Transmission line between N.S. and N.B. gets $217M in federal funding

A major energy infrastructure project that will double the capacity of power lines between Nova Scotia and New Brunswick will be paid for, in part, by the Canada Infrastructure Bank (CIB).

Officials gathered Wednesday in Halifax to announce a financing deal worth $217 million.

"We'll be alongside Nova Scotia Power as an equal owner in the project," said Hillary Thatcher, managing director of investments for the CIB, a federal Crown corporation.

Thatcher said the deal requires approval from Nova Scotia's energy regulator, the Nova Scotia Utility and Review Board. She said the complete terms of the agreement will be shared upon approval.

The CIB and Nova Scotia Power also plan to bring in a collective of Mi'kmaw communities as additional partners. The Wskijinu'k Mtmo'taqnuow Agency (WMA), which is co-owned by 13 Mi'kmaw bands in Nova Scotia, is negotiating a separate loan with CIB that will be used to buy a stake in the project.

Glooscap Chief Sidney Peters said WMA's stake will provide "long-term" financial returns for the 13 Mi'kmaw communities in the agency.

"For too long, Indigenous communities have been left out on the sidelines of major infrastructure projects. That is changing," Peters said.

Chasing renewable energy goals

An upgrade to power grids in Nova Scotia and New Brunswick has been in the works for several years. It was once part of the larger Atlantic Loop, which would have connected grids in all the Atlantic provinces and Quebec, but that project was abandoned in 2023 after government officials declared it "not viable."

Nova Scotia and New Brunswick have since shifted their focus to upgrading one 96-kilometre stretch of power lines between Onslow, N.S., and Salisbury, N.B.

Nova Scotia Energy Minister Trevor Boudreau said the work is "critical" to a clean power plan that aims to have 80 per cent renewable electricity on the grid by 2030. To reach that goal, Nova Scotia will have to double its current use of renewables.

"This line will add reliability to our grid with a better link to New Brunswick and to the larger North American grid that we can lean on in times of stress," he said.

New Brunswick Energy Minister René Legacy said the importance of the project is underscored by the trade war with the United States.

"This is the right answer. The best method for us to retaliate or defend ourselves is to take care of each other, to take care of home," he said. 

Electrons flowing by 2028

Nova Scotia Power CEO Peter Gregg echoed Legacy's sentiment.

"That East-West connection at these uncertain times now, I think is a strategic piece of infrastructure for us to really be sharing resources equally between two neighbouring provinces," said Gregg.

Gregg said he expects construction to begin this year and be completed by 2028.

He said the total cost of the project has been estimated at about $800 million, but he's "confident it will come in less than that."

Gregg said the cost of financing through CIB stands to be $200 million cheaper than other financing options.