Labrador hydro power may soon go to Maritimes

Hydroelectric power from a proposed project in Labrador could reach the Maritimes within five to six years, Ed Martin, president of Newfoundland's Nalcor Energy, said Monday.

But whether phase one of the Lower Churchill project gets developed that soon may hinge on the result of discussions with the power company in Nova Scotia.

For Emera, the parent company of Nova Scotia Power, investing in or buying green power from Labrador could help it meet provincial laws to reduce pollution.

For Newfoundland, wheeling power through a subsea cable to Cape Breton could act as a lever to persuade Quebec to let it move power through that province, although Martin denied that's the case.

"With respect to that question of is it something that we're using it from a leverage perspective, the answer is no," said Martin, who was in Halifax giving an update on the planned $6.5-billion project at a conference of the Atlantic Provinces Economic Council.

"If we are going to move the kind of volumes we're talking about over the 50 years, we've come to the conclusion we need both routes."

Just the energy from the smaller of the two projects that Emera and Nalcor are discussing could supply hundreds of thousands of customers.

The price tag to develop the smaller dam is in the $3 billion range and that may be why both Emera and Martin are tight-lipped about what kind of deal they're discussing.

"Ill tell you one thing about that company, Emera they work hard and we're working hard," Martin said. "So, what's going to happen? Who can tell? What I can tell you is that the will is there. It comes down to pure economics; it's the business deal. The technology is there."

Martin said the subsea cable that would carry electricity from Newfoundland to Cape Breton and the Maritimes is no different from many already operating in northern Europe.

Nova Scotia Premier Darrell Dexter and Newfoundland and Labrador Premier Danny Williams have applied to Ottawa for about $400 million to help build the $2-billion subsea cable.