Lower Churchill Project and the Maritime Link
Nova Scotia's heavy reliance on costly imported coal to generate electricity pollutes the environment and drives up the cost of electricity to end users.
In recent years, Nova Scotia has set out on a path to reduce the province's dependency on this single energy source to generate electricity by developing and exploring diverse local and regional sources of cleaner renewable energy. The Maritime Link is a vital part of that renewable electricity plan.
Emera and Nalcor have entered into an agreement to provide Nova Scotia with access to clean hydro-electricity from the Lower Churchill Project at Muskrat Falls, Labrador through a subsea cable to Nova Scotia.
Under the terms of the agreement, Emera will invest 20 per cent of the estimated cost of the project in exchange for 20 per cent of the electricity for 35 years. This will bring 35 years of price stability for Nova Scotia rate payers.
The link to Newfoundland and Labrador places Nova Scotia within an energy loop rather than at the end of the line as it is currently, which will improve transmission in the region, as well as reliability and access to additional electricity at market prices.
Most importantly, it will help the province meet new legal requirements to reduce greenhouse gas emissions as a result of federal policies requiring a dramatic reduction in the use of coal.
The Lower Churchill project will open up regional power opportunities, create thousands of jobs, and generate $3.5-billion in income for business and labour in Atlantic Canada.
Hydro-electricity from the Lower Churchill is anticipated to flow into the province as scheduled in 2017.
Maritime Link Agreements Signed
On July 31, 2012, formal agreements were reached between the Nova Scotia and the Newfoundland and Labrador governments and the two corporations involved - Nalcor Energy and Emera - to ensure that the interests of Nova Scotians are protected. The finalizing of these commercial legal agreements are an important milestone for the project. They solidify each parties intention to move forward according to the terms and conditions upon which they have previously agreed when it comes to sharing an electricity system.
Federal Loan Guarantee
The Government of Canada has agreed to providing a federal loan guarantee for this regional, nationally significant project. The loan guarantee will help with the financing of the project by providing lower borrowing costs to Nalcor Energy and Emera. As a result, over $100-million in borrowing-cost savings to Nova Scotia rate payers is projected over the life of the project.Federal Loan Guarantee Agreement Highlights of the Federal Loan Guarantee Lower Churchill Project Oversight Agreement Lower Churchill Stability Agreement
More information on the Lower Churchill Project and the Maritime Link: