The federal government recently committed $5.9 million to plan two new subsea power cables connecting New Brunswick and Prince Edward Island. While this investment strengthens the regional energy tie, the head of the primary utility on the Island says the province needs more than just imported power to keep the lights on.

More Than Just Cables

Maritime Electric president and CEO Jason Roberts calls the federal funding an excellent first step. He notes that buying submarine cables requires extensive analysis of size, cost, location, and operation.

The Island currently imports the vast majority of its electricity from New Brunswick through four existing subsea cables. Even with two new lines added to the grid, Roberts insists the province requires local electricity generation to maintain a reliable system.

“The cables alone are not the solution,” Roberts told CBC News. “The cables help us access energy supply off Island. There is still a critical need for capacity here on the Island.”

Why Local Power Matters

Local generation serves two main purposes for the grid. First, it offers security when the mainland grid in New Brunswick experiences problems. Winter electricity demand continues to grow, making backup power essential.

Second, local power plants help maintain voltage support and overall power quality. This is especially true for the eastern part of the province, where the distance from generation resources increases the risk of supply issues.

To address this gap, Maritime Electric applied to the Island Regulatory and Appeals Commission to add two diesel powered generators to the grid. This addition provides 150 megawatts of capacity. A hearing for this application begins August 25.

Rising Costs and Regional Cooperation

Construction on the new subsea cables will begin by 2028. The last time the province replaced two cables in 2017, the project cost over $142 million. Roberts expects a higher price tag this time due to inflation and rising material costs.

This infrastructure push aligns with a new memorandum of understanding signed by New Brunswick, Nova Scotia, and Prince Edward Island. The three provinces plan to develop a regional road map for electricity transmission. They are also exploring the creation of an independent electricity system operator for the Maritimes.

While regional cooperation aims to optimize the grid, ratepayers will not see cheaper bills. Population growth, electrification, and the phaseout of coal fired plants put upward pressure on rates.

“The price of electricity is not going down,” Roberts said. “We are working our best each and every day to keep the costs as low as possible, and that is our goal.”

Frequently Asked Questions

What does the federal funding cover?

The $5.9 million pays for the studies, regulatory work, and environmental assessments required before installing two new subsea power cables between New Brunswick and the Island.

Why does the Island need local power plants if they are getting new cables?

Local generation provides backup security if the New Brunswick grid fails. It also helps maintain power quality and voltage support across the province.

When will the new subsea cables be built?

Construction on the new cables is scheduled to begin by 2028.

Will these upgrades lower my electricity bill?

No. Utility leaders confirm that population growth, increased electrification, and the transition away from coal continue to drive electricity prices up across the Maritimes.