Province targets northern infrastructure expansion to support jobs, energy security and critical minerals sector
THUNDER BAY — Ontario is accelerating plans to expand electricity infrastructure in the province’s north, designating a major transmission project as a priority while introducing a new hydroelectric program aimed at supporting long-term economic growth and mining development.
Energy and Mines Minister Stephen Lecce announced the moves on April 23, positioning the initiatives as central to Ontario’s strategy to strengthen energy security and unlock investment in resource-rich regions.
At the centre of the plan is the Red Lake transmission line, a proposed 162-kilometre double-circuit 230-kilovolt line linking Dryden, Ear Falls and Red Lake. The province has formally prioritized the project through a directive to the Ontario Energy Board and named Hydro One as the developer and builder.
“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.”
Surging electricity demand driven by mining expansion
Provincial officials say electricity demand in the Red Lake region could rise by as much as 525 per cent by 2050, increasing from roughly 120 megawatts today to more than 750 megawatts. The surge is tied to population growth and a rapidly expanding mining sector, with projections pointing to as many as 41 new mines by 2033.
The transmission upgrade is expected to support major projects, including developments by Kinross Gold and Frontier Lithium, while enabling broader investment across Northern Ontario.
Declaring the line a priority project is intended to streamline regulatory approvals and provide greater certainty for investors. The province said the designation will also allow continued consultation with Indigenous communities, including potential equity participation of up to 50 per cent through Hydro One’s partnership model.
New hydro program to secure long-term power supply
Alongside the transmission announcement, Ontario unveiled the Northern Hydro Program, designed to renew contracts for hydroelectric facilities larger than 10 megawatts. The initiative is expected to secure more than 1,000 megawatts of existing capacity, much of it located in the north.
Hydroelectric generation currently supplies about 24 per cent of Ontario’s electricity. The province says renewing contracts for aging assets will help maintain reliability as demand rises and contracts approach expiry before 2050.
In a further step, the government has directed the Independent Electricity System Operator to launch a competitive procurement process for new hydroelectric generation and long-duration energy storage. The process aims to secure up to one terawatt-hour of new hydroelectric output annually, along with up to 800 megawatts of storage capacity. Applications are set to open May 10, 2026, with projects expected to connect to the grid by 2035.
Indigenous partnerships and regional response
The province emphasized that First Nations will play a central role in the development of the transmission line and related infrastructure.
“In designating the Red Lake transmission Line as a priority project, we are fortifying the electrical capacity needed to serve the exciting regional growth and development taking shape across Northwestern Ontario. Working in lockstep with First Nations communities, we continue to advance critical infrastructure and drive economic reconciliation.”
- Greg Rickford
Minister of Indigenous Affairs and First Nations Economic Reconciliation and Minister Responsible for Ring of Fire Economic and Community Partnerships, MPP for Kenora—Rainy River
Community and regional leaders broadly welcomed the announcement, highlighting its importance for economic development and energy reliability.
“I’m pleased to see the next steps to advance the Red Lake Transmission Line being announced today. This is an important project that will strengthen electricity infrastructure in Northwestern Ontario and support long-term economic growth. As demand continues to rise across the north, driven by community growth and the mining sector, investments like this are critical to keeping pace. This project will also help create good paying jobs during construction and support future development opportunities across the region.”
- Kevin Holland
MPP for Thunder Bay – Atikokan
“today’s announcement is incredibly important for Red Lake and for communities across Northwestern Ontario. The Red Lake Transmission Project has been a long-standing priority, and its advancement will help unlock new economic opportunities, support our mining sector, and ensure reliable, affordable power for our residents and businesses. We are also encouraged by the province’s commitment to strengthening Northern hydroelectric capacity and planning for future energy needs. Reliable energy is the backbone of growth in the North, and these steps signal that our region is being recognized as a key part of Ontario’s economic future. We look forward to continuing to work with Minister Lecce and the province to ensure these investments deliver real benefits on the ground for Red Lake and the broader Northwest.”
- Fred Mota
Mayor, Municipality of Red Lake
Indigenous leaders stressed the importance of meaningful consultation and environmental stewardship.
“Wabauskang First Nation is located along the route of this transmission project, and our community must be meaningfully involved at every stage. Ontario has taken an important step by engaging us early as a key partner. We are ready to work collaboratively to ensure the project brings economic opportunities for our people while protecting our lands, waters, and values.”
- Chief Bill Petiquan
Wabauskang First Nation
Industry sees boost to investment climate
Industry groups and mining companies said the infrastructure investments will improve Ontario’s competitiveness in the global critical minerals market.
“The Ontario Energy Association (OEA) welcomes the Ontario government’s announcement of the Red Lake Transmission Line, which will be delivered by Hydro One. Hydro One’s proven expertise in building and operating essential transmission infrastructure will help improve system reliability, unlock new generation opportunities, support economic growth for First Nations communities, and power critical mineral development across Northwestern Ontario.”
- Vince Brescia
President & CEO, Ontario Energy Association
“Reliable, affordable electricity is foundational to responsibly advancing major mining and critical mineral projects in Northern Ontario. Ontario’s leadership in expanding transmission capacity in the Red Lake region and securing long term power provides the certainty needed to advance projects like Frontier’s PAK Lithium Project, support local communities, and build resilient, made in Ontario critical mineral supply chains.”
- Trevor Walker
President and CEO of Frontier Lithium
Ontario’s mining sector currently supports approximately 28,000 direct jobs and 46,000 indirect jobs, underscoring the economic stakes tied to energy infrastructure.
The Red Lake transmission line is expected to enter service in the early 2030s, forming a key component of the province’s broader “Energy for Generations” plan to ensure reliable, affordable power while enabling growth in strategic industries.