Hydro - Related Articles
N.S. POLITICIANS DEBATE POWER RATES
Lower Churchill Project Tops MLAs’ Agenda
Concern over the cost of the Lower Churchill hydroelectric project in Labrador and the steady increase in power bills in Nova Scotia prompted an emergency debate at Province House on Wednesday. Progressive Conservative Leader Jamie Baillie called for the special debate and MLAs agreed, bumping a government resolution about its surprise funding announcement for an Eastern Passage high school off the agenda. In asking for the debate, Baillie cited the recent lack of endorsement for the Lower Churchill project from Newfoundland and Labrador’s Public Utilities Board and the downgrading of Nova Scotia Power’s outlook by credit rating agency Standard & Poor’s. “Skyrocketing power bills are causing real hardship for Nova Scotia families and putting good manufacturing jobs at risk,” the Tory leader said in the legislative chamber. “Many Nova Scotians will consider the prospect of multiple power rate increases an emergency.”
On Monday, the Public Utilities Board said it didn’t have enough information to assess whether the plan to bring Lower Churchill electricity to Nova Scotia by subsea link from Newfoundland is the best cost option for the province. Nalcor, the power utility in Newfoundland and Labrador, and Emera, parent company of Nova Scotia Power, are working on the $6.2-billion project. Baillie said the estimated cost in Newfoundland of power from the project is 16.4 cents per kilowatt hour, and he expects it would be at least that much here. Residential consumers in Nova Scotia now pay 13.3 cents per kilowatt hour.
Premier Darrell Dexter said studies, including one from consultant Manitoba Hydro International, show the project is the lowest-cost option for Newfoundland and Labrador. Dexter said he doesn’t know what the cost will be to Nova Scotia consumers, but he noted that Emera CEO Chris Huskilson told a legislature committee meeting last fall that he wouldn’t bring forward a project with a cost of 16 cents per kilowatt hour. The actual cost can’t be calculated until Emera and Nalcor conclude a deal, a government official said. Dexter said the project would provide a stable price for eight to 10 per cent of the province’s electricity requirements for 35 years. He noted it will be the amortized cost of the capital that’s recovered through power rates. “If you could freeze your rates, your energy rates for 35 years at today’s cost of capital, I just can’t imagine anyone wouldn’t do that,” he said.
Dexter again rebuffed Baillie’s call for a government-commissioned review of the project, saying the Utility and Review Board will do a comprehensive probe. Baillie said he’d like to see cost estimates for bringing in hydro power from Quebec and piping in natural gas from New England. Liberal Leader Stephen McNeil hammered the government on the demand-side management fee on power bills, which adds up to about $40 million a year. The fee funds programs intended to reduce electricity use. “This government is directly responsible for increased power costs,” McNeil said, noting that power rates have gone up more than 20 per cent since the NDP came to power in June 2009. Dexter said consumers can get the money back by taking advantage of Efficiency Nova Scotia programs to use less electricity. He also said it was the NDP that took the provincial portion of the harmonized sales tax off home energy use. Baillie also said the Standard & Poor’s report is significant because the downgrade is a result of the government’s demands for more renewable energy projects.
http://thechronicleherald.ca/novascotia/81049-ns-politicians-debate-power-rates
Environmental Go-Ahead By Feds, N.L.
The proposed Lower Churchill hydroelectric project has received a crucial green light from the federal government and the province of Newfoundland and Labrador. Both governments, in giving environmental approval for the project Thursday, said the economic and environmental benefits of the blockbuster project outweigh the risks and uncertainties. The environmental approval is a significant step for the $6.2-billion project, which would have two dams and a whopping generating capacity of 3,074 megawatts — more than all the power plants in Nova Scotia combined. “This decision is an important step toward realizing the full potential of one of North America’s most ambitious renewable energy projects,” Intergovernmental Affairs Minister Peter Penashue, the MP for Labrador, said Thursday in a statement. “It will deliver countless economic benefits to our already flourishing province, to Nova Scotia and to the rest of Canada.” Penashue’s comments were issued as the federal and provincial governments responded to a joint federal-provincial review panel report. That report, which was released last summer, raised serious concerns with the project, noting that it could have a significant adverse effect on fish, wetland and terrestrial habitats. The report also said Newfoundland and Labrador’s Crown utility, Nalcor Energy, failed to demonstrate the !“justification of the project as a whole in energy and economic terms.”
While the report seemed like a setback for the project, Ottawa and Newfoundland said the pros still outnumber the cons. They also agreed to mitigation measures to reduce the adverse environmental impacts highlighted by the report. Premier Darrell Dexter said passing the environmental assessment is a “huge milestone that brings us closer to developing a project that is important to Nova Scotia and the entire Atlantic region.” Under the agreement, Nova Scotia Power will have access to 20 per cent of the project’s power over 35 years in return for bankrolling a fifth of the capital costs. However, Tory Leader Jamie Baillie said the government is “overselling” the project while failing to accurately study its impact on Nova Scotia. “The NDP make great claims about the project clearing low hurdles, but they don’t know whether this is the option that provides the lowest cost electricity, greatest energy security or least environmental impact of all the possibilities,” Baillie said. Since committing the province to the project, the NDP has shown no interest in examining other alternatives, the Tory leader said. The report recommended an independent analysis to meet domestic demand. Nova Scotia government spokeswoman said once the definitive agreement between Nalcor and Nova Scotia Power’s parent company Emera Inc. is inked, the Nova Scotia regulator will conduct a complete review. The Nova Scotia Utility and Review Board will “review the plans for Nova Scotia Power’s investment in the Maritime Link in return for a 35 year price on electricity” Jennifer Stewart, press secretary for the premier, said. “The (regulator) can engage the best experts it needs to fully analyze the proposal and what it means for Nova Scotians, including whatever consideration of alternatives is appropriate.”
Catherine Abreu, a spokeswoman with the Ecology Action Centre, expressed concern with the projects environmental effects. “There are a lot of questions that remain unanswered,” she said. “It seems like the governments involved are fast-tracking project at the expense of accurate information. It’s a real disservice to the people of both province provinces.” Abreu said smaller renewable energy projects such as wind, small-scale hydro and tidal as well as other alternatives should be examined. The Lower Churchill project includes two dams along the Lower Churchill River. The 824 megawatt Muskrat Falls facility is the first portion of the project, while the 2,250 megawatt Gull Island facility would be constructed second. Power is expected to be shipped from central Labrador to Newfoundland where it will be shipped to Cape Breton through a subsea cable.
http://thechronicleherald.ca/business/74055-lower-churchill-gets-green-ok
Environmental Groups Launch Challenge Of Muskrat Falls Hydroelectric Project
HALIFAX - A coalition of environmental groups have filed an application for a judicial review of the proposed Muskrat Falls hydroelectric project, saying Ottawa should not proceed with the development because its environmental assessment was incomplete. The groups, represented by lawyers for Ecojustice, filed the application with the Federal Court in Montreal seeking to block the federal government from issuing any permits or financial backing for the $6.2-billion project. They are also asking the court to overturn the federal government's endorsement of the development. A spokesman for Sierra Club Canada, one of the groups behind the application, said the environmental assessment doesn't look at alternatives to the project or make any final recommendations to approve or reject it. Bruno Marcocchio said his group and Grand Riverkeeper Labrador Inc. want the court to send the review back to the joint panel that oversaw the environmental review. "We feel confident that if that's done ... the panel will decide that this project is not justified," Marcocchio said from Sydney, N.S., on Friday.
The judicial review was filed Dec. 20, but the groups were advised by their lawyers not to go public about their case until now, he said. The Muskrat Falls project passed federal and provincial environmental assessments Thursday, and Ottawa and Newfoundland and Labrador say they will now proceed to issue the required federal authorizations for the project while trying to finalize a promised federal loan guarantee. Nalcor Energy, Newfoundland and Labrador's Crown utility company, declined comment. Natural Resources Canada declined an interview request, but said in an email that the federal government remains committed to the project. "It's unfortunate that certain radical environmental groups can't even support hydro power," read the email from communications director Patricia Best. "While these groups claim to want to reduce (greenhouse gas) emissions, it would seem they refuse to take any practical steps to achieve these goals." The Newfoundland government was unavailable for comment.
The joint panel review report released last August concluded that Nalcor Energy had not proven the viability of the project. It also said Muskrat Falls would likely have several "significant adverse" effects on fish, wetland and terrestrial habitats, as well as the Red Wine Mountain caribou herd. Those concerns are echoed by the environmental groups. But the federal and provincial governments said Thursday they will implement measures to address some of those concerns, though they added that overall, the project's benefits outweigh any risks.
Newfoundland and Labrador Premier Kathy Dunderdale has faced criticism in her province from opposition parties who say Muskrat Falls should undergo greater scrutiny before it is sanctioned. But Dunderdale has dismissed their concerns, saying the project has been thoroughly reviewed and should proceed because it would provide the province with a clean, renewable source of energy for generations. Under the conditions of a term sheet announced in 2010 to develop the project, Nalcor Energy would spend $2.9 billion to build a power generating facility at Muskrat Falls capable of producing 824 megawatts of electricity. A transmission link from Labrador to Newfoundland would cost $2.1 billion, $600 million of which would be provided by Nova Scotia-based private utility Emera (TSX:EMA). It would include a 30-kilometre subsea connection across the Strait of Belle Isle.
Emera would also fund a 180-kilometre subsea link between Cape Ray, N.L., to Lingan, N.S., at a cost of $1.2 billion. If it proceeds, the project would provide Nova Scotia with 170 megawatts of energy annually — about eight to 10 per cent of that province's total power needs — for 35 years. Proponents say they hope to have energy flowing by 2018. The project has been on the drawing board in one form or another for decades. In 1980, it passed an environmental assessment but was set aside due to concerns over market access and financing. Concerns over the loss of habitat that would result from the development of the project have also stalled its progress in the past. But Nalcor Energy has promised to develop a compensation plan to make up for that. The idea of building more power plants on the Churchill River in central Labrador can be traced back to 1972, when the Churchill Falls hydroelectric dam was finished.
N.S. use of Labrador power questioned
Experts suggest other options
Energy experts are divided over whether the proposed Muskrat Falls hydroelectric project in Labrador is the best option for Nova Scotia’s future power needs.
A report by Manitoba Hydro International released Wednesday found the $6.2-billion venture is the cheapest energy option for the region.
Despite a handful of provisos that warn of changing market conditions, the report backed the megaproject, which would wheel electricity from Newfoundland to Cape Breton through a subsea transmission cable.
But Tom Adams, an independent energy adviser, said the massive hydroelectric project, a partnership between Nalcor Energy, Newfoundland and Labrador’s Crown corporation, and Nova Scotia private utility Emera, would provide limited value to consumers in this province.
“Nova Scotians have a lot of good power options, but Labrador power is not on that list. There is low hanging fruit and it doesn’t come from Labrador.”
Adams said the abundance of natural gas is the most affordable and reliable energy source on the market.
“The natural gas revolution for Nova Scotia consumers is giant. This is a bonanza market and producers are just dying to find customers to take some of the gigantic surplus.”
However, Bill Marshall said the Muskrat Falls project and the Maritime Transmission Link is the best deal for Nova Scotia.
“I’m very pleased to see this report come out,” said Marshall, the former president and chief executive officer of the New Brunswick System Operator, an independent agency that allows power utilities to bid for space on that province’s transmission lines.
“I believe it’s the lowest-cost option for Nova Scotia Power to meet its load, plus its renewable obligations and its carbon obligations out in the 2020 time frame.”
Marshall said he has studied alternatives, including natural gas and shipping power from Quebec, but said the proposed hydroelectric project is the best option.
Barbara Pike, executive director of the Maritimes Energy Association, echoed Marshall’s support for the project.
“It’s really good news. It’s validation that the Muskrat Falls project is the best option for the region.”
Although Pike said natural gas could play a larger role across the region, she said a secure energy future includes a mix of energy sources.
“We have to look at the big picture here long term, and anyone who suggests that we’re not going to need more energy down the road is not being realistic. This is a secure, green, renewable energy and it means Nova Scotia is no longer at the end of the road.”
But Catherine Abreu, the regional energy co-ordinator for the Ecology Action Centre in Halifax, is not convinced the blockbuster hydroelectric project is the best option for Nova Scotia.
While she applauded Nalcor’s efforts to replace dirty fossil fuels with hydroelectricity, she said the benefits for Nova Scotia are less apparent.
“Newfoundland and Labrador is not the only jurisdiction this project has to make sense for. In Nova Scotia, no analysis has been done to determine whether Muskrat Falls is the least-cost option to sustainably meet future energy demands.”
Kevin Lacey of the Canadian Taxpayers Federation agreed that a separate review is needed for the province.
“The Dexter government owes struggling power ratepayers in this province its own independent review to find out what, if any, impact (it will) have on monthly power bills, and if this is truly the best deal for all Nova Scotians.”
(bbundale@herald.ca)
http://thechronicleherald.ca/business/57881-ns-use-labrador-power-questioned
N.S. doesn't need a separate study on Muskrat Falls, premier says
The government of Nova Scotia has no plans to conduct its own cost-benefit analysis of the proposed $6.2-billion Muskrat Falls hydroelectric project in Labrador, Premier Darrell Dexter said Thursday.
``Why would we go to the expense of doing that when it's going to be done in an appropriate forum before the Utility and Review Board?'' Dexter said.
``It's their responsibility to do that and my assumption is that they will.''
Conservative Leader Jamie Baillie chided Dexter for taking that position.
``It is highly irresponsible for the NDP to push ahead based on their own interests when they haven't done the homework on behalf of Nova Scotians,'' Baillie said in a statement.
``Nova Scotia ratepayers deserve a full cost-benefit review and the NDP need to get on with the job.''
Dexter's comments come one day after a review by Manitoba Hydro International concluded that Muskrat Falls is the cheapest option for Newfoundland and Labrador's future energy needs _ but not without risk, citing fluctuating world market demands and pricing variables among other factors.
Under a term sheet reached in November 2010, Nova Scotia private utility Emera (TSX:EMA) would fund a 180-kilometre subsea link between Cape Ray, N.L., and Lingan, N.S., at a cost of $1.2 billion.
A further $2.1 billion would be spent to build a transmission link from Labrador to Newfoundland, $600 million of which would be provided by Emera.
Nalcor Energy, Newfoundland and Labrador's Crown energy company, would spend $2.9 billion to build a power generating facility at Muskrat Falls capable of producing 824 megawatts of electricity.
Nova Scotia would get 170 megawatts of energy a year, about 10 per cent of the province's total energy needs, for 35 years.
Local Companies Will Get Shot At Lower Churchill Project Work
SYDNEY — Companies in Cape Breton and across the province will be given the same opportunity as firms in Newfoundland and Labrador to bid on contracts in the construction of the Lower Churchill hydroelectric project’s maritime link.
Details in the memorandum of understanding released Monday allow Nova Scotia contractors, service providers, consultants and suppliers to compete for all parts of the project. However, Newfoundland companies will be given first dibs at putting together business plans for the Muskrat Falls generating facility and the Labrador island transmission link.
The $1.2-billion link, which will carry electricity to Nova Scotia via the Cabot Strait, will create 2,700 person-years of employment, Premier Darrell Dexter said during a news conference Monday at Cape Breton University’s Verschuren Centre for Sustainability in Energy and the Environment.
“Power from this massive development will come ashore very near here at Lingan, Wreck Cove or Point Aconi,” he told the audience of academics and business people.
The design of the maritime link is expected to take another two years, but the site where it will come ashore will be announced soon. Construction on the underwater cable is expected to begin in 2014 and conclude in 2017. Following a commissioning of the power stations, electricity will begin to flow through Nova Scotia in 2017.
Dexter said the MOU’s main purpose is to supply information now so Nova Scotia companies will “have a fair shot of being successful” in landing contracts.
Calling the project a “game changer,” he said hundreds of millions of dollars worth of contracts will be available to contractors in Nova Scotia.
The $6.2-billion hydroelectric project will give first opportunity to the Innu of Newfoundland and Labrador to bid on tenders as they are issued, Dexter added.
“But as we know, there are going to be plenty of opportunities for everyone to reap the economic benefits of this historic project.
“There are companies in Cape Breton who are doing some of the pre-work on this project, and obviously given the location (of) the maritime link ... that’s an added strategic advantage for Cape Breton companies.”
The premier couldn’t say how many Cape Bretoners will land jobs with the project, but the bulk of the work will be in the construction sector.
Emera, parent company of Nova Scotia Power Inc., will be holding supplier information workshops in the new year for companies interested in working on the project. The province will also work with the Maritime Energy Association to ensure Nova Scotia companies have the information needed to compete for contracts.
Emera Newfoundland and Labrador president Rick Janega said engineers and project planners are already being hired to begin work on design details and manage construction phases.
The maritime link will also introduce new technology that will convert electrical alternating current — in residential use — to a direct current where there is an increase in efficiency. That will mean new, long-term jobs will be created, Janega said.
“You reduce the amount of electricity lost in transporting it when you use DC, that’s why we’re going with that method,” Janega said.
“We don’t have any of those plants in Nova Scotia, or Newfoundland and Labrador, but we will have two with the maritime link and Nalcor will have two with their Labrador link. It means new jobs and new technologies being used, as well. A key part of it will be to try to train and develop people during the construction periods.”
Membertou senior adviser Dan Christmas said it’s too early to say how the project will affect his First Nation, but he’s eager to find out more information on contractor and supplier meetings scheduled for early 2012.
One local aboriginal company, Membertou Geomatics Solutions, is using its mapping technology for preliminary work on the Lower Churchill project.
“We’re hoping there will be enough (work) for everybody,” Christmas said.
The renewable energy from Labrador will provide 170 megawatts of electricity to Nova Scotia Power over the next 35 years — accounting for eight to 10 per cent of its load— set at a locked price.
“That’s a great benefit to Nova Scotia ratepayers to know they’re not going to be subject on a portion of their power to the rate increases in the international fossil fuel market,” Dexter said.
The premier dodged the question when was asked if power generated from the project would reduce the number Nova Scotia Power requests to the Nova Scotia Utility and Review Board for rate increases.
Liberal energy critic Andrew Younger said the premier is misleading Nova Scotians about the price of power coming from the Lower Churchill project.
“The premier said multiple times that the power coming from this project will bring cheaper power to Nova Scotia,” Younger said in a release.
“This is not true. Any power from Lower Churchill will be at a higher rate than we currently pay.”
He said rates from Lower Churchill, though higher than our current rates, should be stable and help wean the province off energy derived from coal.
The Liberals had pushed the government to buy hydroelectric power from Quebec where it is greener and less expensive than Lower Churchill.
Public review urged for Muskrat Falls link
Nova Scotia's consumer advocate is calling for a public review of the Muskrat Falls power link to the province, but the premier says it's not necessary.
The hydroelectric project includes an underwater cable from Newfoundland to Nova Scotia, which is expected to cost more than $1.2 billion. Construction is expected to begin in 2014 and conclude in 2017.
Nova Scotia Power Ltd. is entitled to more than a nine-per-cent return on its investment, and some people worry that the high cost of building the undersea link will ultimately drive up electricity rates.
Consumer advocate John Merrick said a review is needed to determine whether it's the best deal for the province.
"This is a responsibility of government to set up a review process that is broad in scope, will take a look at all the options, will take a look at how the deal purports to be structured, will do it publicly so every ratepayer can see what's being done — and we'll do it before we get the cement drying in place," he said.
The Nova Scotia Utility and Review Board will review the application for the Muskrat Falls project once the finals deals are signed, but Merrick said that will focus only on what has been submitted.
Premier Darrell Dexter said he's satisfied with the reviews that have already been done.
"We also have to remember that when it comes to Muskrat Falls, it's more than just the power rates. It's about a long-term vision for the flow of energy in the region," Dexter said.
A study released by Nalcor, N.L.'s Crown energy corporation, concluded that the plans for Muskrat Falls on the Churchill River are better than other energy alternatives that it could have explored.
Manitoba Hydro is reviewing the proposal as part of a larger review by the Board of Commissioners of Public Utilities.
But the Opposition Liberals in N.L. say that third-party review won't determine whether the project is in the best interest of taxpayers. They have repeatedly claimed that Muskrat Falls will mean domestic electric bills will double.
Nalcor and Emera, the privately owned parent company of Nova Scotia Power, had planned to complete the final agreements on Muskrat Falls by Nov. 30, but that deadline has been extended to Jan. 31.
http://www.cbc.ca/news/canada/nova-scotia/story/2011/12/02/ns-consumer-muskrat-falls-review.html
Firm seeks environmental assessment of subsea power link
An Emera Inc. subsidiary has asked Ottawa to begin an environmental assessment of a proposed $1.2-billion subsea link that would bring hydroelectricity from Newfoundland and Labrador to North American markets.
ENL Maritime Link Inc., an Emera Newfoundland & Labrador company, announced Friday that it has registered its Maritime Link project with the Canadian Environmental Assessment Agency and Newfoundland and Labrador’s Environment and Conservation Department.
Emera has partnered with Nalcor Energy, a Newfoundland and Labrador Crown corporation, to develop the $6.2-billion Muskrat Falls project. The privately owned Nova Scotia energy company will build the transmission link between Newfoundland and Cape Breton. Emera will also invest $600 million in a $2.1-billion link between Muskrat Falls and Newfoundland.
In return, Emera will receive 170 megawatts of electricity per year, or 10 per cent of the province’s needs, for 35 years.
“This marks a significant milestone in our partnership with Nalcor to provide Nova Scotia with access to clean, renewable and reliable energy at a more stable price for the next 35 years, ” Nancy Tower, CEO of Emera Newfoundland & Labrador, said in a news release.
The assessment process in Nova Scotia will start in mid-2012 once an environmental impact statement is filed, Emera officials said.
http://thechronicleherald.ca/business/38845-firm-seeks-environmental-assessment-subsea-power-link
Remarks from the head of Halifax-based Emera Inc. have renewed criticism of the proposed pricing structure of the Lower Churchill hydroelectric project.
Photo Emera Inc. CEO Chris Huskilson spoke at the Muskrat Falls announcement in St. John's in November 2010. (CBC)
Chris Huskilson, chief executive officer of Emera, told a legislative committee in Nova Scotia that Emera will not accept a price tag of 14 to 16 cents per kilowatt hour.
"Well, that won't make it. That kind of number won't make it," Huskilson told Nova Scotia politicians at a meeting in late October. A transcript was released this week.
"It's too high, so it has to be lower than those kinds of numbers."
Emera reached a deal with Newfoundland and Labrador and its Crown energy corporation, Nalcor, in November 2010 to develop the first phase of the Lower Churchill plan at Muskrat Falls. Earlier this week, the partners announced that a final deal is not expected now until January.
Photo Yvonne Jones says Emera has 'confirmed what we've been saying for the last number of months.' (CBC)
http://www.cbc.ca/news/canada/nova-scotia/story/2011/11/30/nl-emera-lower-churchill-jones-1130.html
Local companies will get shot at Lower Churchill project work
SYDNEY — Companies in Cape Breton and across the province will be given the same opportunity as firms in Newfoundland and Labrador to bid on contracts in the construction of the Lower Churchill hydroelectric project’s maritime link.
Details in the memorandum of understanding released Monday allow Nova Scotia contractors, service providers, consultants and suppliers to compete for all parts of the project. However, Newfoundland companies will be given first dibs at putting together business plans for the Muskrat Falls generating facility and the Labrador island transmission link.
The $1.2-billion link, which will carry electricity to Nova Scotia via the Cabot Strait, will create 2,700 person-years of employment, Premier Darrell Dexter said during a news conference Monday at Cape Breton University’s Verschuren Centre for Sustainability in Energy and the Environment.
“Power from this massive development will come ashore very near here at Lingan, Wreck Cove or Point Aconi,” he told the audience of academics and business people.
The design of the maritime link is expected to take another two years, but the site where it will come ashore will be announced soon. Construction on the underwater cable is expected to begin in 2014 and conclude in 2017. Following a commissioning of the power stations, electricity will begin to flow through Nova Scotia in 2017.
Dexter said the MOU’s main purpose is to supply information now so Nova Scotia companies will “have a fair shot of being successful” in landing contracts.
Calling the project a “game changer,” he said hundreds of millions of dollars worth of contracts will be available to contractors in Nova Scotia.
The $6.2-billion hydroelectric project will give first opportunity to the Innu of Newfoundland and Labrador to bid on tenders as they are issued, Dexter added.
“But as we know, there are going to be plenty of opportunities for everyone to reap the economic benefits of this historic project.
“There are companies in Cape Breton who are doing some of the pre-work on this project, and obviously given the location (of) the maritime link ... that’s an added strategic advantage for Cape Breton companies.”
The premier couldn’t say how many Cape Bretoners will land jobs with the project, but the bulk of the work will be in the construction sector.
Emera, parent company of Nova Scotia Power Inc., will be holding supplier information workshops in the new year for companies interested in working on the project. The province will also work with the Maritime Energy Association to ensure Nova Scotia companies have the information needed to compete for contracts.
Emera Newfoundland and Labrador president Rick Janega said engineers and project planners are already being hired to begin work on design details and manage construction phases.
The maritime link will also introduce new technology that will convert electrical alternating current — in residential use — to a direct current where there is an increase in efficiency. That will mean new, long-term jobs will be created, Janega said.
“You reduce the amount of electricity lost in transporting it when you use DC, that’s why we’re going with that method,” Janega said.
“We don’t have any of those plants in Nova Scotia, or Newfoundland and Labrador, but we will have two with the maritime link and Nalcor will have two with their Labrador link. It means new jobs and new technologies being used, as well. A key part of it will be to try to train and develop people during the construction periods.”
Membertou senior adviser Dan Christmas said it’s too early to say how the project will affect his First Nation, but he’s eager to find out more information on contractor and supplier meetings scheduled for early 2012.
One local aboriginal company, Membertou Geomatics Solutions, is using its mapping technology for preliminary work on the Lower Churchill project.
“We’re hoping there will be enough (work) for everybody,” Christmas said.
The renewable energy from Labrador will provide 170 megawatts of electricity to Nova Scotia Power over the next 35 years — accounting for eight to 10 per cent of its load— set at a locked price.
“That’s a great benefit to Nova Scotia ratepayers to know they’re not going to be subject on a portion of their power to the rate increases in the international fossil fuel market,” Dexter said.
The premier dodged the question when was asked if power generated from the project would reduce the number Nova Scotia Power requests to the Nova Scotia Utility and Review Board for rate increases.
Liberal energy critic Andrew Younger said the premier is misleading Nova Scotians about the price of power coming from the Lower Churchill project.
“The premier said multiple times that the power coming from this project will bring cheaper power to Nova Scotia,” Younger said in a release.
“This is not true. Any power from Lower Churchill will be at a higher rate than we currently pay.”
He said rates from Lower Churchill, though higher than our current rates, should be stable and help wean the province off energy derived from coal.
The Liberals had pushed the government to buy hydroelectric power from Quebec where it is greener and less expensive than Lower Churchill.
MUSKRAT FALLS CHEAPEST ENERGY OPTION FOR N.L.
ST. JOHN'S, N.L. — September 15, 2011— A consultant's report released on the eve of a provincial election campaign endorses the proposed $6.2-billion Muskrat Falls hydroelectric project as the cheapest power option for Newfoundland and Labrador. Nalcor Energy, the province's Crown-owned utility, released the $250,000 review Thursday that it commissioned from global energy analyst Navigant Consulting. The report is glowing compared to a federal-provincial environmental review released last month. After public hearings that included submissions for and against Muskrat Falls, the joint panel found Nalcor had not adequately shown that the project is needed or viable. It recommended more discussion on alternatives.
A provincial campaign for a fixed-date election on Oct. 11 is expected to start by Monday. Muskrat Falls has been a prime target for opposition critics who say it's a rushed response by the Progressive Conservative government to unproven energy demands. They also say the megaproject will hike electricity bills in the short term. Navigant concludes the project would be a reliable, secure source of energy that would significantly reduce greenhouse gas emissions. At present energy values, it also finds that linking Newfoundland to the mainland power grid with subsea cables -- as proposed in the Muskrat Falls project -- would save customers about $2.2 billion through 2067 compared to power options that would see the island remain isolated. Muskrat Falls would also gradually decrease average wholesale electricity rates for the province, says the review. "I'm delighted to have it, and delighted to have it before we go to an election," Premier Kathy Dunderdale said Thursday in an interview.
"But I'm not just satisfied with the Navigant report."
The government has also asked the provincial utilities regulator for an independent assessment to be done by Manitoba Hydro International. Those results are expected next spring. "We actually don't look at it as good or bad," Nalcor CEO Ed Martin said of the Navigant report. "It's part of our process. We've been clear from the outset that as we move through the process of making a decision, we have particular gates we stop at and do a check." Liberal Leader Kevin Aylward and NDP Leader Lorraine Michael say the Navigant study, based on Nalcor's own data, can't be called an independent review. "The report is dealing with information that was given to them from Nalcor," Michael said.
"They've worked totally within the framework of Nalcor's own work, and from that perspective then it seems to me that in and of itself it has to be inadequate."
The opposition leaders say they would both halt spending on Muskrat Falls contracts until an independent comparison is done. Martin said the joint environmental panel recommended that Nalcor get a "reputable consultant to come in and take a look. "That's what we've done." Martin said Nalcor gave Navigant full access to its own analysis of the project. "And they had the opportunity to sit with us constantly, push us constantly, check all of our data, look at our numbers, get into our process and analyses, until they ... felt they had all the information they needed to make their recommendations."
Nalcor has extensively reviewed other power alternatives but stands by its finding that Muskrat Falls, with a link to the island to meet the province's future energy needs, is the best option, Martin stressed.
Nalcor is adamant that the megaproject is needed because the fast-developing province will face an energy crunch as early 2015 -- another assertion that opposition critics and the joint review panel say has yet to be proven. Martin has also said that Nalcor will continue to pursue access to transmission rights through Quebec, although testy negotiations with that province have so far been fruitless. Quebec has also pointedly raised its objections to Ottawa's willingness to back a loan guarantee that could shave hundreds of millions of dollars off interest costs for Muskrat Falls. Dunderdale scoffed at opposition calls for a full independent assessment of other energy options. "Alternatives are examined in the report," she said. "And the conclusions drawn are that Nalcor's analysis was correct and that Muskrat Falls is the best alternative and the least cost alternative." The megaproject was announced suddenly last November just before former Tory premier Danny Williams retired from politics.
Under conditions of a term sheet, Nalcor would spend $2.9 billion to build a power generating facility at Muskrat Falls capable of producing 824 megawatts of electricity. A further $2.1 billion would be spent to build a transmission link from Labrador to Newfoundland, $600 million of which would be provided by Nova Scotia-based private utility Emera. Emera would also fund a 180-kilometre subsea link between Cape Ray, N.L., to Lingan, N.S., at a cost of $1.2 billion. Under the agreement, Nova Scotia would get 170 megawatts of energy a year -- about 10 per cent of the province's total energy needs -- for 35 years.
http://www.ctv.ca/CTVNews/Canada/20110915/muskrat-falls-cheapest-energy-option-newfoundland-110915/
Premier Welcomes Lower Churchill Pledge
June 4, 2011 11:15 AM
Premier Darrell Dexter welcomed the pledge in the federal Speech from the Throne to support development of the Lower Churchill hydroelectric project. The Prime Minister pledged his support for the project during the Speech from the Throne as he said he would," said Premier Dexter. "We have said all along that this is a great national project and I am glad the Prime Minister sees it that way as well and has reiterated government's support for it in the throne speech." In previous months, Prime Minister Stephen Harper had announced his commitment to provide support for the project through a loan guarantee, or equivalent financial support. The Lower Churchill project will guarantee Nova Scotia an abundant supply of clean, green hydroelectricity for more than three decades. It will account for between eight and 10 per cent of Nova Scotia's total power needs when it starts flowing in 2017. "This is a win-win situation for all of us," said Premier Dexter. "Nova Scotians are tired of rising electricity bills and they want to see stable electricity prices. This project and the federal government's support will go along way to keeping electricity prices down in the early years and making life more affordable for Nova Scotians." The benefit of federal support for the project will go directly to keeping prices down for ratepayers.The Lower Churchill project will create 21,000 people years of employment and $3.5 billion in income for labour and business in Atlantic Canada. The project will make a significant contribution to air quality targets, lowering greenhouse gas emissions by one million tonnes per year. It will also help the province achieve its aggressive target of 40 per cent renewable electricity by 2020.
http://gov.ns.ca/news/details.asp?id=20110604001
Mi'kmaq Chiefs Discussing Lower Churchill Project Concerns With Emera
HALIFAX - The Assembly of Nova Scotia Mi'kmaq Chiefs says it has discussed potential concerns surrounding the Lower Churchill hydroelectric project in Labrador with Emera Inc. Last year, Emera (TSX:EMA) and Newfoundland's Nalcor Energy announced an agreement over the proposed $6.2-billion project. Assembly co-chairman Chief Gerard Julien says discussions with Emera have been preliminary so far. He says the chiefs have concerns over the project's impact on Mi'kmaq territory, including a subsea cable that will transport electricity from Newfoundland to Nova Scotia. Julien says the cable will be located near the Eskasoni and Membertou First Nation communities in Cape Breton. Once more details become available, Julian says he hopes both sides will meet again and move forward on any outstanding issues.
NSP MAKES PITCH FOR LOAN GUARANTEE ON LOWER CHURCHILL PROJECT
The major private partner in the proposed Lower Churchill hydroelectric project says a loan guarantee from the federal government would lead to savings for ratepayers. The president of Nova Scotia Power told a Senate committee on energy Monday that his company doesn’t stand to benefit commercially from a loan guarantee for the $6.2-billion project. "From a commercial point of view our company does not stand to win or lose or gain anything from loan guarantees," said Rob Bennett.
But Bennett said customers would ultimately see lower rates through a loan guarantee because it would reduce borrowing costs on financing for the project. "So it’s an opportunity in the economy to create a lower cost cleaner energy alternative than might otherwise be available without the . . . project."
Last week officials from Nova Scotia and Newfoundland and Labrador indicated they had decided a loan guarantee was the best hope of getting help from Ottawa to help finance the development of Lower Churchill in Labrador. That came after Quebec objected to a joint request by the two provinces for $375 million in federal funding for a $1.2 billion subsea link from Newfoundland to Cape Breton. Quebec contends federal cash for the project would be an unfair subsidy. There were some skeptics on the committee about the request for a loan guarantee. Conservative Richard Neufeld of British Columbia mused that it would be great if all provinces could have their loans for electricity generation underwritten by Ottawa. "I have a little bit of a problem with that, it does add to the federal debt," said Neufeld. He said if Nova Scotia feels so strongly about the importance of the loan guarantee, then perhaps it should underwrite any debt on its own. Earlier, Premier Darrell Dexter told the committee that the borrowing rate for Ottawa is much lower than it would be for Nova Scotia, which is grappling with a debt of more than $13 billion. "It is, in fact, the federal government’s ability to generate that financing benefit which is the point of the application," said Dexter.
However, Dexter stressed the project is not contingent on the federal government approving the request, adding that it would move ahead "on its own merits." Some committee members also questioned the timeline for the project. Officials say power is expected to flow from the Muskrat Falls site in Labrador sometime in 2017-18. Committee chairman David Angus said he has been told on numerous occasions that new hydroelectric projects can typically take up to 25 years from inception to operation. Both Bennett and Dexter said the projected timelines for the Lower Churchill are reasonable because much of the planning work has already been done by Nalcor Energy, Newfoundland’s Crown utility. After the hearing, Bennett addressed questions about the timeline.
"When people say it takes 25 years to develop a hydro project I believe that’s true," he said. "Nalcor and their predecessors started 25 years ago developing this one." The Senate committee is gathering information for a study on Canada’s energy sector. Monday’s stop in Halifax was the first on a tour of all four Atlantic provinces.
http://thechronicleherald.ca/Business/1230691.html
Lower Churchill funding could be available: MPs
Several Conservative members of Parliament have signaled that federal funding for the Lower Churchill project might be available. Newfoundland and Labrador will need to raise more than $4 billion to pay for its share of the $6.2 billion Lower Churchill deal, which will see power generated at Muskrat Falls in Labrador and then piped first to Newfoundland and then to Nova Scotia through underwater cables.
Former N.L. premier Danny Williams and N.S. Premier Darrell Dexter agreed in November on a 35-year partnership involving Nalcor, Newfoundland and Labrador's Crown-owned energy corporation, and Halifax-based Emera Inc., parent company of Nova Scotia Power.
Now-Premier Kathy Dunderdale and the head of Nalcor Ed Martin were in Ottawa this week, lobbying Conservative politicians. They are looking for federal loan guarantees for the project and an investment of $375 million to build the undersea cables. Nova Scotia Conservative MP Gerald Keddy said he was not sure how the federal government could contribute, but said the government would be there to help. "This is the most important project for Atlantic Canada that's come forward since Hibernia for Newfoundland," he said. "If we do nothing else as members of Parliament representing Atlantic Canada but we help to bring this to fruition, we will have done our jobs."
The federal government has not yet decided how it would help defray the massive cost of the underwater link and a separate request for a loan guarantee. The money might also be available through Ottawa's new public private partnership fund, another MP said. "Good first step" At its peak, about 2,700 people are expected to work on the project, which is slated to deliver first power by 2016 and full power the next year. The project will see a 824-megawatt power plant built at Muskrat Falls in central Labrador with a supply of about 4.9 terawatt hours per year.
The deal allows Nalcor to generate energy for Newfoundland and sell surplus energy to new markets, and provides a consistent source of energy to Emera, which already has commercial stakes in the Maritimes and the northeastern U.S. Emera stands to receive about 20 per cent of that energy for itself, and in return is paying for the construction of the underwater link. Newfoundland and Labrador, which is reserving 40 per cent of the power for its own use, will raise $4.4 billion to pay for its share.
Dunderdale said the 20-minute meeting with Prime Minister Stephen Harper was a "good first step," and opened the door to further talks on federal involvement in the project. "The Prime Minister said to me (Tuesday) that we will come together again shortly and that we will engage in a more substantive discussion on the issues that I identified," she told reporters.
Read more: http://www.cbc.ca/canada/newfoundland-labrador/story/2011/02/03/nfld-churchill-funds.html
Expert touts Churchill Falls, Point Lepreau power projects
By JUDY MYRDEN
Wed, Oct 6, 2010
Atlantic Canada should push ahead with the $6.5-billion Lower Churchill Falls hydroelectric project in Newfoundland and a second nuclear reactor at Point Lepreau in New Brunswick, a U.S. energy expert said Tuesday.
Roger Gale, chief executive of GF Energy of Washington, D.C., made the comment the day before he was to be the keynote speaker at a closed-door meeting in Halifax that will discuss the region’s energy future.
Today’s meeting is sponsored by the Association of Atlantic Universities. About 35 invited guests are expected to attend. Any new electricity-producing projects must be done in an environmentally clean way, Gale said.
The Lower Churchill, which is still years away from producing power, and a second nuclear reactor in New Brunswick are the "best ways" to make electricity and over the life of the projects, they are probably the "cheapest ways" to make power, he said.
Gale said there is a "huge transformation" underway in North America on how consumers use electricity.
"We are going to have electric vehicles; that means at night, when we don’t have much electricity demand, we can charge and store electricity, which we have never been able to do before," he said.
Scheduled to attend the one-day meeting at The Citadel are Nova Scotia Power president Rob Bennett and Stan Marshall, president of Fortis Inc. of St. John’s, N.L.
Also expected to attend are Atlantic Provinces Economic Council president Elizabeth Beale, St. Mary’s University president Colin Dodds and Scott Travers of Minas Basin Pulp and Power Co. Ltd.
Peter Halpin said this is the second Atlantic Leaders’ Summit hosted by the association, which represents 17 institutions.
"This is a way to get a very open discussion about issues and opportunities that are critical to the region," Halpin, the association’s executive director said.
http://thechronicleherald.ca/Business/1205585.html
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