Legislation intended to support local government renewable energy projects

Press Release

May 12, 2026

Amendments to Local Governance Act proposed by government

FREDERICTON  – The government has introduced amendments to the Local Governance Act that, if passed, would enable local governments to establish for-profit corporations to generate clean energy and profit from the sale of renewable energy.

“The changes will give communities the tools to build clean-energy projects together and keep the benefits close to home,” said Local Government Minister Aaron Kennedy. “Instead of revenue leaving the province, it can be reinvested in local priorities like infrastructure, services and economic growth, while creating good jobs and more affordable, sustainable energy for New Brunswickers.”

Under existing legislation, a local government can construct, own and operate a generation facility within its boundary for its own purpose, or sell the electricity to a consumer or a distribution utility. This includes renewable energy projects such as solar, wind and hydro.

The proposed legislation changes would facilitate such ventures, allowing councils to delegate related authorities – including borrowing authority – to regional service commissions. It would also allow local governments to generate energy for profit, provided it comes from clean-energy projects.

“This is an historic moment for New Brunswick communities,” said Mario Pelletier, mayor of Bois-Joli and president of the Northern Energy Alliance. “We are very encouraged by the legislative changes that have been tabled. Over the past several months, the Restigouche Regional Service Commission has been working collaboratively with its partners – the Chaleur Regional Service Commission, Acadian Peninsula Regional Service Commission and the First Nations of Eel River Bar and Pabineau – to establish the Northern Energy Alliance. These changes will enable us to proceed with the alliance’s legal registration and formalize partnerships with prospective renewable energy developers, paving the way for sustainable economic growth and long-term benefits for our communities.”

The proposed amendments would provide local governments with a variety of business models to allow for investment, shared risks, enhanced collaboration and streamlined processes.

Media Contact(s)

Vicky Lutes, communications, Department of Environment and Local Government, vicky.lutes@gnb.ca.

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