Hydro One Taps Investors to Build a Smarter Grid

Hydro One raises C$1.1B in green bonds to modernize Ontario's grid and fuel Canada's clean energy future.

21 Aug 2025

Canada's electricity landscape is entering a new era. Hydro One has raised C$1.1 billion through sustainable bonds, a landmark financing that will help modernize Ontario's power grid as demand surges from electric vehicles, industry, and rapidly expanding communities.

The funding, announced in August, will drive long-term projects to expand transmission lines, strengthen distribution networks, and connect renewable energy sources to homes and businesses. By leveraging a sustainable financing framework, Hydro One secures capital at competitive rates while ensuring investors' money is tied directly to green infrastructure. The move aligns with Canada's climate ambitions and signals the growing role of capital markets in shaping the energy transition.

The investment comes at a pivotal moment. Electricity demand in Ontario is forecasted to rise by 75 percent by 2050, with consumption increasing from about 151 TWh in 2025 to approximately 262 TWh by 2050. Addressing this growth requires expanding generation, upgrading transmission systems, integrating new technologies, and enhancing energy-efficiency programs.

Hydro One's bond sale underscores a broader evolution in sustainable finance. Green bonds once primarily funded renewable power plants. Today, they are increasingly supporting the infrastructure that makes clean energy usable, from transmission and distribution to integration into daily life. Hydro One's focus on grid modernization reflects this shift and may set a precedent for other utilities.

Transparency will be critical. Investors will demand proof that the funds deliver tangible results, from stronger reliability to measurable environmental impact. Any shortfall could challenge confidence in sustainable bonds. Still, the successful sale highlights deep investor appetite for credible, climate-focused projects in Canada.

For consumers, the financing offers assurance that Ontario's grid will be prepared for electrification without compromising reliability. For the industry, it represents a turning point in how utilities secure funding to meet rising demand. As electrification accelerates, sustainable finance is emerging not just as a tool but as a cornerstone of how Canada powers its clean energy future.