Canada is entering a new era of electricity demand. Growing cities, the electrification of transportation and heating, the rapid rise of AI data centres, and heavy industry’s push to decarbonize are all accelerating energy consumption. At the same time, the country has pledged to reach net‑zero emissions by 2050. Clean energy sources like wind and solar are growing rapidly, but their output remains variable, and storage provides only a partial solution. Against this backdrop, nuclear energy is re-emerging as a serious contender for dependable, low-carbon energy.

Small Modular Reactors (SMRs) sit at the centre of Canada’s nuclear power debate. Highlighted in the latest federal budget and actively being explored by provinces such as Alberta, they are drawing national attention. Across the country, task forces are assessing how SMRs could help meet surging electricity demand, support industrial processes, and advance Canada’s clean energy goals.

Yet key questions remain. Is nuclear a sound investment in Canada’s evolving energy mix? What advantages and limitations define its role? Where would SMRs deliver the greatest value? And, most importantly, is nuclear a solution for today, or a technology best suited for the future?

This week, we take a closer look at nuclear energy in Canada. From its potential to decarbonize the grid to the realities of construction, regulation, and integration with renewables, we’ll examine whether nuclear power can become a meaningful part of Canada’s energy future.

Nuclear Energy: A Primer

Before diving into the role of nuclear energy in Canada’s evolving electricity landscape, it’s worth taking a step back to understand the fundamentals. By starting with the basics, we can better appreciate how this technology generates electricity, supports industrial processes, and produces critical isotopes, as well as the challenges and opportunities it presents for the future of Canada’s energy system.

What is Nuclear Energy

Nuclear energy comes in two fundamentally different forms: fission and fusion. Fission takes a heavy atom, such as uranium, and splits it into smaller pieces by introducing a neutron particle that starts a controlled chain reaction. As the heavy atoms split, a large amount of energy is released. This is the technology behind all current nuclear power plants. 

Fusion works the opposite way, by taking light atoms, usually forms of hydrogen, and forcing them to fuse together, which creates a heavier atom and also releases large amounts of energy in the process. Fusion powers stars like the Sun and promises huge energy with minimal long-lived waste, but it’s still experimental and not yet commercially available.

How Do Nuclear Reactions Generate Electricity

A nuclear reactor is basically a powerful heat source. In fission (and potentially, someday, fusion), atomic reactions release huge amounts of energy as heat. This heat boils water, producing high-pressure steam that drives a turbine connected to a generator. Inside the generator, magnets spin within copper coils, producing electricity. Nuclear power isn’t some exotic source of electricity; it uses heat to make steam that drives turbines, just like hydro, coal, gas, and wind plants.

Why We Rely on Fission

While nuclear fusion has been “10 to 15 years” from commercial viability for over 70 years, nuclear fission is already a proven technology. It has been generating electricity reliably since the 1950s, when the first commercial nuclear power plants began operating in the United States and the United Kingdom. There are currently around 440 nuclear fission reactors operating in more than 30 countries worldwide. With a combined capacity of nearly 400 GW, these reactors generate more than 2,600 TWh of electricity each year.

What Nuclear Fission Is Good For

The role of nuclear energy goes well beyond simply spinning turbines. Thanks to advances in reactor design, it has also emerged as a critical tool for industrial heat, medicine, national defense, and even space exploration.

24/7 power generation

Nuclear power is one of the most reliable sources of baseload electricity, which is the minimum level of demand that must always be met. It delivers a steady, continuous flow of power to the grid day and night, which is critical for maintaining grid stability, supporting industries, and ensuring homes and businesses have uninterrupted power.

While nuclear excels at supplying continuous power, it is not well-suited for rapid changes in output, a concept known as load following. Unlike other power plants that can quickly ramp up or down to match sudden shifts in electricity demand, nuclear reactors operate most efficiently at a nearly constant output.

This steady-state characteristic makes nuclear ideal for baseload supply, but it must be complemented by more flexible energy sources. Variable renewables like solar and wind, along with fast-response technologies such as gas peaker plants or battery energy storage systems (BESS), help balance the grid and accommodate fluctuations, while nuclear provides a stable backbone.

Industrial heat

In the industrial arena, next-generation reactors like SMRs are being developed to supply high-temperature heat for processes that today rely on fossil fuels. These include hydrogen production, steelmaking, petrochemical operations, and district heating systems. By tapping into nuclear heat rather than burning gas or coal, these industries could dramatically reduce their carbon footprint while maintaining high output and reliability.

Science & Medicine

At the same time, nuclear reactors play a powerful role in medical and scientific research through the production of radioisotopes. For example, technetium‑99m (Tc-99m) is produced via its parent isotope molybdenum-99 (Mo-99) in research reactors and is used in around 80% of nuclear medicine imaging procedures. Another workhorse isotope, cobalt-60 (Co-60), is produced by neutron irradiation in power reactors (such as Canada’s CANDU reactors) and is used for cancer radiotherapy, sterilizing medical equipment, and even food preservation. These isotopes literally save lives and support critical healthcare operations around the world.

Defense

Nuclear technology’s versatility also extends to defense. Compact fission reactors power nuclear submarines and aircraft carriers, enabling long-duration missions without refueling. The high power density and reliability of these systems have made nuclear propulsion a bedrock of modern naval strategy.

Space

Beyond Earth, nuclear power even supports deep-space exploration. Radioisotope thermoelectric generators (RTGs) use the heat from the decay of radioactive materials (most commonly plutonium-238) to generate electricity through thermocouples. These units have powered probes like Voyager, New Horizons, and many other missions where solar power isn’t viable.

Lessons From Around The World

As Canada considers scaling up its nuclear capacity, there is much to be learned from countries that have successfully integrated nuclear power into their energy systems. By examining how other nations have tackled the technical, financial, and social challenges of nuclear deployment, Canada can chart a more informed and effective path toward a reliable, low-carbon energy future.

France – The Classic Model for Nuclear Deployment

France produces roughly 70–75% of its electricity from nuclear power, giving it one of the most nuclear-intensive grids in the world. Key takeaways for Canada include:

• Standardization and scale: France built a fleet of similar pressurized water reactors (PWRs), which simplified design, construction, and maintenance.

• Government coordination: Strong state involvement helped finance, plan, and manage the nuclear program efficiently.

• Public acceptance through reliability and low-carbon electricity: A consistent, low-carbon baseload supply built public trust in nuclear energy.

South Korea – Exporting Nuclear Expertise

South Korea’s nuclear program demonstrates excellence in efficient construction, cost control, and modular reactor design. Key lessons for Canada include:

• Standardized designs and regulatory oversight: Reduces cost overruns and construction delays.

• Modular construction and operational training: Facilitates scaling nuclear both domestically and internationally.

• Export experience: Demonstrates the benefits of clear licensing frameworks and knowledge transfer.

United States – SMR and Advanced Reactor Leadership

The US offers lessons on innovation, regulatory pathways, and public-private partnerships. Key takeaways for Canada include:

• Leadership in SMRs and advanced reactors: Companies like NuScale and TerraPower are advancing new technologies.

• Experience with licensing and grid integration: Helps anticipate regulatory and operational challenges.

• Public-private partnerships: Can accelerate deployment and technology commercialization.

Canada’s Own Strengths

In addition to learning from international examples, Canada is uniquely positioned to expand its nuclear capacity thanks to its existing expertise, infrastructure, and natural resources.

• Decades of domestic expertise: Ontario Power Generation and New Brunswick Power provide deep operational knowledge.

• Resource availability: Domestic uranium mining supports a secure fuel supply.

• Leveraging best practices: Combining international lessons with domestic knowledge can streamline expansion.

Why Nuclear Is Moving Up the Agenda Again

Canada’s federal and provincial governments are increasingly turning to nuclear energy because it offers clean, reliable, scalable, and economically strategic power at a time when electricity demand is rising and climate commitments are tightening. This shift is reflected in the latest federal budget, where nuclear is referenced 24 times, including under the “Powering a Clean Economy” section, which emphasizes that “Canada will build for the future, leveraging nuclear, solar, wind, clean hydrogen, and other renewable energy.”

A flagship example highlighted in Budget 2025 – Canada Strong is the Darlington New Nuclear Project in Bowmanville, Ontario. This initiative will make Canada the first G7 nation to operate a grid-connected SMR. Once complete, it will supply reliable, affordable, clean electricity to approximately 300,000 homes, support 3,700 jobs annually (including 18,000 jobs during construction), and operate for an expected 65 years. Beyond its local impact, the project positions Canada as a potential global leader in SMR deployment.

But the inclusion of nuclear power in federal planning is only part of the story. Canada’s pivot toward this technology reflects a deeper set of challenges and opportunities shaping the country’s energy future. To understand why nuclear power is gaining momentum now, we need to look at these underlying forces.

Meeting Climate and Net-Zero Commitments

Canada has legally binding climate targets, including a commitment to reach net-zero emissions by 2050. Meeting these goals requires a substantial expansion of clean, dependable electricity. Nuclear energy could play a key role in this transition because it produces near-zero operational emissions and provides consistent, around-the-clock power that supports the stability of the grid.

Growing Electricity Demand

Electrification is rapidly expanding across Canada’s economy, driven by trends such as the adoption of electric vehicles, the installation of heat pumps, and the shift toward electrified industrial processes in sectors like steel, hydrogen, and mining. At the same time, growing demand from data centres and AI workloads is placing additional pressure on the electricity grid.

Energy Security and Provincial Autonomy

Provinces such as Ontario, New Brunswick, and Saskatchewan view nuclear energy as a critical component of long-term domestic energy security. Other provinces are exploring nuclear opportunities suited to their unique energy landscapes. In northern and remote communities, including many Indigenous communities across Alberta, British Columbia, Saskatchewan, and the territories, emerging micro-SMRs could eventually replace diesel generation, supporting energy independence, improving air quality, and lowering the cost of electricity.

For Indigenous communities, energy decisions are closely tied to self-determination, environmental stewardship, and long-term economic development. Any nuclear deployment in these regions must be rooted in meaningful, early-stage partnership, collaborative governance structures, shared decision-making, and community-driven assessments of risks and benefits. When done properly, micro-SMRs could support Indigenous energy sovereignty by enabling locally controlled, low-carbon power systems.

Economic Development and Job Creation

Canada already has a well-established nuclear industry, particularly in Ontario, and governments view its expansion as an important economic opportunity. Nuclear projects support high-skilled, well-paying jobs, strengthen the domestic supply chain for components, and create export opportunities for technologies such as CANDU refurbishments and SMRs.

Aging Infrastructure and Upcoming Retirements

Many of Canada’s existing nuclear plants, particularly in Ontario, are approaching the end of their original operating lifespans. To address this, governments are focused on refurbishing existing reactors to extend their service life while also planning new builds to replace long-term capacity.

Public and Industry Momentum

While nuclear energy has historically been controversial, public opinion in Canada has begun to shift, particularly among younger Canadians and climate-focused groups. Support is also growing within several Indigenous communities, especially where energy reliability, diesel reduction, and economic development are priorities. At the same time, many Indigenous Nations emphasize the need for rigorous community-led engagement processes, transparent information sharing, and the recognition of Indigenous rights and jurisdiction.

This evolving landscape, combined with renewed global interest in nuclear as a climate solution and high-profile endorsements from engineers, economists, and environmental organizations, has helped position nuclear as an increasingly viable part of Canada’s clean energy future. But social acceptance, especially in Indigenous communities, will depend on trust, long-term partnership, and respect for community values and decision-making.

The Rise of Small Modular Reactors (SMRs)

For decades, nuclear power has been defined by giant reactors producing anywhere from hundreds of megawatts to several gigawatts of electricity. While these massive plants provide reliable, low-carbon baseload energy, they come with significant challenges: high upfront costs, long construction timelines, complex regulatory requirements, and limited siting flexibility.

SMRs offer a new approach. These compact, factory-built modules can be transported to where they are needed most, deployed individually or in clusters, and scaled incrementally to match demand. SMRs promise the same reliable, carbon-free electricity as traditional reactors, but with greater flexibility, faster deployment, and enhanced safety features.

Why SMRs Are Getting Attention in Canada

Canada is well-positioned to develop and deploy SMRs. Provinces like Ontario and New Brunswick bring decades of operational nuclear expertise, while Saskatchewan provides abundant domestic uranium resources. Indigenous Nations are also emerging as key partners in future deployment. Many First Nations, Métis, and Inuit communities are exploring clean-energy options aligned with their long-term visions for economic development, environmental stewardship, and energy sovereignty. Where SMRs are being considered, especially in northern or remote regions, Indigenous leadership, consent, and benefit-sharing agreements will be essential components of project design and approval.

Federal and provincial policies increasingly recognize SMRs as a strategic tool to meet growing electricity demand, decarbonize industrial processes, and support remote communities (many of which are Indigenous) that rely heavily on diesel. But the path to deployment requires deep and sustained collaboration with these communities from the start.

Economic and Industrial Benefits

SMRs provide predictable, long-term electricity costs because fuel makes up only a small fraction of operating expenses. This price stability benefits both households and industries. They also support local economies through the creation of highly skilled, long-term technical and engineering jobs. Domestic manufacturing of SMR components strengthens Canada’s nuclear supply chain and opens opportunities for technology exports, positioning the country as a global leader in next-generation nuclear innovation.

Scalability and Versatility

Although smaller than traditional reactors, SMRs can be deployed in clusters, allowing capacity to scale with industrial or regional demand. This makes them suitable for powering AI data centres, industrial clusters, remote communities, and energy-intensive sectors such as hydrogen production, steelmaking, and oil sands operations.

Critical Applications Beyond Power

SMRs also enable the production of nuclear isotopes for medicine, manufacturing, and agriculture. These isotopes are essential for advanced diagnostic imaging, cancer therapy, sterilization of medical equipment, and crop management solutions. Additionally, SMRs can provide high-temperature industrial heat, helping decarbonize processes that currently rely on fossil fuels.

Safety, Environmental, and Social Benefits

Advanced passive safety systems, natural-circulation cooling, and fail-safe shutdown mechanisms significantly reduce operational risks. The smaller footprint of SMRs minimizes environmental disruption, and their modular design makes them suitable for deployment in regions with limited grid infrastructure. In remote and northern communities, including many Indigenous Nations, SMRs could replace diesel generators, cutting emissions, lowering energy costs, and improving energy security.

However, safe deployment requires more than technology. It demands meaningful, long-term engagement with Indigenous communities, including clear information about risks, transparent environmental monitoring, and opportunities for Indigenous ownership, training, and governance. Incorporating Indigenous knowledge alongside western science can strengthen environmental planning and enhance operational safety over the entire lifecycle of the project.

Challenges of Nuclear Power

While nuclear power offers many benefits, it is not without challenges. Waste management remains a pressing issue, as spent fuel is highly radioactive for thousands of years. Canada and other countries plan to store it in deep geological repositories, though these projects often face political and public resistance.

Safety and accident risks are another concern. Although rare, incidents like Chernobyl, Fukushima, and Three Mile Island illustrate the potential severity. In Canada, the geological stability of the Canadian Shield, a vast, ancient, and seismically stable rock formation, makes it an ideal location for safely siting nuclear facilities and storing spent fuel, further reducing seismic and structural risks.

High upfront costs and long construction timelines also pose challenges. SMRs aim to improve modularity, shorten schedules, and reduce capital requirements, but still require significant investment and financing for this largely unproven technology. Regulatory and licensing hurdles further complicate deployment, as existing frameworks were designed for large reactors.

Public perception, social acceptance, and workforce availability are critical. Deploying SMRs, particularly in remote, northern, and Indigenous communities, requires early, collaborative engagement grounded in respect for Indigenous rights and jurisdiction. Nuclear projects must move beyond consultation to true partnership, including co-developed governance models, environmental monitoring programs, benefit-sharing, and community-driven decision-making. Workforce shortages also pose challenges, and training programs tailored to Indigenous youth and local talent will be essential for long-term success.

Finally, political uncertainty and proliferation concerns remain. Nuclear projects span decades and are sensitive to policy changes, though strict safeguards and international oversight help mitigate risks. Understanding and addressing these challenges is essential to ensuring SMRs are deployed safely, responsibly, and effectively.

The Road Ahead

Looking forward, SMRs have the potential to reshape Canada’s energy landscape. By complementing intermittent renewables like wind and solar, SMRs could provide the steady, reliable power needed to keep the grid stable, even as more homes, industries, and electric vehicles come online.

In Canada’s northern and remote communities, SMRs could replace costly diesel generation, providing clean, dependable electricity where it’s needed most. Imagine towns and industrial hubs powered by local, low-carbon energy that leads to reduced emissions, lower costs, and improved energy security.

Beyond domestic benefits, Canada has the opportunity to become a global leader in SMR technology. With decades of nuclear expertise, innovative companies, and supportive government policies, Canadian-built reactors could be exported to other countries seeking clean, reliable power.

The path forward requires investment, education, and collaboration across governments, industry, and communities. But the promise is clear: with the right vision and commitment, Canada can lead the world in harnessing the next generation of nuclear energy, powering a cleaner, more resilient future for generations to come.

Final Thoughts

Canada is entering an energy era defined by urgency: rising electricity demand, rapid electrification, and the need to cut emissions without compromising reliability or affordability. Nuclear power, especially SMRs, offers a chance to build a cleaner, more resilient Canada, one where industry, communities, and future generations can depend on stable, zero-carbon energy.

But the future we build will be shaped not just by technology, but by relationships. Many of the places where nuclear power could make the biggest difference (remote regions, northern communities, uranium-rich areas, potential waste sites) are deeply connected to Indigenous territories. A successful nuclear strategy must therefore be grounded in genuine partnership that includes Indigenous leadership from the start, shared decision-making, equitable economic opportunities, and a commitment to long-term stewardship. When Indigenous knowledge and western science work together, projects become stronger, safer, and more trusted.

If Canada embraces this moment with clarity and collaboration, we can lead globally in both clean energy innovation and community-centred development. Nuclear isn’t a silver bullet, but it can be a powerful part of a balanced, low-carbon system that works alongside renewables, storage, and efficiency to create a grid that is stable, affordable, and climate-ready.

The choices we make now will shape the country our children inherit. With vision, respect, and partnership, nuclear energy can help power a future that is both sustainable and uniquely Canadian.