Natural Resources
Labrador and Aboriginal Affairs
November 30, 2010
Funding Provided to
Further Study Energy Projects
for Labrador Coastal Communities
As part of its commitment to providing
reliable and clean power to the people of Labrador, the Provincial
Government is providing Newfoundland and Labrador Hydro, a Nalcor Energy
company, $2.5 million to further study small-scale hydroelectric
projects for Labrador coastal communities.
"Our government recognizes the need for
reliable and clean power for residents of Labrador's coastal
communities," said the Honourable Kathy Dunderdale, Minister of Natural
Resources. "Newfoundland and Labrador Hydro has been studying the use of
small-scale hydroelectric developments which could provide reliable,
clean and available power to coastal communities and the results have
been encouraging. We are providing $2.5 million for the continuation of
this research in order to further explore the natural resources of
Labrador and their potential to provide power to surrounding
communities."
The Coastal Labrador Alternative Energy
Study was conducted by Newfoundland and Labrador Hydro to determine if
alternative energy projects might be feasible to provide power to
Labrador coastal communities. Results of this study were positive and
Newfoundland and Labrador Hydro believes further work is warranted to
explore the potential of small-scale hydroelectric development in
greater detail.
"Many of the Labrador coastal communities
are serviced by diesel stations which provide electricity to residents,"
said the Honourable John Hickey, Minister of Labrador Affairs. "While
the Provincial Government provides almost $20 million annually through
grants and subsidies for electricity users in these communities, we are
hopeful that this study will provide alternative methods of providing
reliable and clean power to these households."
Through the Northern Strategic Plan, the
Rural Deficit Subsidy, the Rate Deferral Subsidy for Diesel Service
Areas and the Enhanced Home Heating Rebate, the Provincial Government
has endeavoured to keep rates in coastal communities as low as possible
and comparable with the Labrador Interconnected residential rate. Budget
2008 also provided $250,000 to support the Coastal Labrador Alternative
Energy Study.
Further to the research to be carried out
by Newfoundland and Labrador Hydro, the Northern Strategic Plan
committed to reviewing commercial rates in Labrador coastal communities
with the view of introducing a comparable rate upon sanction of the
Lower Churchill Project.
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Media contacts:
Ken Morrissey
Director of Communications
Department of Natural Resources
709-729-5282, 685-6612
kenmorrissey@gov.nl.ca
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John
Tompkins
Director of Communications
Department of Labrador and Aboriginal Affairs
709-729-1674, 728-7762
jtompkins@gov.nl.ca
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2010 11 30
10:10 a.m.
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