January 2026 Vol. 81 No. 1
Features
Canada plans active building of underground transmission infrastructure
Eugene Gerden, Contributing Editor
Canada plans more active building of new underground transmission lines over the next few years in a move to modernize its energy infrastructure and reduce dependence on the U.S.
Since the beginning of the trade wars, reduction of economic and energy dependence from the U.S. has become one of the priorities for the Canadian central government and Prime Minister Mark Carney.
Still, implementation of these plans is associated with serious difficulties. According to official data, the United States and Canada exchange energy worth US$95 billion annually, and in some states, this trade represents between 5 and 15 percent of their GDP, according to research by the Center for Strategic and International Studies (CSIS).
With more than 30 cross-border transmission lines linking Canadian provinces with American states, Canada has always been essential for ensuring cross-border grid security and as a potential source for incremental generation. While the energy grids of two countries remain highly interdependent, there is a possibility such a situation will change, as Canada plans to accelerate building of its own energy infrastructure.
Contrary to previous years, less attention will be paid for the development of joint projects with the U.S., particularly those in the field of power generation. This is despite the fact that low-cost and clean Canadian electricity can be important for major industries, such as artificial intelligence, advanced manufacturing and advanced technology products.
Reducing costs
Although the U.S. generates most of its own electricity, Canadian supplies lead to lower costs across several U.S. states. New projects, such as Hydro-Quebec’s Hertel-New York powerline, aim to further increase electricity exports by providing 20 percent of New York City’s electricity needs, saving its residents an estimated $17 billion in electricity costs over the next three decades.
As of now, construction works for the project have been almost completed (despite serious difficulties associated with granite and ground water continually stopping progress), while the official commissioning of the powerline is scheduled for May 2026.
While the project is considered important, according to some analysts, the power line would have been unnecessary if the two nuclear power plants in Westchester County, NY, were still operating. For example, the Indian Point nuclear plant once provided about 25 percent of New York City's power needs. New York shut it down in 2021 because of concerns about groundwater pollution and the plant's proximity to a city of over 8 million people.
Also, some environmentalists consider the project for power cable run from Quebec, Canada, to New York City to achieve “green” power, as wasteful. According to opponents, this was done without any environmental or economic review because it is for “the public good.” They have raised concerns over Atlantic sturgeon habitats and Hydro-Québec's history with First Nation communities in Canada.
In general, according to an earlier report in Business Insider, New York has six years to achieve its goal of powering 70 percent of its grid with renewable energy. The magazine cited state officials, who are banking on the new power line, providing a chunk of that energy.
In the coming years, Canada plans to focus on the modernization of its own aging transmission-line infrastructure. Local authorities and analysts believe it needs an overhaul to meet the country’s targets of net-zero emissions by 2050. As part of these plans, particular attention will be paid to building domestic underground transmission infrastructure, while paying specific attention to some of the country’s largest cities and urban agglomerations including those characterized as dense urban areas.
Building through Toronto
An example is the project, currently underway in the city of Toronto, to build a third electricity transmission line downtown in order to support new homes, economic growth and major infrastructure, such as transit. There is a high possibly that the new line will be built as an underwater cable that will connect different central districts of the city. According to some Toronto media reports, the line would connect underwater through Lake Ontario.
Implementation of the project will have a big importance for the entire city of Toronto, which is currently supplied by two transmission supply paths. Due to its constant development and growth of population, however, building a third line over five-to-seven years is considered a necessity by the city’s authorities. This is because the city’s electricity demand is expected to roughly double by 2050.
In the meantime, Toronto is not the only major Canadian city that plans to improve its energy supply by the building of new underground power lines. In general, many local provincial utility providers have ramped up transmission-line projects to support increasing electricity demands and transition to renewable energy over the past couple of years.
BC Hydro announced plans to invest $36 billion over the next decade in non-generation power infrastructure – including $3.5 billion on high-voltage transmission lines between Prince George and Terrace. Ontario’s Hydro One has four major transmission projects planned. SaskPower announced in October a proposal to build new transmission lines to North Dakota. Finally, Alberta is building a new 80.8-mile (130 kilometer) transmission line to strengthen its grid and ready the province for new renewable-energy generation.
In most cases, regional authorities and representatives of the local public generally oppose installing overhead power lines. For example, in case of the Alberta project, the Alberta Utilities Commission (AUC) denied the plan of Enmax Corporation to bring part of a 138-kilovolt underground transmission line to the community of Winston Heights-Mountview above ground through the Central Calgary Transmission Line Replacement Project. Residents feared the poles would disrupt sightlines and diminish property values in the area.
In general, residents of other Canadian cities where major transmission projects are scheduled for implementation, also prefer building underground. This is due to regular ice storms in many Canadian cities, which often lead to energy disruptions. Subsequently, local populations call on authorities to place electrical utilities underground.
During an ice storm at the end of March 2025, over 300,000 Canadians faced power outages in parts of Ontario. Many still remembered the Great Ice Storm of 1998 that caused massive damage to trees and electrical infrastructure throughout the area, leading to widespread, long-term power outages and also affected the U.S. In this regard, some analysts call on the use of the experience of such countries as Denmark, where all electrical lines are now buried, including high-voltage transmission lines. Still, much depends on costs.
Funding
Funding will be a challenge for launching further projects. In addition, climatic conditions of Canada, particularly in its northern part (characterized with cold and harsh climate), may seriously complicate building new transmission infrastructure underground.
In the meantime, the technical complexity of planned underground works for the modernization of its underground transmission infrastructure requires Canada to use some of the latest technical innovations in this field, along with foreign experience. In the latter case, the country plans to continue utilizing U.S. experience and expertise.
According to statements of Tim King, vice-president of the North American business unit for Nexans (which has three manufacturing plants in Canada), made in an interview with the Canadian Globe and Mail paper, a concept called “grid hardening” has become an important factor influencing transmission-line design. Hardening allows utility providers to better protect their lines from extreme weather. He cites an example of California, where lines are being buried to make them more resilient during wildfires.
In the meantime, particular attention during modernization of the Canadian underground energy infrastructure will also be paid for the building of underground interconnection between the provinces of the country. That will be critically important in the future and will help to avoid any possible blackouts and energy shortages, caused by ice storms and other extreme weather conditions, which are typical for some provinces of the country.
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