Manitoba will soon retain more hydroelectric power as contracts with the U.S. are set to expire

As two export agreements with a Minnesota utility are set to end late this month, Manitoba is preparing to retain more of its hydroelectric power for domestic use.

The contracts were initially signed in 2010, and since then have provided 500 megawatts of power to Xcel Energy in the States. This announcement comes at a time of recent trade disputes between the United States and other nations, including Canada. Rather than renewing the contract and continuing to export the power, Manitoba will be using the energy to support local needs, redirecting it to housing developments as well as various infrastructure and industrial projects. 

Of the newly retained power, 50 megawatts will be dedicated for a proposed transmission line connecting Nunavut to Manitoba’s grid, known as the Kivalliq Hydro-Fibre Link, which aims to reduce diesel reliance in northern communities. In addition, the province is also advocating for federal investment in an east-west power grid to establish a trade corridor between regions of Canada, and is ready to contribute 450 megawatts of power.

Although this decision is expected to strengthen energy security and will be used to fuel local economic development, the Opposition Progressive Conservatives has raised concerns about the financial impact of reducing energy exports to the U.S., given Manitoba Hydro’s $25 billion debt - largely a result of large-scale and over budget projects. This decision marks a shift toward prioritizing Canadian energy needs and advancing renewable power for achieving climate action goals locally and nationally, but also underscores the need for transparency in public utility management.

Written by Sabrina Careri, for Ann Dale

Image Credit: Tanner Vote from Unsplash