Minister Confirms Power Available for Labrador through Muskrat Falls Development

Today in the House of Assembly, the Opposition Energy Critic showed the inability to understand what spot markets are and the benefit of being able to recall excess power at any time for the province’s own use, particularly for industrial development in Labrador. The Honourable Jerome Kennedy, Minister of Natural Resources, provided clarity in response to these comments.

“Muskrat Falls will meet the province’s growing energy needs and will also provide power which can be used to address the growing industrial needs in Labrador,” said Minister Kennedy. “The province will have the ability to export 40 per cent into Atlantic Canadian and New England markets to earn revenue with the ability to recall it for our own needs, including industrial development, at any time.”

The development of Muskrat Falls, and subsequently Gull Island, will provide power which can be used to address Labrador’s growing industrial needs. Supplying power to existing and new mine sites, processing operations, and potential energy-intensive industries will continue to be examined. The Provincial Government, through Nalcor, will continue to work with companies who have a requirement for power and are interested in exploring opportunities in Labrador.

“Approximately $15 billion of mining investment is possible in Labrador over the next five to 10 years with potential mining projects in the pipeline that will require an adequate source of power,” said Minister Kennedy. “I have met with numerous mining companies who have all indicated an interest in the power available from Muskrat Falls. Although they are not in a position to sign firm contracts at present, we have assured them that the 40 per cent of extra energy will be available if needed.”

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Media contact:
Heather Maclean
Director of Communications
Department of Natural Resources
709-729-5282, 697-4137
heathermaclean@gov.nl.ca

2012 03 07                                6:25 p.m.