Professor cites loss of control
Published Tuesday November 3rd, 2009
Autonomy: Moncton academic says Quebec ownership of electrical grid will keep N.B.'s renewable energy projects offline
FREDERICTON - The proposed takeover of NB Power by Hydro-Québec will completely scuttle New Brunswick's chances of building a renewable energy sector, charge critics of the government's plan to sell the provincial electrical utility.
The problem, they argue, is that Quebec ownership of the local electrical grid will keep renewable energy projects in New Brunswick - like those involving wind or tidal power - offline.
That's because the local power grid will be filled to capacity with hydro power from Quebec, leaving no room for local power production, says Yves Gagnon, an energy expert at the Université de Moncton.
Gagnon contends New Brunswick could be a major player in the development of clean and renewable wind power.
He said a recent Danish study revealed that New Brunswick could develop up to 4,500 megawatts of wind energy for the export market. That's more than all the electrical power now produced in province, he said.
"We could have doubled our capacity in wind alone. But instead of capitalizing on that and becoming a leader in modern electricity production, which was part of its platform, the Graham government has given away the keys to NB Power," said Gagnon, the K.C. Irving Chair in Sustainable Development at the Université de Moncton.
"You can't be a leader in the trucking industry if you give away the keys to your truck."
Gagnon acknowledges that the proposed $5-billion deal to sell NB Power to Hydro-Québec offers clear benefits, such as the elimination of the utility's $4.75-billion debt and short-term relief in power rates.
"But in the long term we lose our control and autonomy in the energy sector," he said. "We're submitted to the needs of another province in terms of how our energy sector will develop.
"And we're losing an engine of economic development."
Gagnon is not alone in his view.
On Monday, the New Brunswick Conservation Council issued a similar warning.
David Coon, the council's executive director, said the distribution wing of NB Power should not be sold to Hydro-Québec.
According to Coon, it will be far easier to reduce energy consumption and boost renewable power output if the distribution wing remains in public hands.
"We need to keep control over the wires and electricity sales to New Brunswickers in order to make a rapid transformation to a sustainable and renewable energy future," Coon said in a release.
Conservative Opposition leader David Alward appears to agree.
"One of the things this decision will effectively kill in New Brunswick is any renewable energy sector for the future," he recently said, predicting the death of wind and tidal power developments.
"This government no longer has any plan for future energy development."
But Energy Minister Jack Keir says such concerns are unwarranted.
While he admits Quebec will own the local power grid, he insists New Brunswick will not be surrendering full control.
As owner, Hydro-Québec will have first stab at filling the grid with power. And theoretically Quebec could fill the grid to capacity with hydro power, Keir said. But any excess transmission capacity must go to a bidding process, he said.
That means Hydro-Québec would have to bid against local power producers for access to the excess transmission capacity - provided there is any left.
The highest bidder would get to access the grid. Or, local firms could build their own transmission network and circumvent the existing grid altogether, Keir said
"It's going to be an open-access grid," he said. "It's no different now than it was before. New Brunswick is in full control of its energy policy.
"It's not changing one bit."
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