May 10, 2026 to May 16, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions, political announcements, and other government-related news concerning power generation and transmission, wind and solar, utilities, midstream companies, batteries and energy storage, LNG, biofuels, as well as nuclear. Once a week, we break down the most important updates in this space in under five minutes.

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📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 💬 Government Consultations
• 📚 What We're Reading This Week

Federal Government News

Prime Minister Carney Releases Plan to Double Electricity Grid Capacity by 2050

Prime Minister Mark Carney unveiled the federal government's new clean electricity strategy this week, centering on a plan to double Canada's electricity grid capacity by 2050 in response to projected demand growth. The plan includes promoting natural gas-fired power as a transitional solution, alongside renewable energy investment and grid modernization. Carney's announcement, delivered May 14 in Ottawa, set the stage for significant federal-provincial collaboration, as the strategy’s implementation will rely heavily on provincial authorities. The government committed to lowering electricity costs, supporting reliability, and maintaining affordability as demand rises. The new framework leaves Canada’s 2030 climate targets unchanged for now, while consultations on long-term federal-provincial coordination and investment will be ongoing.

Sources: www.ctvnews.ca, globalnews.ca, www.thestar.com, www.cbc.ca, globalnews.ca

Enhanced Investment Co-operation for LNG Canada Phase 2

On May 14, the federal government, the Government of British Columbia, and LNG Canada announced an agreement on enhanced investment co-operation to advance the proposed Phase 2 expansion of LNG Canada’s Kitimat facility. The multi-partner initiative, referred to the Major Projects Office in September 2025, is intended to secure a Final Investment Decision (FID) by the end of 2026. Joint Venture Partners recently approved substantial new funding to finalize engineering, procurement, Indigenous agreements, long-lead equipment acquisition, and supply chain contracts in anticipation of FID. The agreement’s mutual goals include increased Indigenous participation, workforce development, export market diversification, and expanding low-emissions LNG supply. According to Natural Resources Minister Tim Hodgson, Phase 2 aims to achieve 35% lower emissions than the best-performing global LNG plants and could position Canada among the top five LNG exporting nations.

Sources: www.canada.ca

Canada Invests $4.5M in Clean Energy for Rural and Remote Communities

Natural Resources Canada announced more than $4.5 million in new investments under the Clean Energy for Rural and Remote Communities (CERRC) program to support various clean power projects across British Columbia. The funding will advance hydropower, biomass, micro-solar, battery energy storage, electric vehicle charging, and wave and geothermal energy development in several Indigenous, rural, and remote communities. Projects include a 350-kW run-of-river hydropower system with emissions reduction of 739.9 tonnes CO₂e annually, a micro-solar and battery/EV charging demonstration for Haida Gwaii, and deployment of a biomass boiler to supply heat to the Northern Haida Gwaii Hospital. The package also includes initiatives supporting capacity-building, energy audits, and clean energy training.

Sources: www.canada.ca

Government Welcomes Major Investment in Lithium Mine Expansion

The federal government welcomed an up to $145 million investment by the Canada Growth Fund to expand North American Lithium, Canada’s largest operating lithium mine, in Quebec’s Abitibi region. The project, operated by Elevra Lithium Limited, will increase mine production, enhance cost competitiveness, and boost the North American battery supply chain. Approximately 252 jobs are slated for support, and the expansion is expected to contribute to Canada’s position as a key supplier of lithium for electric vehicles and renewable storage systems.

Sources: www.canada.ca

Federal and Alberta Governments Agree on New Oil Pipeline and Industrial Carbon Pricing Framework

Canada and Alberta formalized the Alberta-Canada Energy MOU, setting a path for constructing a new Indigenous co-owned oil pipeline to the west coast, targeting initial construction as early as September 2027. The agreement establishes a revised carbon pricing trajectory, keeping the price at $95 per tonne through 2026, $100 from 2027–2030, and capping at $130 per tonne by 2035 with further scheduled increases. Prominent industry partners estimate the framework will avoid $250 billion in additional costs to 2050, while a new floor price will be introduced to stabilize Alberta’s carbon market. The MOU’s terms specify the abeyance of federal Clean Electricity Regulations in Alberta and a commitment not to proceed with a federal oil and gas emissions cap. The governments also agreed to streamline project reviews and reinforce provincial jurisdiction for impact assessments.

Sources: www.alberta.ca

Major Federal Funding Bolsters BC’s Critical Minerals Infrastructure

Natural Resources Canada announced over $100 million in funding for five projects to scale up British Columbia’s critical minerals sector. The federal support includes up to $50 million to upgrade BC Hydro's transmission system to serve the Highland Valley Copper Mine, nearly $44.2 million for expanded transmission capacity for mining developments in the northwest, $3 million for Nano One Materials’ lithium iron phosphate work, $1.87 million for Defense Metals Corp. to advance a new 60-kilometre transmission line at the Wicheeda rare earths site, and $736,778 for Boney Creek Development Ltd. to support Anyox Hydroelectric facility works. The funding package aims to expand electrical infrastructure and strengthen ties among Indigenous, mining, and utility sectors.

Sources: www.canada.ca

Canada Announces Clean Marine Infrastructure Investment

Transport Canada confirmed an investment of up to $14.3 million for the Charlottetown Harbour Authority to install shore power at Port Charlottetown. Ships will be able to connect to the local electricity grid while berthed, reducing emissions and supporting clean port operations. The investment forms part of the Green Shipping Corridor Program Clean Ports stream, contributing to federal goals for reducing transportation sector emissions.

Sources: www.canada.ca

Canada Engages Oman on Energy and Critical Minerals Partnerships

On May 13, Foreign Affairs Minister Anita Anand met with Salim bin Nasser Al Aufi, Oman’s Minister of Energy and Minerals, in Muscat. Minister Anand promoted Canada as a stable investment partner and supplier of energy and minerals, aligning with Oman's diversification policies. Discussions included Canadian companies’ involvement in Oman’s large-scale energy efficiency projects and bilateral interests in resilient supply chains. Anand also noted Omani participation in upcoming Canadian energy events.

Sources: www.canada.ca

StatsCan Releases March 2026 Electric Power Selling Price Index

Statistics Canada released the Electric Power Selling Price Index for March 2026 (base year 2014=100). The index provides insight into pricing trends for wholesale electric power transactions.

Sources: www.statcan.gc.ca

Federal Officials Hold Embargoed Briefing on Forthcoming Electricity Initiatives

On May 13, Natural Resources Canada invited accredited media to a technical briefing on upcoming electricity initiatives. The session, held under embargo until Prime Minister Carney’s May 14 remarks, covered background information on planned government measures to deliver clean, reliable, and affordable power nationwide for decades to come. Participating media received advanced materials under strict embargo terms.

Sources: www.canada.ca

Provincial Government News

BC Hydro Awards Four Wind Projects, Strengthening Clean Energy Supply

British Columbia awarded four wind projects through BC Hydro’s 2025 call for power, totaling 3,500 GWh annually—enough for 350,000 homes. All projects feature 51% First Nations equity ownership and significant private investment.

Sources: news.gov.bc.ca

BC Backs Clean Technology Projects via Innovative Clean Energy Fund

The BC Innovative Clean Energy Fund announced nearly $6 million for six projects in electricity management, heat pump technology, and fleet electrification, aiming to bolster energy resilience and cost efficiency for the province.

Sources: news.gov.bc.ca

BC and Canada Sign LNG Canada Phase 2 Enhanced Investment Co-operation Agreement

British Columbia and federal officials agreed to enhanced investment co-operation for LNG Canada’s proposed Phase 2, involving new funding and actions to progress a 2026 Final Investment Decision for the Kitimat facility.

Sources: news.gov.bc.ca

Manitoba, TC Energy, and Indigenous Leaders Discuss Infrastructure Participation

Manitoba Premier Wab Kinew met with TC Energy and its Indigenous Advisory Council regarding the Churchill Plus project, emphasizing Indigenous involvement in major infrastructure initiatives, including energy corridors and marine infrastructure.

Sources: news.gov.mb.ca

Nova Scotia Issues RFP for Wood Heat Conversions in Public Buildings

Nova Scotia released a request for proposals to convert five public-sector buildings to locally sourced wood heating systems, supporting the forestry sector and aiming to boost energy security.

Sources: news.novascotia.ca

Government Consultations

Consultation: Proposed Amendments to the Uranium Mines and Mills Regulations

The Canadian Nuclear Safety Commission opened consultation on proposed amendments to the Uranium Mines and Mills Regulations, seeking feedback on regulatory updates from May 18 through July 16, 2026.

Sources: www.cnsc-ccsn.gc.ca

What We're Reading This Week

• Ottawa begins consultations on strategy to double Canada’s grid capacity by 2050: Report examines the federal process to engage stakeholders on long-term grid expansion.
• Carney unveils new electricity strategy, noncommittal on 2030 climate targets: Article covers the federal strategy announcement and approach to interim climate milestones.
• Natural gas to play key role in strategy to double Canada’s electricity grid by 2050: Federal grid expansion strategy details, including the position of natural gas generation.
• Feds announce new clean electricity strategy which promotes natural gas: Recap of Prime Minister Carney's announcement on clean electricity policy.
• Canada aims to double electricity grid capacity by 2050 as demand soars: Article discusses government ambitions to increase electrical generation and distribution.
• Carney to unveil clean energy strategy amid push to double Canada’s electricity generation: Preview of the federal government’s new electricity and energy policy agenda.

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