Oil and gas to remain Manitoba energy sources in short term, NDP government concedes

Manitoba will continue to relyon oil and natural gas until cleanersources of energy become more abundant, according to a new provincial energy policy that acknowledges the disappearance of fossil fuels is not imminent.

Wab Kinew's NDP government is slatedto publisha 17-page energy policy on Fridaythat will update the 19-page "energy roadmap" unveiled by the former Progressive Conservative government in 2023.

That roadmap, unveiled six weeks before Heather Stefanson's government was defeated by the NDP,called for the "integrated use of electricity and natural gas systems" while the province worksto reduce carbon emissions.

The new energy policy is similar, even afterKinewset targets last October to wean Manitoba Hydro off natural gasby 2035and make the province entirely carbon-neutralby 2050.

"While we expand and diversify our clean energy sources, we recognize that non-renewables, which currently make up 73 per cent of our energy use, will continue to play a role in our energy profile," the new policy states, according to a two-page excerpt provided to CBC News.

"Responsible stewardship of these resources is key to protecting our environment and our families as we move toward our net zero targets."

The excerpt says the plan includes "stronger oversight of the oil and gas sector with regular provincial inspections to ensure environmental safety and reliability."

The energy policy comes as Manitoba faces sharp demands to increase its electrical generating capacity.

Growing demand for electricity

When the PC government publishedits energy roadmap in 2023, Manitoba Hydro officials said the province needed to double or even triple its existing production capacity of6,100 megawatts over the coming decades.

Hydro officials also warnedlast year the Crown corporationalready does not havethe capacity to connect new energy-intensive industrial users to its grid.

As well,former Manitoba Hydro CEO Jay Grewalissued a public warning early in 2024 thatenergy shortages for all users are possible within five years without an increase in electrical capacity.

In light of the growing demandfor electricity, it's not surprising to see Manitoba concede it will continue to rely on fossil fuels in the near future, said Bruce Lourie,president of theIvey Foundation,a non-profit organization thatsupports a transition toclean energy.

"It's not like a huge revelation, but at the same time, I don't think it's a huge walkback. I think most people that are following the electricity sectorwould probably say that's a pretty reasonableresponse," Lourie said in an interview from Algonquin Highlands, Ont.

Last November, Lourie called onManitoba to develop a concrete plan to increase electricity production in order to achieve itsdecarbonization goals.

Quebec announced a plan last year that included specific targets for the construction of new transmission lines, wind farms and hydro-electric stations, complete with cost projections.

"The Quebec report was very impressive, and really the only and first in Canada thatputs real numbers on paper in terms of quantities of new power, lengths of transmission lines, as well as the financing required to do it," Lourie said.

"Manitoba should be able to come up with something comparable."

The Kinew government has promised to keep Manitoba Hydro rates affordable while also whittling down the Crown corporation's$25-billion debt, along with spending billions to replace its aging infrastructure and expand generating capacity.

Quebec has acknowledged its plans to expand hydro capacity and maintain its existing infrastructure will cost $185 billion.