Alberta, Saskatchewan and N.W.T. sign nuclear-energy and power-grid agreement

Alberta, Saskatchewan and the Northwest Territories have signed a memorandum of understanding aimed at advancing nuclear power and strengthening electricity connections across Western Canada and the North. The agreement, announced Sept. 14 by premiers Danielle Smith, Scott Moe and R.J. Simpson, creates a framework for the governments to share information and jointly examine large-scale reactors, small modular reactors and microreactors. It also calls for work on new or expanded transmission links between the three jurisdictions.

The agreement is organized around three priorities: improving the security and reliability of electricity systems, protecting long-term affordability and evaluating nuclear technology as an economical route to carbon-neutral power. The three governments intend to collaborate on reactor selection and development, financing models, environmental assessments, federal and regulatory approvals, uranium-fuel supply and transportation, and nuclear-waste management.

Stronger interties form the other major part of the agreement. The governments say additional transmission capacity could allow electricity produced from nuclear, natural gas, hydro, wind, solar and battery storage to move more effectively between jurisdictions. Greater interconnection can give system operators more flexibility during supply shortages, peak-demand periods and emergencies, although the cost, location and ownership of any new transmission projects have not been disclosed.

Despite the scale of its ambitions, the agreement is an initial planning document rather than approval for a nuclear project. The announcement does not identify a preferred reactor, generating capacity, construction site, vendor, budget or completion date. It also does not specify how costs would be divided among governments, utilities, private developers and electricity customers. Those unanswered questions are significant because nuclear projects typically require long development periods, extensive federal licensing and substantial upfront capital.

The three-party pact builds on an earlier agreement signed by Alberta and Saskatchewan in May 2024. That bilateral memorandum covered nuclear supply chains, workforce development, fuel security, reactor regulation, industrial decarbonization and grid capabilities. Saskatchewan brings uranium resources and existing nuclear-development work to the partnership, while Alberta is examining whether nuclear generation could serve its growing electricity demand and energy-intensive industries.

The two provinces were also part of a four-government strategy released with Ontario and New Brunswick in March 2022. That plan proposed three streams of small modular reactor development for grid-connected and off-grid applications, along with federal financial support, Indigenous participation, regulatory coordination and long-term waste planning. It identified potential uses ranging from conventional electricity generation to remote mines, industrial heat, hydrogen production and oil sands operations.

The latest agreement also overlaps with the broader Partnership Agreement on Transmission Interties that Alberta joined in March. That eight-year framework includes British Columbia, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, Yukon and the Northwest Territories. Participating governments agreed to improve electricity-trade planning, exchange information and seek federal support for transmission projects while retaining authority over their own systems. Alberta currently has interties with B.C. and Saskatchewan, as well as the privately owned Montana Alberta Tie Line.

Alberta’s position is being informed by the province’s Nuclear Energy Engagement and Advisory Panel, whose final report was released in April. The panel received 4,443 responses to its first survey and 1,472 to its second, along with 50 formal submissions. More than 400 people participated in webinars, more than 230 attended public sessions, and the panel met with representatives of more than 30 Indigenous communities and 51 municipalities.

Among survey participants, 67 per cent supported nuclear energy and 81 per cent agreed that nuclear generation would make Alberta’s electricity system more reliable. However, the report cautions that its public surveys were voluntary and subject to self-selection bias. The findings should therefore not be treated as statistically representative of all Albertans. The engagement demonstrated considerable interest in nuclear development, but it did not establish provincewide public approval.

Waste management emerged as one of the clearest concerns. The report says long-term nuclear-waste management was the top concern for as many as 63 per cent of participants in relevant survey questions, while 60 per cent identified the location of long-term waste storage as a leading issue. Participants called for enforceable, fully funded arrangements covering storage, transportation, monitoring, decommissioning and site reclamation. Some pointed to Alberta’s orphaned oil-and-gas wells as a warning that long-term cleanup funds should be secured before projects begin.

Financing presents another unresolved challenge. Industry participants told the panel that the capital required for nuclear development would exceed what most private electricity generators could raise independently. The report discusses federal investment and production tax credits, equity loans, the Canada Infrastructure Bank, the Canada Growth Fund and other risk-sharing measures. It recommends that Alberta investigate provincial mechanisms capable of reducing investor uncertainty. At the same time, participants asked whether taxpayers or ratepayers would be protected from construction overruns, transmission expenses or projects that fail to perform as expected.

Municipalities and Indigenous communities also sought a meaningful role in future decisions. Municipal representatives raised questions about housing, roads, emergency services and other local infrastructure that could be affected by a major development. Indigenous participants emphasized treaty rights, water and land protection, cumulative environmental effects and direct participation in waste, transportation and siting decisions. Potential equity ownership, benefit agreements and procurement commitments were discussed, including possible involvement by the Alberta Indigenous Opportunities Corporation.

The panel ultimately recommended stronger public education, clearer provincial responsibilities, coordination with federal regulators, continued Indigenous engagement, meaningful municipal participation and a provincial nuclear-emergency response plan. Alberta says the findings will help shape a provincial nuclear-energy roadmap expected in early 2027.

The new agreement moves nuclear power from an Alberta policy discussion toward regional planning with neighbouring governments. Its importance will ultimately depend on what follows: whether a specific project is proposed, how it would be financed, where it would be located, what transmission upgrades would be required and how governments address waste, Indigenous rights, local impacts and consumer costs. Until those decisions are made, the memorandum represents a significant statement of direction—but not yet a commitment to build.