Manitoba's intention to build an east-west power grid to sell hydroelectric power to Ontario has received a major boost from the federal government.

Prime Minister Stephen Harper announced Tuesday Ontario would use a part of its $586-million share of the $1.5-billion Canada ecoTrust fund "to begin work on an east-west electrical transmission interconnect with Manitoba, which will allow for the flow of new, clean hydroelectric power to the Ontario market.

"This will assist the Ontario government as it moves forward in phasing out the province's remaining coal-fired generating stations, a goal which, once fully realized, will result in the reduction of millions of tonnes of carbon dioxide emissions.

Manitoba Premier Gary Doer called the announcement good news.

"This is the first time I can recall him [Harper] mentioning [the east-west grid] in public. I think it's great.

"We think the investments in an east-west grid will make the program more affordable," the premier added. "It won't, obviously, pay for the whole transmission line — it will only deal with a potential investment of part of it — but it makes the transition from coal, which is cheap but dirty, to other sources of energy like hydroelectric power more affordable."

Ontario's efforts to import power from Manitoba stalled under the former federal Liberal government, Doer said.

Tuesday's announcement in Ontario comes on the heels of federal Environment Minister John Baird's announcement over the weekend that $54 million will be available in Manitoba as part of the same ecoTrust money.

In Manitoba, the money will be used to expand existing energy-efficiency programs, develop biodiesel plants and increase solar power capacity, as well as the east-west grid.

The money will become available once the federal budget is passed or if the Conservatives win re-election should the budget be defeated.