Federal government spending $5.9M for prep work on 2 new P.E.I.

Federal government spending $5.9M for prep work on 2 new P.E.I.-N.B. subsea power cables

'We need to speed this project along' says P.E.I. Premier Rob Lantz

The federal government is providing $5.9 million to help advance a project aimed at expanding the electricity connection between Prince Edward Island and New Brunswick.

The Prince Edward Island-New Brunswick Interconnection Expansion Project would add two new 200-megawatt, 138-kilovolt submarine power cables between the two provinces, along with upgrades to transmission infrastructure and substations in both P.E.I. and New Brunswick, according to a news release Thursday.

The funding will go to P.E.I. Energy Corporation for engineering studies, marine surveys, environmental assessments, stakeholder and Indigenous engagement, regulatory work and early design planning for the proposed project.

“Building a stronger, more affordable, better connected electricity system is essential to Canada’s energy security, economic growth and long-term climate competitiveness,” federal Energy and Natural Resources Minister Tim Hodgson was quoted as saying in the release.

Construction is expected to begin by 2028, the release said.

Ottawa kicks in funding to get the ball rolling on new power cables between P.E.I. and N.B.

P.E.I. relies heavily on electricity imported through connections with New Brunswick. The Island currently has four subsea cables linking its power grid to the mainland.

Two cables between Cape Tormentine, N.B., and Borden-Carleton, P.E.I., were replaced in 2017 at a cost of more than $142 million.

The other two cables, which run between Murray Corner, N.B., and Richmond Cove, P.E.I., were installed in the late 1970s and their lifespan is pretty much up.

P.E.I. has been in discussions with the federal government about replacing those aging cables.

P.E.I. Premier Rob Lantz told reporters Thursday that the exact cost and scope of the project will be determined as part of this pre-development work.

"We know it's not going to be cheaper than it was 10 years ago, that's for sure," he said. "When they installed those cables 10 years ago, many thought we'd have a runway of 20 or 30 years — obviously we don't."

He added that economic growth has meant a spike in demand for electricity on P.E.I.

As premiers met with Prime Minister Mark Carney on the Island on Thursday, Lantz said he impressed upon Carney that P.E.I.'s experience installing the cables in 2017 was invaluable, and means the province is ready to do it again.

"We need to speed this project along," Lantz said. "It's important to Prince Edward Island for our energy security, first of all, but also to continue on the economic path that we've been on."

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At the premiers' meeting, Lantz also signed a memorandum of understanding with Nova Scotia and New Brunswick.

The three Maritime premiers said in a joint news release that they will work together on energy planning, infrastructure development and cost management to assess future electricity needs and explore opportunities for more regional collaboration.

New Brunswick Premier Susan Holt told reporters the agreement will result in an "ultimately more affordable environment for Maritimers and their electricity prices."

Thinh Nguyen is a digital reporter with CBC P.E.I. He can be reached at thinh.duc.nguyen@cbc.ca