Manitoba looks to green industry to build long-term energy generation expansion By: Carol Sanders Posted: 6:51 PM CDT Friday, Jul. 28, 2023

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This article was published 28/07/2023 (826 days ago), so information in it may no longer be current.

With an overheated world transitioning to cleaner energy sources — and Manitoba being a hydroelectric powerhouse — the Progressive Conservative government has announced an “energy road map” to take advantage of the global shift to green.

It calls for a massive expansion of power generation, conservation and storage, to be paid for by those same green industries.

“Manitoba is done being a ‘have-not’ province,” Premier Heather Stefanson said at a news conference Friday outside the Manitoba Hydro headquarters in downtown Winnipeg.

“With this vision, our PC government has put forward, we are fighting to make Manitoba a ‘have’ province and power the economy of tomorrow.”

With an Oct. 3 election looming, Stefanson stressed Hydro (a Crown corporation) is not for sale and will remain the sole distributor of power in Manitoba.

To meet expected demand, Manitoba would have to at least double, and possibly triple, its current electricity generating capacity of 6,600 megawatts by 2050, according to a 19-page PowerPoint presentation released by the province Friday.

“Significant new resources are required in the next decade, which we need to plan for now,” the document says. “By the early 2040s, growing demand for electricity in Manitoba could require 10,000 MW to 16,000 MW of generating capacity.”

Manitoba may have a surplus of clean energy today, but that that may not be the case in 10-15 years, the premier said.

“The challenge is to meet growing demand for electricity that will grow in magnitude over that time,” Stefanson said. “To meet the coming demand for power, we’ll need to attract billions of dollars in investment — and the road map will support it.”

When asked how it plans to expand capacity, Hydro board chairman Edward Kennedy dismissed building any new hydroelectric generating stations, such as Keeyask, that ran $2.2 billion overbudget.

“It’s going to be renewables, likely wind, with duration storage,” said Kennedy, who added investing in technologies and storing and saving energy (such as “smart meters” that incentivize customers to use electricity at off-peak times) are part of the plan.

“We’ve got two to five years to look at what’s happening around the world and pick the best solution for our unique situation in Manitoba.”

The Crown corporation, which is deeply in the red, won’t struggle to finance the transition because “it will pay for itself,” Kennedy said. “It has to be financed, but there’s a customer for it.

“The key is not to overspend on areas that will not generate a return.”

“The key is not to overspend on areas that will not generate a return.”–Edward Kennedy

The global energy transition occurring as governments and corporations move toward achieving net-zero carbon emissions by 2050 is a zero-sum game and Manitoba has the advantage to be a “winner,” said one former Hydro board chairman turned unpaid adviser.

“In major transitions like this, there are winners and there are losers,” Sandy Riley said at the news conference. “I’m convinced, if we do this properly, we will be winners.

“We need to develop programs that focus on businesses that put a premium on green power, will pay for green power, and will add value to the province.”

For example, Riley pointed to Manitoba’s moratorium imposed last year on any new electricity-guzzling cryptocurrency operators connecting to its power grid.

“They give nothing to the province. All they do is create an accounts receivable problem when they leave town and can’t be found.”

Manitoba’s Energy Roadmap

 

Meantime, critics said there are more questions than answers in the Tory plan, including whether the province will commit to net-zero emissions by 2050 with legislation and whether Manitoba really needs major new resources in the next decade.

“Our clients believe there needs to be an evidence-based review of Manitoba’s energy needs by the Public Utilities Board before commitments for major new resources are undertaken,” said Byron Williams, legal counsel for the Consumers Coalition, a group that includes Harvest Manitoba, Aboriginal Council of Winnipeg, and Consumers Association of Canada (Manitoba).

Rather than a “road map,” the coalition called the new plan a “high-level aspirational document that needs to be supported and tested through evidence.”

The Consumers Coalition questioned if it aligns with recommendations made by Dunsky Energy and Climate Advisors, a consultant the province hired to help with its energy policy framework.

“Our clients believe it is vital that the Dunsky energy consultant report be released to the public, so Manitobans can take an evidence-based look at the issues,” Williams said.

“Our clients believe there needs to be an evidence-based review of Manitoba’s energy needs by the Public Utilities Board before commitments for major new resources are undertaken.”–Byron Williams

That report will be released, as well as Manitoba Hydro’s integrated resource plan outlining different long-term scenarios and responses which is expected next week, a government spokesperson said.

NDP Leader Wab Kinew later accused the premier of lying when she stated at her news conference Manitoba Hydro is not for sale. Kinew pointed to the utility subsidiary Teshmont Consultants being sold in 2020 under the PCs.

At an unrelated event, Kinew also warned the utility considering “surge pricing” will hurt Manitobans who’d have to pay more when they need power most, such as on hot days when air conditioning is in demand.

The NDP would freeze hydro rates, should it form government in October, Kinew said.

carol.sanders@freepress.mb.ca