Ontario Minister of Energy Bob Chiarelli and Newfoundland and Labrador Minister of Natural Resources Derrick Dalley announced July 20 a commitment to explore opportunities for importing clean and reliable electricity from Newfoundland and Labrador into Ontario. The announcement was made in the context of the 2015 Energy and Mines Ministers’ Conference in Halifax.
The announcement comes directly following the Council of the Federation’s recent agreement on the Canadian Energy Strategy. Ontario and Newfoundland and Labrador are working to examine options around clean electricity trading that would create mutual benefits for the two provinces.
A new high-level working group comprising provincial government officials, along with representatives from Ontario’s Independent Electricity System Operator and Newfoundland and Labrador’s Nalcor Energy, will undertake a thorough study of the potential for firm electricity trade between the two provinces.
A statement said, “Discussions will be guided by our shared goals of reducing costs, fighting climate change, improving system reliability, and supporting a dynamic economy.”
Following this work, recommendations will be made to Ontario and Newfoundland and Labrador’s Ministers on clean electricity trade opportunities that are mutually beneficial.
The Ontario 2013 Long-Term Energy Plan (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.
Muskrat Falls, currently under construction in Labrador, has a planned capacity of 824 MW. As part of the 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.
Upstream from Muskrat Falls is Gull Island, a 2,250 MW hydroelectric development, with an estimated 12TWh of average annual energy production.