Loan Guarantee Will Result in Savings of Over $100 Million For Nova Scotia Families
A historic loan guarantee signed today, Nov. 30, between Nova Scotia, Newfoundland and Labrador and the government of Canada will significantly reduce project costs of the Lower Churchill Hydroelectricity Project. This will result in cleaner energy and lower prices in the long term for Nova Scotia families.
It is estimated that the loan guarantee will result in savings over the lifespan of the project to be more than $100 million for Nova Scotia ratepayers.
"I've said it before and I will say it again, the Lower Churchill Hydroelectricity Project is a game-changer for Nova Scotia and Atlantic Canada," said Premier Darrell Dexter.
"The project will not only transform the energy landscape of this province, it will create good jobs and grow the economy, it will ensure that Nova Scotians are no longer subject to the volatility of fossil fuel prices, and it will build a stronger future for all Nova Scotians."
In order for the Government of Canada to approve the loan guarantee, the project had to:
- have national and regional significance
- economic and financial merit
- significantly reduce greenhouse gas emissions.
The federal loan guarantee ensures that the investment in a cleaner, greener economy will be done with minimal impact on ratepayers in both provinces.
The Lower Churchill project is part of jobsHere, Nova Scotia's plan to grow the economy. The project is expected to generate $3.5 billion in jobs and economic spinoffs, including thousands of jobs for Nova Scotians.
"Today is a great day for Nova Scotia, Newfoundland and Labrador and all of Canada," said Premier Dexter. "I want to thank Prime Minister Harper and Premier Kathy Dunderale for their leadership on this file. They recognized, like I did, that the Lower Churchill project is about more than clean energy, lower, more stable power rates and good jobs. It is about building a stronger, more unified country."
Nova Scotia has one of the most aggressive renewable energy targets in Canada. The province has committed that 40 per cent of all electricity will come from renewable sources by 2020. The Lower Churchill hydroelectricity project is the lowest cost choice available to ensure Nova Scotia meets that requirement.
"We are pleased with the federal government's support for Atlantic Canada and clean energy development, as characterized by these projects. The Maritime Link represents the lowest cost renewable electricity option for Nova Scotia customers." said Chris Huskilson, CEO, Emera Inc.
"The project will provide a net benefit to customers in the hundreds of millions of dollars of between $200-$500 million."
In September, the province signed an agreement with the government of Canada that will help save Nova Scotia families an additional $1.3 billion on their power bills, while achieving the federal government's new greenhouse gas emission targets.
The federal loan guarantee enables completion and submission of the application to the Utility and Review Board under the Maritime Link Act. This will ensure that Nova Scotia chooses the option that provides the lowest and fairest electricity rates.