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The Canada Infrastructure Bank (CIB) has closed $217 million in equity financing to enable a new transmission line linking Nova Scotia (NS) and New Brunswick (NB) which will improve the reliability of interprovincial power grids and support the expansion of renewable energy production. The CIB investment will help Nova Scotia construct the 160-kilometre, 345-kilovolt transmission line parallel to the existing connection from Onslow, NS, to Salisbury, NB. Additionally, the CIB is working with Wskijinu’k Mtmo’taqnuow Agency Ltd. (WMA), the economic development partnership owned by the 13 Mi’kmaw First Nations in Nova Scotia to complete a complimentary equity loan. WMA was established to enhance participation in activities that will create economic benefits for the communities. The loan will enable WMA to acquire an ownership stake in the project, utilizing the CIB’s Indigenous Equity Initiative. “The Wasoqonatl project is an important investment towards critical electricity infrastructure in Atlantic Canada. The high-power transmission line will help Nova Scotia and New Brunswick develop enhanced grid connectivity while minimizing costs for ratepayers. By deploying our first equity transaction, the CIB is advancing an impactful project which had faced affordability challenges while creating new jobs and economic opportunities,” said Ehren Cory, CEO, Canada Infrastructure Bank. The CIB’s low-cost equity is expected to save Nova Scotia electricity ratepayers approximately $200 million. A filing to the Nova Scotia Utility Review Board is expected in early April. Construction is expected to be completed in Fall 2028. Construction of the transmission line is expected to support approximately 587 direct and indirect jobs, generate $105 million in GDP and will serve as an example of interprovincial collaboration. The project, to be named Wasoqonatl, will be owned by a limited partnership between Nova Scotia Power Inc. (NSPI) and the CIB, through a regulated utility corporation. Wasoqonatl, pronounced wa•so•hgo•na•dêl, means “illuminate” or “keep light on” in Mi?kmawi?simk (the Mi’kmaw language). “The WMA is a proud partner in this project enhancing energy reliability for both Nova Scotia and New Brunswick. Our equity investment will advance economic opportunity for the communities we serve, returning financial benefit to the Mi’kmaw in Nova Scotia,” said Crystal Nicholas, President, Wskijinu’k Mtmo’taqnuow Agency Ltd. The new regulated utility corporation will be responsible for building, owning and operating the Nova Scotia section of the transmission line, and will be funding the section located in New Brunswick. New Brunswick Power will build, own and operate the New Brunswick section of the project. “NB Power and Nova Scotia Power have built a strong partnership with regional collaboration on many successful projects over the years. We value these partnerships as they help us meet our strategic goals and key priorities, such as grid modernization. This project is an example of our long-standing relationship that will increase the reliability, redundancy and stability in New Brunswick while making way for new renewable energy sources which will directly benefit both New Brunswick and Nova Scotia customers,” said Lori Clark, president and CEO, NB Power. “Together, we’re building more than just infrastructure. We’re building connections – across communities, cultures, utilities and provinces. We’re building a legacy of partnership and progress and ensuring that Mi’kmaw communities have a meaningful stake in Nova Scotia’s clean energy transition. Through secured low-cost financing with our partners, this collaboration is also helping to lower the cost of the project for our customers,” said Peter Gregg, CEO, Nova Scotia Power Inc. To date, the CIB has committed $743 million towards five energy projects in Atlantic Canada, including three wind farms, energy storage infrastructure and this essential transmission intertie. This is the CIB’s first project equity investment. The CIB’s Clean Power sector, which has a target of at least $10 billion in investments, is dedicated to addressing financing gaps in new projects such as renewables, transmission, district energy systems and energy storage. Natural Resources Canada is also announcing funding through its Electricity Predevelopment Program: $3.1 million to NS Power to support predevelopment activities related to the Wasoqonatl Reliability Intertie. This funding is in addition to $9.5 million provided to NB Power from the Strategic Interties Predevelopment Program; $12.6 million to NB Power to advance predevelopment work related to the Mactaquac Life Achievement Project, which will help NB Power ensure the station can operate to its intended 100-year lifespan with a modified approach to maintenance and adjusting and replacing equipment over time, and enhance fish passage; An additional $14 million to the $11.5 million previously announced to NS Power to support effective adaptation, scalability, and readiness for the integration and control of new clean energy infrastructure. “This federal government is a key partner with provinces, territories, Indigenous groups, and industry as we work together to build a 21st-century clean energy economy. The grids of the future not only represent the next step of nation-building for our country: they also place affordability and reliability at their core. The NB-NS transmission line is a great example of a project that will accomplish those goals in Atlantic Canada while also advancing economic reconciliation. Today’s investment in clean electricity in Nova Scotia and New Brunswick will create jobs, drive economic growth, and position Atlantic provinces to take advantage of the economic opportunities presented by the clean economy, now and for generations to come,” said Jonathan Wilkinson, Minister of Energy and Natural Resources. |
