Energy Infrastructure Enabling Northern Economic Development

Hydropower is one of the oldest sources of renewable energy, powering Canada's first electric lights in 1881 and providing clean energy to six out of ten homes and businesses today. Ontario's north leads its next chapter. Trevor sums up how new hydro projects with First Nations transform remote communities, reduce diesel reliance, and support reconciliation. With billions invested in refurbishing plants and expanding the grid, it's a story of clean energy, collaboration, and Canada's sustainable future.

Related links

● Electrifying Canada's remote communities with QUEST Canada (thinkenergy episode 143): https://thinkenergypodcast.com/episodes/electrifying-canadas-remote-communities-with-quest-canada/

● Watay Power Project: https://www.wataypower.ca/

● Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-8b612114

● Hydro Ottawa: https://hydroottawa.com/en

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Transcript:

Trevor Freeman 00:07

Welcome to a think energy short hosted by me, Trevor Freeman. This is a bite sized episode designed to be a quick summary of a specific topic or idea related to the world of energy. This is meant to round out our collective understanding of the energy sector, and will complement our normal guest interview episodes. Thanks for joining and happy listening. Hi everyone, and welcome back to think energy. I'm your host, Trevor Freeman, and today we're shifting our lens to the north. Across North America, we are seeing a resurgence of hydro power, and that includes here in Ontario, where I'm located, this province is looking to this long standing generation method to power Canada's growing and energy starved northern communities first. Let's take a quick look back at history. Canada's first electric lights were actually powered by hydro power. Back in 1881 a small hydro electricity plant in Sherbrooke, Quebec lit up the night and sparked a clean energy story that's still unfolding today, from those earliest River power lights to today, where we see more than 200 hydro stations generating over 60% of Canada's electricity and about 90% of our renewable power. Hydro power remains backbone of our clean energy system and powers six out of 10 homes and businesses. It's reliable, it's cost effective, and unlike solar wind, which can be intermittent, water, provides a steady stream of power pretty much 24/7 some plants have even been operating for more than a century. But according to water power Canada, because we've been relying on this source for so long, there is actually a lot of untapped potential that can be realized by refurbishing and modernizing our older facilities, not to mention developing new ones. We could significantly expand clean capacity, which would help us move closer to our net zero goals. As I've said before on the show, we need every tool in the toolbox, and expanding hydro power is one of those tools. So let's have a look at the North American resurgence of hydropower across the continent, there is a renewed focus on this source as a stable, long term solution to rising energy demand. Even the tech sector is taking notice. In July 2025 Google announced a $3 billion deal to secure hydro power from two US facilities in Pennsylvania through Brookfield asset management. It is the largest corporate clean energy agreement of its kind, which is a signal of how essential reliable renewable power has become. In this digital age, we need something to power these giant AI data centers, and these corporations are looking for something that's reliable and clean. The hydropower sites will be upgraded and relicensed under the agreement, and Google also intends to expand the deal into other regions of the US, Midwest and mid Atlantic, where it's investing $25 billion in new data centers. This deal signals a shift in corporate energy procurement, from simply buying renewable energy credits to offset their emissions to directly investing in specific, large scale, long duration infrastructure deals to power businesses. Of course, this definitely raises questions about the implications for how the grid and energy markets may evolve as demand in the tech and business sector continues to change and grow. That's something we'll explore at a different time. While Google's deal is driven by data and growth. Ontario's story is being shaped by geography, reconciliation and regional development. So let's have a look to the north. Like we said we would when electricity grids were first built, many northern and remote communities were left out because connecting them wasn't seen as practical or affordable. I talked about this with Gemma Pinchon from Quest Canada about a year ago on this show. Have a listen if you haven't already. With small populations spread across vast distances, it was considered too costly to run transmission lines that far north. So while the rest of the country was plugged into their provincial grids, many of these communities were left to rely on local diesel generation, a decision that might have made economic sense at the time, but definitely isn't equitable and not great for the environment. Thankfully, we're seeing some movement in this area. New investments and partnerships are changing how energy is produced and shared, and Ontario is turning once again, to our water power routes, but this time, it's doing it differently. This year, the Ontario government announced several new partnerships with First Nations that are changing the way clean energy projects take shape, emphasizing shared ownership, community leadership and lasting local benefits. New hydro developments in the north are being co created with First Nations who've lived alongside these rivers for generations. So let's have a look at some specifics. In July, the province announced plans for two new large scale hydro electric stations in northern Ontario, the Nine Mile rapids project on the Abitibi River and the Grand Rapids project on the Mattagami. Together, these could generate up to 430 megawatts of clean electricity that's enough to power. Nearly half a million homes. This is the province first large scale expansion of hydro electricity facilities in decades. What makes these projects truly historic is who's at the table. The stations will be co developed with the Taykwa Tagamu Nation and the Moose Cree First Nation, marking a shift towards shared ownership and long term community benefit. It's a model of collaboration that intertwines energy expansion with economic reconciliation, and this is just part of a larger effort. Ontario has also committed $4.7 billion to refurbish and expand existing hydro electric facilities across the province, from Northern Ontario to Niagara Cornwall and all the way out east. Together, these upgrades could add another 5000 megawatts of reliable clean power. It's a move that fits squarely within Ontario's long term plan to meet rising demand in the north with reliable low carbon power. The IESO, our system operator, predicts northern Ontario's demand for electricity will increase by 81% by 2050, higher than the provincial average. Of course, generating electricity is only half the story, as we've talked about before. It needs to reach the people in the industries that need it to make that happen, Ontario is working with transmission partners to build 1000s of kilometers of new power lines across the north. A prime example is Watay Power, the largest indigenous led grid connection project in Ontario's history. It's 1800 kilometers of transmission lines will connect more than 18,000 people across 16 remote First Nation communities to the provincial grid for the first time, ending decades of dependence on diesel. These grid expansions are also laying the groundwork for future economic development, especially in the mineral rich Ring of Fire region. The province recently signed a 39 and a half million dollar community partnership agreement with the Wabequie First Nation to support infrastructure early works and an all season road that will unlock access to critical minerals essential for EV batteries and clean technologies. Hopefully, this is a sign that we're seeing a real shift in how Canada views its north, not just as a remote region, but as a cornerstone of the country's future. The federal government is linking energy development, mining and national security in a way that we haven't seen in decades. There's renewed investment in hydro and transmission projects, plans to tap into critical minerals for the clean economy and a growing military infrastructure to reinforce sovereignty in the Arctic. It's all part of a bigger effort to power the north, protect it and ensure the communities who live there share the benefits of its growth. So what does all this mean? Ontario's investments aren't just about electricity. They're about sovereignty, sustainability and self determination. They represent a vision for Canada's north, where the local power generation, indigenous leadership and economic opportunity grow together. Still, there are important questions ahead that we'll all be watching. How will the province balance clean growth with ecological protection? How can partnerships ensure that the benefits of these projects are lasting and equitable for both the province and First Nations leading this work on their own traditional lands? In the end, the real energy transformation isn't just about megawatts. It's also about connection and making sure that we're smart about how we grow and expand our grid and our communities. Thanks for checking in. We'll chat next time. Thanks for tuning in to another episode of the think =energy podcast. Don't forget to subscribe wherever you listen to podcasts, and it would be great if you could leave us a review. It really helps to spread the word. As always, we would love to hear from you, whether it's feedback, comments or an idea for a show or a guest, you can always reach us at thinkenergy@hydroottawa.com.