Could Manitoba hydro boost oilsands?
The new federal infrastructure plan known as the Building Canada Plan 2013 has billions of dollars set aside for infrastructure projects of regional significance — in other words, projects that cross provincial boundaries.
This nation-building concept using federal government assistance has already been established with the building of the Lower Churchill generation and transmission system from Labrador to Newfoundland, Nova Scotia and beyond.
Since Manitoba Hydro produces some of the cheapest and most environmentally friendly power on the planet, a next logical project to be funded by the plan would be to head west and have Alberta greatly reduce greenhouse gas emissions by importing clean hydroelectricity from Manitoba — a project that would displace electricity now generated from coal-fired plants.
Alberta’s Fort McMurray, for example, could be supplied directly from dams on the Nelson River in northern Manitoba. Such a transmission link could provide cheap, reliable power while also reducing Alberta’s carbon footprint, a win-win scenario for many interested parties and jurisdictions.
Who would stand to benefit from such an initiative? And exactly how would they benefit?
Manitoba benefits in more than one way. Such an initiative introduced now would help ensure future revenues for Manitoba Hydro at a time its traditional markets in the U.S. have softened in terms of demand and price.
Manitoba needs an alternative export market to help finance large hydro dams planned for the Nelson River. That market could logically be found in Saskatchewan, Alberta and northern Ontario. The technology required for a 1,000-kilometre transmission line has been long established in Manitoba and Alberta.
In Manitoba these directcurrent transmission lines have existed for more than 40 years. Originally subsidized by the federal government in the 1960s, they have paid for themselves many times over.
Another benefit is the capacity of a transmission line from Manitoba could be increased in the future as Alberta’s demand increases — a reality that would benefit both provinces. There could also be a tap off the line to supply power to coal-burning Saskatchewan if required, adding another provincial beneficiary to the concept. As the project advances, it would form part of a Trans-Canada transmission system, thus benefiting the nation as a whole.
A direct transmission line from hydro dams in Manitoba to Fort McMurray, through northern Saskatchewan, is a new idea that has not as yet been given serious consideration. Previous alternatives have focused on going south via cities such as Winnipeg, Regina and Calgary.
A northern route, however, would be the shortest and cheapest route, providing a practical and environmentally friendly option for Manitoba and its neighbours — a best for the west alternative.
Internationally, there would also be winners if such a transmission line is built. Although all states bordering the route have approved the proposed Keystone XL pipeline designed to carry oil from Alberta to the United States, President Barack Obama suggests that approval of the pipeline should not happen without assurances the carbon footprint of Alberta’s oilsands is minimized.
While other nations providing oil to the U.S. are not being similarly challenged, nonetheless Obama has said that Canada’s oilsands and Keystone XL advocates must demonstrate environmental sensitivity through action. One way to achieve this is for Alberta to import clean hydroelectricity from Manitoba to displace electricity now generated from coal-fired plants, thus greatly reducing greenhouse gas emissions.
Certainly, the coal lobby in Alberta would not welcome competition supplying clean power. However, a diversified energy supply that includes energy coming from environmentally friendly and low-cost hydro is a win for those who support the oilsands and for those who want to reduce Alberta’s emissions. Moreover, diversifying the energy supply would go a long ways toward addressing President Obama’s concern about the Keystone XL pipeline.
A transmission line from Manitoba to Alberta would be a straightforward project and an obvious candidate for the Building Canada Fund. There is a demand in Alberta for cheap, clean power and that demand can be met by Manitoba, with spinoff benefits for many. It would be prudent to seize the opportunity and make stronger provinces in a stronger Canada.