Ontario selects Hydro One to build new priority transmission line between Sudbury and Barrie

Executive Summary

• Ontario government directed the Ontario Energy Board to designate Hydro One Networks Inc. as developer and builder of a new priority 500‑kV transmission line from Sudbury to Barrie (≈300 km), slated for service in 2032.
• The project includes a second parallel 500‑kV line whose in‑service date will be set later, and offers proximate First Nations the option to acquire up to a 50 % equity stake under Hydro One’s First Nation Equity Partnership Model.
• The transmission upgrade is intended to support new northern generation, accommodate expected mining expansion, and enhance grid reliability and capacity across Ontario.

Key Details

• Project Scope: Single‑circuit 500 kV line, ~300 km, from Hanmer Transformer Station (Sudbury) to Essa TS (near Barrie); includes associated substation expansions.
• Service Date: First line expected in service by 2032; second line timing to be determined by the Independent Electricity System Operator.
• First Nations Participation: Eligible First Nations may invest for up to a 50 % equity stake in the transmission‑line component via Hydro One’s First Nation Equity Partnership Model.
• Strategic Rationale: Enables connection to new generation sources, supports anticipated ~40 new mines by 2033, strengthens north‑south power flow, and underpins Ontario’s Integrated Energy Plan for reliability and economic growth.
• Government Involvement: Announcement made by Hon. Sam Oosterhoff (Associate Minister of Energy‑Intensive Industries) and Hon. Stephen Lecce (Minister of Energy and Mines).
• Company Context: Hydro One Limited (TSX: H) is Ontario’s largest electricity transmission/distribution provider with $36.7 bn in assets (as of Dec 31 2024) and 2024 revenues of $8.5 bn; invested $3.1 bn in its networks during 2024.

Notable Quotes

• “Ontario's demand for electricity is increasing, faster than it has in decades… This line will allow us to connect to new sources of generation, unlock opportunities to add electricity capacity to the system and strengthen the backbone of the grid.” – David Lebeter, President & CEO, Hydro One.
• “Transmission investments are a crucial part of our plan to meet growing electricity demand across Ontario…” – Hon. Sam Oosterhoff, Associate Minister of Energy‑Intensive Industries.
• “With up to 40 new mines expected to start by 2033 alone… this new line will significantly increase power flow from the south to the north.” – Hon. Stephen Lecce, Minister of Energy and Mines.