Ottawa commits $16M to modernize Maritime grids, expand solar

The federal government is injecting $16 million into electricity distribution upgrades and clean energy projects across the Maritimes, aiming to accelerate the region’s transition toward a lower-carbon future.

Federal Energy Minister Tim Hodgson announced the funding Friday, calling it a critical step toward modernizing infrastructure and boosting renewable generation.

The largest share of the funding will support improvements to electricity distribution networks: $6 million for Nova Scotia Power, $5.3 million for Saint John Energy and $2 million for Maritime Electric in Prince Edward Island.

These investments are designed to enhance grid reliability, reduce transmission losses, and better integrate distributed renewable energy sources.

Indigenous-Led Projects

In a notable move toward reconciliation and community-led energy development, Millbrook First Nation near Truro, Nova Scotia, will receive about $1 million to build a solar installation. The project will operate on the grounds of a former oil refinery in Dartmouth, turning a once-polluting site into a source of clean, locally generated electricity.

Across Canada, Indigenous communities have emerged as key players in renewable energy development, often driving projects that combine economic opportunity with environmental stewardship. According to Indigenous Clean Energy, more than 200 medium-to-large renewable projects in Canada have significant Indigenous involvement.

Future Decarbonization

The announcement also includes $875,000 for smart metering systems to help municipalities better manage locally produced renewable energy.

In addition, Dalhousie University will receive $704,089 to create a “regulatory road map” for offshore carbon storage—a technology that could help Atlantic Canada decarbonize heavy industries and balance emissions as renewables expand.

Carbon capture and storage (CCS) remains controversial, with critics warning it could prolong fossil fuel use. Yet, for regions like Atlantic Canada—where natural gas and heavy industry remain entrenched—CCS could provide a bridge while renewables scale up.

Energy Transition

The Maritimes face unique challenges in greening their grids, including heavy reliance on imported power and aging transmission infrastructure. By boosting solar and wind capacity, improving grid resiliency, and exploring carbon storage, Ottawa hopes to position the region to meet both provincial and federal net-zero targets.

While $16 million is modest compared to the billions needed for a full energy transition, this targeted funding underscores the federal government’s strategy: incremental investments in grid modernization and community-led renewables as part of a broader decarbonization plan.

If these projects deliver, the Maritimes could become a proving ground for balancing Indigenous-led clean energy, grid modernization, and next-generation carbon management—offering lessons for the rest of the country.