With a number of hydroelectric projects slated in and around Timmins, the municipality may one day begin to view such resources the same way as mining, according to mayor Tom Laughren.
"We need a bigger share of [the natural resources] pot for Northern Ontario," he says.
"You can take the mining revenues, and you can’t really talk about forestry revenues, but I think even water generation revenues can be a part of that."
With an eye on phasing out the province’s coal-fired facilities by 2014, the Ontario Power Authority has pointed to northeastern Ontario as a potential hotspot for renewable energy. It has identified 135 megawatts (MW) of hydroelectric potential on the Moose River, 745 MW on the Abitibi River, and 652 MW on the Mattagami River. Many of these represent existing government facilities, including eight already on the Mattagami, but room for new projects are also included.
In fact, several such initiatives are already in motion, including one 20 MW project on the Kapuskasing River by Quebec-based Hydromega Inc.; a 16 MW project on the Mattagami River by Calgary-based Canadian Hydro Developers; and a 4 MW project on the Grassy River by Englehart-based Woods Power Generation.
While still in the early stages, many such projects nevertheless should benefit Northern Ontario communities in some way, be it through cheaper power or direct revenues, Laughren says. He compares the situation to that of the mining revenues report issued in February by the City of Greater Sudbury, which made the argument for municipalities to draw greater benefits from local mining activities. The comparison to hydroelectric power is apt, says Laughren, who sees a future for such projects. The Grassy River project is a good example, as it sits within Timmins’ city limits.
Despite the potential benefits, each has drawn its share of detractors, which have often been local groups concerned that the development will sully the natural beauty and eco-tourism potential of the proposed site.
In the case of the Grassy River project, which is still in the pre-feasibility stage, some city councilors have also joined the fray. The city has since committed an engineer to determine how such a project will affect the flow of the river.
One party that resists some of the local criticism of the Grassy River project is the Wabun Tribal Council, which represents seven First Nations communities and is a partner in the project.
Shawn Batise, executive director of the Wabun Tribal Council, says that although he understands some of the concern, the city’s hesitance about the project would change if it would stand to gain financially.
"It would be nice if they came out on side of the project, but we’re not looking for their support, necessarily," Batise says. "If they’re against it, that’s fine, and they’ll have their opportunity to speak out against it when we do the environmental assessment process, if it gets that far."
He also emphasizes that the financial benefit for the First Nation communities must be significant for it to be worth marring the natural beauty with a hydroelectric dam.
Indeed, the Wabun Tribal Council’s involvement in Hydromega’s Kapuskasing River project is a prime example of the long-term benefits First Nations should expect, he says.
The Wabun Tribal Council has negotiated a deal with Hydromega where the Brunswick House and Chapleau Ojibwe First Nations can buy into various levels of ownership at various stages of the project. This could translate to $3 million in annual revenues for the communities by the agreement’s 2030 end date if these investments are made. While no details have been released, the Town of Kapuskasing has also negotiated a revenue sharing deal with Hydromega, potentially paving the way for other municipalities.
Although not integral to the future of the First Nation communities, Batise says these types of projects represent a constant revenue stream given hydroelectric power’s status a renewable resource. As such, it will help to further diversify their economies.
In fact, Batise says the partnership models seen with Hydromega and Woods Power Generation will surely act as the base model for the future. As an example, he points to a water power development conference he recently attended in Toronto, where he met representatives from a First Nation pursuing similar hydroelectric projects. Upon discovering that they had secured a deal for one or two per cent of the gross operating revenue, he found himself ashamed.
"That’s ridiculous," he says. "It was not a great deal."
