Ottawa, Canada — ESI-AFRICA.COM — 23 November 2010 – Energy services company Emera Incorporated is to fund nearly US$1.76 billion (R12.3 billion) in a C$6.2 billion (R42.9 billion) hydro-electric power project planned for the Canadian province of Newfoundland and Labrador.
Announcing the project, Emera said in a press release issued here that, under the arrangement, electricity from a power generation site at Muskrat Falls on the Lower Churchill River would be transmitted to Newfoundland, Nova Scotia and New England. The project would generate thousands of jobs and billions of dollars in economic activity, Newfoundland premier Danny Williams said in a statement.
Newfoundland’s provincially owned Nalcor Energy would spend C$2.9 billion (R20.1 billion) to build generating facilities at Muskrat Falls on the Lower Churchill River, Emera added.
The statement revealed that Emera and Nalcor would jointly develop transmission in Newfoundland and Labrador through a new provincial transmission utility, of which Nalcor would own 71% and Emera 29%.
It went on to say that Nova Scotia Power would strike agreements with Nalcor to build underwater transmission links between Newfoundland and Nova Scotia, in return for 20% of the energy from Muskrat Falls for 35 years. Nova Scotia Power would own 100% of the maritime link.
A transmission link from Labrador to the island of Newfoundland would cost C$2.1 billion (R14.5 billion), of which Emera would invest about C$600 million (R4.1 billion). A maritime link from Newfoundland to Nova Scotia is seen as costing C$1.2 billion (R8.3 billion). Emera would fund this project 100 %.