Ottawa to provide $5.9 million initial funding for P.E.I.-N.B. subsea cables
P.E.I. Premier Rob Lantz and Prime Minister Mark Carney co-chair a meeting of Canadian first ministers. Ottawa announced funding of $5.9 million for replacement of aging subsea electricity cables between P.E.I. and New Brunswick. Photo by Stu Neatby /The GuardianArticle contentP.E.I. Premier Rob Lantz has secured initial funding from Ottawa for preliminary work to replace subsea electricity cables linking the Island to the mainland.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentLantz, who co-chaired a Charlottetown meeting between the provincial and territorial premiers and Prime Minister Mark Carney, announced the new funding to reporters on July 23.Article contentArticle contentThe federal government will be providing $5.9 million in funding for preliminary work, which will be used for engineering studies, environmental assessments and other design work.Article contentArticle contentA joint statement from the province and Natural Resources Canada said this funding would be “laying the groundwork for construction by 2028.”Article contentP.E.I. relies upon New Brunswick for the majority of the electricity it consumes, although this can vary depending on how much local wind energy is being generated on a given day.Article contentThe Island has two sets of subsea electricity cables linking it to New Brunswick. One set was built in 2017 at a cost of $142.5 million. Another was built in the 1970s and is nearing the end of its useful life. These are the cables that Lantz is seeking assistance to replace.Article content“Prince Edward Island has outpaced the national average in 10 of the last 11 years of economic growth. And electricity and energy security is becoming a barrier for us to continue that growth,” Lantz told reporters.Article content New Brunswick Premier Susan Holt welcomed the new federal funding for subsea cables linking her province to P.E.I. Photo by Stu Neatby /The GuardianArticle contentNew Brunswick Premier Susan Holt also welcomed the funding commitment for the cable replacement.Article content“We serve as a bit of the energy hub in the Maritimes and so having the right kind of cables (will) let us wield the power they need and watch the growth of the renewable sector in P.E.I.,” Holt said.Article contentArticle contentP.E.I.’s energy strategy warns that the province will face a capacity shortfall of over 100 MW by 2033. Last winter, P.E.I.’s main electricity utility warned customers that the province could face rolling blackouts in the midst of cold snaps if demand exceeds the province’s capacity.Article contentArticle contentNeither the province nor Natural Resources Canada provided an estimate of the full cost of the subsea cable replacement. Last year, former environment minister Gilles Arsenault told The Guardian the cables replacement costs could be as high as $200 million.Article contentEnergy dealArticle contentHolt and Lantz also announced that Nova Scotia, New Brunswick and P.E.I. had signed a new agreement that will allow collaboration on energy projects.Article contentA page of the agreement, seen by the Guardian, states the premiers will “explore opportunities for enhanced regional co-operation” but does not state specifically what this co-operation will look like.Article contentLantz said the agreement makes sense for small jurisdictions and aligns with a new federal electricity strategy from the Carney government.