The Canada Infrastructure Bank (CIB) has closed $217 million in equity financing to enable a new 160 km, 345 kV transmission line linking Nova Scotia (NS) and New Brunswick (NB) to improve the reliability of interprovincial power grids and support the expansion of renewable energy production.
The CIB investment will help Nova Scotia construct the transmission line parallel to the existing connection from Onslow, NS, to Salisbury, NB. Additionally, the CIB is working with Wskijinu'k Mtmo'taqnuow Agency (WMA), the economic development partnership owned by the 13 Mi'kmaw First Nations in Nova Scotia to complete a complimentary equity loan.
The loan will help WMA to acquire an ownership stake in the project, utilizing the CIB's Indigenous Equity Initiative.
The CIB's low-cost equity is expected to save Nova Scotia electricity ratepayers approximately $200 million. While a filing to the Nova Scotia Utility Review Board is expected in early April, construction is expected to be completed in Fall 2028.
Construction of the transmission line is anticipated to support about 587 direct and indirect jobs, generate $105 million in GDP and serve as an example of interprovincial collaboration.
The project, to be named Wasoqonatl, will be owned by a limited partnership between Nova Scotia Power (NSPI) and the CIB, through a regulated utility corporation. The new regulated utility corporation will be responsible for building, owning and operating the Nova Scotia section of the transmission line, and will be funding the section located in New Brunswick. New Brunswick Power will build, own and operate the New Brunswick section of the project.
The CIB has committed $743 million towards five energy projects in Atlantic Canada, including three wind farms, energy storage infrastructure and the current transmission intertie. The CIB's Clean Power sector, which aims for about $10 billion in investments, is dedicated to addressing financing gaps in new projects such as renewables, transmission, district energy systems and energy storage.
Natural Resources Canada is also announcing funding through its Electricity Predevelopment Program:
- $3.1 million to NS Power to support predevelopment activities related to the Wasoqonatl Reliability Intertie. This funding is in addition to $9.5 million provided to NB Power from the Strategic Interties Predevelopment Program;
- $12.6 million to NB Power to advance predevelopment work related to the Mactaquac Life Achievement Project, which will help NB Power ensure the station will operate to its intended 100-year lifespan with a modified approach to maintenance and adjusting and replacing equipment over time, and enhance fish passage;
- An additional $14 million to the $11.5 million previously announced to NS Power to support effective adaptation, scalability, and readiness for the integration and control of new clean energy infrastructure.
