Ontario announces $1B electricity transmission expansion to support Windsor-Essex battery plant, greenhouses

The Ontario government is investing in and fast tracking five electricity transmission infrastructure projects for the southwestern region that are meant to fuel the auto and agricultural industries in the Windsor-Essex area.

Stephen Crawford, parliamentary assistant to Ontario's energy minister, was joined by Windsor Mayor Drew Dilkens, Leamington Mayor Hilda MacDonald, and officials for automaker Stellantis and battery manufacturer LG Energy Solutions for the announcement in Windsor on Monday. 

It comes nearly two weeks after the companies unveiled plans for a $4.9-billion lithium-ion electric vehicle (EV) battery manufacturing plant set to open in Windsor by 2024. 

Ontario is set to spend $1 billion on the projects between Windsor, London and Sarnia, which will be completed in phases over the next eight years. 

"Today we're taking the next big step in the process, a step that I know many in this city and across Essex County have been waiting for," said Crawford. 

"These projects will power the Stellantis–LGES battery plant, the growing manufacturing sector here in Windsor, and the booming agri-food industry in Leamington and across Essex County and the many job creators yet to come."

The five transmission line projects are:

• The Chatham to Lakeshore Line, a 230-kilovolt line from Chatham Switching Station to the new Lakeshore Transformer Station currently under construction.
• The St. Clair Line, a 230-kilovolt line from Lambton Transformer Station, south of Sarnia, to Chatham Switching Station.
• The Longwood to Lakeshore Line, a 500-kilovolt line from Longwood Transformer Station, west of London, to the new Lakeshore Transformer Station.
• A second 500-kilovolt line from Longwood Transformer Station to Lakeshore Transformer Station.
• And a 230-kilovolt line that would run from the Windsor area to Lakeshore Transformer station.

Crawford said the province is looking to expedite the projects by issuing an order in council, declaring three of the lines — Chatham to Lakeshore, St. Clair Line, and Longwood to Lakeshore — as priorities. The government said this priority designation requires the Ontario Energy Board (OEB) "to accept that the three initial lines are needed when assessing whether the projects are in the public interest," which would shorten the review process timeline. 

"Getting started on these projects will now position Hydro One to implement them quickly as long as we continue to work together and accelerate the current pace of economic growth," said Crawford. 

Crawford said all projects must still meet the requirements of the Environmental Assessment Act, and be completed in consultation with Indigenous and local communities. 

Hydro One said the work should be considered as a long-term project, being developed and constructed over time to ensure electricity needs are met well into the future. 

Demand is high 

In 2020, Hydro One was designated the transmitter for the Chatham to Lakeshore line, a project that has left some in the line of power upset and frustrated. 

But officials with the independent manager of Ontario's power grid identified the power company would need to quadruple supply to Windsor-Essex and Chatham-Kent to keep up with the expected electricity demand from expanding greenhouse operations.

In April 2021, the Independent Electricity System Operator (IESO) recommended a transmission line project be built between Lambton and Chatham to keep up with greenhouse operations. 

This recommendation came before the announcement of an EV battery plant in Windsor — a factory set to be the size of 112 NHL hockey rinks.

"From the Municipality of Leamington, it is obvious there is need for more hydro, more power," MacDonald said Monday. 

"The industry has grown exponentially in the last five years even beyond what our expectations were."

While MacDonald acknowledged there may be challenges with building the lines, she said the power supply is important for the work of the agriculture industry to continue producing food. 

"We're going to have so much more demand." 

While there has been pushback to the Lakeshore line already, Dilkens said the power supply will be needed to support the 2,500 new jobs coming to the EV battery plant.

"What I heard ... from a Hydro One perspective is that the commitment there to still do the consultation, to still work with the people who are in Comber, who are in Lakeshore, who have concerns to see if there is a way to mitigate those concerns in a reasonable way that still allows the project to proceed at a reasonable time."

Hydro One said one of the transmission lines could be operational by the end of 2025, with the rest of the projects set to be completed by 2030.