By: Kelsey Sonntag, Chad Eggerman, Janelle Anderson, Glenn Wright
This is the third article in an 8-article series, Renewable Energy in Canada 2024, which covers each provincial jurisdiction and the territories, released by the Energy Group at Procido LLP. The Renewable Energy in Canada 2024 series aims to provide an overview of the current state of renewable energy across the country. The second article, Renewable energy in British Columbia: A Powerhouse in Hydro, reported on British Columbia. This article provides an update on Manitoba.
Section 92A (1)(c) of the Constitution Act, 1867 of Canada grants exclusive powers to the provinces to enact laws related to the “development, conservation and management of sites and facilities in the province for the generation and production of electrical energy”.
On September 20, 2024, the Government of Manitoba released Manitoba’s Affordable Energy Plan. It is intended to be a blueprint for the development of energy projects that will keep electricity rates low in Manitoba. The plan is focused on incentivizing climate friendly choices by making them affordable and incentivizing growth in the renewable energy sector. The Plan also includes the creation of an Indigenous loan guarantee program. This program will provide First Nations and Métis developers with support to obtain investment capital and build the capacity needed to participate in the transition to renewable and clean energy and will help finance new partnerships in wind generation.
As climate change challenges infrastructure and increases the demand for heating and cooling in extreme temperatures, Manitoba has acknowledged the need to continue to build their hydro generation as well as diversify their clean energy supply to ensure residents have reliable and affordable energy. Hydro has always been an abundant source of energy generation in Manitoba but with an increasingly variable climate affecting the water cycle and therefore the output of hydro energy, additional sources of clean energy are being pursued. Wind energy has been identified in Manitoba as an affordable source of new clean energy. With constant advancements in technology and science, the cost of wind energy continues to become more competitive. Manitoba has significant untapped potential in this area, and the province has announced that they are immediately pursuing Nation-to-Nation partnerships with First Nations and Métis governments in wind generation. The Manitoba Métis Federation has recently established the Red River Métis Power Corporation to develop, majority-own, and operate high quality alternative energy infrastructure, including wind farms.
Indigenous Loan Program
The creation of an Indigenous loan guarantee program in Manitoba will provide First Nations and Métis communities with the capital support and capacity needed to participate in the development of renewable energy. The specifics of this new program are yet to be released but are set to be included in the 2025 provincial budget. The Winnipeg Press has reported that Manitoba Hydro will issue a call for expressions of interest for up to 600 MW of wind projects with a requirement of at least 51% Indigenous ownership.
In Saskatchewan, there is an Indigenous loan guarantee program that emphasizes industries like agriculture, mining, and natural resource development. The program is designed to support a wide range of business ventures and focuses on initiatives that contribute to economic development within Indigenous communities. This program helps to reduce barriers for Indigenous entrepreneurs, helping them to start or expand their businesses. In addition to financial guarantees, the program may offer resources such as business development training and mentorship to support entrepreneurs in their journey.
Alberta’s Indigenous loan guarantee program offers guarantees to financial institutions, reducing the risk for lenders and encouraging them to provide loans to Indigenous entrepreneurs. This often involves partnerships with Indigenous organizations and financial institutions to tailor programs to the needs of the community. The program supports a wide range of business activities, including resource development, tourism, and technology. Moreover, it may also provide other resources such as mentorship and training to help Indigenous businesses and entrepreneurs succeed.
The Government of Manitoba’s plan includes the aim of aligning their new loan guarantee with existing Federal credits to maximize support for these new projects. The program offers various financing options, including loans and grants, to support community-driven projects and emphasizes training and capacity development for Indigenous communities to ensure successful project implementation. It is the intent that First Nations and Métis-led ownership opportunities will bring in a new era of Nation-to-Nation energy partnership to Manitoba, unlocking economic growth for Indigenous Nations and creating more affordable clean energy. While new wind power is a high priority, the Government of Manitoba will also be exploring the possibility of building new generating capacity in the Northern part of the province with the Inuit government of the Kivalliq region to further economic reconciliation and strengthen their power grid.
While Saskatchewan, Alberta, and Manitoba have unique approaches to supporting Indigenous renewable energy projects, they share common goals of economic empowerment, sustainability, and capacity building. Saskatchewan focuses on local partnerships, Alberta programs provide diverse funding options for energy efficiency and renewable projects, and Manitoba emphasizes flexible financing and community engagement.
Wind Energy Development
Manitoba’s crown corporation responsible for electricity and natural gas distribution, Manitoba Hydro, has determined that the province will need 600 MW of wind energy in the near future. The province currently has two operational, utility-scale wind farms – the 138 MW St. Leon Wind Farm owned by Algonquin Power and Utilities Corporation and the 120 MW St. Joseph Wind Farm owned by Pattern Energy. As is the case across all jurisdictions, increasing renewable energy generation requires support from dispatchable, reliable back-up generation. Hydro power used to be considered a reliable energy source, but it is becoming more variable due to the impacts of climate change causing more variable annual hydro power output. More wind power generation is one of the solutions to this increasing variability of water resources. Manitoba is new to long-term programs and the creation of a “pipeline” of projects that Indigenous groups and developers can participate in over many years. However, the Government of Manitoba has stated its intention to observe how other jurisdictions in Canada are securing their investments in wind and to follow those examples.
Ontario is one of Canada’s leaders in wind energy, with a substantial installed capacity of 5,575 MW in 2021 that contributes significantly to the province’s electricity supply. The provincial government has implemented policies and programs to promote wind energy development, including feed-in tariffs and competitive bidding processes that encourage investment in renewable projects. Wind farms are spread across the province to take advantage of wind resources that can vary in space and time. Many projects involve local stakeholders and Indigenous communities to ensure that benefits are shared and concerns are addressed. Ontario is currently planning to procure up to 5,000 megawatts (MW) of renewable energy through a series of procurements to help foster economic prosperity and meet the growing demand for clean and reliable energy. The Procido LLP Energy Group in the 8-article series, Renewable Energy in Canada 2024, will cover Ontario in a future article.
You can read more about British Columbia’s approach to wind energy in our second article in this series, Renewable energy in British Columbia: A Powerhouse in Hydro and the current state of wind energy in Alberta in our first article in this series, Renewable energy in Alberta: When will we put the dumpster fire out?
Cooperation with the Canadian Government
New investments in Manitoba’s electrical grid will support reliability by diversifying power sources along with more efficient use of existing and new power generation facilities to support the energy transition. To make these investments, the Government of Manitoba has said it will partner with the federal government at every opportunity to leverage federal programs and other opportunities to support this clean energy, low carbon transition. This collaboration would provide the opportunity to unlock federal funding and resources to support renewable energy projects, making it easier for Manitoba to invest in infrastructure and technology. It would also allow the province to leverage expertise and best practices from across the country, enhancing the effectiveness of its energy initiative. Federal support can help enhance community engagement efforts, ensuring that local and Indigenous voices are heard and involved in energy planning and development. By aligning with national energy policies, Manitoba may expand its ability to export renewable energy to other provinces and markets, boosting economic growth. In particular, building additional new inter-provincial transmission between Saskatchewan and Manitoba would allow existing wind and solar power generation facilities in Saskatchewan to support reliability in Manitoba, and vice versa, as Manitoba builds new wind and solar facilities. Presently there is more interconnection capacity from Manitoba into the United States than to neighboring provinces and that seems to be a missed opportunity for Canadians (and cooperative federalism).
Manitoba will also be exploring the potential for district energy systems to save families money and further reduce emissions. If these systems make climate-friendly choices more affordable for residents, the province will examine the viability of establishing neighborhood energy systems through Manitoba Hydro. If the heat created from generating electricity can be captured and used efficiently instead of wasted, significant costs savings are possible. Likewise, if geothermal heating can be used instead of electrical heating, significant cost savings are possible. Building on this exploration of the potential of district energy systems, Manitoba will also examine possible affordability benefits of formalizing geothermal work under their existing Crown corporations.
Manitoba’s Affordable Energy Plan promotes significant growth in their renewable energy sector as well as providing opportunities for the development of Indigenous Nations and businesses. Utilizing the province’s abundant renewable energy potential is a clear and logical way for Manitoba to keep up with energy demand while preserving affordability.
Procido LLP’s Energy Group can advise developers, Indigenous groups, suppliers, and landowners on renewable energy projects in Manitoba. The 4th article in the Renewable Energy in Canada 2024 series will cover Ontario.
Disclaimer
This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice. Contact Procido LLP (www.procido.com) if you require legal advice on the topics discussed in this article.