WINNIPEG – Manitoba Hydro, the province’s Crown energy corporation, is contemplating the need for new energy generation by 2029 and exploring measures to encourage energy conservation, according to CEO Jay Grewal. The corporation plans to engage with independent energy producers, including local businesses and Indigenous nations, to diversify its energy sources, with a focus on wind and other renewables.
The increasing demand for electricity prompts the exploration of additional power generation, influenced by factors such as the establishment of new large industrial customers and the pace of the shift to electric vehicles. Grewal emphasized the potential involvement of Manitoba-based entities in the bidding process.
Manitoba Hydro is still recovering from the financial repercussions of its previous major construction projects, including the Bipole III transmission line and the Keeyask generating station, which ran $3.7 billion over budget, leading to a tripling of the corporation’s debt in 15 years. Given the cost and time associated with building a new generating station, collaborating with independent energy producers is seen as a pragmatic approach.
Premier Wab Kinew affirmed the government’s commitment to support Manitoba Hydro’s efforts to expand capacity for job creation and economic development.
In addressing the growing demand, Manitoba Hydro is exploring time-of-use rates to incentivize energy consumption during non-peak hours. Despite initial reservations by the NDP government, Grewal indicated a more open stance towards the idea, emphasizing the need for flexible pricing strategies to manage peak demand effectively.
Regarding future electricity rates, Grewal acknowledged the potential for increases beyond the recently set one percent hikes by the provincial regulator. He cited the necessity of substantial capital investments in aging assets and supporting the energy transition as factors that could influence rate adjustments. The NDP government, which pledged to freeze rates for one year during the election campaign, may face challenges as rate adjustments become a crucial aspect of sustaining Manitoba’s energy infrastructure.