Energy Planning and Regulatory Improvements Highlight Discussions

ENERGY--Energy Planning and Regulatory Improvements Highlight Discussions

Atlantic Canada's energy ministers are working on plans to increase security and sustainability of energy supply in the region. At a meeting today, Feb. 16, in Sydney Mines, the four ministers addressed a broad range of issues centred around regional energy co-operation.

The meeting was hosted by Nova Scotia Energy Minister Cecil Clarke. It was chaired by Jamie Ballem, Minister of Environment and Energy for Prince Edward Island, and attended by Ed Byrne, Minister of Mines and Energy, Newfoundland and Labrador, and Bruce Fitch, Minister of Energy, New Brunswick.

"Co-operation means working together to address our own challenges," said Mr. Clarke. "It also means taking a common approach to dealing with Ottawa. Today's discussions identified how we can move forward together with our federal counterparts in a positive way."

Key energy topics raised at the meeting include:

• climate change;
• regional co-operation on electricity markets and generation;
• encouraging offshore exploration by eliminating tariffs on drilling rigs and addressing the uncertainties surrounding offshore boundaries in the Gulf of St. Lawrence;
• building energy supply through liquified natural gas (LNG) and compressed natural gas (CNG) technologies;
• support for Nova Scotia and Newfoundland and Labrador in their efforts to become the principal beneficiaries of their offshore resources.

"Meeting future energy needs in a manner that is both economically and environmentally sustainable is a priority for Prince Edward Island, as it is for our Atlantic counterparts," said Mr. Ballem. "Today's meeting marked another important step in exploring ways we can all benefit by taking a co-operative approach to address our shared challenges and opportunities in the energy sector."

With respect to climate change, the ministers see a stronger role for both renewable energy sources and for improved energy efficiency. To achieve this, they believe the federal government must clarify further development of the climate change plan and explain how that plan will impact the Atlantic region.

"I am pleased that all minsters recognize the significant contribution renewable energy developments including wind and hydro electricity (in particular projects like the Lower Churchill) and a suite of energy efficient opportunities can play in addressing climate change," said Mr. Byrne. "We will pursue appropriate recognition for these in subsequent discussions with the federal government on climate change."

The Nova Scotia and Newfoundland and Labrador ministers also stressed the importance of continuing to work with the federal government to maximize the economic potential of each province's natural resources. This would ensure that continued investment is made in exploration and development.

The four ministers also agreed to work toward establishing a process to develop clear administrative boundary lines and related regulatory regimes, both of which would help provide the petroleum industry with a predictable regulatory framework.

The ministers will also encourage Ottawa to proceed quickly with the proposed moratorium on import duties on mobile drilling rigs.

They said that, in order to ensure energy availability and accessibility in the region, both liquified natural gas (LNG) and compressed natural gas (CNG) are viable options that could support infrastructure development and augment natural gas supply.

The ministers said high levels of demand for electricity generation and the challenges faced by adding new generation have prompted them to move toward establishing a regional approach.

"With its ties to PEI, Nova Scotia, Quebec and Maine, New Brunswick is positioned on the grid as an integral part of a regional plan for transmission and generation," said Mr. Fitch.

It was agreed to establish a working group to report back to the ministers on electricity issues in late spring.

As chair of the group, Mr. Ballem will contact the federal government to arrange a meeting of the Atlantic energy ministers and the appropriate federal ministers. The Atlantic ministers will ask that Federal Environment Minister David Anderson join them at the Atlantic energy roundtable on oil and gas. The round table is a federal-provincial partnership with industry and regulators on offshore on oil and gas issues.

At their meeting in Corner Brook on Feb. 12, the Council of Atlantic Premiers encouraged the provincial energy ministers to look at opportunities for greater regional co-operation on energy policy. The energy ministers will soon report back to the Council of Atlantic Premiers on their progress in that regard.