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NWT signs deal with two provinces to explore nuclear energy

A power pole in Yellowknife. Ollie Williams/Cabin Radio
A power pole in Yellowknife. Ollie Williams/Cabin Radio

The Northwest Territories has signed a memorandum of understanding with Alberta and Saskatchewan to work together on nuclear generation and connecting power grids.

The agreement allows collaboration between the three governments on large-scale nuclear reactors, small modular reactors and microreactors, the GNWT stated in a Monday news release.

The provinces and territory will select and develop nuclear energy technology toward regulatory and federal approvals, alongside work on uranium fuel supply and nuclear waste management.

According to the news release, the agreement has three priorities:

  • strengthening the affordability, security and reliability of electricity systems;
  • supporting the evaluation of nuclear technologies as an economical pathway to carbon-neutral electricity generation; and
  • exploring opportunities to enhance electricity transmission infrastructure across the region.

“With new generation opportunities close to the NWT’s southern border currently being examined, we need to understand what that could mean for [the NWT] and how we can benefit,” stated NWT Premier RJ Simpson.

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“This agreement will help us work with our neighbours, share information and explore potential grid connections, while positioning the NWT to take advantage of new energy opportunities in the region.”

In April, the federal government announced $40 million to examine whether isolated, northern military bases and operations should run on microreactors – factory-built, transportable nuclear reactors.

Small-scale nuclear reactors are under consideration by some northern communities, though no projects are at an advanced stage. For instance, in February 2025, Det’on Cho – the Yellowknives Dene First Nation’s economic development wing – said it was looking into a small-scale nuclear reactor alongside options like wind and solar.

Major projects minister Caroline Wawzonek has said she is pressing her team to find alternative ways to enhance the NWT’s power grid, offering microreactors as one example.

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Grid connection work

The agreement announced on Monday also includes exploration of “enhanced regional transmission infrastructure” focused on grid connections between the provinces and territory.

Stronger regional interconnections have the potential to support the integration of nuclear, hydro, wind, solar, natural gas and battery storage. The GNWT says that could improve reliability, enhance energy security and stabilize costs.

The NWT is not connected to a power grid. Instead, communities are generally powered by a mix of hydro dams and diesel generators, with other renewables in some places. Diesel is sometimes the sole power source.

Connecting the territory to the southern grid has been expressed as a long-term goal for decades, though there is no sense of where the funding would come from for such a large task.

In a February briefing to MLAs, Wawzonek said connecting the territory to the south would cost roughly $2 million per kilometre of transmission line.