Manitoba’s new interest in Conawapa megaproject ‘doesn’t make a lot of sense,’ energy watchdogs say
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Energy watchdogs in Manitoba say they’re surprised and concerned by the NDP government’s renewed interest in Conawapa, a proposed hydroelectric dam and generating station on the Nelson River.
Documents obtained by CBC News show senior provincial officials were in talks last fall with U.S. energy advisers about securing private financing or even a private equity partner in an $18-billion revival of the Conawapa project.
Greg Selinger’s NDP government shelved the 1,485-megawatt generating station in 2014 when the estimated cost increased to $10 billion and provincial regulators said there was no strong business case to pursue it.
Premier Wab Kinew said this week Conawapa is still on the table and that the province spoke with U.S. advisers because he wanted to see all the evidence in terms of financing, projects and partners.
Manitoba Hydro has no plans of its own to build Conawapa or any other dam and generating station. There is no mention of a dam in the Crown corporation’s integrated resource plan, a blueprint for ensuring Manitoba has enough energy for the next 20 years.
That plan, which comes before provincial regulators next month, calls for Manitoba Hydro to make 1,760 more megawatts of electricity — more than a quarter of its existing generating capacity — available to consumers within 10 years. That would be done through a combination of energy-saving measures, the construction of three new natural gas turbines in Brandon and a series of wind farms owned by Indigenous-led companies.
Byron Williams, a lawyer for the Public Interest Law Centre and a longtime Manitoba Hydro watchdog, said in an interview Friday it appears Kinew’s NDP government is pursuing energy plans that differ from those of the provincial energy utility.
WATCH | Energy watchdogs express surprise, concern about renewed interest in Conawapa:
Manitoba energy watchdogs concerned by NDP government’s interest in reviving Conawapa
Manitoba Hydro critics say they are surprised the NDP government is interested in building an $18-billion hydroelectric dam and generating station when the Crown corporation’s energy plans make no mention of a new dam.
“We were surprised because Manitoba Hydro’s public plans involve natural gas, wind and energy efficiency, so Conawapa is not registering when they do their planning scenarios,” said Williams, who represents a coalition of consumer groups at public hearings before provincial regulators.
He said he does not believe Hydro or the province can afford an $18-billion Conawapa project given the existing debt burdens on both the Crown corporation and the province.
Williams also expressed skepticism that $18 billion would be the final price for Conawapa given cost overruns at completed Hydro projects such as Wuskwatim and Keeyask.
Lauren Stone, the Progressive Conservative critic for Manitoba Hydro, is also uneasy about Conawapa.
Lauren Stone, the Tory critic for Manitoba Hydro, says the NDP government’s interest in Conawapa is ‘very concerning.’ (Jaison Empson/CBC)
“When you have a government making policy on the fly with a $32-billion corporation that’s $27 billion in debt, that’s very concerning for Manitobans,” Stone said in an interview Friday.
Laura Cameron, a program director with Manitoba’s Climate Action Team, said spending billions on generating-station infrastructure is pointless considering there are less expensive options for increasing generating capacity and making electricity more available.
“We are in the midst of a renewable energy revolution, and we’re seeing wind, solar and energy storage around the world declining in cost and rapidly being rolled out in many jurisdictions,” Cameron said in an interview Friday.
“So, considering new mega-dams in the face of that doesn’t make a lot of sense.”
Adrien Sala, the minister responsible for Manitoba Hydro in Wab Kinew’s cabinet, declined requests for interviews and for comment. Manitoba Hydro also declined to comment.
Policy rifts between the Crown corporation and this government are not new. Sala criticized former Hydro CEO Jay Grewal in 2024 after she warned the province faces a generating-capacity crunch before the end of the decade.
Grewal was ousted from her job two weeks later.
Paul Thomas, professor emeritus of political science at the University of Manitoba, said Crown corporations are supposed to be independent but face strict controls from elected officials.
“Governments believe that they will be blamed and pay a political price when something goes wrong at a Crown corporation,” he said via email.
“Navigating the Crown corporation in the complicated, turbulent, uncertain and risky contemporary public policy environment requires that the board and the executive be politically astute and skilful in managing a range of relationships.”
