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Small Modular Reactors ("SMRs") are emerging as a promising addition to the country's strategy to achieve net-zero emissions, enhance energy security, and drive economic growth. Recent developments, such as Ontario and Nova Scotia's agreement to collaborate on SMR deployment, signal a pivotal moment for the nuclear sector and for stakeholders across the energy value chain.
SMRs and Canada's Energy Transition
SMRs are increasingly central to Canada's net-zero strategy because they provide non-emitting, reliable baseload power that complements intermittent renewables. The federal government's SMR Action Plan and recent investments underscore their role in decarbonization and energy security. SMRs are highlighted as a solution for remote communities and heavy industry, reducing reliance on high-emissions energy and supporting requirements under the Greenhouse Gas Pollution Pricing Act.
Recent commentary emphasizes that SMRs can accelerate Canada's clean electricity transition by enabling flexible deployment and reducing construction costs compared to traditional reactors. Leadership in SMR technology positions Canada to capture a projected global market of $150 billion by 2040, reinforcing its clean technology export strategy.
Provincial Movement
Ontario is already constructing the G7's first SMR at the Darlington site, with four units planned. Each reactor will generate 300 MW of clean electricity, enough to power 300,000 homes. The project is expected to create 18,000 construction jobs and contribute $38 billion to Canada's GDP over its lifetime. You can read more about Ontario's nuclear industry in our 2025 Power Perspectives Publication.
On October 20, 2025 the province of Saskatchewan released the Saskatchewan First Energy Security Strategy and Supply Plan in which the government committed to investing in nuclear energy, along with a potential partnership with GE-Hitachi to build its first SMR by the mid-2030s, this is the same technology partner used by Ontario Power Generation. This follows a inter-provincial Memorandum of Understanding ("MoU") that was signed in 2019 between Ontario, New Brunswick, and Saskatchewan to work together to advance SMRs in Canada. Alberta joined this MoU in April of 2021, and the participating provinces released a joint strategic plan in March 2022.
Alberta, in the MoU signed by Prime Minister Mark Carney and Premier Danielle Smith on November 27, 2025, has also committed to finalizing its own nuclear power generation strategy in collaboration with the federal government by January 1, 2027. Although SMR development was not mentioned, these recent movements towards long-term nuclear strategies suggest western provinces are supporting broader development of nuclear infrastructure across Canada.
Further, on October 23, 2025, Ontario and Nova Scotia signed an MoU to advance SMR technology. This collaboration aims to:
- share expertise on SMR technologies, regulatory frameworks, supply chain development, and nuclear waste management;
- engage Indigenous communities and the public to build trust and awareness of SMR benefits;
- advocate for streamlined federal regulatory processes to accelerate deployment; and
- collaborate nationally to position Canada as a global leader in SMR innovation.
Nova Scotia's involvement points to a shift for Atlantic Canada towards using SMRs as a tool to reduce emissions, stabilize energy costs, and build grid resilience. This follows movement among other Atlantic provinces, including New Brunswick's energy plan goal to add SMR energy production to the grid by 2035.
Recent Federal Support
The 2025 federal budget highlights nuclear energy as part of its new Climate Competitiveness Strategy. The federal government has also referred the Darlington New Nuclear Project as a project of national interest to the Major Projects Office. The federal government committed $2 billion through the Canada Growth Fund to support the construction of this project in October 2025.
Regulatory Landscape
Nuclear power development in Canada is primarily regulated by the federal government. Key federal bodies and statutes include:
- Canadian Nuclear Safety Commission (the
"Commission"): oversees implementation
and enforcement of the Nuclear Safety and Control Act and
regulates all aspects of nuclear energy.
The Commission's functions include licensing, compliance monitoring, and enforcement through it's regulatory framework that consists of legislation, license terms, and regulatory documents. The Commission regulates nuclear energy to prevent unreasonable risk to the environment, health, safety, and national security. The Commission also ensures compliance with Canada's international obligations under standards set by the International Atomic Energy Agency and the World Association of Nuclear Operations.
- Nuclear Waste Management Organization: established under the Nuclear Fuel
Waste Act to manage nuclear fuel waste.
- Natural Resources Canada: manages statutory liability for nuclear operators under the Nuclear Liability and Compensation Act.
Regulation of nuclear power in Canada also requires financial guarantees for decommissioning, long-term planning for spent nuclear fuel management and disposal, liability management, annual reporting requirements, and licensing throughout a facility's lifecycle.
Certain nuclear projects may also require a federal impact assessment under the Impact Assessment Act, especially based on project size and scope. The Impact Assessment Agency of Canada, along with the Commission, may review SMR projects for environmental, social, Indigenous, and economic impacts.
Conclusion
With Ontario leading the charge and Nova Scotia signaling interest, SMRs are no longer a distant concept. They are Canada's next big energy opportunity. For developers, utilities, and investors, success will depend on navigating complex regulatory, financial, and social landscapes.
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