Electricity Canada and Deloitte Release New Study on Interties
February 9, 2026
Electricity Canada’s corporate partner Deloitte, conducted a thorough analysis of Canada’s intertie network, examining both current usage and future supply-demand scenarios to assess how strategic transmission investments might support a resilient, affordable, and sustainable electricity system. The report assesses the role of enhanced provincially interconnected transmission infrastructure in Canada and its impact on our energy future.
Executive summary
Canada’s electricity system has historically delivered reliable, affordable, and low-emission electricity, with each province developing distinct and different resources, market, and regulatory frameworks to meet local needs. As demand for electricity is expected to increase, driven by economic growth, electrification of transport and industry, and emerging sectors, the necessity to expand the electric system and the value of optimizing the Canadian grid through enhanced interprovincial transmission has never been greater or more timely. Deloitte, commissioned by Electricity Canada, conducted a thorough analysis of Canada’s intertie network, examining both current usage and future supply-demand scenarios to assess how strategic transmission investments might support a resilient, affordable, and sustainable electricity system.
The analysis illustrated that Canada’s interprovincial interties already play a vital role in supporting reliability and market outcomes, with most connections operating at high utilization rates during peak periods. However, capacity is unevenly distributed, province-to-province from coast-to-coast, potentially resulting in regional constraints and limited flexibility to transfer electricity where it is most needed limiting Canada’s ambition of a more regionally optimized system. Looking ahead to 2040, supply-demand forecasts indicate that some provinces are likely to maintain surplus capacity, while others may face deficits under stress scenarios. These findings highlight the strategic value of optimizing interprovincial transmission to facilitate resource sharing, balance supply and demand, and support provinces with growing intermittent renewable generation, such as wind and solar. Enhanced interconnections would allow provinces with firm hydroelectric and nuclear resources to provide backup and reliability to those with variable supply and generation from intermittent renewables, improving overall system resilience.
Regional case studies further illustrate the benefits of coordinated transmission planning. For example, the Ontario–Quebec intertie demonstrates how complementary supply and seasonal demand patterns can be leveraged through strategic agreements, while Atlantic Canada’s reliance on eastward flows underscores the importance of expanding interties to meet future reliability and clean energy goals. Opportunities identified by the study include strengthening interties in Western Canada to support resource optimization, enabling Manitoba to mitigate future supply constraints through increased imports, expanding transmission links from Quebec and Newfoundland & Labrador to Atlantic Canada, and continuing to optimize the Ontario–Quebec corridor.
Unlocking the benefits of interprovincial transmission in Canada requires coordinated action across economic, governance, regulatory, and financing dimensions, with governments and utilities working together to define market opportunities, harmonize regulations, clarify federal-provincial roles, and establish equitable cost-sharing frameworks. Proactive, regionally coordinated planning and investment, supported by policy incentives and strong federal leadership, will be important for optimizing transmission to meet future electricity demand reliably and affordably, while preventing fragmented and inefficient infrastructure development. Electricity Canada is well positioned to lead stakeholder alignment and advance practical and timely recommendations, helping to build a more efficient, integrated, and resilient electricity system that supports Canada’s long-term economic and climate objectives.
