Federal Government Invests $260 Million to Modernise New Brunswick's Mactaquac Dam and Power Grid Canada supports New Brunswick's hydroelectric infrastructure with a $260 million investment to upgrade the Mactaquac dam and improve the Salisbury Terminal, highlighting the federal commitment to sustainable power, grid resilience, and job creation. The federal government announced on October 13, 2026 that it will commit more than $260 million to support two important energy projects in New Brunswick. Mactaquac Plant Upgrade Receives Major Federal FundingThe majority of the funding - a $219 million loan from the Canada Infrastructure Bank - is earmarked for a comprehensive upgrade of the province's largest hydroelectric facility, the Mactaquac Generation Station, which lies west of Fredericton on the Saint John River. The project has been described as a "multibillion‑dollar overhaul" designed to extend the operational life of the 672‑megawatt plant to 2068, well beyond its planned decommissioning date of 2030 caused by concrete swelling issues.New Brunswick's electric utility, NB Power, has already decided in 2016 to invest up to $3.6 billion in the plant to keep it running. The federal grant covers technical studies, regulatory reviews, First Nations engagement and detailed planning that will be required to bring the upgrade to fruition.According to Natural Resources Canada, the financing will help NB Power address a host of complex technical and environmental hurdles, and ensure that the plant can continue to generate clean, reliable electricity for communities throughout the province. In addition to the dam upgrade, the federal government will provide NB Power with $50 million for an improvement of the Salisbury Terminal, a critical hub that manages the flow of electricity across the provincial power grid.The terminal upgrade is expected to enhance the reliability and resilience of the grid, and support future growth of electricity demand in the region. Federal Energy Minister Tim Hodgson underscored the importance of the investment, saying that modernising New Brunswick's power infrastructure will attract further investment, create jobs, and support the province's economic growth.Salisbury Terminal Improvement Targets Grid Reliability"Investing in our energy system is a key way to keep the region competitive, provide cost‑effective power for our people, and ensure that we have clean, sustainable electricity for generations to come," Hodgson said. His remarks come as New Brunswick continues to balance the challenges of maintaining aging infrastructure with the need to meet climate and energy targets.The decision follows a broader national push to support cleaner energy production, reduce reliance on fossil fuels and increase the share of renewable electricity in Canada's grid. The Mactaquac upgrade, combined with the Salisbury Terminal improvement, demonstrates the federal government's commitment to building a more sustainable, modern, and reliable electricity network throughout the country. Domestic businesses and Indigenous communities will benefit from the associated technical studies, regulatory work and engagement steps that are part of the package.The NB Power investment strategy, shaping the future of one of the province's key energy assets and a vital hub for the electricity system, will continue to receive support from federal and provincial bodies moving forward. With a sharper focus on resilience, and a recognition that the region's energy future rests on coherent, long‑term planning, the funding is likely to attract additional investment from private funds, and position the province as a leader in clean energy generation and distribution across Atlantic Canada.Clean Energy Investment Boosts Provincial Economic GrowthOverall, the release of the federal aid signals a meaningful step toward modernising critical infrastructure that safeguards New Brunswick's power supply and supports broader national goals of carbon reduction, grid stability and sustainable economic development. The plan will also provide job creation opportunities for local contractors and workers, creating an entire ecosystem of support for the province's renewable energy projects.In sum, the $260 million investment is a decisive move that will keep the province's hydroelectric generation on track for decades, enhance regional grid capability, and stimulate growth in New Brunswick's clean‑energy economy.