Funding Canada’s next wave of nuclear development

Growth in nuclear power

The International Energy Agency projects annual investment in nuclear energy to reach US$120 billion in 2030 under current national pledges, with nuclear capacity more than doubling by mid‑century¹. Canada has seen a similar significant surge in interest in nuclear power across the country:

Ontario

• The first Small Modular Reactor (SMR) deployment in the G7 is now under construction at Ontario Power Generation’s (OPG) Darlington New Nuclear Project (DNNP).
• OPG is advancing early-stage planning for up to 10,000 MW of new large-scale nuclear generation at its existing Wesleyville site.
• Bruce Power is advancing early-stage planning for up to 4,800 MW of new large-scale nuclear generation at its existing Bruce site.

Saskatchewan

• SaskPower is exploring the option of deploying SMRs, with a final investment decision expected by 2029.
• In January 2026, SaskPower announced plans to also evaluate large-scale nuclear reactor technologies for use in Saskatchewan.

Alberta

• The Canada-Alberta MOU signed in November 2025 includes collaboration on the design of Alberta’s nuclear power generation strategy. An Implementation Committee, appointed by the federal government and Alberta, will collaborate on the design of the province’s nuclear power generation strategy which is to be finalized by Alberta on or before January 1, 2027.
• Capital Power is exploring the potential of building SMRs in Alberta and is partnering with OPG on a feasibility study.
• Energy Alberta is proposing to build up to 4,800 MW of new large-scale nuclear generation in the Peace River area.

New Brunswick

• The March 2026 Comprehensive Review of NB Power report recommended that the provincial government consider a second unit at the Point Lepreau Nuclear Generating Station.
• NB Power is also working with two private-sector partners to progress advanced SMR technology for use in New Brunswick.

With the scale of funding that is anticipated for these and other nuclear projects, project proponents may want to access debt or equity capital, including from pension funds and privately managed infrastructure investors. In order to attract this private capital, certain investment criteria will need to be met. Recent investments in projects outside of Canada, including equity investments in the UK’s Sizewell C new nuclear project, provide examples of what can be done to incentivize private investment.

Revenue model

Any debt or equity investment in a new nuclear project will depend on a reliable and creditworthy revenue source. Canada already employs two proven revenue models: rate regulation and power purchase agreements with government entities. Whichever revenue model is deployed, the following elements will be important:

• Return on equity: A return on equity commensurate with the risk profile of the project will be important.
• Concurrent cost recovery: Given that new nuclear construction timelines will span many years, concurrent cost recovery will enable equity investors to earn returns and lenders to receive interest payments during construction, with the added benefit of reducing or eliminating capitalized interest costs.
• Long‑term duration: The revenue model must extend through the full operating life of the facility.
• Discontinuance protections: Contractual or regulatory assurances in respect of invested capital if a project is halted due to policy changes, permitting failures, cost overruns, or other reasons, will be important.
• Early development cost recovery: Nuclear projects require substantial upfront spending on design, engineering, procurement and regulatory approvals, before a final investment decision is made. A cost recovery mechanism covering all or most of these costs is needed to incentivize a project proponent to incur these early development costs.

Cost overrun risk

Another potential risk related to new nuclear projects is cost overruns. Debt or equity investment in a new nuclear project will depend on a clear framework as to how cost overruns will be treated so that there is a degree of certainty in this regard. As described in our previous article, collaborative contracting project models may also help address cost overrun risk allocation for large and complex projects.

Government funding

Government funding, whether through concessionary loans, loan guarantees, or direct equity investment, is often one of the funding components for new nuclear projects. Examples include:

Canada

• The DNNP has attracted government funding with investments of up to $2 billion from the Canada Growth Fund, up to $1 billion through the Building Ontario Fund, and a $970 million loan from the Canada Infrastructure Bank².

France

• The French government agreed to issue state-owned EDF with a subsidized loan covering at least half the construction costs of six nuclear reactors³.

Sweden

• In May 2025, Sweden passed a law establishing a state aid framework including government-backed loans and contracts for difference for companies planning to build nuclear reactors, covering projects with a total capacity of up to 5,000 MW.
• The government has proposed a financial framework of up to SEK 220 billion over 12 years to support new reactor construction, with annual price guarantee allocations of SEK 1-3 billion for up to 40 years after new units begin operation⁴.

United States

• The US government has announced a number of initiatives and funding or loans to advance the nuclear industry in the US, including with respect to new nuclear projects and nuclear fuel.
• The US government, Brookfield Asset Management and Cameco Corporation announced a partnership of at least $80 billion in October 2025 to construct new Westinghouse Electric Company nuclear power reactors across the US⁵.

United Kingdom

• The UK adopted a Regulated Asset Base (RAB) model for the Sizewell C new nuclear project which facilitated private capital equity investments, including from La Caisse. The UK Government and EDF also remain equity investors. £5 billion of debt was also raised through a Bpifrance AE export credit facility as well as a £500 million Working Capital Facility, both sitting alongside a term loan from the UK’s National Wealth Fund.

Indigenous participation

Support from Indigenous communities will be crucial for any new nuclear project in Canada. This support will be coupled with Indigenous participation in the project, and the project and investment structure will need to facilitate this participation.

Decommissioning and waste management

Debt and equity investors in a new nuclear project will need certainty around radioactive waste management and the eventual decommissioning of the facilities. Governments can play a key role in adding a level of confidence for investors by providing clear, long-term regulatory frameworks and commitments upfront.

Looking ahead

The funding frameworks being established now and in the coming years will shape the pace and scale of Canada’s nuclear build out. Aligning policy and deploying capital will be essential to turning the momentum of Canada’s nuclear ambitions into durable, nation‑building projects.