FUNDING TRANSMISSION Executive Summary “It’s time to invest in Canada” We have heard this phrase again and again over the past year as Canada works to become economically more self-reliant. Building Canada’s electricity system to meet the demands of the 21st century has been a key part of this approach, as evidenced by the announcement of a National Electricity Strategy. A key element of this is major transmission projects. These are what gets electricity across
vast distances to municipalities and, ultimately, industry and homes. This Investment Summit comes at a welcome opportunity expand transmission networks to support economic growth, electrification, system reliability, and enhanced interprovincial trade. Utilities are also partnering with Indigenous communities through equity and ownership agreements to advance projects and connect remote regions.
Electricity Canada has profiled several major transmission projects that have successfully employed a range of funding and financing models. The following projects offer a sample of the different approaches companies are taking to financing transmission:
ATCO – SaskPower Interconnection Bipole III Hertel-New York Interconnection Northwest Transmission Line Nova Scotia-New Brunswick Reliability Tie The Maritime Link
These projects highlight the value of diversified financing structures that combine utility investment with federal and provincial funding, Indigenous equity participation, private capital, infrastructure investment, and strategic partnerships. These models have helped advance projects that deliver broad public benefits, including regional economic development, reliability improvements, emissions reductions, and community connectivity. Diversified financing provides several advantages. • First, it helps reduce pressure on utility balance sheets and ratepayers by spreading project costs and risks among multiple participants. • Second, it attracts new sources of capital that can support larger and more ambitious infrastructure projects. • Third, it enables Indigenous and community participation, creating stronger local support and shared economic benefits. Finally, diversified funding can improve
project viability where transmission investments generate societal or economic benefits that extend beyond a utility's traditional customer base. Different forms of transmission require different approaches, but one element is common: building requires an “all hands on deck” situation. Canada's future transmission build-out will require regulatory certainty, clear cost recovery mechanisms, supportive public policy, and investment models that mobilize public, private, Indigenous, and institutional capital. As transmission projects become more capital-intensive and increasingly cross provincial, territorial, and international boundaries, financing innovation will be as important as engineering innovation. Electricity Canada supports the government’s approach to attracting investment for major infrastructure. Ensuring a diverse funding base will allow for the successful build out of an electricity system that is critical to Canada’s economic growth.
FUNDING TRANSMISSION PROJECT 01
ATCO–SASKPOWER INTERCONNECTION Transmission infrastructure is critical to Canada's energy future, but bringing these large-scale projects to life requires creative and flexible financing. This collection of projects highlights the diverse funding mechanisms electricity companies have used to advance projects from planning through construction.
JURISDICTION
INITIAL BUDGET PROPOSED
• Alberta • Saskatchewan
$600 Million
OWNER
ATCO Electric
$ PROJECT AT GLANCE
Type of Project Repair work
Voltage Level 240-240 kV
Current Type DC
PROJECT TIMELINE Approval 2025
PRIMARY DRIVERS • Reliability • Market Access/Benefit to Provinces • System Balancing
KEY ENABLERS • HVDC Technology • Strategic Intertie
FUNDING • To be defined
KEY PROJECT CHALLENGES • Asynchrounous grid connection • Aging Infrastructure • Global marketplace capacity for HVDC
Construction to In-service 2033
FUNDING TRANSMISSION PROJECT 02
BIPOLE III Transmission infrastructure is critical to Canada's energy future, but bringing these large-scale projects to life requires creative and flexible financing. This collection of projects highlights the diverse funding mechanisms electricity companies have used to advance projects from planning through construction.
TOTAL INVESTMENT
JURISDICTION
$4.6 Million
Manitoba
OWNER
Manitoba Hydro
$ PROJECT AT GLANCE
Voltage Level 500 kV
Line Length 1,400 km
Current Type DC
PROJECT TIMELINE Concept to Approval 2007 to 2011
Approval to Construction 2013
Construction to In-service 2013 to 2018
PROJECT LOCATION Guillam
Thompson
Keewatinoow Converter Station
BIPOLE III The Pass
BIPOLE III BIPOLE I,II
Cedar Lake Lake Winnipeg
PRIMARY DRIVERS •Reliability
FUNDING • Internal Debt
Dauphin
•No external funding Lake Manitoba
Portage La Praierie
Dorsey Converter Station Riel Converter Station Winnipeg Steinbach
FUNDING TRANSMISSION PROJECT 03
HERTEL-NEW YORK INTERCONNECTION Transmission infrastructure is critical to Canada's energy future, but bringing these large-scale projects to life requires creative and flexible financing. This collection of projects highlights the diverse funding mechanisms electricity companies have used to advance projects from planning through construction.
JURISDICTION
OWNER
TOTAL INVESTMENT • Qc: CA$1.5 billion • NY: US$ 6.0 billion
• Québec • New York State
•CHPE LLC (NY) •Hydro-Québec •Mohawk Council of Kahnawà:ke (Qc)
$ PROJECT AT GLANCE
Line Length 603 km total
Current Type DC
Voltage Level 400 kV HVDC
• 58 km (Qc) • 545 km (NY)
PROJECT TIMELINE (Qc Portion) Approval to Construction 2022 to 2023
Construction to In-service 2023 to 2026
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4
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• Underwater cable installation
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Richelieu substation
Le Haut-Richelieu (MRC)
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KEY PROJECT CHALLENGES
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L'Acadie substation
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• Canadian hydropower integration • New York City clean energy demand
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• Clean Energy Standard Tier expansion
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La Vallée-du-Richelieu (MRC)
134
Fleuve Saint-Laurent
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Chambly
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• Decarbonization;
PROJECT LOCATION
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PRIMARY DRIVERS
Longueuil (TÉ)
73°30'
Marieville, V 73°10'
Saint-S ébastien
Concept to Approval 2012 to 2022
73°10'
FUNDING TRANSMISSION PROJECT 04
NORTHWEST TRANSMISSION LINE Transmission infrastructure is critical to Canada's energy future, but bringing these large-scale projects to life requires creative and flexible financing. This collection of projects highlights the diverse funding mechanisms electricity companies have used to advance projects from planning through construction.
JURISDICTION
British Columbia
TOTAL INVESTMENT
$704 Million
OWNER
BC Hydro
$ PROJECT AT GLANCE
Line Length 344 km
Voltage Level 287 kV
Current Type AC
PROJECT TIMELINE Concept to Approval pre-2008 to 2011
Approval to Construction 2011 to 2012
Construction to In-service 2012 to 201 4
PROJECT LOCATION PRIMARY DRIVERS • Economic development • Load growth Bob Quinn Substation
KEY ENABLERS • Federal (Green Infrastructure Funding) and Provincial funding
Bell II British Columbia, Canada
• Policy objective to electrify region north of Terrace • Supporting mining and clean
Alaska, USA
Meziadin Substation Meziadin Junction
energy development
FUNDING • Federal Government • Provincial funding
Cranberry Junction
• Third party contributions tied to industrial customers
Aiyansh Substation
KEY PROJECT CHALLENGES • Terrain • Remoteness • Environmental Assessment • Indigenous consultation and route alignment
Skeena Substation
FUNDING TRANSMISSION PROJECT 05
NOVA SCOTIA-NEW BRUNSWICK RELIABILITY TIE Transmission infrastructure is critical to Canada's energy future, but bringing these large-scale projects to life requires creative and flexible financing. This collection of projects highlights the diverse funding mechanisms electricity companies have used to advance projects from planning through construction.
INITIAL BUDGET PROPOSED
JURISDICTION
$685 Million
• Nova Scotia • New Brunswick
OWNER •Nova Scotia Power •Canada Infrastructure Bank •Wskijinu'k Mtmo'taqnuow Agency (NS First Nations)
•Mi'gmaq United Investment Network
$
(NB First Nations)
PROJECT AT GLANCE
$ Line Length 160 km in total •65 km in NB •95 km in NS
Rate of Return As approved by NS Energy Regulator
Voltage Level 345 kV
Current Type AC
PROJECT TIMELINE Concept to Approval 2023 to 2025
Approval to Construction 2025 to 2026
PROJECT LOCATION
PRIMARY DRIVERS • Reliability • Decarbonization • System flexibility
FUNDING • Utility investment • Federal investment (CIB) • Indigenous investment
KEY PROJECT CHALLENGES KEY ENABLERS
• Cross-jurisdictional coordination
• Indigenous and Federal Partnerships
• Environmental approvals
• Provincial regulatory approval
• Integration of renewable energy and
• Policy alignment for coal-phase out
system stability planning
Construction to In-service 2026 to 2028
FUNDING TRANSMISSION PROJECT 06
THE MARITIME LINK Transmission infrastructure is critical to Canada's energy future, but bringing these large-scale projects to life requires creative and flexible financing. This collection of projects highlights the diverse funding mechanisms electricity companies have used to advance projects from planning through construction.
JURISDICTION
OWNER
TOTAL INVESTMENT
$1.56 Billion
• Newfoundland and Labrador
• NSP Maritime Link • Emera affiliate
$
• Nova Scotia
PROJECT AT GLANCE
$ Line Length 500+ km total • 45 km HVDC transmission line (NS) • 170 km subsea cable • 140 km HVDC transmission line (NL) • 160 km HVAC transmission line (NL)
Rate of Return UARB - Approved cost recovery
Voltage Level •±200 kV HVDC •230 kV AC •345 kV AC
Current Type DC
PROJECT TIMELINE Concept to Approval 2010 to 2013
Approval to Construction 2013 to 2014
PRIMARY DRIVERS
Construction to In-service 2014 to 201 8
PROJECT LOCATION
• Decarbonization • Access to Hydroelectric power • Interprovincial energy integration and market access ATLANTIC OCEAN
KEY ENABLERS
Labrador Transmission Asset
• Meet provincial clean energy targets
LABRADOR
• Federal loan guarantee
Churchill Falls
• HVDC VSC Bipole technology
Muskrat Falls
FUNDING
NEWFOUNDLAND
• Federal loan guarantee • Emera investment and market debt
QUEBEC
KEY PROJECT CHALLENGES
Maritime Link
• Longest submarine electric cable installation in North America • First bipole voltage source converter HVDC line in the world • Harsh weather conditions • Multiple juridictions
Labrador Island Link
NEW BRUNSWICK MAINE
NOVA SCOTIA