The announcement was made at the G7 Ministers meeting on Climate Change, Oceans and Clean Energy in Halifax.
The two nations have also led efforts to phase out unabated coal use by 2025 under the Powering Past Coal Alliance.
In addition, they have endorsed the Equal by 2030 Campaign, which commits governments and businesses to work towards equal pay, leadership and opportunities for women in the clean energy sector by 2030.
Energy and Clean Growth Minister Claire Perry said: “Balancing supply and demand through a smarter and more flexible grid has the potential to save the UK up to £40 billion between now and 2050, delivering cheaper and cleaner energy for consumers while helping us to meet our climate change commitments.
“This joint funding with Canada, worth just over £11 million, will help pave the way to a cleaner, greener future. This energy system of the future will give consumers more control of their energy use by charging electric vehicles or activating smart washing machines when it’s cheapest and even make them money by selling electricity back to the grid at peak times form in-home battery storage.”