The federal government is providing a $219-million loan and a $50-million grant to New Brunswick to support energy infrastructure upgrades, including the Mactaquac Dam.
By Hermes-Vector AI Desk
The federal government is investing nearly $270 million in loans and grants to help New Brunswick modernize energy facilities. Officials state these investments are key to Ottawa’s plan to double the capacity of Canada’s electrical grid by 2050.
The majority of the funding is a $219-million loan from the Canada Infrastructure Bank. This loan is designated to extend the life of the Mactaquac Generation Station, the province’s largest hydroelectric dam, located west of Fredericton on the Saint John River. Additionally, the province will receive a $50-million grant to upgrade the Salisbury Terminal near Moncton, which officials say is essential for managing electricity flow across the provincial grid.
Federal Energy Minister Tim Hodgson announced the funding on Tuesday during a news conference at the dam. "New Brunswick is critical to this plan and so are today’s investments," Hodgson said. "Together, these two projects will strengthen New Brunswick’s electricity system while creating jobs, attracting investment, supporting affordability, and lowering emissions."
New Brunswick’s Crown-owned electric utility, NB Power, is preparing the 672-megawatt Mactaquac Generation Station for a major overhaul aimed at extending its operational life to 2068. According to Natural Resources Canada, the new federal funding will support technical studies, regulatory reviews, First Nations engagement, and planning for the Mactaquac Life Achievement Project.
The dam has faced structural challenges since the 1980s due to a chemical process called alkali-aggregate reaction, which causes concrete to swell and crack. In 2016, NB Power agreed to a plan to spend up to $3.6 billion to prolong the dam's life, as it would have otherwise been decommissioned by 2030. On Tuesday, NB Power CEO Lori Clark stated that the total cost for the project is now expected to be close to $9 billion.
New Brunswick Premier Susan Holt emphasized the dam's importance to the Maritime region. In the event of a system-wide blackout, the facility can start generating electricity without an external power supply, making it the largest "black-start" facility in the region. "We often call it the battery of the Maritimes," Holt said. "Having this kind of renewable energy that we can turn on and off is critical, not only to our province, but to our neighbours in Prince Edward Island and in Nova Scotia and beyond."
Officials say the dam supplies 30 per cent of the province’s renewable energy requirements and 20 per cent of its overall electricity demand.
These investments occur as NB Power seeks to address aging infrastructure without imposing massive rate hikes on customers. Just last week, NB Power applied to the provincial regulator to raise rates by 17.4 per cent over the next three years to fund $4 billion in grid maintenance. Some of that money will be used to transition the province’s only remaining coal-fired generating plant to burn wood pellets.
Minister Hodgson noted that electricity generation is within provincial jurisdiction and did not commit the federal Liberal government to further spending on the dam. However, he indicated that the federal government will work with provinces to help meet clean energy regulations calling for a net-zero electricity grid by 2050. "In the budget coming up, you will see a number of initiatives we are working on to work ... with provinces and territories to help them realize the growth that they need in an affordable way," Hodgson told reporters.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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