The premiers of Manitoba and Nunavut are hoping a proposed hydroelectric and fibre optic project is moving closer to fruition and are seeking federal money.
Manitoba Premier Wab Kinew and Nunavut Premier P.J. Akeeagok signed a memorandum of understanding Wednesday to work together on the project and ask Ottawa for capital funding, The Canadian Press reports.
The proposed Kivalliq Hydro-Fibre Link would see a 1,200-kilometre line built through northern Manitoba to several Nunavut communities west of Hudson Bay that currently use diesel to generate electricity.
It has been talked about for years and a recent estimate put the cost at $1.6 billion.
Manitoba announced this week it would dedicate 50 megawatts from its Crown energy corporation to the project. Kinew said that's just a start.
The two premiers met at the Manitoba legislature and said, given the current trade dispute with the United States, there is appetite for nation-building projects and efforts to build up the North.
"In terms of the price tag, these are things we'll sort out when they come to the table, which I'm sure they will," Kinew told reporters.
"We need Ottawa to be able to come to sit with us, as well," Akeeagok added.
"All the political leaders so far have identified that there's going to be significant investments come to corridors or nation-building projects, and we really see this one aligning really well."
Neither premier would say how much funding they're seeking from the federal government.
Ottawa has already put up money for early stages of the project. Last year, it announced $2.8 million for design, environmental fieldwork, and other tasks.
The project, put forward by the Inuit-owned Nukik Corp., could see construction begin as early as 2028. Aside from communities in Nunavut, it could also supply mines in the region and spur more economic development, backers say.
Earlier in the week, CP reported that Manitoba will soon have more energy for itself and other Canadian jurisdictions after two hydroelectric contracts with a Minnesota utility expire at the end of this month. The contracts to sell a combined 500 megawatts of power to Xcel Energy were signed in 2010, and are about to expire.
Kinew said Manitoba is repatriating energy by keeping that power for domestic use.
"We've decided, as Canadians and Manitobans, we are going to use that power to build up our own economy here at home," Kinew said.
"So in Manitoba, that means more housing, more factories. But it also gives us the opportunity to talk about trade corridors."
While the change coincides with the trade dispute with the United States, Crown-owned Manitoba Hydro said Monday it had not intended to renew the contracts in any event.
The 500 megawatts of power have been factored into the utility's plans for the coming years, as it faces potential capacity limits in peak winter months as early as 2029.
Kinew said 50 megawatts of the newly available power will be set aside for potential development of a transmission line that would connect parts of Nunavut to Manitoba's grid.
The Kivalliq Hydro-Fibre Link, an infrastructure project that aims to reduce dependence on diesel fuel in northern communities, is in the early stages and could be online by 2032.
Kinew said he wants the federal government to help pay for the project, which would serve the far north of Manitoba and some 11,000 Nunavut residents west of Hudson Bay.
He also wants federal help for an east-west power grid.
"We're also willing to say, hey, if folks are serious about building a trade corridor towards the West or to other parts of Canada, we've got 450 megs of power that we're ready to bring to the table to build up our country and to protect our sovereignty," said the NDP premier.
The Opposition Progressive Conservatives said it's unclear whether a reduction in sales to Minnesota will hurt Manitoba Hydro's bottom line. The utility has a higher debt load than utilities in other provinces, after large cost overruns on two megaprojects.
"We have a Crown corporation that's $25 billion in debt," said Tory energy critic Lauren Stone.
"(Kinew) needs to be candid with Manitobans as to what this is actually going to cost Manitoba ratepayers down the line."
Kinew said other contracts with utilities in the United States will continue and export commitments will be honoured.
"When we say we are going to keep our word, we do exactly that."
This report combines The Canadian Press stories that were first published April 14 and 16, 2025.
Source: The Energy Mix
