Kinew dismisses warnings about looming capacity crunch at Manitoba Hydro

Premier Wab Kinew says the province has enough electricity to serve large new industrial customers in spite of warnings from Manitoba Hydro about a looming capacity crunch and the need to generate more power.

Kinew said Wednesday Manitoba Hydro will be able to serve the needs of large, energy-intensive businesses considering developments in Manitoba over the next three to five years.

"We're looking at a lot of serious economic development projects, including some large-scale manufacturing opportunities, as well as the housing needs that we know that we need to continue to build," Kinew said in a telephone interview.

"We have the hydroelectric capacity to meet those needs this year, next year and the coming years."

In a September 2023 briefing note obtained by CBC News, Manitoba Hydro warned the former PC government it was already being forced to choose among 57 proposals to use large volumes of electricity, including 17 projects well past the initial study phase.

"Manitoba Hydro is unable to offer firm commitments to prospective customers that may align with Manitoba's energy roadmap and/or provincial economic development objectives," Hydro warned in the note, explaining it is legally obliged to serve all existing customers who need more electricity.

"As such, Manitoba Hydro cannot reserve electric supply for particular projects."

Hydro said in the note its "near-term surplus electricity supply" is so limited, "a single energy-intensive connection may consume all remaining electrical capacity."

When asked last week how this might affect Canadian Premium Sand's plans to build a solar glass manufacturing plant in Selkirk, the premier said there is no capacity crunch.

"We have tons of megawatts of clean, low-carbon hydroelectricity in Manitoba and it's going to power our economic advantage for generations to come," Kinew said on Friday during an unrelated press conference.

Manitoba Hydro spokesperson Bruce Owen suggested in a statement the briefing note did not refer to the solar glass plant in Selkirk or a proposal to build an electric car battery manufacturing facility in Winnipeg. 

Hydro has enough capacity to service both projects, Owen said.

"The briefing note spoke to the requirements of meeting all the prospective customers who are inquiring or could come our way to electrify. It didn't speak to specific projects or timelines," he said.

Manitoba Hydro also made separate warnings about the need to ramp up its capacity to generate electricity.