Natural Resources
July 20, 2015

Province Committed to Long-term Prosperity

Ministers Commit to Evaluate Clean Electricity Trade Opportunities

The Honourable Derrick Dalley, Minister of Natural Resources, and the Honourable Bob Chiarelli, Minister of Energy, Government of Ontario, have committed to exploring opportunities for importing clean and reliable electricity from Newfoundland and Labrador into Ontario. The commitment was made at the 2015 Energy and Mines Ministers’ Conference currently underway in Halifax, Nova Scotia.

This announcement comes directly following the Council of the Federation’s recent agreement on the Canadian Energy Strategy and is a demonstration of their commitment to strengthening the economy, creating jobs, ensuring a secure supply of energy for all Canadians, supporting energy innovation and addressing climate change. Newfoundland and Labrador and Ontario are working together in that spirit to examine options around clean electricity trading that would create mutual benefits for the two provinces.

“We look forward to working with the Government of Ontario on clean electricity trade and exploring the potential long-term benefits that may be achieved for both our provinces. We will discuss opportunities, through the development of the Lower Churchill Project in Labrador and other options, to bring Newfoundland and Labrador’s surplus hydroelectricity to Ontario and contribute significantly to Ontario’s clean energy needs.”
- The Honourable Derrick Dalley, Minister of Natural Resources

A new high-level working group comprised of provincial government officials, along with representatives from Nalcor Energy and from Ontario’s Independent Electricity System Operator (IESO), will undertake a thorough study of the potential for firm electricity trade between the two provinces.

Discussions will be guided by the shared goals of reducing costs, fighting climate change, improving system reliability and supporting a dynamic economy.

"Ontario is committed to working with neighbouring provinces to find a way to benefit Ontario ratepayers and businesses while supporting expansion of clean, renewable resource development. Our working group with Newfoundland and Labrador has the potential to deliver that win-win, and we're going to work hard to achieve results in the months and years ahead."
- The Honourable Bob Chiarelli, Minister of Energy, Government of Ontario

Following this work, recommendations will be made to Newfoundland and Labrador and Ontario’s ministers on clean electricity trade opportunities that are mutually beneficial.

QUICK FACTS

• The Honourable Derrick Dalley, Minister of Natural Resources, and the Honourable Bob Chiarelli, Minister of Energy, Government of Ontario, have committed to exploring opportunities for importing clean and reliable electricity from Newfoundland and Labrador into Ontario.
• As outlined in Newfoundland and Labrador’s long-term Energy Plan, development of vast renewable energy resources in an environmentally sustainable manner demonstrates the province’s commitment to a healthier global climate, while providing the people of the province lasting benefits.
• The 824 megawatt hydroelectric generating facility being constructed at Muskrat Falls will significantly reduce greenhouse gas emissions – equivalent to taking approximately 900,000 vehicles off the road each year. As part of this project, the Maritime Link will connect the island of Newfoundland with Nova Scotia and will help facilitate the development of transmission links between Newfoundland and Labrador and Canadian and US markets that require renewable energy.
• Gull Island – a 2,250 MW hydroelectric development upstream from Muskrat Falls, with an estimated 12TWh of average annual energy production – has the potential, when developed, to contribute further substantial greenhouse gas emission reductions in the markets in which it will be sold.
• For more information about the province’s Energy Plan Progress Report, visit: www.nr.gov.nl.ca/nr/pdf/energy_plan.pdf
• The 2013 LTEP indicated that Ontario will consider opportunities for clean imports from other jurisdictions when such imports would have system benefits and are cost effective for Ontario ratepayers. Read Ontario’s 2013 LTEP: www.energy.gov.on.ca/en/ltep/
• Ontario currently trades a significant amount of electricity on the spot market as part of the regular operation of its electricity system.
• Ontario is committed to combatting climate change, which creates new economic opportunities in renewable energy and clean technologies. Ontario's environmental sector has 3,000 firms, employs 65,000 people, and is worth an estimated $8 billion in annual revenues and $1 billion in export earnings.

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2015 07 20                              10:30 a.m.