Wednesday, 9 May 2012

Manitoba Hydro & the domestic market

Policy Fix has a new post out about Manitoba Hydro, called "Time to Expand the Manitoba Advantage". It speaks of Provincial Crown Corporation, despite recent controversies over the fesability of future export plans, as a great economic institution. The "below market rates" afforded by the crown corp's economies of scale and less single-mindedly profit driven nature have been key to the affordability of Manitoba. Other benefits from Manitoba Hydro noted include more equitable access to Hydro power that results from delivering services to unprofitable, remote communities across this Province as well as an ability to incur costs from "risker" yet more innovative projects due to its economies of scale than private companies could.    

Policy Fix argues that export markets and their future is uncertain, though there are a few positive signs with hydro-electric power meeting the environmental standards of some US state governments. The crux of the strategy Policy Fix recommends, though, is a domestic focus - a "green development" program integrated into the nascent Rapid Transit plan and encouraging technological & manufacturing development of electric vehicles. This will,in the mid to long term, create a larger and more stable domestic market for Manitoba Hydro's power and could lead to value-added exports from Manitoba.

Worth a read.

1 comment:

  1. Plan Fix claims that trade marketplaces and their upcoming is not sure, though there are a few good symptoms with hydro-electric power conference the ecological requirements of some US condition authorities.