Latest news with #NewfoundlandandLabradorHydro
Yahoo
4 days ago
- Business
- Yahoo
Quebec, Newfoundland energy touts Canadian independence to Trump: Hydro‑Québec CEO
ST. JOHN'S — The chief executive of Hydro‑Québec says a sweeping new energy deal with Newfoundland and Labrador Hydro is a signal to the United States that Canada can get "big things done." Michael Sabia was in St. John's, N.L., Tuesday, where he pitched the draft deal as a turning point in Quebec's relationship with Newfoundland and Labrador, and a step toward Canada becoming an "energy superpower." "Let's be clear: Canada is under threat," Sabia told a room full of representatives from Newfoundland and Labrador's energy industry. "This is a time of real economic and political uncertainty. It's a time when Canadians need to work together to build the future," he said. "Ultimately, that's what this deal is about. It's about building now to secure Canada's energy future." Sabia was speaking to the crowd at a conference held by Energy N.L., Newfoundland and Labrador's energy industry association. He was joined on stage by Jennifer Williams, president and chief executive of Newfoundland and Labrador Hydro. The two discussed an agreement in principle announced last year that would end a contract signed in 1969 that allows Hydro‑Québec to buy the lion's share of the energy from the Churchill Falls hydroelectric plant at prices far below market value. The contract has long been a source of bitterness in Canada's easternmost province. The new arrangement would end the contentious deal 16 years early and see Hydro‑Québec pay for more power while developing new projects with Newfoundland and Labrador Hydro along the Churchill River. Newfoundland and Labrador would also get more power from Churchill Falls. The memorandum of understanding has its critics. The Opposition Progressive Conservatives have been uneasy with the draft deal, demanding the Liberal government have it independently reviewed. The party also called for a halt to ongoing negotiations of final contracts, saying a proposed national energy corridor could bring better opportunities. Some in Newfoundland and Labrador have also wondered if Hydro‑Québec can be trusted and whether the province will truly get enough value for its resources. "Show me a deal where there hasn't ever been skeptics," Williams challenged when asked about those who have criticisms. Sabia addressed the tangled history of the provinces several times, and said repeatedly that the new arrangement was "balanced" and served the needs of both Newfoundland and Labrador and Quebec. Both sides made concessions, he said, adding that the deal contained items neither side wanted. He refused to elaborate on what those were. Sabia said the agreement is the "single most important signal we can send to the United States right now," as long as it goes ahead as planned. Williams agreed the proposed projects need to proceed smoothly and quickly, repeating "rigour and speed are not incompatible." Both said they were heartened by signs from Prime Minister Mark Carney that he would speed up project approvals. Williams touted the deal's promised economic benefits, which includes $17 billion in revenue to the provincial treasury by 2041. Newfoundland and Labrador expects to be carrying a net debt of $19.4 billion by the end of the current fiscal year. "We have to take this opportunity now," Williams told reporters after the event. "If we don't, something this momentous may not come again for a very long time, and who will we have to blame? We have got to take this moment on." Officials hope to have final agreements hammered out next year. In the meantime, preliminary topographic and soil studies are expected to begin in Labrador this summer, Sabia said. This report by The Canadian Press was first published June 3, 2025. The Canadian Press
Global News
5 days ago
- Business
- Global News
Quebec, Newfoundland energy touts Canadian independence to Trump: Hydro‑Québec CEO
The chief executive of Hydro‑Québec says a sweeping new energy deal with Newfoundland and Labrador Hydro is a signal to the United States that Canada can get 'big things done.' Michael Sabia told an energy conference in St. John's, N.L., that Canada's sovereignty was under threat from U.S. President Donald Trump. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Sabia says the draft deal will strengthen the country's energy security and independence — as long as it goes ahead as planned. A contract signed in 1969 allows Hydro‑Québec to buy most of the power from the Churchill Falls hydroelectric plant in Labrador for prices well below market value. A new tentative agreement unveiled last year would end that contract and see Hydro‑Québec pay for more power while developing new projects with Newfoundland and Labrador Hydro along the Churchill River. Newfoundland and Labrador Hydro president Jennifer Williams agreed the proposed projects need to proceed smoothly and quickly, repeating 'rigour and speed are not incompatible.'
CBC
09-04-2025
- Climate
- CBC
Muskrat Falls lines failed 6 times since January
Social Sharing The Muskrat Falls transmission lines failed six times during the first quarter of 2025, although Newfoundland and Labrador Hydro says the problems had no impact on electricity customers. The problems took on average nine hours to repair, according to the Crown utility, which is still unable to shut down the heavy oil-burning Holyrood Thermal Generating Station because of ongoing concerns about the reliability of Muskrat Falls power. N.L. Hydro revealed the outages on the Labrador-Island Link (LIL), the vast 1,100km transmission system linking the Muskrat Falls dam to eastern Newfoundland, in a three-page letter sent to the Public Utilities Board (PUB) last Thursday. According to the document, the LIL, a system carrying electricity over two independent lines or "poles," was completely offline during only two of the six incidents. During the other four incidents, one of the two poles was still online and able to continue carrying Muskrat Falls electricity toward the Soldier's Pond substation outside St. John's. What's to blame? N.L. Hydro spokesperson Jill Pitcher said in an email that problems with weather and "control system component issues" caused the lines to trip three times in January, once in February and twice in March. "Trips are experienced on all transmission lines," she said. "Transmission lines are designed to trip in response to a variety of system and/or weather conditions. The trips specific to the Labrador-Island Link in Q1 did not interrupt or impact our ability to supply our customers with electricity." Since coming into service, the Muskrat Falls lines have experienced a series of problems, notably related to ice and high winds. Repairs have sometimes taken weeks, as some towers are located in isolated areas and difficult to access depending on the time of year. N.L. Hydro has, however, repeatedly emphasized in recent months that the Muskrat Falls lines are becoming increasingly reliable and that new assets will always experience problems in the first years after commissioning. In 2023, the utility announced a four-year program of repairs and upgrades to the LIL, pegged at $28 million. It said thousands of pieces of equipment had to be replaced or installed, including 1,308 turnbuckles used to regulate voltage and cable length. The 824-megawatt dam is not currently operating at full capacity, as one of its four generating units needs to be completely dismantled, given a hydrogen embrittlement issue. Unit 2 will be out of service until May, according to separate correspondence with the PUB. 22 days ago Duration 1:04 The Holyrood Thermal Generating Station, the second largest industrial polluter in Newfoundland and Labrador, should have closed after the commissioning of the Muskrat Falls project, but will remain open until the beginning of the next decade, given continuing doubts about the reliability of the LIL. N.L. Hydro promises to close the plant in the early 2030s, when it will have built a new combustion turbine at Holyrood and an eighth generating unit at the existing Bay d'Espoir dam. Those projects are expected to cost just shy of $2 billion, according to the Crown utility. A recent independent report stated that keeping the existing Holyrood plant open just five years beyond its potential 2030 retirement date would cost N.L. Hydro more than $700 million. The Muskrat Falls project was expected to cost $7.4 billion when it was approved by the Newfoundland and Labrador government in 2012. By June 2023, the bill had risen to $13.5 billion.
Yahoo
23-03-2025
- Business
- Yahoo
N.L. government looking to sell idle Buchans energy plant
While the Buchans plant is owned by the provincial government, it's operated by Newfoundland and Labrador Hydro, and hasn't been in used since 2014. (Submitted by Robert Woolgar) The Newfoundland and Labrador government is looking to offload a long-idle power plant in central Newfoundland, and says it's hearing interest from a renewable energy company that plans to double the plant's former output. Industry, Energy and Technology Minister Andrew Parsons said the Buchans generation station, which hasn't been operational since 2014, can be put to better use. "It's sitting there idle and the conversation we're about to have is what we intend, or hope to see, done with it," Parsons said. Last week the province issued a non-binding letter of intent to a consortium, which includes Qalipu First Nation, Qalipu Holdings LP, Angler Solutions and St. John's-based renewable power company Growler Energy. Growler Energy CEO Robert Woolgar says the Buchans plant is attractive because so much of the infrastructure is already there. (Submitted by Robert Woolgar) Growler Energy CEO Robert Woolgar says he's worked in the energy sector for 30 years and is familiar with many of the province's assets, but Buchans stands out in particular because it's the community where his wife is from. "Growler — being a renewable energy company and this being a smaller plant — there could be a spot there for us to help support and basically get the plant back operational," said Woolgar. Taking over a plant with existing infrastructure is enticing, he adds: these days, there's more interest in decarbonization and electrification, especially at a time when the public utility is looking to increase its energy capacity. "Having these resources there that really just need somebody to come in and basically get them operational again, that adds value," said Woolgar. Much of the necessary plant infrastructure is already in place, he said, including the dam and reservoir. "You're not creating that new asset more than just basically getting an aging asset back to operations." Woolgar said the company could double or even triple the plant's energy generating capabilities, which was previously 1.8 megawatts. It will still take time before Growler Energy and the government make a deal, said Woolgar. Before they shake hands, they'll need to complete a feasibility study and carry out community engagement. If they strike a deal, first energy could be produced in late 2028, which would be sold back to the province through a power purchase agreement. 'Big win here' Parsons called the possible deal a "win-win," as Newfoundland and Labrador Hydro doesn't have plans for the Buchans plant. The Buchans community is supportive of the plan, he said, adding that the Qalipu First Nation are involved in the proposal. "What we're doing is allowing [Growler Energy] to start the feasibility study to figure out what this will entail. So again, I think it's a great move all around," Parsons said. Minister Andrew Parsons says the idle Buchans plant could soon be generating power again. (Elizabeth Whitten/CBC) Parsons added the province is always going to be looking for more power for residential growth and commercial growth. "This is a big win here. And the work itself will be undertaken by a private company using their funds, and then they'll work out to see if there's an affordable power-purchase agreement with Hydro. Hydro is not going to pay just anything for this. It has to be reasonably priced." Parsons said if the Buchans plant sits there, the province will be responsible for its decommissioning, deconstruction and cleanup. "That's why I'd like to see the site become operational again and bring all the benefits that these things do," he said. Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Sign up for our daily headlines newsletter here. Click here to visit our landing page.
CBC
10-03-2025
- Business
- CBC
Churchill Falls agreement is 'full speed ahead' as N.L. Hydro, Hydro-Quebec meet in Labrador
Sitting on the doorstep of the Churchill Falls hydroelectric plant, Hydro-Quebec CEO Michael Sabia and Newfoundland and Labrador Hydro CEO Jennifer Williams say talks to formalize a new 50-year deal on power is full speed ahead. "This agreement opens, really, a new chapter. A much, much better balanced, more collaborative chapter in the history between Newfoundland and Labrador and between Quebec," Sabia told reporters Monday. "This transaction is on track, full speed ahead, and it'll be delivered." The trip to Churchill Falls on Monday was part of talks to formalize what is seen as a generational deal between Newfoundland and Labrador and Quebec. The original deal, which was signed in 1969 and expires in 2041, was ceremoniously ripped up by Newfoundland and Labrador Premier Andrew Furey during the announcement of a memorandum of understanding between both provinces in December. Under the new framework agreement, Newfoundland and Labrador will receive an average of $1 billion annually up to 2041, retroactive to 2024, and the stream of revenue will continue to escalate after that. Williams told reporters she feels discussions are moving in the right direction. Both provinces have committed to having an agreement in place by spring, 2026. WATCH | Sabia and Williams say Churchill Falls deal is gaining momentum: Hydro officials in N.L. and Quebec meet in Churchill Falls to work on new agreement 3 hours ago Duration 2:54 If there was any worry a new agreement for the Churchill Falls megaproject could be derailed, that was put to rest on Monday. Newfoundland and Labrador Hydro CEO Jennifer Williams and Hydro-Quebec CEO Michael Sabia met in the community, and say the deal is gaining momentum. The CBC's Terry Roberts explains. "A lot of momentum [is] being built, and I think it's even strengthening," Williams said. "Seeing us together is, I think certainly for our province, one of the most important things for people to see.… If you were to go here into the control room at Churchill Falls, you would hear that the teams work really well together." New deal is balanced, unlike 1969: Sabia Opposers of the deal have criticized it for being too alike the original, signed in 1969 — specifically citing comments made by Hydro-Quebec senior vice-president Dave Rhéaume to La Presse, where he said the MOU is "the same thing as in 1969 at the end of the day." Asked by CBC News for his thoughts on the new deal, Sabia reiterated that he believes the it's balanced and benefits both provinces. He also called the 1969 deal unfair and unbalanced toward Newfoundland and Labrador. "Those days are coming to an end, and they will be replaced by a deal that, in my opinion and our opinion, is a balanced deal that offers much greater flexibility to Newfoundland and Labrador Hydro," Sabia said. "In that initial agreement, Newfoundland found itself in a circumstance where prices were essentially fixed. That is not, not, the case with this agreement.… Prices increase over time. [That's] number one. And number two, Newfoundland has access to a growing pool of energy." The deal also includes developing other projects on the Churchill River — like Gull Island — which has a targeted year for commissioning as 2035. Hydro-Quebec would be the project lead and manage its construction, which would also mean it will have to absorb any cost overrun. N.L. Hydro would operate the facility and get access to 225 megawatts of power. It's a project Sabia is confident will happen. "Is there a percentage higher than 100 per cent? Cause if there is, that's where I would be," Sabia said. "As we sort through all this and get to the definitive agreements, Gull Island will happen." Williams and Sabia were asked about how economic tariffs from the United States could play into discussions. They say there's a renewed sense of urgency to get a deal done and work together as Canadian provinces. "We're going to get it done as quickly as we practically can.… But we're very focused," Sabia said. "To be honest, in my opinion this deal has never been more important." Williams said working together is key to helping secure energy in the future, and believes the Churchill Falls deal will bring economic benefits across Canada.
