Prominent power sector players fear loss of key MHI technology

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This article was published 24/09/2020 (1836 days ago), so information in it may no longer be current.

A high-powered group of academic and private sector players in the power systems sector in the province have written to the Manitoba Hydro board and the Premier expressing concerns about the disposition of technology controlled by Manitoba Hydro International.

The companies and institutions who signed the letter obtained by the Free Press say that while they recognize “that the reorganization or the workings of MHI is a matter for Manitoba Hydro to decide” they are concerned about what will happen to a key piece of simulation software called PSCAD-EMTDC.

The letter from the electrical and computer engineering department of the University of Manitoba, Red River College, and a handful of private sector engineering firms, expresses concern “that Manitoba Hydro and the Government of Manitoba in their reorganization of MHI may end up disposing of the “PSCAD‐EMTDC” to an out of province entity.”

The concern has been prompted by reports that Manitoba Hydro may be in the process of winding up the operations of MHI.

It is not clear what the strategic rationale for doing that would be and officials from MHI, a subsidiary of Manitoba Hydro, have not confirmed exactly what is taking place.

But internal memos telling staff “not to aggressively pursue new work” have rattled MHI’s 125-person workforce. Some staff have been advised by superiors to seek alternative employment.

There were several reports this week, confirmed by Adrien Sala, NDP critic for Manitoba Hydro, that the Manitoba Hydro board of directors convened an emergency meeting on Thursday.

Sala said, “They will very likely be discussing the future of Manitoba Hydro International.”

Sources say the software in question generates millions of dollars in revenue for MHI and according to the industry letter dated Wednesday, it is integral to the operations of many local players.

The letter states, “PSCAD has significant impact on the day to day international operations of the engineering firms and the university. In fact, if it leaves the province, it will have a negative impact on all of us resulting in an adverse impact on the provincial economy.”

Mohamed Rashwan, president of a Winnipeg company called Transgrid Solutions Inc., is the named contact on the letter. In addition to Transgrid, Teshmont Consultants LP, RTDS Technologies, Electranix Corporation and Solar Solutions Canada Inc. are the other signatories and sources said there were others who attended a meeting to discuss the matter earlier in the week.

Some of the principles of these firms had a hand in developing the technology that goes back more than 30 years.

Rudi Wierckx, one of the directors of RTDS said, “First of all I have no idea if MHI or Manitoba Hydro is planning to do anything with that software, but the community is wanting to tell Hydro that the software is pretty important to the power system industry.”

Among other things, the simulation technology helps utilities figure out how to design transmission grids and sources say that its demand is picking up as utilities around the world are integrating more and more alternative power generation – from solar and wind, for instance – into their grids.

Many electricity grid operations were not designed to accept power from so many different types of sources which requires maintenance and careful design to ensure reliable operation. PSCAD is a tool used around the world to allow that to happen.

The letter states, “If an out of province entity ends with the software, Manitoba companies will lose control of a very important tool and product and (this) is where the know‐how of PSCAD‐EMTDC resides. The software is giving Manitoba a unique reputation on the world stage that will be suddenly claimed by someone else.”

At least two senior players in the industry indicated it is the kind of technology that will be in increasing demand in China and they do not believe it would be a good outcome for Manitoba if PSCAD was acquired by a Chinese concern, for example.

martin.cash@freepress.mb.ca