Government of Canada Invests in AI for Smarter and More Efficient Energy Use
December 11, 2025
Bringing new innovations onto our electricity grid will ensure that Canada’s electricity system continues meeting the needs of Canadians’ homes and businesses — providing reliable, affordable and low-emissions power across the country.
The Honourable Tim Hodgson, Minister of Energy and Natural Resources, and the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario, have announced $6 million in federal funding to Hydro Ottawa Limited (Hydro Ottawa) for the Ottawa Distributed Energy Resource Accelerator (ODERA) program.
Through this program, Hydro Ottawa will use AI-enhanced predictive analytics to accurately forecast peak demand, which will then inform the real-time balancing of supply and demand. This will be achieved by using a technology that transforms customer-owned assets — like smart thermostats, electric vehicle chargers and home batteries — into valuable, responsive grid resources, allowing the utility to proactively identify and mitigate grid constraints.
The optimization of Ottawa’s electricity network — with ODERA serving as a pilot for growth neighbourhoods like the Kanata North area — will give consumers more control over their household consumption and improve the grid by effectively integrating and managing distributed energy resources (DERs) through technology.
Optimizing Ottawa’s electricity network will make our electricity systems more efficient and resilient and will pave the way for a more cost-effective future.
Quotes
“Canada is taking another step in creating a cleaner, more resilient grid and moving toward a more cost-effective future. The ODERA program will support making Ottawa’s grid more efficient and reduce the need for costly infrastructure upgrades.”
The Honourable Tim Hodgson
Minister of Energy and Natural Resources
“AI integration is increasing productivity across numerous sectors in Canada, and we will continue to invest in innovative technologies. Integrating AI into Hydro Ottawa while prioritizing efficient use will keep more power available in the grid. Our government is building AI for all and using it to improve the day-to-day lives of Canadians.”
The Honourable Evan Solomon
Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario
“Integrating AI into electricity management will drive the creation of a smarter, cleaner and more reliable grid — one that strengthens Canada’s economy and positions Ottawa at the forefront of energy innovation. These technologies will deliver direct, measurable benefits to people and businesses across the capital.”
The Honourable David McGuinty
Minister of National Defence and Member of Parliament for Ottawa South
“The ODERA program is more than just a solution for the capacity constraints we face in high-growth areas of our city, like Kanata North. It’s a scalable blueprint for integrating cleaner, smarter energy across other areas of our service territory. By leveraging advanced technology — combining predictive analytics with granular demand response — we can proactively address localized system needs in near real time. This approach can fundamentally change how we manage grid load as it transforms customer-owned assets into valuable, responsive grid resources. ODERA is key to unlocking the full potential of distributed energy resources to reliably meet the energy demands of tomorrow.”
Bryce Conrad
President and Chief Executive Officer, Hydro Ottawa Limited
“The $6-million federal government investment in Hydro Ottawa through NRCan’s Energy Innovation Program will help modernize energy use. It’s encouraging to see Hydro Ottawa recognized as a leader in using innovation and AI to strengthen our electricity grid. Projects like ODERA will give residents and businesses more control over their energy use. This is exactly the kind of smart investment that benefits Ottawa residents today while preparing our city for the future.”
Mark Sutcliffe
Mayor of Ottawa
Quick facts
- The Energy Innovation Program (EIP) advances clean energy technologies that will help Canada maintain a competitive, reliable and affordable energy system while transitioning to a low-carbon economy.
- The EIP – Smart Grid Demonstration Call for Proposals provides support to projects that demonstrate innovation in smart grid technologies/solutions and in market or contract mechanisms (innovations may be jurisdiction-specific). The objectives include accelerating grid modernization; improving customer accessibility of grid-integrated solutions; sufficiently representing a given electricity system to meaningfully inform future deployment considerations; addressing well-defined market gaps to build business solutions; and advancing inclusivity, diversity, equity and accessibility (IDEA) in the electricity sector.
- The EIP recently launched an open AI and Energy Call for Proposals to support Canadian projects that use AI to accelerate energy innovation.
- Interested organizations can submit their Expression of Interest (EOI) by 1 p.m. ET on December 11, 2025, or join the mailing list for future calls.
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