Federal government urged to share costs of New Brunswick’s decarbonization efforts
New Brunswick’s push to decarbonize its power supply, a transition that could cost up to $9 billion, faces a critical juncture as provincial leaders call for federal financial assistance. Lori Clark, CEO of N.B. Power, emphasized the federal government’s responsibility in helping to manage these meaningful costs, rather than shifting the burden onto customers.
Clark stated, “I do really beleive that the federal government has a role to play in this as well. They’ve set the deadlines for net zero.” This sentiment highlights the perceived obligation of the federal government,given its role in setting national climate targets.
Further underscoring the need for federal partnership, a proponent of a natural gas line extension, identified as Herron, is seeking federal support. He suggested the possibility of a government ownership stake in the project, proposing that initial state and First Nation ownership could “de-risk the project.” This approach, he believes, would expedite permitting and make the investment more attractive to the private sector at a later stage.
Federal Minister of Housing, Infrastructure and Communities, Sean Fraser, while not committing to direct ownership, acknowledged the precedent set by the federal government’s 2018 acquisition of the Trans Mountain pipeline expansion.Fraser indicated that while the preferred approach is to foster an environment that incentivizes private investment, the government remains open to considering direct involvement in projects deemed essential for the long-term interests of Canadians.”But we don’t want to write off the possibility that certain kinds of investments might potentially be required for particular projects to make them viable if we believe the long-term interests of Canadians will be served,” Fraser commented.
The discussion around decarbonization costs and potential federal involvement comes as New Brunswick considers significant infrastructure upgrades and transitions to cleaner energy sources. The Point Lepreau Nuclear Generating Station, operational since 1983, is a cornerstone of the province’s current power generation. Experts, such as Holt, have suggested that a second large-scale nuclear power plant could be a viable option to meet growing electricity demands within New Brunswick and possibly for export to neighboring regions.
