Skip to content
Home » Energy Market Update: May 2025

Energy Market Update: May 2025

Alberta

Alberta renewables investment ‘dampened’ by uncertainty: report

A seven-month moratorium on new wind and solar projects in 2023, restructuring of the province’s electricity market and a legal challenge of federal clean electricity regulations are among the factors contributing to uncertainty in the industry, according to a report from the Pembina Institute. The clean energy think tank’s report notes that while the moratorium ended more than two years ago, Alberta’s renewable electricity market “continues to be characterized by significant uncertainty and dampened investor enthusiasm.” The Alberta government said the report’s findings don’t match project data.

The Alberta Utilities Commission approved 44 new generation projects in 2024 — 24 of which were renewable projects, an increase from 12 in 2023 and 23 the year prior. Although a project gets approval doesn’t mean it will break ground, said Will Noel, a senior analyst with Pembina Institute. According to the think tank’s report, 10 solar projects under construction will produce 1,900 megawatts, while another 15 that would generate 1,200 MW have received approval but not broken ground. With little clarity as to the compounding effects of policy changes and no sense of whether additional rules will come, he argues investors will ultimately be pushed elsewhere.

Source: Edmonton Journal

Electricity Prices for Alberta

The Alberta power pool price averaged 4.099 cents per kWh in May 2025. This price is 0.73 cents higher than last month’s average of 3.369 cents. The pool price has averaged 4.569 cents per kWh over the last 12 months.

As of June 1, 2025, the forward market was predicting electricity prices for the calendar years of 2025, 2026, 2027, 2028, 2029, 2030, and 2031. These prices are 5.150, 5.505, 5.725, 7.000, 7.325, 7.325, and 7.325 cents per kWh respectively.

Gas Prices for Alberta

Direct Energy’s gas rate for May 2025 was $2.419 per GJ in Alberta. The June 2025 rate has been set at $1.775 per GJ. Alberta gas prices have averaged $1.695 per GJ over the last 12 months.

As of June 1, 2025, the forward market was predicting gas prices for the calendar years of 2025, 2026, 2027, 2028, and 2029. These prices are 2.12, 3.26, 3.27, 3.17, and 3.05 cents per GJ respectively.

 

British Columbia

Enbridge to sell B.C. gas pipeline stake to Indigenous groups

The federal government will provide a $400-million loan guarantee to support a partnership of 36 First Nations in their purchase of a 12.5 per cent interest in the Westcoast pipeline system, which transports gas from Fort Nelson, in the northeastern part of B.C., to the Canada-U.S. border. The group, known as the Stonlasec8 Indigenous Alliance Limited Partnership, is buying the stake for $715 million, with the sale expected to close by the end of June. Calgary-based Enbridge and other Canadian energy companies have increasingly been partnering with Indigenous communities on operations that affect their land, moves that both improve relations with the groups and also seek to head off environmental and legal opposition. Enbridge in 2022 agreed to sell a 12 per cent stake in seven pipelines in Alberta to First Nations and Métis communities in a deal it called “Project Rocket.”

Source: Edmonton Journal

 

Ontario

Go-Ahead For Project To Build Canada’s First Small Modular Reactor

The province of Ontario and power company Ontario Power Generation (OPG) have approved a CAD20.9bn plan to build the first of four small modular reactors (SMRs) at OPG’s Darlington site. Construction of the BWRX-300 plant will begin soon with completion of the first unit scheduled by the end of the decade. Only a handful of SMRs have been completed and only in Russia and China. The Darlington project is expected to be the first to be deployed in the developed Group of Seven countries. Once built, the reactors will operate for 65 years, the government of Ontario said. The BWRX-300 is a 300-MW water-cooled, natural circulation SMR with passive safety systems. It is based on an existing boiling water reactor design – the ESBWR – that is licensed in the US. It also uses an existing, licensed fuel design. The project will create 18,000 jobs, including 3,700 highly skilled jobs. The Darlington project is part of a larger push by Steve Lecce, Ontario’s minister of energy and mines, to deploy more nuclear generation to power Ontario’s growing electricity demands.

Source:  NucNet

 

Saskatchewan

Indigenous-led partnerships powering 2 new Sask. renewable energy projects

SaskPower awarded contracts for the 200-megawatt Rose Valley Wind Project, east of Assiniboia, and the 100-megawatt Southern Springs Solar Project, south of Coronach. The projects will be developed and run by Potentia Renewables Inc. in partnership with the Meadow Lake Tribal Council (MLTC) and Mistawasis Nêhiyawak First Nation. The wind project will operate under a 30-year power purchase agreement (PPA), while the solar project will run under a 25-year PPA. The provincial government said the announcement reflects a broader commitment to economic reconciliation and supporting Indigenous participation in major infrastructure developments across the province. SaskPower said the two projects will produce enough electricity to power about 125,000 homes, while helping reduce emissions and maintain affordability. The projects are expected to be completed in late 2027. Once operational, the new facilities will bring SaskPower’s total wind generation capacity to 1,217 megawatts and solar capacity to 318 megawatts.

Source: CBC

 

Manitoba

Manitoba First Nation enters partnership aimed at lowering community’s heating bills

Manitoba First Nation enters partnership aimed at lowering community’s heating bills A new partnership with a Manitoba First Nation northeast of Winnipeg is aiming to cut energy costs, train workers and invest millions directly into the province’s Indigenous communities. This first phase begins in Brokenhead Ojibway Nation, where a $1.89 million investment from Efficiency Manitoba and nearly $7 million from Raven Outcomes will help launch a local energy company called BON Energy. Funds will pay for the installation of 100 ground-source heat pumps in the community and other home upgrades aimed at lowering heating bills, improving energy use and providing a better living experience for those in the community. The project includes training for a dozen community members to install and maintain these systems, with hopes that the skills stay in the community long term. This partnership is also expected to grow, with Efficiency Manitoba making a province-wide call for other First Nations interested in joining.

Source: Winnipeg – City News

 

New Brunswick

New wind farms to bring 450 MW of clean energy to N.B.

New Brunswick is ramping up its clean energy efforts with four new wind farms set to bring over 450 megawatts (MW) of renewable power to the provincial grid. NB Power has signed agreements to purchase electricity from these developments, marking a significant step in the province’s shift toward lower-emission power generation. The four wind farms, developed in collaboration with First Nations communities, are expected to be operational by 2027 and 2028. NB Power is also seeking additional renewable energy through two newly announced REOIs. The Net-Zero Pathway targets 200 MW of clean energy, welcoming projects of varying sizes with completion dates between 2029 and 2030. The Large-Scale Accelerator Pathway, also targeting 200 MW, focuses on larger developments exceeding 100 MW, with completion expected by 2027 and 2028. Wind power is among the most affordable renewable energy sources, helping stabilize electricity rates while reducing reliance on fossil fuels. These projects build on NB Power’s previous clean energy initiatives, including the 25 MW Neweg Energy Project, developed by the Mi’gmaq United Investment Network and Natural Forces, which became operational in February 2025.

Source: 91.9 The Bend

 

Prince Edward Island

Enwave Announces Expansion of Energy from Waste District Heating Facility in Prince Edward Island, Avoiding Landfill for Nearly 90% of the Black Cart Residential Waste in Province

Enwave Energy Corporation has announced the commitment to build a new waste processing facility in Prince Edward Island, beginning this fall. The facility will be in operation by 2028 and will replace the existing end-of-life system. Enwave, in partnership with the Province of Prince Edward Island, has proudly undertaken this expansion to address the growing need to identify sustainable waste solutions in the province. This new, state-of-the-art facility is capable of processing 90% of the province’s total black cart residential waste, significantly reducing landfill waste. The expansion of this critical facility will significantly replace the use of fuel oil for heating while providing further reliability and redundancy to more than 145 connected buildings in Charlottetown, the province’s capital city. Leveraging Waste-to-Energy technology provides a real solution and tangible option for communities around the country to reduce the need for additional landfills and help to meet carbon emission reduction targets. With global waste forecasted to increase 70% by 2050, this project is a testament to scalable and sustainable pathways that directly address concerns of rising waste.

Source: Globe Newswire

 

Québec

Hydro-Québec commits to 3,000 MW in solar with an initial 300 MW call

Hydro-Québec has set a target to develop 3,000 megawatts (MW) of solar generation capacity by 2035. The announcement includes the launch of an initial call for interest for 300 MW, aimed at solar farms connected to the distribution grid. By integrating solar as a complementary source to hydroelectricity, Hydro-Québec seeks to diversify its assets and secure its supply. The initial call for interest targets projects that can connect directly to the distribution network, suggesting potential involvement from regional industrial players. Hydro-Québec is also preparing support measures for residential and commercial self-generation, facilitating the adoption of decentralised solar solutions. The development of this sector includes plans for engagement with host communities, including First Nations and Inuit, who may participate in or benefit directly from the projects. This territorial approach aligns with broader efforts to build local partnerships around energy infrastructure.

Source: Energy News

 

Newfoundland and Labrador

Atlantic Hydrogen Alliance launches supply chain development plan

The government of Newfoundland and Labrador announced a partnership with the Atlantic Hydrogen Alliance (AHA) to develop a strategic hydrogen supply chain plan in Canada’s Atlantic region. The programme aims to identify the development, construction and operational requirements for a regional hydrogen industry. The Ministry of Energy stated that the analysis will provide a clear understanding of hydrogen deployment in the region and the necessary infrastructure for a local industry. AHA Executive Director Derek Estabrook stated that the initiative will help structure the logistics chain to support both domestic consumption and export potential.

Source: Energy News

 

Nova Scotia

Nova Scotia to speed up environmental reviews for clean energy projects

The Nova Scotia government is accelerating the environmental review process for a number of clean energy projects to meet its climate goals and get off coal by 2030. Under changes announced Thursday, large biomass, biogas and clean fuel projects have been changed to Class 1 from Class 2, meaning they can be approved within 50 days. The more rigorous Class 2 assessment, which can take more than two years, is now reserved for projects such as pulp mills, cement plants, incinerators and large energy plants. The government is also classifying small modular reactor projects, previously not covered by regulations, as Class 1, a designation that had previously been reserved for renewable projects involving wind, tidal and solar energy, as well as for biofuels, mines, quarries and alterations to large wetlands. Environment Minister Tim Halman says the province has committed to reaching net zero greenhouse gas emissions by 2050.

The Canadian Press

 

Nunavut

Nunavut on track to get 5 new power plants

Design work is underway on the $122-million replacement of three aging Nunavut power plants. Two other power plants due to be replaced are at the tendering and land acquisition stages. “These investments are critical to strengthening energy reliability, supporting future integration of renewables, and ensuring long-term sustainability,” John Main, the minister responsible for Qulliq Energy Corp., said. The Arctic Energy Fund, a $400-million federal government fund introduced in 2017, covers 75 per cent of the projects’ costs. The remaining 25 per cent will be paid by Qulliq Energy, according to the permit applications. Construction on the three power plants is set to begin in the 2025-26 fiscal year, which ends March 31, 2026. In addition to the five power plants, Qulliq Energy is set to replace generators in several communities including Kuparuk, Baker Lake, Iqaluit, Sanikiluaq, Kimmirut, Coral Harbour, Chesterfield Inlet, Whale Cove, Pond Inlet and Rankin Inlet. As well, Qulliq Energy plans to install emergency generators in Coral Harbour, Grise Fiord, Kugluktuk and Igloolik that will provide “backup power and strengthen community resilience during outages and maintenance periods,” Main said.

Source: Nunatsiaq News

 

Northwest Territories

Government of the Northwest Territories’ New Approach to Energy and Climate Change

In May 2025, the Northwest Territories (NWT) focused on developing a new integrated approach to energy and climate change, aiming for net-zero emissions by 2050. The government outlined three themes for this approach: addressing high energy costs, upgrading aging infrastructure, and mitigating the impacts of climate change. The NWT also saw a new focus on community-led clean energy initiatives, including net metering and electric vehicle charging.

Source: Government of Northwest Territories

 

Yukon

City of Whitehorse releases latest draft climate action plan

The plan aims to align with the International Panel on Climate Change’s target of keeping global temperature increase at 1.5 C. In order to hit this target the city would have to achieve net-zero greenhouse gas emissions by 2050. The plan focuses on adaptation and mitigation in terms of climate strategies: adaptation refers to preparing for the consequences of climate change, whereas mitigation refers to reducing or eliminating greenhouse-gas emissions. The two aren’t mutually exclusive. The draft climate action plan focuses on multiple spheres within the city’s scope: transportation systems within the city, buildings and infrastructure, waste, nature and greenspace, emergency management, corporate leadership, and community education and engagement.

Source: Yukon News