Province expanding northern energy infrastructure and launching new programs to power mining, create jobs and drive economic growth in the North
THUNDER BAY – As part of its plan to protect Ontario and build a stronger, self-reliant economy, the government is taking decisive action to expand electricity infrastructure in Northern Ontario. Today, Stephen Lecce, Minister of Energy and Mines announced the government has, through a Minister’s letter to the Ontario Energy Board (OEB), declared the Red Lake transmission line a priority project and designated Hydro One to develop and construct it. The new 162-kilometre double-circuit 230-kV transmission line connecting through Dryden, Ear Falls and Red Lake is a critical piece of infrastructure that will help power one of the most promising mining regions in Canada and enable major new investments across the North while supporting 5,800 jobs and $830 million in GDP. Ontario is also launching the new Northern Hydro Program to ensure northern communities have access to reliable, affordable power to fuel economic growth.
“Our government is on a mission to grow our economy by generating more reliable hydro power in the North and electrifying one of Ontario’s most mineral rich regions with a new transmission line,” said Stephen Lecce, Minister of Energy and Mines. “We are accelerating the transmission line to power new mines, strengthen energy security and create good jobs. This important next step of Ontario’s plan will unlock more than 5,800 good-paying jobs and unlock $830 million in economic potential, all delivered in true partnership with First Nations.”
In the Red Lake region, electricity demand will increase potentially as high as 525 per cent, rising from approximately 120 megawatts today to potentially over 750 megawatts by 2050. This increase is being driven by growing communities and a thriving mining sector that is expected to grow by 41 potential new mines by 2033. Expanding electricity infrastructure in the Red Lake Region is vital to support significant mining projects, including the recently announced Kinross Gold’s Great Bear Project and the Frontier Lithium’s PAK Lithium Project, accelerated through the 1P1P framework, and will deliver hundreds of good-paying jobs to the region.
Declaring the Red Lake Transmission project a priority project and designating Hydro One as the transmitter will speed up Ontario Energy Board approval processes and provide the regulatory certainty needed to begin development work, continue engagement and consultation with Indigenous communities, including economic partnerships and employment opportunities. First Nations communities will also have access to Hydro One’s First Nations equity partnership model that provides up to a 50 per cent equity stake in the new transmission line once construction is complete.
To keep reliable and affordable power as Ontario’s mining sector grows, the government is launching the new Northern Hydro Program. This program will renew contracts for hydroelectric stations larger than 10 megawatts (MW), securing more than 1,000 MW of existing capacity, most of which is located in Northern Ontario. Hydroelectricity currently provides approximately 24 per cent of Ontario’s power and this initiative will provide the operational security needed to secure the province’s existing large hydroelectric fleet that have contracts set to expire before 2050.
As part of the province’s broader energy security plan, the government has also directed the IESO to launch the first-ever competitive Long-Lead Time procurement to secure up to one terawatt-hour per year of new hydroelectric power, and up to 800 megawatts of capacity from long-duration storage. Applications will officially open May 10, 2026, with successful projects connecting to the grid by May 2035.
Energy For Generations, Ontario’s first integrated energy plan, highlights the importance of advancing new transmission infrastructure and securing hydroelectric generation across the province that supports economic growth for Ontario families and businesses, drives economic growth in Northern Ontario, and supports key industries such as mining for critical minerals.
Quick Facts
- The government has issued an Order-In-Council (OIC) and a Minister’s Directive to the Ontario Energy Board (OEB) to amend Hydro One’s transmission licence, formally designating them as the transmitter for the Red Lake Transmission Project.
- A separate OIC has also declared the new transmission lines, expected to be in service in the early 2030s, as a priority project, helping to reduce the risk of delays from the regulatory approvals process.
- The Ministry of Energy and Mines undertook consultation on the Red Lake Transmission Project in relation to the OICs and Directive on the Environmental Registry of Ontario.
- Ontario’s mining sector supports 28,000 direct jobs and 46,000 indirect jobs through associated mineral processing and mining supply and services.
- A recent report by the Northwestern Ontario Municipal Association’s (NOMA) Northwest Energy Task Force is predicting 41 potential new mines by 2033.
- There are currently 37 active mining operations in Ontario.