Joint Review Panel Named for Lower Churchill Development

The Province of Newfoundland and Labrador, in conjunction with the federal government, has named a joint environmental review panel to assess the Lower Churchill hydro development in Labrador.

A five person panel will review the proposed project, taking into consideration public comments during the process.

The panel has a mandate to examine the potential environmental impacts of the hydro development and determine means by which to mitigate those impacts.

The Lower Churchill hydro project, which has the potential to provide clean, renewable power to more than 1.5 million households, has been discussed for decades but has yet to become a reality for the Province. This latest action by government is seen as another step forward in bringing the project to fruition.

One of the biggest hurdles facing the project over the years has been the geographical location of Labrador and the inability of developers to reach energy markets hungry for “green” power.

During the late 1960’s and early 1970’s the Upper Churchill hydro project was developed in Labrador however at the time Newfoundland and Labrador was forced into a long term contract with Hydro Quebec because the Quebec and federal governments refused to permit the Province to wheel power through Quebec and on to waiting markets.

Newfoundland and Labrador, faced with the prospect of sitting on a massive power supply, that had already been developed, but with no ability to access markets, was forced to sell this power to Quebec at rates obscenely low even at that time.

Those low purchase rates have seen Quebec reap many billions of dollars over the years by reselling Upper Churchill power while Newfoundland and Labrador has barely made enough from its hydro resources to keep the generating station in operation.

The Upper Churchill ontract is still in place today and will remain in effect for decades to come.

As a result of the geographical roadblocks placed in front of it by Quebec, Newfoundland and Labrador’s Lower Churchill development plans have been on hold for years.

With the maturing of new technologies the Province's plans for the development now include the examination of an alternate route for the export Lower Churchill power.

This alternate route would see any power not required inside of Labrador delivered via under water cable to the island portion of the Province and then on to the Maritimes and beyond, bypassing Quebec completely.

This alternate route, though more expensive to develop, is considered by many to be a valid option.

With the lopsided Upper Churchill contract always on the minds of the Newfoundland and Labrador people the ability of the Province to position itself in such a way that it can ensure it is not forced into another bad deal with Quebec is critical.

In addition to the local political advantage of developing a Maritime route for Lower Churchill many people are also concerned about what will happen to power produced on the Upper Churchill River if an alternate route is not in place when the Quebec contract expires in 2041.

They see the development of a Maritime route, with the capacity to handle power from the Upper Churchill as well, as the only way to avoid a future confrontation with Quebec over the issue.

Although the federal government has always had the authority to open up a power corridor through any Province, including Quebec (the so called east/west power grid) they have yet to do so.

Plans for such a grid were promoted by the federal Conservative government when they were first elected in 2006. At the time Stephen Harper called the east/west grid the most important development in Canada since the building of the railway opened up the Country.

The government of Quebec voiced its opposition to the plan very early on and since that time there has been no further promotion of the idea by Ottawa.