Manitoba ‘repatriating’ some hydro exports from U.S. to power Canadian projects instead

Manitoba Premier Wab Kinew recently announced that the province will be canceling some hydroelectricity exports to the U.S. in order to focus on powering more local projects. This decision comes as trade tensions with the U.S. continue to persist, prompting Manitoba to prioritize investing in Canadian initiatives.

Kinew revealed that Manitoba will allow two hydroelectric agreements, which involved exporting power to the U.S., to expire. These agreements, which accounted for 375 megawatts of summer power and 125 megawatts of annual power sold to Northern States Power, a subsidiary of Xcel Energy, will now be repatriated to support domestic projects. Kinew emphasized the importance of utilizing this power to strengthen the local economy.

While Manitoba will still engage in electricity trade with the U.S. and continue to purchase power during the winter months, Kinew highlighted the province’s commitment to leading the energy conversation in Canada. He assured that Manitoba remains a reliable partner for the American export market.

In terms of Manitoba Hydro’s future plans, the Crown corporation has applied for a series of electricity rate hikes starting in 2026. Drought conditions and low water levels have impacted Manitoba Hydro’s revenue, leading to a significant debt of $24.6 billion. The corporation also faces a $31 billion expense for enhancing generating capacity and upgrading infrastructure.

To address these challenges, Manitoba Hydro intends to construct a new 500-megawatt fuel-burning energy plant by 2030 and collaborate with Indigenous-owned businesses to develop 600 megawatts of wind farms. Additionally, Kinew expressed a desire for Manitoba Hydro to allocate 50 megawatts of power for a transmission line to Nunavut, with plans to establish partnerships for further developments.

Furthermore, Kinew proposed utilizing the remaining 450 megawatts to support a potential trade corridor spanning eastern or western Canada. He emphasized the significance of cross-border energy and trade projects, highlighting the need for power in facilitating these initiatives.

Overall, the cancellation of U.S. hydroelectric contracts reflects Manitoba’s commitment to prioritizing domestic projects and enhancing energy infrastructure within the province. With a focus on sustainability and economic growth, Manitoba aims to leverage its resources to drive innovation and collaboration in the energy sector.