Catching the wind: the legal landscape for wind power projects in Canada

Onshore wind power project development

Onshore wind projects in Canada have expanded from 8 wind farms in 1998 to 337 in 2023, with current installed wind energy capacity exceeding 15 gigawatts². Ontario, Québec, and Alberta are the nation’s leading wind markets, together accounting for over 80% of Canada’s operating wind capacity³. Permitting for onshore wind projects is primarily governed by provincial environmental and land-use approvals, and can also require federal permits related to migratory bird, fisheries, and at-risk species protection. In certain circumstances, such as projects on federal lands, a federal impact assessment may be required.

Figure 1: Canada’s current installed wind capacity

 
In recent years, Canada’s wind sector has seen shifts in who owns, finances, and controls projects. Increasingly, provinces are developing procurement rules that incentivize multi-partner structures, often including developers, provincial utilities, municipalities or local cooperatives, and Indigenous groups. Almost a third of installed wind power projects in Canada now have some Indigenous ownership, and with procurements incentivizing or requiring Indigenous ownership, that number is expected to keep rising⁴.

 
Barriers to advancing new wind projects are often not with the wind projects themselves but with delays in building out the transmission, distribution, and battery storage infrastructure that is often needed to unlock new wind development opportunities. Canada’s federal and provincial governments are making efforts in this regard, but it remains to be seen if new grid infrastructure proposals can attract the capital and obtain the regulatory certainty needed to reach their final investment decision. The nature of certain provincial electricity markets can also be a barrier to new development; for example, deregulated wholesale markets like the AESO⁵ have historically facilitated investment from private off-takers, whereas other markets like the IESO⁶ have predominantly relied on government procurements though market reforms and new initiatives are underway.

Offshore wind power project development

In contrast, Canada does not yet have any installed or operational offshore wind projects, despite having the longest coastline in the world, high wind speeds, and deep expertise in renewables. Opportunities exist on both the Atlantic and Pacific coasts. While a late entrant to the global offshore wind market, in the past two years Canada has gained new regulatory frameworks, financial schemes, and industry enthusiasm that could set its first projects in motion in the relative near term.

The primary lifecycle regulator for offshore wind projects is the Canada Energy Regulator, except for areas that are jointly regulated with provincial governments or projects entirely within provincial jurisdiction⁷. For the offshore areas of Nova Scotia and of Newfoundland and Labrador, the federal and provincial governments have agreed to jointly manage and share revenues associated with all offshore resource development, including wind power. In 2024, the Government of Canada passed a new law to modernize and expand the mandates of the two Atlantic offshore energy regulators beyond petroleum to include renewable energy, and the two provinces enacted corresponding implementing legislation⁸. For wind projects in inland waters, such as inland seas and freshwater lakes, provincial governments are the primary lifecycle regulators. A new wind project in an offshore area or boundary water with 10 or more turbines, or other federally designated projects, are also required to undergo a federal impact assessment⁹.

Figure 2: Designated offshore wind energy areas in Nova Scotia

 
The Province of Nova Scotia has been leading the charge in the development of offshore capacity by setting a target to permit five gigawatts of offshore wind power by 2030 and administering the country’s first competitive licensing process for offshore wind. Informed by the regional assessment report completed in January 2025, Canada and Nova Scotia conducted an extensive consultation and designated four Wind Energy Areas in offshore Nova Scotia in July 2025: French Bank, Middle Bank, Sable Island Bank, and Sydney Bright¹⁰. Proponents of wind projects in those areas are now undergoing a process to receive submerged land licenses, after which they can seek authorizations to construct and ultimately operate. Several challenges remain, however, including uncertainty in finding appropriate off-takers at the scale necessary to justify the significant capital investment needed for offshore development.

Headwinds or smooth sailing? What lies ahead

Enormous potential exists for Canada to continue to grow its onshore wind assets and break into the offshore wind market. With some of the world’s most promising wind resources, the opportunities across the country are plentiful despite challenges around regulatory certainty, grid-integration, and infrastructure costs. Canadians are making significant efforts to succeed in these markets, and many expect to see real growth in wind projects over the coming decade.