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Canada Critical Infrastructure Cyber Risks include state-sponsored actors probing the electricity grid and ICS/OT, ransomware on utilities, and espionage targeting smart cities, medical devices, and energy networks, pre-positioning for disruptive operations.

Key Points

Nation-state and criminal cyber risks to Canada's power, water, and OT/ICS, aiming to disrupt, steal data, or extort.

✅ State-sponsored probing of power grid and utilities

✅ OT/ICS exposure grows as systems connect to IT networks

✅ Ransomware, espionage, and pre-positioning for disruption

State-sponsored actors are "very likely" trying to shore up their cyber capabilities to attack Canada's critical infrastructure — such as the electricity supply, as underscored by the IEA net-zero electricity report indicating rising demand for clean power, to intimidate or to prepare for future online assaults, a new intelligence assessment warns.

"As physical infrastructure and processes continue to be connected to the internet, cyber threat activity has followed, leading to increasing risk to the functioning of machinery and the safety of Canadians," says a new national cyber threat assessment drafted by the Communications Security Establishment.

"We judge that state-sponsored actors are very likely attempting to develop the additional cyber capabilities required to disrupt the supply of electricity in Canada, even as cleaning up Canada's electricity remains critical for climate goals."

Today's report — the second from the agency's Canadian Centre for Cyber Security wing — looks at the major cyber threats to Canadians' physical safety and economic security.

The CSE does say in the report that while it's unlikely cyber threat actors would intentionally disrupt critical infrastructure — such as water and electricity supplies — to cause major damage or loss of life, they would target critical organizations "to collect information, pre-position for future activities, or as a form of intimidation."

The report said Russia-associated actors probed the networks of electricity utilities in the U.S. and Canada last year and Chinese state-sponsored cyber threat actors have targeted U.S. utility employees. Other countries have seen their industrial control systems targeted by Iranian hacking groups and North Korean malware was found in the IT networks of an Indian power plant, it said.

The threat grows as more critical infrastructure goes high-tech.

In the past, the operational technology (OT) used to control dams, boilers, electricity and pipeline operations has been largely immune to cyberattacks — but that's changing as manufacturers incorporate newer information technology in their systems and products and as the race to net-zero drives grid modernization, says the report.

That technology might make things easier and lower costs for utilities already facing debates over electricity prices in Alberta amid affordability concerns, but it comes with risks, said Scott Jones, the head of the cyber centre.

"So that means now it is a target, it is accessible and it's vulnerable. So what you could see is shutting off of transmission lines, you can see them opening circuit breakers, meaning electricity simply won't flow to our homes to our business," he told reporters Wednesday.

While the probability of such attacks remains low, Jones said the goal of Wednesday's briefing is to send out the early warnings.

"We're not trying to scare people. We're certainly not trying to scare people into going off grid by building a cabin in the woods. We're here to say, 'Let's tackle these now while they're still paper, while they're still a threat we're writing down.'"

Steve Waterhouse, a former cybersecurity officer for the Department of National Defence who now teaches at Université de Sherbrooke, said a saving grace for Canada could be the makeup of its electrical systems.

"Since in Canada, they're very centralized, it's easier to defend, and debates about bridging Alberta and B.C. electricity aim to strengthen resilience, while down in the States, they have multiple companies all around the place. So the weakest link is very hard to identify where it is, but the effect is a cascading effect across the country ... And it could impact Canada, just like we saw in the big Northeastern power outage, the blackout of 2003," he said.

"So that goes to say, we have to be prepared. And I believe most energy companies have been taking extra measures to protect and defend against these type of attacks, even as Canada points to nationwide climate success in electricity to meet emissions goals."

In the future, attacks targeting so-called smart cities and internet-connected devices, such as personal medical devices, could also put Canadians at risk, says the report. 

Earlier this year, for example, Health Canada warned the public that medical devices containing a particular Bluetooth chip — including pacemakers, blood glucose monitors and insulin pumps — are vulnerable to cyber attacks that could crash them.

The foreign signals intelligence agency also says that while state-sponsored programs in China, Russia, Iran and North Korea "almost certainly" pose the greatest state-sponsored cyber threats to Canadian individuals and organizations, many other states are rapidly developing their own cyber programs.

Waterhouse said he was glad to see the government agency call out the countries by name, representing a shift in approach in recent years.

"To tackle on and be ready to face a cyber-attack, you have to know your enemy," he said.

"You have to know what's vulnerable inside of your organization. You have to know how ... vulnerable it is against the threats that are out there."

Commercial espionage continues
State-sponsored actors will also continue their commercial espionage campaigns against Canadian businesses, academia and governments — even as calls to make Canada a post-COVID manufacturing hub grow — to steal Canadian intellectual property and proprietary information, says the CSE.

"We assess that these threat actors will almost certainly continue attempting to steal intellectual property related to combating COVID-19 to support their own domestic public health responses or to profit from its illegal reproduction by their own firms," says the "key judgments" section of the report.

"The threat of cyber espionage is almost certainly higher for Canadian organizations that operate abroad or work directly with foreign state-owned enterprises."

The CSE says such commercial espionage is happening already across multiple fields, including aviation, technology and AI, energy and biopharmaceuticals.

While state-sponsored cyber activity tends to offer the most sophisticated threats, CSE said that cybercrime continues to be the threat most likely to directly affect Canadians and Canadian organizations, through vectors like online scams and malware.

"We judge that ransomware directed against Canada will almost certainly continue to target large enterprises and critical infrastructure providers. These entities cannot tolerate sustained disruptions and are willing to pay up to millions of dollars to quickly restore their operations," says the report.

Cybercrime becoming more sophisticated 
According to the Canadian Anti-Fraud Centre, Canadians lost over $43 million to cybercrime last year. The CSE reported earlier this year that online thieves have been using the COVID-19 pandemic to trick Canadians into forking over their money — through scams like a phishing campaign that claimed to offer access to a Canada Emergency Response Benefit payment in exchange for the target's personal financial details.

Online foreign influence activities — a dominant theme in the CSE's last threat assessment briefing — continue and constitute "a new normal" in international affairs as adversaries seek to influence domestic and international political events, says the agency.

"We assess that, relative to some other countries, Canadians are lower-priority targets for online foreign influence activity," it said.

"However, Canada's media ecosystem is closely intertwined with that of the United States and other allies, which means that when their populations are targeted, Canadians become exposed to online influence as a type of collateral damage."

According to the agency's own definition, "almost certainly" means it is nearly 100 per cent certain in its analysis, while "very likely" means it is 80-90 per cent certain of its conclusions. The CSE says its analysis is based off of a mix of confidential and non-confidential intelligence and sources. 

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UK Nuclear Energy Ten Point Plan outlines support for large reactors, SMRs, and AMRs, funding Sizewell C, hydrogen production, and industrial heat to reach net zero, decarbonize transport and heating, and expand clean electricity capacity.

Key Points

A UK plan backing large, small, and advanced reactors to drive net zero via clean power, hydrogen, and industrial heat.

✅ Funds large plants (e.g., Sizewell C) under value-for-money models

✅ Invests in SMRs for factory-built, modular, lower-cost deployment

✅ Backs AMRs for high-temperature heat, hydrogen, and industry

The UK government has just announced its “Ten Point Plan for a Green Industrial Revolution”, in which it lays out a vision for the future of energy, transport and nature in the UK. As researchers into nuclear energy, my colleagues and I were pleased to see the plan is rather favourable to new nuclear power.

It follows the advice from the UK’s Nuclear Innovation and Research Advisory Board, pledging to pursue large power plants based on current technology, and following that up with financial support for two further waves of reactor technology (“small” and “advanced” modular reactors).

This support is an important part of the plan to reach net-zero emissions by 2050, as in the years to come nuclear power will be crucial to decarbonising not just the electricity supply but the whole of society.

This chart helps illustrate the extent of the challenge faced:

Electricity generation is only responsible for a small percentage of UK emissions. William Bodel. Data: UK Climate Change Committee

Efforts to reduce emissions have so far only partially decarbonised the electricity generation sector. Reaching net zero will require immense effort to also decarbonise heating, transport, as well as shipping and aviation. The plan proposes investment in hydrogen production and electric vehicles to address these three areas – which will require, as advocates of nuclear beyond electricity argue, a lot more energy generation.

Nuclear is well-placed to provide a proportion of this energy. Reaching net zero will be a huge challenge, and industry leaders warn it may be unachievable without nuclear energy. So here’s what the announcement means for the three “waves” of nuclear power.

Who will pay for it?
But first a word on financing. To understand the strategy, it is important to realise that the reason there has been so little new activity in the UK’s nuclear sector since the 1990s is due to difficulty in financing. Nuclear plants are cheap to fuel and operate and last for a long time. In theory, this offsets the enormous upfront capital cost, and results in competitively priced electricity overall.

But ever since the electricity sector was privatised, governments have been averse to spending public money on power plants. This, combined with resulting higher borrowing costs and cheaper alternatives (gas power), has meant that in practice nuclear has been sidelined for two decades. While climate change offers an opportunity for a revival, these financial concerns remain.

Large nuclear
Hinkley Point C is a large nuclear station currently under construction in Somerset, England. The project is well-advanced, with its first reactor installed and due to come online in the middle of this decade. While the plant will provide around 7% of current UK electricity demand, its agreed electricity price is relatively expensive.

Under construction: Hinkley Point C. Ben Birchall/PA

The government’s new plan states: “We are pursuing large-scale new nuclear projects, subject to value-for-money.” This is likely a reference to the proposed Sizewell C in Suffolk, on which a final decision is expected soon. Sizewell C would be a copy of the Hinkley plant – building follow-up identical reactors achieves capital cost reductions, and setbacks at Hinkley Point C have sharpened delivery focus as an alternative funding model will likely be implemented to reduce financing costs.

Other potential nuclear sites such as Wylfa and Moorside (shelved in 2018 and 2019 respectively for financial reasons) are also not mentioned, their futures presumably also covered by the “subject to value-for-money” clause.

Small nuclear
The next generation of nuclear technology, with various designs under development worldwide are smaller, cheaper, safer Small Modular Reactors (SMRs), such as the Rolls Royce “UK SMR”.

Reactors small enough to be manufactured in factories and delivered as modules can be assembled on site in much shorter times than larger designs, which in contrast are constructed mostly on site. In so doing, the capital costs per unit (and therefore borrowing costs) could be significantly lower than current new-builds.

The plan states “up to £215 million” will be made available for SMRs, Phase 2 of which will begin next year, with anticipated delivery of units around a decade from now.

Advanced nuclear
The third proposed wave of nuclear will be the Advanced Modular Reactors (AMRs). These are truly innovative technologies, with a wide range of benefits over present designs and, like the small reactors, they are modular to keep prices down.

Crucially, advanced reactors operate at much higher temperatures – some promise in excess of 750°C compared to around 300°C in current reactors. This is important as that heat can be used in industrial processes which require high temperatures, such as ceramics, which they currently get through electrical heating or by directly burning fossil fuels. If those ceramics factories could instead use heat from AMRs placed nearby, it would reduce CO₂ emissions from industry (see chart above).

High temperatures can also be used to generate hydrogen, which the government’s plan recognises has the potential to replace natural gas in heating and eventually also in pioneering zero-emission vehicles, ships and aircraft. Most hydrogen is produced from natural gas, with the downside of generating CO₂ in the process. A carbon-free alternative involves splitting water using electricity (electrolysis), though this is rather inefficient. More efficient methods which require high temperatures are yet to achieve commercialisation, however if realised, this would make high temperature nuclear particularly useful.

The government is committing “up to £170 million” for AMR research, and specifies a target for a demonstrator plant by the early 2030s. The most promising candidate is likely a High Temperature Gas-cooled Reactor which is possible, if ambitious, over this timescale. The Chinese currently lead the way with this technology, and their version of this reactor concept is expected soon.

In summary, the plan is welcome news for the nuclear sector, even as Europe loses nuclear capacity across the continent. While it lacks some specifics, these may be detailed in the government’s upcoming Energy White Paper. The advice to government has been acknowledged, and the sums of money mentioned throughout are significant enough to really get started on the necessary research and development.

Achieving net zero is a vast undertaking, and recognising that nuclear can make a substantial contribution if properly supported is an important step towards hitting that target.

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Alberta Capacity Market Overhaul faces scrutiny over electricity costs, reliability targets, investor certainty, and AESO design, as UCP reviews NDP reforms, renewables integration, and deregulated energy-only alternatives impacting generators, ratepayers, and future power price volatility.

Key Points

A shift paying generators for capacity and energy to improve reliability; critics warn of higher electricity costs.

✅ UCP reviewing NDP plan and subsidies amid market uncertainty

✅ AESO cites reliability needs as coal retires, renewables grow

✅ Critics predict overprocurement and premature launch cost spikes

Jason Kenney's government is facing renewed pressure to cancel a massive overhaul of Alberta's power market that one player says will needlessly spike costs by hundreds of millions of dollars, amid an electricity sector in profound change today.

Nick Clark, who owns the Calgary-based electricity retailer Spot Power, has sent the Alberta government an open letter urging it to walk away from the electricity market changes proposed by the former NDP government.

"How can you encourage new industry to open up when one of their raw material costs will increase so dramatically?" Clark said. "The capacity market will add more costs to the consumer and it will be a spiral downwards."

But NDP Leader Rachel Notley, whose government ushered in the changes, said fears over dramatic cost increases are unfounded.

"There are some players within the current electricity regime who have a vested interest in maintaining the current situation," Notley said

Kenney's UCP vowed during the recent election to review the current and proposed electricity market options, as the electricity market heads for a reshuffle, with plans to report on its findings within 90 days.

The party also promised to scrap subsidies for renewable power, while ensuring "a market-based electricity system" that emphasizes competition in Alberta's electricity market for consumers.

The New Democrats had opted to scrap the current deregulated power market — in place since the Klein era — after phasing out coal-fired generation and ushering in new renewable power as part of changes in how Alberta produces and pays for electricity under their climate change strategy.

The Alberta Electric System Operator, which oversees the grid, says the province will need new sources of electricity to replace shuttered coal plants and backstop wind and solar generators, while meeting new consumer demand.

After consulting with power companies and investors, the AESO concluded in late 2016 the electricity market couldn't attract enough investment to build the needed power generation under the current model.

The AESO said at the time investors were concerned their revenues would be uncertain once new plants are running. It recommended what's known as a capacity market, which compensates power generators for having the ability to produce electricity, even when they're not producing it.

In other words, producers would collect revenue for selling electricity into the grid and, separately, for having the capacity to produce power as a backstop, ensuring the lights stay on. Power generators would use this second source of income to help cover plant construction costs.

Clark said the complex system introduces unnecessary costs, which he believes would hurt consumers in the end. He said what's preventing investment in the power market is uncertainty over how the market will be structured in the future.

"What investors need to see in this market is price certainty, regulatory ease, and where the money they're putting into the marketplace is not at risk," he said.

"They can risk their own money, but if in fact the government comes in and changes the policy as it was doing, then money stayed away from the province."

Notley said a capacity market would not increase power bills but would avoid big price swings, with protections like a consumer price cap on power bills also debated, while bringing greener sources of energy into Alberta's grid.

"Moving back to the [deregulated] energy-only market would make a lot of money for a few people, and put consumers, both industrial and residential, at great risk."

Clark disagrees, citing Enmax's recent submissions to the Alberta Utilities Commission, in which the utility argues the proposed design of the capacity market is flawed.

In its submissions to the commission, which is considering the future of Alberta's power market, Enmax says the proposed system would overestimate the amount of generation capacity the province will need in the future. It says the calculation could result in Alberta procuring too much capacity.

The City of Calgary-owned utility says this could drive up costs by anywhere from $147 million to $849 million a year. It says a more conservative calculation of future electricity demand could avoid the extra expense.

An analysis by a Calgary energy consulting firm suggests a different feature of the proposed power market overhaul could also lead to a massive spike in costs.

EDC Associates, hired by the Consumers' Coalition of Alberta, argues the proposal to launch the new system in November 2021 may be premature, because it could bring in additional supplies of electricity before they're needed.

The consultant's report, also filed with the Alberta Utilities Commission, estimates the early launch date could require customers to pay 40 per cent more for electricity amid rising electricity prices in the province — potentially an extra $1.4 billion — in 2021/22.

"The target implementation date is politically driven by the previous government," said Duane Reid-Carlson, president of EDC Associates.

Reid-Carlson recommends delaying the launch date by several years and making another tweak: reducing the proposed target for system reliability, which would scale back the amount of power generation needed to backstop renewable sources.

"You could get a result in the capacity market that would give a similar cost to consumers that the [deregulated] energy-only market design would have done otherwise," he said.

"You could have a better risk profile associated with the capacity market that would serve consumers better through lower cost, lower price volatility, and it would serve generators better by giving them better access to capital at lower costs."

The UCP government did not respond to a request for comment.

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Canadian Softwood Lumber Tariffs challenge British Columbia's forestry sector, strain U.S.-Canada trade, and risk redirecting critical minerals and energy resources, threatening North American supply chains, manufacturing, and energy security across integrated markets.

Key Points

Duties imposed by the U.S. on Canadian lumber, affecting BC forestry, trade flows, and North American energy security.

✅ U.S. duties strain BC forestry and cross-border supply chains

✅ Risks redirecting critical minerals and energy exports

✅ Tariff rollback could bolster North American energy security

British Columbia Premier David Eby has raised concerns that U.S. tariffs on Canadian softwood lumber are prompting the province to redirect its critical minerals and energy resources, while B.C. challenges Alberta's electricity export restrictions domestically, away from the United States. In a recent interview, Eby emphasized the broader implications of these tariffs, suggesting they could undermine North American energy security and put electricity exports at risk across the border.

Since 2017, the U.S. Department of Commerce has imposed tariffs on Canadian softwood lumber imports, alleging that Canadian producers benefit from unfair subsidies. These duties have been a persistent source of tension between the two nations, coinciding with Canadian support for energy and mineral tariffs and significantly impacting British Columbia's forestry sector—a cornerstone of the province's economy.

Premier Eby highlighted that the financial strain imposed by these tariffs not only jeopardizes the Canadian forestry industry but also has unintended repercussions for the United States. He pointed out that the economic challenges faced by Canadian producers might lead them to seek alternative markets for their critical minerals and energy resources, as tariff threats boost support for Canadian energy projects domestically, thereby reducing the supply to the U.S. British Columbia is endowed with an abundance of critical minerals essential for various industries, including technology and defense.

The potential redirection of these resources could have significant consequences for American industries that depend on a stable and affordable supply of critical minerals and energy. Eby suggested that the tariffs might incentivize Canadian producers to explore other international markets, even as experts advise against cutting Quebec's energy exports amid the tariff dispute, diminishing the availability of these vital resources to the U.S.

In light of these concerns, Premier Eby has advocated for a reassessment of the tariffs, urging a more cooperative approach between Canada and the United States. He contends that eliminating the tariffs would be mutually beneficial, aligning with views that Biden is better for Canada's energy sector and cross-border collaboration, ensuring a consistent supply of critical resources and fostering economic growth in both countries.

The issue of U.S. tariffs on Canadian softwood lumber remains complex and contentious, with far-reaching implications for trade relations and resource distribution between the two nations. As discussions continue, stakeholders on both sides of the border are closely monitoring the situation, noting that Ford has threatened to cut U.S. electricity exports amid trade tensions, recognizing the importance of collaboration in addressing shared economic and security challenges.

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NB Power eCharge Network expands EV charging in New Brunswick with fast chargers, level 2 stations, Trans-Canada Highway coverage, and green infrastructure, enabling worry-free electric vehicle travel and lower emissions across the province.

Key Points

NB Power eCharge Network is a provincewide EV charging system with fast and level 2 stations for reliable travel.

✅ 15 fast-charging sites on Trans-Canada and northern New Brunswick

✅ Level 2 stations at highways, municipalities, and businesses

✅ 20-30 minute DC fast charging; cut emissions ~80% and fuel ~75%

NB Power announced Friday the eCharge Network, the province’s first electric vehicle charging network aimed at giving drivers worry-free travel everywhere in the province.

The network includes 15 locations along the province’s busiest highways where both fast-chargers and level-2 chargers will be available. In addition, nine level-2 chargers are already located at participating municipalities and businesses throughout the province. The new locations will be installed by the end of 2017.

NB Power is working with public and private partners to add to the network to enable electric vehicle owners to drive with confidence and to encourage others to make the switch from gas to electric vehicles, supported by a provincial rebate program now available.

“We are incredibly proud to offer our customers and visitors to New Brunswick convenient charging with the launch of our eCharge Network,” said Gaëtan Thomas, president and CEO of NB Power. “Our goal is to make it easy for owners of electric vehicles to drive wherever they choose in New Brunswick, and to encourage more drivers to consider an electric vehicle for their next purchase.”

An electric vehicle owner in New Brunswick can shrink their vehicle carbon footprint by about 80 per cent while reducing their fuel-related costs by about 75 per cent, according to NB Power, and broader grid benefits are being explored through Nova Scotia's vehicle-to-grid pilot across the region.

In addition to the network of standard charging stations, the eCharge network will also include 400 volt fast-charging stations along the Trans-Canada Highway and in the northern parts of New Brunswick. The first of their kind in New Brunswick, these 15 fast-charging stations, similar to Newfoundland and Labrador's newly completed fast-charging network connecting communities, will enable all-electric vehicles to recharge in as little as 20 to 30 minutes. Fast-charge sites will include standard level-2 stations for both battery electric vehicles and plug-in hybrids.

NB Power will install fast-charge and level-2 sites at five locations throughout northern New Brunswick, addressing northern coverage challenges seen elsewhere, such as Labrador's infrastructure gaps today, which will be cost-shared with government. Locations include the areas of Saint-Quentin/Kedgwick, Campbellton, Bathurst, Tracadie, and Miramichi.

“Our government understands that embracing the green economy and reducing our carbon footprint is a priority for New Brunswickers,” said Environment and Local Government Minister Serge Rousselle. “Our climate change action plan calls for a collaborative approach to creating the strategic infrastructure to support electric vehicles throughout all regions in the province, and we are pleased to see this important step underway. New Brunswickers will now have the necessary network to adopt new methods of transportation and contribute to our provincial plan to increase the number of electric vehicles on the road and will help meet emission reduction targets as we work to combat climate change.”

An investment of $500,000 from Natural Resources Canada will go towards purchasing and installing the charging stations for the 10 fast-charging stations along the Trans-Canada Highway.

“The eCharge Network will make it easier for Canadians to choose cleaner options and helps put New Brunswick’s transportation system on a path to a lower-carbon future,” said Moncton-Riverview-Dieppe MP Ginette Petitpas Taylor. “The Government of Canada continues to support green infrastructure in the transportation sector that will advance Canada’s efforts to build a clean economy, create well-paying jobs, and achieve our climate change goals.”

Petitpas Taylor attended for federal Natural Resources Minister Jim Carr.

Fast chargers are being installed at the following locations along the Trans-Canada Highway across New Brunswick:

– Irving Big Stop, Aulac

– Edmundston Truck Stop

– Irving Big Stop, Saint-André

– Johnson Guardian, Perth-Andover

– Murray’s Irving, Woodstock

– Petro-Canada / Acorn Restaurant, Prince William

– Irving Big Stop, Waasis

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Ontario Electricity Relief outlines an extended disconnect moratorium, potential time-of-use price changes, and Ontario Energy Board oversight to support residential customers facing COVID-19 hardship and bill payment challenges during the emergency in Ontario.

Key Points

Plan to extend disconnect moratorium and weigh time-of-use price relief for residential customers during COVID-19.

✅ Extends winter disconnect ban by 3 months

✅ Considers time-of-use price adjustments

✅ Requires Ontario Energy Board approval

The Ontario government is preparing to announce electricity relief for residential electricity users struggling because of the COVID-19 emergency, according to sources.

Sources close to those discussions say a decision has been made to lengthen the existing five-month disconnect moratorium by an additional three months.

Separately, Hydro One's relief fund has offered support to its customers during the pandemic.

News releases about the moratorium extension are currently being drafted and are expected to be released shortly, as the pandemic has reduced electricity usage across Ontario.

Electricity utilities in Ontario are currently prohibited from disconnecting residential customers for non-payment during the winter ban period from November 15 to April 30.

The province is also looking at providing further relief by adjusting time-of-use prices, such as off-peak electricity rates, which are designed to encourage shifting of energy use away from periods of high total consumption to periods of low demand.

For businesses, the province has provided stable electricity pricing to support industrial and commercial operations.

But that would require Ontario Energy Board approval and no decision has been finalized, our sources advise.

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