Statement by Lorena Patterson, President and CEO of WaterPower Canada
November 5, 2026, Ottawa, ON – We welcome the federal government’s $52 billion commitment in Budget 2026 to expand Canada’s electricity system and the support it provides for hydropower across that build-out.
We are especially pleased to see the Clean Technology and Clean Electricity Investment Tax Credits (ITCs) extended to the end of 2040. Hydropower projects take years to plan, permit and build, and this extension gives our members the certainty to commit to that work. Opening the clean electricity credit to each province’s highest-voltage transmission lines will help move clean power to where it is needed. We are also glad the government is consulting on a domestic content bonus rather than a requirement, so projects that rely on imported equipment would keep full access to the credits.
Seeing Churchill Falls and Gull Island highlighted in this budget sends a strong signal of confidence in hydropower. Backed by $10 billion in federal financing, these projects would create 14,000 megawatts of clean, renewable power. Federal commitments on this scale can help other hydropower investments come together across the country.
In the North, Mayo and Atlin will help keep Yukon’s lights on in winter as record-breaking demand strains its grid, and early support for the Taltson Hydro Expansion in the Northwest Territories is an important first step. New funding will help Indigenous, rural and remote communities move off diesel.
We have called for more flexible ways to finance new and modernized hydropower, and the commitment to work with interested provinces and territories on financing the largest electricity projects, along with the Canada Strong Fund, moves in that direction.
We look forward to continuing our work with the federal government as it rolls out the National Electricity Strategy and moves major projects forward, so hydropower can remain the reliable, affordable backbone of Canada’s clean electricity system.
For context on sector recommendations, read WaterPower Canada’s pre-budget submission.
Background on Budget 2026:
- The Clean Technology and Clean Electricity investment tax credits would be extended to the end of 2040, at an expected cost of $38.5 billion.
- $37 million in 2027-28 will support cost-benefit analysis of proposed interties and inform cross-border cost allocation discussions.
- The $10 billion in federal financing for Churchill Falls and Gull Island was announced in August 2026.
- Upgrades to the Mayo Hydro Facility would safeguard 15 megawatts of hydroelectricity, and the Atlin Hydro Expansion could add eight megawatts of capacity and generate 31 gigawatt-hours each winter, equivalent to the annual electricity use of about 2,500 Yukon homes.
- The new Canada Strong Fund will be seeded with an initial $25 billion over three years. The budget uses a hydroelectric generation and transmission project as an example of how the Fund could participate in financing major projects.
About Hydropower in Canada:
- Hydropower generates over half of Canada’s electricity and accounts for more than 85 per cent of renewable generation nationwide.
- Canada has more than 82,000 megawatts of installed hydropower capacity.
About WaterPower Canada :
WaterPower Canada is the national voice of Canada’s waterpower industry. As a not-for-profit trade association, WPC represents producers, manufacturers and developers who collectively account for more than 95 per cent of Canada’s waterpower capacity. The association advocates for the responsible development and use of waterpower to meet Canada’s current and future energy needs.
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Media Contact:
Paula Gray, Senior Director of Communications, WaterPower Canada, 613-608-8155, paula@waterpowercanada.ca