Kinew tells cabinet to deliver net-zero electricity grid by 2035

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This article was published 28/10/2023 (721 days ago), so information in it may no longer be current.

Environment Minister Tracy Schmidt is not ruling out major infrastructure spending as she sets out to deliver on the NDP’s campaign promise of a net-zero electricity grid by 2035 — a goal Manitoba Hydro’s chief executive officer has described as not feasible.

“Currently, all options are on the table,” Schmidt said in an interview Friday, following the release of her minister’s mandate letter. “Manitobans are looking for real climate leadership and they’re looking for some bold action.”

The rookie MLA for Rossmere was directed by Premier Wab Kinew to make “Manitoba a leader in clean energy” and work with Finance Minister Adrien Sala (who is responsible for Manitoba Hydro) to achieve a net-zero grid.

Sala’s mandate letter has yet to be released.

The NDP government is looking at a “broad and ambitious” plans to get to net-zero, said Schmidt, who was sworn into office Oct. 18.

“There are significant challenges but I think that we are up to the task. We have some great innovators and talents here in Manitoba,” Schmidt said, who described the goal as lofty, massive and complex.

It will also be expensive, according to Manitoba Hydro.

The Crown utility released its first integrated resource plan in July, which laid out four energy-use and infrastructure scenarios — one of which reflected a pathway towards net-zero emissions.

While the 20-year planning document didn’t offer a specific year to reach net-zero, it noted the rapid decarbonization to achieve net-zero would require aggressive changes and billions in spending.

The Crown corporation projected a rapid uptake of electric vehicles, with 100 per cent of new passenger vehicle sales being electric by the early 2030s; 49 per cent of customers using electricity for space heating by the early 2040s; and increased reliance on customer-generated power, including solar.

According to the IRP, natural gas use would drop by nearly half, electric energy needs would double, and peak electric demand would be 2.5 times what it is today, on a pathway to net-zero.

A net-zero pathway presents a “particular challenge, as new resources may be needed as early as 2025,” the IRP noted.

In August, Hydro chief executive officer Jay Grewal said achieving a net-zero electricity grid by 2035 is not feasible “both in terms of what needs to be built, but secondly the cost,” in an interview with the Globe and Mail.

The former Progressive Conservative government said it would not build new hydroelectric generating stations.

New hydro dams, small modular reactors, and biomass were not included in the resource mix for the scenarios contemplated in the IRP, which emphasized natural gas thermal generating stations.

On Friday, Manitoba Hydro declined to comment when requested by the Free Press.

Schmidt said while she respects Grewal’s opinion, the NDP government has a different one. Building new energy resources — including hydro dams — remain considerations, she added.

On the campaign trail, the NDP also promised to build a “low-carbon energy hub” and to integrate hydrogen generation with investments in hydroelectricity, on top of electrical vehicle rebates and an affordable home energy program.

“There’s no greater crisis facing our population right now, and frankly our economy, than climate change,” Schmidt said. “We are committed to reaching these targets.”

Opposition Manitoba Hydro critic Grant Jackson said both Schmidt and Sala need to explain how they will protect ratepayers while pursing a net-zero grid by 2035.

“Significant expenditures will have to be made in order to move the grid away from natural gas to non-emitting sources of power generation,” the Tory MLA for Spruce Woods said. “At a time of incredibly high inflation, Manitobans told us loud and clear on the campaign trail that they’re having trouble paying their bills.

“I’m concerned that this NDP government wants to put that additional bill on the backs of ratepayers.”

Hydro’s electricity grid is already 97 per cent non-emitting, Jackson said.

“I certainly appreciate the goal of reducing those last three per cent of emissions, but I think the main priority for Manitobans right now is making sure they have affordable rates.”

Schmidt said electricity rates are set through an independent process at the Public Utilities Board, which the government respects.

The NDP is committed to affordability, she said, when asked if the government’s policy direction will put upward pressure on rates.

“They’ve elected a government that’s really representative of our Manitoba population,” the minister said. “I’ve struggled to pay my hydro bills. So, you have a government that understands the need for affordability.”

danielle.dasilva@freepress.mb.ca