This article was published by The Energy Mix on Nov. 13, 2025.
Prince Edward Island’s new 10-year energy plan aims to make the province’s energy supply more independent and affordable while ramping up its wind, solar, and battery storage capacity.
The province stands at “a pivotal moment” in its energy transition as energy demand grows due to the electrification of transportation and buildings, and as the population grows, the strategy document states. At the same time, peak periods like winter demand continue to strain the system, while increasingly severe storms threaten infrastructure and underline the need for improved resilience.
The strategy’s priorities are centred around five pillars for improving and decarbonizing its grid:
• Regulatory reforms that update how decisions are made, improve public oversight, and ensure the system works fairly for everyone;
• Energy savings to reduce consumption through avenues like strengthened building regulations, the savings then delivered to residents and businesses;
• Grid enhancements to maintain a reliable, flexible, and interconnected electricity system;
• Clean energy expansion to cut emissions and build control over energy supply and costs;
• Enabling: solutions “Building the skills, tools, and coordination needed to make PEI’s energy strategy work in real life—not just on paper.”
Implementing these changes will mean carrying out 20 recommended actions, including strengthening consumer protections and equity, investing more in demand-side management, upgrading transmission and distribution infrastructure, and investing in work force training.
PEI already has an “ambitious” target to reach net-zero emissions by 2040. The province defines net-zero as “achieving a balance between the emissions we produce through day-to-day activities and how much can be absorbed by the natural environment and through technology.”
But the province still receives 75% of its energy supply–-including for transportation, home heating, and industrial operations—from fossil fuels, and just 25% from electricity. according to the strategy. Transportation accounts for 42% of PEI’s energy use and 45% of its emissions.
The island’s electricity is mostly imported, with 85% coming from neighbouring New Brunswick, and 14% from its own renewables. Less than 1% of on-island electricity is from fossil fuel-powered generation. The 10-year strategy notes that 67% of New Brunswick’s electricity is from non-emitting sources. But because of PEI’s balance of on- and off-island electricity sources, its own overall electricity supply has a higher carbon footprint, making it “important to build more clean energy in PEI, to both make the power supply more secure and help meet climate goals.”
The 10-year strategy also highlights how switching away from fossil fuel power sources can help keep electricity bills affordable. It cites one study that shows electricity rates rising 14 to 23% by 2050, compared to 2024 prices and adjusted for inflation. But switching away from expensive fossil fuel systems like oil boilers and gas-powered vehicles could help reduce overall household energy costs.
After considering a household’s entire “energy wallet” that includes all costs associated with purchasing, operating, and maintaining household energy needs, the study found that the average household in PEI could spend about 30% less on energy in 2050 than in 2024 by switching to electricity.
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