SaskPower is looking out of province to help reach its goal of reducing greenhouse gas emissions.
The Saskatchewan Crown corporation has agreed to a term sheet that lays out the framework for SaskPower to buy 190 megawatts (MW) of capacity from Manitoba Hydro, with an option to purchase an additional 25 MW.
The deal would come into effect by 2022 and last up to 30 years.
SaskPower said the deal allows it to acquire hydroelectricity at a competitive cost when compared with other generation options. The exact financial terms of the agreement are confidential.
“The energy we will be providing to SaskPower is clean, renewable hydroelectricity currently surplus to the needs of Manitobans,” Manitoba Hydro CEO Kelvin Shepherd of said in a press release.
“This sale is a great example of two utilities working together to use Manitoba’s reliable hydroelectric resources to help SaskPower expand and diversify its renewable energy supply.”
SaskPower said the renewable electricity will help it meet its goal of reducing its greenhouse gas emissions by 40 per cent from 2005 levels by 2030.
The new deal will partially rely on a new power line planned for construction between Tantallon, Sask., and Birtle, Man.
A final contract for the sale is expected to be signed by mid-2019.
The two utilities also have a 25-MW agreement until 2022 as well as a 20-year agreement for the purchase of 100 MW from Manitoba Hydro that comes into effect in 2020.