NB Power says bringing electricity via Atlantic Loop could be cost-prohibitive
New Brunswick's power utility has questioned the viability of the Atlantic Loop energy project because of the potential costs.
The Atlantic Loop aims to wean Nova Scotia and New Brunswick off coal with hydroelectricity from Quebec and Newfoundland and Labrador. For New Brunswick, the project proposes to bring an additional 1,150 megawatts of transmission capacity into the province from Quebec by 2030.
"The new transmission infrastructure would reinforce currently limited pathways and alleviate bottlenecks in existing infrastructure, notably in the southeast of New Brunswick," said a report from NB Power. It would also offset greenhouse gas emissions from Coleson Cove and Bayside generating stations and allow the province to achieve a 98 per cent reduction of greenhouse gases from 2005 levels after 2035, it added.
However, the report said the loop is an expensive option.
"The combination of infrastructure cost plus increased generation and purchased power costs would raise costs to New Brunswick electricity customers by $270 to $310 million per year in the 2040s, an approximate seven to nine per cent increase in costs in those years over the scenarios without the Atlantic Loop," it said.
While the benefits of the project are numerous, the utility said the capital investment is estimated at roughly $6 billion.
"The capital, financing and operations and maintenance costs of the Atlantic Loop are large, exceeding $100 million in each year after the project comes into service. This creates a significant barrier to overcome in order to make the project a least-cost solution for New Brunswickers," it said.
"There would need to be a larger savings on the side of generation and purchased power costs to make the project viable, but we see the opposite happening, with increases to these costs under the Atlantic Loop scenarios."
The utility said global challenges such as inflation, political and social unrest, supply chain disruption and climate change are affecting NB Power. Over the past year, it said it had conducted surveys and discussions with First Nations and customers to understand their priorities and needs for power generation and distribution.
"The results showed us that New Brunswickers prioritized low rates and service reliability above clean energy, customer options and debt management," it said.
NB Power proposed building lower-cost, carbon-free sources of electricity, such as wind and solar farms in the province. However, it warned that wind or any other renewables would require significant investment in transmission and distribution infrastructure for which the costs have not yet been calculated.
"The general takeaway is that there is no one solution," it said.
This report by The Canadian Press was first published Aug. 4, 2023.
For more New Brunswick news visit our dedicated provincial page.
CTVNews.ca Top Stories
Western University researchers unlock potential 'cure' for ALS
New research out of London, Ont.'s Western University is shedding light on a potential cure for ALS, in which the targeting of the interaction between two proteins can halt or fully reverse the disease's progression.
Police release 3D images of young child found in an Ontario river two years ago
Police have released a three-dimensional image of a young child whose remains were discovered in the Grand River in Dunnville, Ont. almost two years ago.
B.C. brings in law on name changes on day that child killer's new identity revealed
The BC NDP have tabled legislation aimed at stopping people who have committed certain heinous acts from changing their names.
Kamala Harris drops F-bomb during White House live-stream
U.S. Vice-President Kamala Harris used a profanity on Monday while offering advice to young Asian Americans, Native Hawaiians and Pacific Islanders about how to break through barriers.
B.C. man fighting for refund after finding someone living at Whistler vacation rental
Edwin Mostered spent thousands of dollars booking a vacation home in Whistler, B.C., for a group skiing trip earlier this year – or so he thought.
Avs forward Valeri Nichushkin suspended at least six months
Colorado Avalanche forward Valeri Nichushkin was suspended for at least six months without pay and placed in Stage 3 of the league's player assistance program.
Collapsed Baltimore bridge span comes down with a boom after crews set off chain of explosives
Crews conducted a controlled demolition Monday to break down the largest remaining span of the collapsed Francis Scott Key Bridge in Baltimore.
Security video caught admitted serial killer disposing of bodies in Winnipeg garbage bins
Security video caught admitted serial killer Jeremy Skibicki on multiple late-night outings, disposing of body parts in nearby garbage bins and dumpsters in the middle of the night.
Mortgage companies could intensify the next recession, U.S. officials warn
U.S. officials worry the next recession could be intensified by a cascading series of failures in the mortgage industry caused by crashing home prices, frozen financial markets and soaring delinquencies.