The Atlantic Loop is being suspended, according to Emera, the parent company of Nova Scotia Power.
This occurs after the province on Wednesday unveiled legislation that restricts the utility’s revenues.
The law caps the rate rise for electricity at just 1.8% over the following two years, which is much less than the roughly 14% general rate increase Nova Scotia Power had requested.
As coal is phased out, a new research contends that Atlantic Loop has to be a part of the energy mix.
Other amendments to the law would restrict the review board from allowing a rise in the utility’s rate of return on equity exceeding 9. 25%, while any excess earnings over the permitted level would still be fully remitted to ratepayers.
According to Emera, the ramifications of the new legislation for province’s customers are extremely real.
By restricting how the firm may invest in dependability and cleaner energy, it affects Nova Scotia Power’s capacity to service customers, according to the statement.
“The Atlantic Loop is a key piece of the solution to meet Nova Scotia’s mandated 2030 clean energy targets. While we determine the entire impact of this legislation, we have put the Atlantic Loop project on hold.
The Atlantic Loop is a planned energy route that would supply hydroelectricity from Quebec and Labrador to the four Atlantic provinces. It is frequently mentioned as a crucial factor in assisting Nova Scotia in achieving its climate goals, which include eliminating coal-fired electricity generation and having 80% of the province’s energy come from renewable sources by 2030.
When asked about Emera’s decision to put the project on hold, Premier Tim Houston responded on Friday, “We’ve always stated the loop is an important part that will assist us accomplish our environmental goals.”
Houston argued that even without the loop, it is still possible to reach the legal climate requirements.
Because of this, he explained, “we’ve been concentrating on solar, wind, and legislation to make hydrogen happen.”
Zach Churchill, the leader of the liberal party, said it was troubling that Emera was pursuing this move and that it was up to the government to engage with the firm.
It’s obvious that the administration passed a piece of law without considering the implications on that front, he added.
The Atlantic Loop, according to the Premier, was never a project that was assured. He pointed out that Ottawa has not yet committed to funding the project, which is primarily dependent on federal funding.
We have always concentrated on finding different approaches to achieve those goals because of this.
NDP leader Claudia Chender, meanwhile, expresses concern over the lack of specific planning for what these potential alternate routes might entail.
“We have repeatedly questioned this administration and NS Power about their backup plans. And while we have heard that there is a plan B, we have never been told what it is, which is obviously troubling.
After N.S. takes action to limit profits, Emera suspends the Atlantic Loop project.
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