The March 2026 rate has been set at $1.784 per GJ. Alberta gas prices have averaged $1.999 per GJ over the last 12 months.

As of March 1, 2026, the forward market was predicting gas prices for the calendar years of 2026, 2027, 2028, 2029, and 2030. These prices are 1.61, 2.36, 2.54, 2.60, and 2.57 cents per GJ respectively.

 

British Columbia

Supporting emissions reduction in social, non-profit housing

The Province of British Columbia has announced renewed and expanded supports to help social and non-profit housing providers reduce greenhouse-gas emissions through the launch of the Social Housing Energy Savings Program (SH-ESP). The program integrates CleanBC electrification incentives with BC Hydro energy-efficiency rebates into a single, streamlined application process. Provincial incentives under SH-ESP focus on low-carbon electrification measures, including heat pump retrofits, fuel-switching from fossil fuels, and associated electrical system upgrades. The initiative replaces and enhances the former CleanBC Social Housing Incentive Program, which ended in September 2025, by increasing the maximum project cap to $400,000 (excluding electrical service upgrades), allowing up to 50 per cent of funding to be provided upfront, and simplifying the application process. Eligible applicants include non-profit organizations, housing co-operatives, Indigenous housing providers, local governments, provincial housing authorities and charities. Providers may access up to $40,000 for feasibility studies and up to $800,000 for equipment and electrical upgrades, with total combined support reaching as much as $1.4 million per site when paired with BC Hydro rebates. The program is designed to accelerate retrofits across more than 80,000 affordable homes provincewide, lowering operating costs, improving energy efficiency and resident comfort, and advancing climate action goals. Administered by BC Hydro, projects may take up to 18 months to complete, with electrification funding available across British Columbia and electrical-efficiency incentives applicable within BC Hydro and the City of New Westminster service territories.

Source: Government of British Columbia

 

Ontario

Ontario opens applications for commercial-scale carbon storage projects

The Government of Ontario announced that it is now accepting applications for commercial-scale geologic carbon storage projects, marking a significant step following several years of regulatory development. Enabled by the Geologic Carbon Storage Act, 2025, the new framework establishes rules for the safe, long-term management of underground carbon storage. The province estimates the technology could reduce greenhouse-gas emissions by five to seven million tonnes annually, generate more than 4,000 jobs and lower operating costs for energy-intensive industries by nearly $1 billion. Officials stated that the initiative is intended to support emissions reductions while strengthening economic competitiveness and positioning Ontario as a leader in the low-carbon transition. Commercial-scale geologic carbon storage involves capturing carbon dioxide from industrial facilities or power plants, compressing and transporting it, and injecting it into deep underground porous rock formations for permanent containment. Most of Ontario’s storage potential is concentrated in Southwestern Ontario, near major point-source emitters. The regulatory framework was developed through extensive consultation, including public discussions and stakeholder engagement sessions. The province indicated it will continue collaborating with industry, municipalities, Indigenous communities and landowners to ensure safe implementation. Globally, momentum for carbon capture and storage continues to grow, with the Global Carbon Capture and Storage Institute reporting nearly 400 projects at various stages of development in 2023, and close to 300 million tonnes of carbon dioxide already injected underground.

Source:  Environmental Journal

 

Saskatchewan

Saskatchewan is on a crash course with Canada’s coal phaseout. Will the feds step in?

Federal Environment Minister Julie Dabrusin is facing mounting pressure to enforce federal coal phaseout rules as Saskatchewan moves to extend the life of its coal-fired power plants beyond Canada’s Dec. 31, 2029, deadline. The province has committed $900 million to refurbish coal facilities and, as of late February, SaskPower reported its electricity supply was 76 per cent fossil fuel-based, including 28 per cent coal and 48 per cent natural gas. Federal regulations requiring the phaseout of unabated coal plants are embedded in the Canadian Environmental Protection Act and the Clean Electricity Regulations finalized in 2024. While Dabrusin’s office reiterated that Ottawa will work with provinces to ensure compliance with legal and climate commitments, it declined to state whether the minister would use her authority under the Act — including seeking injunctions or court orders — to intervene directly. Saskatchewan officials, including Crown Investments Corporation Minister Jeremy Harrison, have said the province will not comply with the federal rules, arguing they are unconstitutional, unaffordable and would result in job losses. The province previously secured a temporary 2024 agreement with Ottawa allowing flexibility on coal phaseout targets, though that deal expires at the end of 2026. Environmental groups, including the Saskatchewan Environmental Society, are urging federal intervention and have appealed a court decision dismissing a legal challenge to the coal extension plan. The province has framed coal as a “bridge” to a future nuclear fleet, including potential small modular reactors in the mid-2030s, while critics argue Saskatchewan could instead expand interprovincial hydro imports, solar and wind generation. Canada, which co-founded the Powering Past Coal Alliance, has committed internationally to phasing out coal power, heightening scrutiny over the province’s long-term reliance on the high-emitting fuel.

Source: The Narwhal

 

Manitoba

‘Critical Minerals’ in Manitoba’s Energy Transition

An analysis of Canada’s energy transition highlights the tension between the growing demand for “critical minerals” and the significant environmental and social impacts associated with mining them. While these minerals are essential for electrification, digital technologies and increasingly military applications, recent federal and provincial policy shifts — including expedited project approvals — have accelerated development with climate objectives cited as justification. Canada is positioning itself as a major supplier, prioritizing new copper, graphite and nickel projects, particularly in regions such as Northern Manitoba, where mining has historically caused contamination and community harm. Environmental organizations warn that expanded extraction risks further impacts on Indigenous lands and ecosystems, underscoring the need for stronger regulations, land-use planning and meaningful consultation. Reducing overall demand for critical minerals is essential to limiting mining pressures. Personal electric vehicles (EVs), while lower-emission in operation, require substantial mineral inputs for batteries, making car-dependent transition pathways especially resource-intensive. Alternatives such as public transit, denser urban planning, grid-scale battery storage, renewable power, electric buses and e-bikes could significantly lower mineral requirements. The piece also calls for prioritizing climate-focused uses of minerals over military hardware and energy-intensive data centres, while expanding repair, repowering and recycling of renewable technologies to curb future extraction. Although some mining is unavoidable for decarbonization, the report concludes that stricter environmental oversight, Indigenous consent, and policies aimed at minimizing material demand are critical to ensuring minerals are used as efficiently and responsibly as possible.

Source: Climate Action Team Manitoba

 

New Brunswick

N.B. assessment finds flooding, wildfires and coastal erosion as top climate risks

The Province of New Brunswick has completed its first province-wide Climate Change Risk Assessment, identifying flooding, wildfires and coastal erosion as among the most significant climate-related threats facing the province. Led by the Climate Change Secretariat in partnership with the Climate Risk Institute, the assessment draws on climate data, scientific research, historical events and input from more than 275 participants, including government agencies, researchers and First Nation communities. The report concludes that New Brunswick is already experiencing the impacts of climate change, including hotter summers, milder winters, heavier rainfall, rising sea levels and more damaging storms, affecting communities, ecosystems and the provincial economy. The assessment warns that climate hazards are projected to intensify in both frequency and severity, with many risks expected to shift from moderate to severe or critical by the 2050s and 2080s. Coastal regions face heightened risks from sea-level rise and erosion, inland areas are more vulnerable to flooding, forested zones are increasingly sensitive to wildfires and urban centres are experiencing growing strain from extreme heat. Vulnerable populations are disproportionately affected, underscoring the need for inclusive adaptation planning. The province stated that priority departments will now develop targeted action plans to address the most pressing climate risks and reduce long-term vulnerability.

Source: CTV News Atlantic

 

Prince Edward Island

Emerging Concepts and Technologies Research Program (ECT-PEI): Clean Technology Challenge

Prince Edward Island (PEI) has committed to achieving net-zero greenhouse gas (GHG) emissions by 2040 through the deployment of proven renewable energy and energy efficiency technologies. However, significant knowledge and technological gaps remain, particularly in addressing hard-to-abate emissions expected to persist between 2030 and 2040. Recognizing that emerging clean technologies can take decades to move from research to commercialization, PEI acknowledges the urgency of accelerating innovation rather than relying solely on market-driven solutions. To address this challenge, the Net Zero Emerging Concepts and Technologies Research Program – Clean Technology Challenge (ECT-PEI) has been established to identify critical gaps in emissions reduction pathways and prioritize locally developed solutions to reduce post-2030 GHG emissions. The primary objective of the ECT-PEI program is to mobilize and fund researchers and innovators across academic and private sectors to develop promising clean technologies, practices, and approaches suitable for further support within PEI’s technology incubation ecosystem. The program aims to identify knowledge gaps, advance viable solutions, foster collaboration among Atlantic Canadian institutions, Indigenous-led organizations, and industry partners, and generate intellectual property with global low-carbon market potential. By the program’s conclusion, projects are expected to deliver scalable products with commercialization prospects that contribute to PEI’s economic development. The initiative is supported by Innovation PEI, which has invested $230,000 under the province’s Climate Change Plan for Clean Growth to help Islanders meet the 2040 net-zero target.

Source: Net Zero Atlantic

 

Québec

Canada invests in a cleaner, more affordable Quebec

The Government of Canada has announced over $3 million in funding through Natural Resources Canada to advance energy efficiency, affordability, and clean economic growth in Quebec. The announcement was delivered by Parliamentary Secretary Claude Guay on behalf of Tim Hodgson, Minister of Energy and Natural Resources. Key investments include more than $2 million from the Codes Acceleration Fund to the City of Montreal to support its transition toward zero-emission buildings by 2040; nearly $650,000 through the Energy Innovation Program to Fondation Rivières to explore smart grid and microgrid solutions for municipal utilities and Indigenous communities; and over $300,000 through the Toward Net-Zero Homes and Communities Program to Le Partenariat Climat Montréal for its “Chauffer Mieux” tool, which helps residents and small businesses identify affordable, energy-efficient heating options. These initiatives aim to modernize building regulations, strengthen grid resilience, and improve access to cost-effective clean energy solution. The funding aligns with Canada’s broader Climate Competitiveness Strategy and long-term objective of strengthening energy security while reducing emissions. With the clean technology market projected to triple by 2035 and electricity demand expected to double, the federal government emphasized that maintaining competitiveness requires scaling up clean, reliable, and affordable power systems. Canada has already reduced its carbon intensity by 34 percent since 2005, driven by energy efficiency gains, grid decarbonization, and economic shifts. Through coordinated federal, provincial, and Indigenous partnerships, and complementary measures such as investment tax credits and carbon contracts for difference, the government aims to position Canada—and Quebec in particular—as leaders in sustainable economic growth and climate action.

Source: Government of Canada

 

Newfoundland and Labrador

Canada and Newfoundland and Labrador invest in wastewater infrastructure in St. John’s

Federal, provincial, and municipal governments have announced a joint investment of more than $139 million to support the first phase of the Riverhead Wastewater Treatment Facility expansion in the St. John’s metropolitan area. The project will increase primary treatment capacity and include design and site preparation for a future secondary treatment facility. These upgrades will move the facility closer to compliance with the federal Wastewater Systems Effluent Regulations, which establish national standards for wastewater treatment before discharge into the environment. The initiative is intended to protect local waterways, improve environmental outcomes, and provide the necessary infrastructure to enable future housing development in St. John’s, Mount Pearl, and the Town of Paradise. The federal government is contributing approximately $69.6 million through the Provincial-Territorial Infrastructure Component of the New Building Canada Fund, while the Government of Newfoundland and Labrador and participating municipalities are each providing approximately $34.8 million. Within the municipal share, the City of St. John’s will cover 81 percent of costs, with Mount Pearl contributing 14 percent and the Town of Paradise 5 percent. The project represents the largest infrastructure investment in St. John’s history and is positioned as a critical step toward meeting long-term wastewater treatment needs, supporting population growth, strengthening environmental protection, and promoting regional economic development.

Source: Government of Canada

 

Nova Scotia

Nova Scotia wind project will sell power direct to consumers

Nova Scotians will soon have the option of bypassing the province’s monopoly utility for electricity, with the development of an onshore wind farm expected to start operations late this year. The Mersey River Wind project will comprise 33 onshore turbines located about 150 kilometres southwest of Halifax, generating 150 megawatts. That’s enough to power 50,000 homes. More than half of Nova Scotia’s electricity generation is coal-fired, with the remainder powered by natural gas, wind, hydro, biomass and oil, according to the Canada Energy Regulator. The project is eligible for Ottawa’s Clean Technology Investment Tax Credit for up to 30 per cent of the capital costs. Another government program, known as Smart Renewables and Electrification Pathways, is shelling out $25-million, the CIB said in a statement.

Source: The Globe and Mail

 

Nunavut

 

Geothermal Energy Surges: Canada’s potential in a promising baseload power source

Global investment in next-generation geothermal energy is accelerating rapidly, fueled by breakthroughs in advanced drilling technologies that are improving project economics and scalability. According to the International Energy Agency (IEA) and Underground Ventures, financing for next-generation geothermal reached approximately CAD$3 billion in 2025, with the United States and Indonesia leading global deployment. Projections from the IEA indicate total global geothermal investment could rise to CAD$3 trillion by 2050 as countries seek reliable, zero-emission baseload power to complement intermittent renewable sources. Two leading technologies are driving this expansion: Enhanced Geothermal Systems (EGS), which adapt shale drilling methods to fracture hot rock formations and produce steam for electricity, and Closed Loop Geothermal (CLG) systems, which circulate fluids through underground pipes to generate power. Cost reductions of 12–26% have been achieved through innovations such as polycrystalline diamond compact drill bits and real-time fibre optic monitoring, while projects like Fervo Energy’s Cape Station in Utah have demonstrated sustained 8–10 MW output from a single well, validating commercial viability. Despite possessing strong subsurface expertise, favourable geothermal gradients in western and northwestern regions, and active companies such as Eavor, DEEP Earth Energy, and Tu Deh-Kah Geothermal, Canada remains significantly behind in domestic deployment. The country currently generates less than six megawatts of geothermal power, representing just 0.004% of national installed capacity. However, techno-economic modelling suggests strong future potential. In high-gradient regions such as British Columbia’s Mount Meager and the Northwest Territories’ Liard Basin, levelized costs for EGS could decline to CAD$45–53/MWh, making geothermal competitive with combined-cycle natural gas and less costly than new nuclear generation. Additionally, recent research in Baker Lake, Nunavut, indicates that deeper geothermal systems in the Canadian Shield—previously considered unpromising—may be viable, with modelling showing a high probability of meeting local heating needs and potential electricity generation at greater depths.

Source: Global Renewable News

 

Northwest Territories

Diesel plays outsized role in NWT’s growing annual emissions

The Northwest Territories’ (NWT) latest Energy Initiatives Report indicates that diesel use is playing an increasingly significant role in the territory’s rising greenhouse gas emissions. In 2023, overall emissions rose 0.6 percent year-over-year to 1,360 kilotonnes of carbon dioxide equivalent, with emissions from diesel generation doubling compared to the previous year. Diesel consumption increased further in 2024 due to low water levels in the Snare hydro system and refurbishment work at the Taltson hydro facility, reducing hydroelectric output to 39 percent of total generation. As a result, fossil fuels dominated the 2024 electricity mix, with diesel contributing 52 percent and natural gas 6 percent, while solar and wind accounted for just 2 percent. The increased reliance on diesel has imposed tens of millions of dollars in additional costs and significantly heightened environmental impacts. The NWT has established targets to reduce emissions to 1,094 kilotonnes by 2030—30 percent below 2005 levels—and to achieve net-zero emissions by 2050, though the latter is described as aspirational. The 2030 target may be achievable in part due to the closure of major diamond mines such as Diavik, historically among the territory’s largest emitters, albeit with economic consequences. However, continued dependence on diesel, particularly in remote communities not connected to hydro grids, presents a major challenge to long-term decarbonization. While the government has set a goal to reduce diesel use for power generation by 25 percent and has directed the utilities regulator to support renewable energy growth while protecting ratepayers, implementation remains in early stages. Diesel continues to be regarded as the most reliable energy source in northern conditions, complicating the transition toward cleaner alternatives.

Source: Cabin Radio

 

Yukon

Arctic bioenergy summit showcases Northern heating solutions in Yellowknife

Delegates from across Canada convened in Yellowknife from January 26 to 28 for the Arctic Bioenergy Summit and Tour, hosted by the Arctic Energy Alliance and the Wood Pellet Association of Canada. The event, previously held online as Biomass Week, returned to an in-person format and focused on reducing heating costs and diesel dependence in Northern and remote communities. Approximately 60 participants attended a full-day tour showcasing local biomass heating installations, including wood pellet boiler systems at the Fieldhouse and Multiplex, Stanton Territorial Hospital, and the Prince of Wales Northern Heritage Centre. Organizers highlighted the Northwest Territories’ success with biomass for space heating and positioned it as a proven, lower-carbon alternative to diesel in high-cost energy environments.

Conference discussions emphasized the financial and environmental burden of diesel-based heating across the North and explored opportunities to expand biomass adoption. Presentations addressed fuel supply challenges in smaller and remote communities, with examples from Yukon demonstrating the use of locally produced wood chips as a cost-effective alternative to imported pellets. Participants noted growing interest in developing local fuel supply chains to improve affordability and energy security. The summit concluded with hands-on training sessions for biomass boiler operators, attended by participants from the Northwest Territories, Alaska, and Finland, supporting continued capacity-building and regional collaboration in northern bioenergy deployment.

Source: Yukon News