Enhancing Electricity Transmission Capacity in Northern Ontario – The Greenstone Transmission Line

In January 2025, the Ontario government signed a Shared Prosperity Agreement (SPA) with Aroland First Nation in which it committed, subject to fulfillment of applicable consultation obligations, including Duty to Consult and receiving required approvals, to advance route and design planning of the Greenstone Transmission Line (GTL), working with Aroland First Nation, Animbiigoo Zaagi’igan Anishinaabek, Ginoogaming First Nation, Biinjitiwaabik Zaaging Anishinaabek, Bingwi Neyaashi Anishinaabek, Long Lake #58 First Nation and Red Rock Indian Band, partnered with a preferred transmitter.

Prior to the signing of the SPA, in April 2024, the Ontario government announced the Reducing Diesel Reliance Initiative signaling Ontario’s intention to work in partnership with remote First Nation communities that are diesel dependent for electricity purposes to explore alternative electricity generation options, including transmission development.

To further support connecting remote First Nations to the electricity grid, in 2023, the Independent Electricity System Operator (IESO) started to explore electricity supply options for transmission connection and generation through the Northern Ontario Connection Study (NOCS).The IESO’s December 2024 preliminary report back to the ministry on NOCS identified that in addition to improving the reliability of the transmission system for communities in the Greenstone region, the GTL would provide the foundational transmission infrastructure needed to support possible future transmission upgrades to support diesel-dependent communities, mining activities, and clean generation in the NOCS study region. The IESO is continuing to engage with First Nation communities that are reliant on diesel fuel to understand their preferred long-term energy supply option to connect these communities to the electricity grid and/or provide assistance for other solutions that the Nations identify and wish to pursue to best reflect the needs and values of their members.

The ministry has recently announced its proposal to facilitate the development of the GTL in Ontario’s recently published Integrated Energy Plan, Energy For Generations: Ontario’s Integrated Plan to Power the Strongest Economy in the G7, which outlines the actions being proposed or taken by the provincial government to meet the challenge of generating and delivering the affordable, secure, reliable and clean energy Ontarians need.

The ministry is proposing to take actions to facilitate the development of the GTL that would run north from existing 230 kV infrastructure (the East-West Tie) near Nipigon Bay to a new or existing station in the municipality of Greenstone and associated station facilities.

The proposed actions, subject to fulfillment of applicable consultation obligations, including Duty to Consult and receiving necessary approvals, are intended to:

• Support the planned transmission project so that it may be built on time and cost-effectively to meet rapidly growing electricity needs that would enable economic growth and electrification initiatives in northern Ontario and provincially.
• Advance a shared goal of reconciliation with Indigenous communities by enabling economic, partnership, and leadership opportunities that can bring prosperity and security to the region.

Our proposed actions for public feedback are as follows:

1. Prioritize the Greenstone Transmission Line

The ministry is proposing to bring forward an Order in Council that would, subject to fulfillment of applicable consultation obligations, including Duty to Consult and receiving required approvals, declare the following transmission project, recommended to be in-service by 2032, to be a priority project under s. 96.1 (1) of the Ontario Energy Board Act, 1998 (OEBA):

• A single-circuit 230-kilovolt (kV) transmission line, designed to support a possible second circuit, that will run from existing 230 kV infrastructure (the East-West Tie) near Nipigon Bay and terminating at a new or existing station in the municipality of Greenstone, and associated station facilities. The northern termination point will be determined based on further study by the IESO through the Northern Ontario Connection Study and consultation with the First Nations consortium and Hydro One.

Per s. 96.1 (2) of the OEBA, this declaration would require the Ontario Energy Board (OEB), the provincial economic regulator of the energy sector, to accept that this line is needed when assessing whether the project is in the public interest as part of its Leave to Construct review process. This would streamline the OEB’s review process and prevent delays to ensure that the project is brought online on time. The OEB would still be required to consider the interests of electricity consumers with respect to project costs and the reliability and quality of electricity service.

Declaring this transmission line to be a priority project would not impact the requirement for the transmitter to obtain all required government approvals, including under the Environmental Assessment Act and obtaining Leave to Construct from the OEB. These approvals include requirements for the transmitter to consult with Indigenous communities, the public, and stakeholders on the proposed project. 

2. Designate Hydro One as Transmitter

The Government is proposing, subject to fulfillment of all applicable consultation obligations, including the Crown’s Duty to Consult, receiving all required approvals, to direct the OEB, pursuant to s. 28.6.1 of the OEBA, to amend Hydro One’s transmitter licence, as the First Nation consortium’s identified preferred transmitter, to require it to undertake development work and seek all necessary approvals to construct the transmission project listed above.

By designating Hydro One, we are providing the regulatory clarity it needs to initiate project development work and commence Indigenous partnership discussions on the specified project. This will help to avoid the possibility of delays in the approvals process which can add to development timelines and increased costs that are ultimately borne by electricity ratepayers.

As the local transmitter in the region, Hydro One is best situated to promptly undertake development work for this project to meet the IESO’s recommended in service date. Hydro One’s ownership of the connecting infrastructure, their familiarity with Ontario’s regulatory and permitting processes, and its established relationships with local and Indigenous communities, best positions Hydro One to advance the development of this project.

Furthermore, Hydro One’s First Nation Equity Partnership Model, launched in 2022, offers First Nations the opportunity to advance the project together in partnership and a 50% equity stake in new transmission lines exceeding $100 million. This model is expected to advance reconciliation by creating economic opportunities for Indigenous communities, such as equity participation, procurement opportunities, and jobs.

Consultation with Indigenous Communities on this Proposal:

The provincial Crown is committed to fulfilling its duty to consult Indigenous communities in respect of its conduct that may have the potential to adversely impact Aboriginal and treaty rights protected under Section 35 of Canada’s Constitution Act, 1982 (s. 35 rights).  The ministry will provide information about the proposed policy actions and project to potentially impacted Indigenous communities and organizations, including information about how they can participate in the consultation process at this early stage of project development.

This would include an opportunity to review and provide comments about this proposal through the Environmental Registry of Ontario (ERO), as well as targeted consultation opportunities for potentially impacted Indigenous communities to share input about the proposed action and potential for impacts to s. 35 rights directly with ministry staff. 

In addition, should the proposal move forward, the province expects to delegate the procedural aspects of Crown consultation to the transmitter in respect of the transmission line, which may be fulfilled through the Ministry of Environment Conservation and Parks’ (MECP) environmental approvals and other provincial regulatory approvals and permits as appropriate.

Timing:

Depending on the outcomes of consultation, including consultation with Indigenous communities, the ministry anticipates bringing this proposal forward for a decision later in 2025.

Environmental Impact:

Like all infrastructure projects, transmission projects can have impacts on land (e.g., impacts to farmland) and on local environments and ecosystems, such as watersheds. This proposed action does not impact the requirement for the transmitter to obtain all required government permits and approvals, including those required under the Environmental Assessment Act, prior to proceeding with the project’s construction. These approvals include requirements for the transmitter to consult with Indigenous communities, the public, and stakeholders on the proposed project, including in the determination of the exact path of the line, its impacts to the environment, and any appropriate mitigation measures.  

Building transmission infrastructure is essential in maintaining Ontario’s affordable, secure, reliable and clean energy advantage.. Success in achieving these objectives could have significant positive impacts on the environment.