Energy Strategy for PEI Sets Course for Next 10 years

November 5, 2025

Prince Edward Island’s new energy strategy calls for strengthened consumer protections and upgrades to infrastructure, while highlighting energy equity and affordability. 

The PEI Energy Strategy outlines high-level priorities to achieve the Government of Prince Edward Island’s long-term vision for the energy system through to 2035.   

Key facts about PEI’s energy systems:
  • 25 per cent of the energy used in PEI is in the form of electricity, while refined petroleum products and biofuels (gasoline, diesel, propane, home heating oil, wood chips, etc) comprise 75 per cent of PEI’s energy supply.
  • The transportation sector is responsible for 42 per cent of PEI’s total energy demand, and 45 per cent of PEI’s total greenhouse gas emissions.
  • Targeted energy efficiency programming and investments have resulted in a steady decrease in provincial greenhouse gas emissions over the last three years despite population growth of nearly 17 per cent over the same time-period.
  • PEI has an average electrical load of less than 300 megawatts, which can be supplied through on-Island generation and importing power.
  • The Island’s peak electrical load was 393 megawatts during the polar vortex in 2023.
  • PEI’s electricity system is vulnerable to extreme weather events that are expected to increase in intensity and frequency due to climate change.
  • PEI’s electricity comes from
  • on-Island renewable energy  (14 per cent)
  • imported from New Brunswick (85 per cent)
  • on-Island oil fired generation (0.2 per cent)
  • Over 80 per cent of the power imported from New Brunswick comes from non-emitting sources.
  • PEI’s electricity rates are in the middle of the pack when compared to rates in other provinces and territories.
PEI’s energy strategy is built on five strategic pillars:
  • Reform mandates – ensuring foundational stability and innovation in the regulatory space
  • Save energy – reducing energy consumption to support decarbonization and deliver lasting benefits to households and businesses
  • Enhance the grid – maintaining a reliable, flexible, and interconnected electricity system that can support Island homes and businesses
  • Expand clean energy – building a sustainable, affordable, and low-carbon supply mix
  • Enable solutions – equipping people, systems, and institutions to drive a successful energy transition.

Development of the energy strategy

The previous provincial energy strategy was released in 2016/2017. Since that document was released there have been many changes that require the province to rethink and update its strategy, including the commitment to be net zero by 2040.

PEI has already surpassed some of the projections outlined in the 2016/2017 strategy, like peak energy use. The prices of renewable alternatives have decreased, and their accessibility has increased. Emerging technologies, like storage, have started to become feasible options for utilization in our energy system. There is an increased interest in resiliency, reliability and security in our energy system from the increasing number of major storms and other issues related to climate change as well as the volatile price of petroleum products. 

Government invited Islanders to share their opinions about energy in PEI to help guide future legislation and government priorities and develop a new energy strategy for PEI. This started with the PEI Energy Blueprint Discussion Paper which provided an overview of the current status of energy on PEI and background information. Feedback received through input from hundreds of Islanders and over 60 community, energy and environmental stakeholders about the future of energy in PEI has been compiled in the PEI Energy Blueprint – What We Heard Report.

Government is using this report, the results of energy system modelling, energy sector reports, studies and news on sector developments and trends, along with Doane Grant Thornton’s PEI Energy Review, to compile a new energy strategy for PEI that is consistent with the province’s environmental and social priorities. 

“We recognize the need to take action to improve PEI’s energy system to meet growing electricity demand, maintain affordability, and achieve climate goals. Moving forward, we’ll coordinate across government departments, utilities, the regulator, and with communities to transform the high-level guidance outlined in the strategy into a detailed implementation plan.”

— Environment, Energy and Climate Action Minister Gilles Arsenault

“Now is the time to reshape our energy system. The work ahead of us is local, regional and national in nature. This strategy gives us a clear path forward as a province, and it will ensure we play a strong role in the region.”

— Environment, Energy and Climate Action Minister Gilles Arsenault

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