Last October, we, the federal Minister of Energy and Natural Resources, the federal Minister of Housing, Infrastructure and Communities, the Premier of Nova Scotia and the Nova Scotia Minister of Natural Resources and Renewables, met to advance progress in decarbonizing Nova Scotia's electricity grid, and drive to net-zero electricity, in a manner that is affordable for all Nova Scotians.
Over the past several months we have taken a number of important steps to advance these objectives. And today, we are announcing that we are taking further key next steps in our collaborative work.
Today, the Government of Nova Scotia and the Government of Canada agreed to negotiate a loan guarantee for up to $500 million, to reduce the costs of refinancing of the Maritime Link. The Maritime Link is a critical element of the Lower Churchill projects, enabling clean power to flow from Newfoundland and Labrador to Nova Scotia. The refinancing of the Maritime Link concludes federal efforts related to these projects and demonstrates fair treatment for Nova Scotians. This support is consistent with measures already taken in Newfoundland and Labrador to address the affordability challenges resulting from the Muskrat Falls and Labrador-Island Link delays. Like in Newfoundland and Labrador, this federal loan guarantee will help mitigate impacts of these delays on Nova Scotians.
This support is in addition to the Government of Nova Scotia's recent actions to purchase $117 million of the Fuel Adjustment Mechanism balance to address costs associated with the delays in electricity delivery from Muskrat Falls. This action by the Government of Nova Scotia reduced rate increases for residential customers from seven per cent to about one percent in 2024. The up to $500 million loan guarantee from the federal government will further help Nova Scotia prevent a significant near-term rate increase.
Also, today, the Canada Infrastructure Bank (CIB) notified the market that it is working with the Government of Nova Scotia on its Green Choice Program procurement. Nova Scotia's Green Choice Program will provide large electricity customers with access to 100% renewable electricity and help meet Nova Scotia's ambitious goals for renewable energy. Once successful wind energy projects are selected through the procurement process, the CIB could be in a position to provide project level investments and Indigenous equity loans for up to 40 per cent of project costs across up to 500 megawatts. This will reduce the costs to all customers. Investments would fall under the CIB's Clean Power priority sector and will also support ownership by Indigenous communities through its Indigenous Equity Initiative.
Further, the Government of Canada and the Government of Nova Scotia are announcing today that they have reached a common understanding on the Clean Electricity Regulations and that the forthcoming Clean Electricity Regulations provides flexibilities needed to enable Nova Scotia's electricity system to grow and decarbonize all while ensuring it will be affordable, reliable and non emitting. These flexibilities would be available to all provinces and territories.
These are additional steps that reaffirm our collective view that a prosperous net-zero economy requires growing a reliable and affordable electricity system, that reduces greenhouse gas emissions over time - and further underlines the fact that a clean grid will underpin economic competitiveness and prosperity moving forward. This can include areas such as offshore and onshore wind generation, as well as the production and export of clean hydrogen. Independent experts forecast that the Atlantic provinces will see about 100,000 new, good jobs in clean energy by 2050 if we are proactive.
Over the past 10 months, since our last meeting, the two governments have worked together to identify joint priorities to enable a made-in-Nova-Scotia approach to supporting the phase-out coal-fired electricity generation by 2030 and achieving net-zero by 2050.
This partnership approach, informed by respect for jurisdiction and focused on outcomes, has led to concrete results, including investments in critical areas and the establishment of transformational enabling conditions. Progress over these past 10 months has included:
- Increasing clean electricity supply and system flexibility:
- On July 30, 2024, the Government of Canada announced $125 million in funding through the Smart Renewables and Electrification Pathways Program (SREPs) for three wind energy projects that will add 217.6 MW of renewable power, in partnership with the Canada Infrastructure Bank (CIB).
- On March 1, 2024, the Government of Nova Scotia launched the Community Solar Program to help community groups and businesses set up solar gardens and sell their renewable electricity to subscribers who are unable to install their own solar panels.
- On February 15, 2024, the Canada Infrastructure Bank (CIB) committed $138.2 million along with $117.6 million from SREPs to advance three 50-megawatt energy storage projects in Nova Scotia.
- On December 1, 2023, the Government of Nova Scotia launched the Green Choice Program and a procurement for renewable electricity for up to 2,000 GWh of new wind and solar projects. This procurement would be equivalent to about 20% of Nova Scotia's annual electricity needs. This program will enable access to 100% renewable electricity for larger electricity users in Nova Scotia.
- Advancing economic reconciliation:
- The Wskijinu'k Mtmo'taqnuow Agency Ltd. (WMA) is receiving an equity loan of up to $18 million as a part of the CIB's support for the energy storage projects.
- Creating new industry by opening markets for hydrogen:
- On July 31, 2024, the Government of Canada committed up to $300 million to develop a transatlantic hydrogen trade corridor with our German allies, which will seize the opportunity to facilitate industrial decarbonization in Germany and across Europe, and create good jobs and economic opportunities in Atlantic Canada. This investment will be matched by a similar investment from Germany.
- Building a world class off-shore renewables industry:
- The Government of Canada, in partnership with the Government of Nova Scotia, has introduced amendments to create the legislative framework for offshore renewable energy, enabling Nova Scotia to capitalize on its existing offshore strengths to accelerate offshore wind development on Canada's East Coast. The Government of Nova Scotia has set a provincial target to offer seabed leases for up to 5 gigawatts of offshore wind energy by 2030.
- On September 10, 2024, the Government of Nova Scotia introduced mirror legislation to support offshore wind to position Nova Scotia for the first call for bids in 2025.
- Decreasing the cost of projects in Nova Scotia by putting in place extensive investment tax credits (ITCs):
- The Government of Canada is offering broad-based federal tax incentives through the introduction of the Clean Economy Investment ITCs. These measures will create jobs for Nova Scotians by enabling hydrogen development and critical investments in clean electricity generation and transmission that will help drive down energy bills.
- Modernizing Nova Scotia's electricity system through improved regulations:
- On February 27, 2024, the Nova Scotia government introduced legislation to modernize its electricity system. This legislation enables the creation of a new Nova Scotia Energy Board and an independent Energy System Operator. These changes will ensure Nova Scotia ratepayers get the lowest cost options and put the right conditions in place as we transition to a clean grid.
Canada works best when Canadians work together. Today's steps are great examples of how different levels of government can come together and achieve big things. Canada and Nova Scotia recognize the reality of climate change and the two governments agree that an economic plan that is focused on clean energy represents enormous opportunity for Nova Scotia and for Canada.
The Honourable Jonathan Wilkinson Minister of Energy and Natural Resources
The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities
The Honourable Tim Houston, Premier of Nova Scotia
The Honourable Tory Rushton, Minister of Natural Resources and Renewables (Nova Scotia)
