Manitoba Hydro’s $3-billion Brandon generating station expansion faces complications due to the Canada-U.S. trade war impacting its plan to purchase gas turbines from a Massachusetts-based manufacturer. Premier Wab Kinew has expressed uncertainty about a reservation agreement with GE Vernova, a Cambridge company spun off from General Electric, for three gas turbines. This agreement secures a spot for Hydro to buy turbines during a time of high demand for power generation machinery globally.
Kinew indicated last week that Hydro might not proceed with the purchase, mentioning the deal was with GE Canada, based in Mississauga, Ontario. He highlighted Manitoba’s strong ties with GE Canada while questioning the potential impact of excluding U.S. firms from major infrastructure projects. Climate Action Team Manitoba raised concerns about spending billions on U.S.-made turbines amid trade tensions and urged exploring alternative technologies like wind power and battery storage.
Policy manager James Wilt highlighted the significance of the decision, emphasizing the need to consider long-term maintenance costs and potential investments in gas turbines. Siemens Energy from Germany emerged as another contender for the turbine supply. Wilt advocated for a shift away from gas turbines towards cleaner energy sources to meet future energy demands and avoid shortages predicted by Hydro within four years.
The Brandon station expansion aligns with Hydro’s strategy to enhance power production and efficiency over the next decade. Public hearings on this plan before the Public Utilities Board are ongoing, with a conclusion expected soon. While the board will offer recommendations to the provincial government, Interim CEO Hal Turner stated that Hydro can move forward with turbine procurement regardless of the board’s guidance. The final decision on the plan rests with Premier Kinew’s cabinet, which can accept, alter, or disregard the board’s suggestions.