Premier announces approval of Granite Canal hydroelectric project

Premier Brian Tobin today announced that Newfoundland and Labrador Hydro has been given approval to proceed with the Granite Canal hydroelectric project. The 40 megawatt project is needed to meet the electrical demands for the Island Interconnected System in 2003. The premier was joined for the announcement by Mines and Energy Minister Paul Dicks and Environment and Labour Minister Oliver Langdon.

Granite Canal is within the existing Bay D�Espoir reservoir system, between Granite Lake and Meelpaeg Reservoir and is the lowest cost generation project within Hydro�s system. The project will cost approximately $135 million over a design and construction period of 39 months. Local engineering and construction companies are expected to be involved with the creation of 350 direct jobs.

It is important to note this new project is in no way related to the Labrador Infeed or potential natural gas development. This project would have had to be developed to provide sufficient power and energy to meet the Island electrical demands in the near future.

Through amendments passed in the House of Assembly in 1999, government has the authority to exempt projects which are in the public interest. Therefore, the Granite Canal Project will be exempt from the Electric Power Control Act and the Public Utilities Board Act.

Newfoundland and Labrador Hydro anticipates there could be a total requirement of 100 megawatts by 2006/2007. With Granite Canal supplying 40 megawatts, Newfoundland and Labrador Hydro is in discussion with Corner Brook Pulp and Paper for additional power from a 15 megawatt co-generation project and Abitibi Consolidated for another 15 megawatts of hydroelectric power. Additionally, the province is also exploring wind power as a potential source as this technology becomes more reliable and cost effective.

Media contact: 

Heidi Bonnell, Office of the Premier, (709) 729-3960.
Donald J. Barrett, Newfoundland and Labrador Hydro, (709) 737-1370.

2000 05 16                                         11:25 a.m.