The substance of Hydro’s mission is to satisfy the contracts with Emera to get large amounts of power flowing into Nova Scotia for the betterment of that province and its ratepayers. The Island could easily live without the Muskrat Fals project and in fact, other than for the onerous Emera contracts, NL ratepayers would be best off if it was abandoned and left to rust.
PlanetNL52: Happy Anniversary Emera on 1 Year of Official Energy Delivery
Not Quite What Emera Bargained For
Despite all the bad news related to Labrador Island...
Based on the patronizing and insignificant concessions observed to date, the callous attitude toward the environmental review, and the not-so-hidden desire to exploit NL Hydro to their sole advantage, stakeholders including area locals and any honest politicians should be telling Risley, Paddick, and WEGH2 to take a hike.
The relatively large size of the LIL to the small Island system means that if it trips out suddenly, the Island grid will experience a major disruption that risks a complete blackout. The only solution Hydro appears to have found to mitigate this risk is to build out additions to expand reserve capacity that can absorb the impact of such an event. That’s the simple and direct explanation that Hydro is failing to provide.
This province has a big leg up on virtually all other places around the world seeking to develop green hydrogen production; many have lfewer resource strengths than we have, and are making big plans to participate in what may be a very profitable new industry.
Given that over 11 TWh of energy production from the full World Energy development, a notional fee of 1 c/KWh as a form of land rent, would generate $110M. Should the operation be turning profits as high as $2B USD, this level of rent should not be the least bit objectionable.
Labatt is being assisted on a much more generous scale than the public. If Labatt received subsidy proportional to the GHG reduction in the EV scenario, their minor project would net them a 3% subsidy.