‘Significant cost barriers’: NB Power questions viability of Atlantic Loop project – New Brunswick | 24CA News
In its newest strategic report, NB Power says the Atlantic Loop is probably not essentially the most environment friendly method to decarbonize electrical energy technology within the province.
The utility’s Integrated Resource Plan says the steep capital value of the mission together with the accompanying energy buy settlement with Hydro Quebec may imply that avenue to decarbonization may value $270 to $310 million extra per 12 months than different options.
“The Atlantic Loop could aid in New Brunswick’s path to net-zero, but it faces significant cost barriers,” the report says.
“The current view is that the least cost alternative for New Brunswick is to build carbon-free resources in the province.”
The Atlantic Loop is the title given to a collection of upgrades to transmission traces that will permit for extra energy to movement from Quebec into the Maritimes, pitched as a manner to assist the area transition from coal energy and decarbonize the grid.
The considerations raised over the mission in NB Power’s newest IRP mirror these expressed by the provincial governments of New Brunswick and Nova Scotia.
“We have complete agreement on greening the grid, we have complete agreement that there’s a role for government in taking steps to protect the planet,” Nova Scotia Premier Tim Houston mentioned following federal-provincial conferences final month. “But on the Loop, it’s a massive project, fraught with risk.”
“The only next step is one where I’m shown a business case where the rates impact on Nova Scotians is not to the degree that it is from what I understand now.”
New Brunswick Energy Minister Mike Holland was not made out there for an interview however expressed related considerations in a press release.
“The government of New Brunswick has been clear that we must take into consideration the effects that the Atlantic Loop could have on rate payers if implemented. The preliminary figures do not include the costs of the electricity purchases from Quebec and all scenarios being contemplated, including the Atlantic Loop, require new generation to be built in both New Brunswick and Nova Scotia to ensure energy security,” Holland mentioned.
“It is unlikely that the Atlantic Loop can be constructed and fully operational by 2030, meaning additional investments may be needed to meet the 2030 coal regulations. These are all additional costs to the proposed project.”
Federal Infrastructure Minister Dominic LeBlanc urged the provinces to return to the negotiating desk, arguing that the mission is one of the simplest ways to make sure the least affect of the 2030 coal moratorium.
“The government of Canada has made a substantial offer of financial support to the two provinces for this project, which is based on an in-depth analysis carried out jointly by federal, provincial and utility experts over the past two years,” he mentioned in a press release.
“This is the only real plan to close coal-fired power plants in Atlantic Canada by 2030, as required by federal and provincial legislation, while maintaining affordable electricity rates over the long term.”
The mission comes with a capital value of about $6 billion. Ottawa has put ahead a collection of loans and tax credit to entice the provinces and their respective utilities, however the uncertainty of what funding would appear to be additionally impacted NB Power’s evaluation.
“There is considerable uncertainty on the impacts of federal support or preferred financing from the Canadian Infrastructure Bank,” the report says.
New Brunswick Green Party Leader David Coon says that NB Power’s evaluation ought to be taken with a grain of salt contemplating that truth, however notes that the federal authorities does have to step as much as make the mission occur.
“They don’t really know how much the federal government is going to put into it. I mean’ it’s essentially interprovincial infrastructure like the Trans-Canada highway so the federal government definitely has an important role to support that as part of their net-zero efforts,” he mentioned.
Other critics say the utility did not bear in mind the potential financial advantages of the mission, which might additionally allow the province to export energy to neighbouring jurisdictions in New England.
“NB Power is not fully connecting all the dots. They consider the Atlantic Loop only as a way to import electricity from Quebec but it’s also an opportunity for NB Power to export and generate a lot of revenue,” mentioned Moe Qureshi, the supervisor of local weather options on the N.B. Conservation Council.
“If you look at NB Power’s most recent annual report it spoke about how Point Lepreau increased the debt quite significantly last year, but they were able to generate quite a lot of profit by increasing exports.”
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