Enhancing Transmission Capacity North of Dryden – The Red Lake Transmission Project

Project Description:

The Government of Ontario recently published its Integrated Energy Plan, Energy for Generations (released on June 12, 2025), which sets out actions to ensure Ontarians have access to affordable, reliable, secure, and clean energy. The Plan identifies the Red Lake area in northwestern Ontario as a key region for Ontario’s Critical Minerals Strategy, with several mining projects that will create large electricity demands on short timelines. Our plan committed to taking action to support a transmission system that is flexible, reliable, and ready to scale, subject to further study and recommendations by the Independent Electricity System Operator (IESO). 

In August 2025, the IESO released the Northwest Region Integrated Regional Resource Plan Addendum (Addendum) for the North of Dryden Sub-Region, which confirmed an urgent need for new transmission infrastructure in the Red Lake area. Among their recommendations, the Addendum recommends the urgent development of the following project: 

One double-circuit 230-kilovolt (kV) transmission line that will run from Dryden Transformer Station (TS) to Ear Falls TS, and another double-circuit 230-kV transmission line that will run from Ear Falls TS to Red Lake Switching Station (SS), along with associated station facilities. 

IESO has indicated that this is the most cost-effective solution to address imminent capacity constraints, ensure regional system reliability, and support critical mining projects in the region. The project could also support the integration of at least 200 MW of new electricity generation projects.

Consistent with the Plan and based on IESO’s recommendations, the Ministry of Energy and Mines (ministry) is proposing to take future actions to facilitate the timely development of this project. The proposed actions, subject to fulfillment of all applicable consultation obligations, including the Crown’s Duty to Consult, and receiving all required approvals, are intended to mitigate the risk of delays to the recommended infrastructure, and 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. The proposal to Declare the Red Lake Transmission Lines as a Priority

The ministry is proposing to bring forward an Order in Council that would, subject to the fulfillment of all applicable consultation obligations, including the Crown’s Duty to Consult and subject to the approval of the Lieutenant Governor-in-Council, declare the following transmission project, to be a priority project under s. 96.1 (1) of the Ontario Energy Board Act, 1998 (OEBA):

One double-circuit 230-kilovolt (kV) transmission line that will run from Dryden Transformer Station (TS) to Ear Falls TS, and another double-circuit 230-kV transmission line that will run from Ear Falls TS to Red Lake Switching Station (SS), along with associated station facilities. 

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 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. 

The proposal to declare 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 the public, stakeholders and potentially impacted Indigenous communities on the proposed project.  

2. The proposal to designate Hydro One Networks Inc. as Transmitter for the Project

The ministry is also proposing, subject to the fulfillment of all applicable consultation obligations, including the Crown’s Duty to Consult and subject to the approval of the Lieutenant Governor-in-Council, to direct the OEB, pursuant to s. 28.6.1 of the OEBA, to amend Hydro One Networks Inc. (Hydro One)’s transmitter licence to require it to undertake development work and seek all necessary approvals to construct the transmission project listed above.

The IESO stated that this project is needed on an urgent basis and leverages existing infrastructure and corridors, therefore indicating that it is not suitable for competitive procurement. By designating Hydro One, the ministry would be providing the regulatory clarity to initiate project development work and advance Indigenous partnership discussions on this project. This would 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 a key local transmitter in the region, Hydro One is best situated to promptly undertake development work for this project. Hydro One’s ownership of the connecting infrastructure and transmission rights-of way along the existing corridor better enables them to site new transmission infrastructure in a location where corridor expansion is limited. Additionally, Hydro One is familiar with Ontario’s regulatory and permitting processes and has established relationships with local and Indigenous communities. All these factors best position 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 First Nation 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 with 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 transmission project and the above policy actions to potentially impacted Indigenous communities, including information about how they can participate in the consultation process at this early stage of project development.

Prior to the posting on the environmental registry, the ministry will undertake early rights-based consultation with potentially impacted Indigenous communities, and early engagement with Political Territorial Organizations.

Indigenous communities will have an opportunity to review and provide comments about this proposal through the Environmental Registry of Ontario (ERO), as well as through direct consultation opportunities for potentially impacted Indigenous communities to share their input about the proposed action and any 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 possible decision early in 2026, to ensure the transmission lines identified above can be put in service as soon as possible.  

Environmental Impact:

Like all infrastructure projects, transmission projects have the potential to impact land (e.g., impacts to farmland), local environments and ecosystems, such as watersheds. These proposed actions do 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 for maintaining Ontario’s affordable, secure, reliable and clean energy advantage. Success in achieving these objectives could have significant positive impacts on the environment.