The development of Muskrat Falls, the smaller of the Lower Churchill falls hydro development vision, has been raising hopes among people of NL, and particularly Nova Scotia as well. A Terms paper was signed on Nov. 18 between Premiers Williams, and Dexter of NS. Since then, there's been mixed reactions to the project proposals feasibility - how it will get financed, and how much of a power rate increase people in NL will be burdened. Now, an international analyst, Toby Couture, with E3 Analytics in London, England,condemns the project saying that the markets are not there in New England.
The investment case for selling that power to New England is actually not looking very good, partly because they have more than enough natural gas — cheap natural gas — to meet their own electricity needs for the next decade, at least,"
He adds that it is also difficult to raise the $6.2 billion to build this.
On the other hand, Nalcor's CEO, Ed Martin, is saying a much more rosy vision.
We are paying only a very small amount to flow over the lines of Nova Scotia and New Brunswick, meaning that were getting to that market at a very, very low cost.
Hmm, so who to believe. We want projects to make environment, economic and practical sense, but we have to be realistic. First Nations peoples have their own issues about this development, and other outstanding concerns, and have yet to give theire blessing. There is much more to learn about this project proposal, and it is far from a done deal.
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