Tuesday, February 3, 2026
HomeAround the provinceOntario approves $1.5 billion underwater transmission line to boost Toronto power supply

Ontario approves $1.5 billion underwater transmission line to boost Toronto power supply

Michael Lewis

Special to Ontario Construction News

Ontario has approved a plan to build an underwater electricity transmission line to meet Toronto’s growing demand, while also proposing the first Independent Electricity System Operator-led competitive procurement process for the project.

Energy Minister Stephen Lecce said the estimated $1.5 billion project will deliver a third transmission line that would carry up to 900 megawatts of energy from the Darlington Nuclear Generating Station to Toronto’s downtown and east end. 

Development, construction and commissioning is expected to take between seven to 10 years. The Independent Electricity System Operator, the Ontario Crown corporation responsible for operating the electricity market, said Ontario’s first-of-its-kind underwater transmission line will be less vulnerable to extreme weather events such as flooding and ice storms. 

Lecce said the line could power 900,000 new homes, adding that the city’s current transmission line system will reach capacity in the 2030s. 

The Toronto Regional Real Estate Board (TRREB) supports the province’s approval of a new underwater electricity transmission line into Toronto, calling the project “a critical investment that will support housing supply, economic growth, and long-term affordability for residents.”

“By delivering up to 900 MW of additional capacity or power for 900,000 new homes, this first-of-its-kind initiative removes a critical infrastructure barrier that has constrained housing growth. Reliable energy is foundational to building complete communities, accelerating approvals, and supporting the construction of hundreds of thousands of new homes,” Daniel Steinfeld, TRREB President and John DiMichele, TRREB CEO said in a statement.

.Electricity demand in Toronto is projected to double by 2050. Expanding the energy grid and capacity is critical to ensuring the city and the region’s future success. 

“This project provides the reliable power needed to unlock housing development, particularly in the downtown core and along transit corridors where the largest amount of growth is focused,” Steinfeld and DiMichele said. “By building housing enabling infrastructure, the provincial government is taking a forward-looking approach to ensuring Toronto and the GTA remain the economic engine of Ontario and Canada.”

The new line will alleviate strain on the bulk power system by avoiding system reinforcements elsewhere in the GTA, which could result in estimated preliminary savings of $100 to $300 million.

Currently, Toronto is supplied by two transmission lines, one from the west at Manby Transmission Station and one from the east at Leaside. 

The province’s Progressive Conservative government is also proposing that the IESO launch a competitive procurement process to select a transmitter that is to include a consultation on the procurement design. 

It says the approach aims to control costs while accelerating construction and creating opportunities for Indigenous participation.

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