I would like to sincerely thank you, Mr. Chair and the members of the committee, for inviting me here today.
Nova Scotia Power is a subsidiary of Emera, which is the 16th largest utility in North America and both are headquartered in Halifax. Nova Scotia Power serves approximately half a million customers and owns and maintains more than 25,000 kilometres of transmission and distribution lines in Nova Scotia. Our goal is to provide clean, affordable, and “always on” energy to our customers, but we face challenges.
Nova Scotia has no access to large-scale hydro assets within the province. Our natural gas supply is limited and local offshore gas supplies continue to dwindle. Unlike other provinces such as Ontario and Alberta, using natural gas as a bridge to transition to low carbon is not an affordable option for us.
Over the past decade Nova Scotians have invested more than $5 billion in new wind and renewable electricity generation and contracts in Nova Scotia. Nova Scotia Power has tripled our use of renewable energy generation from 9% in 2007 to 28% in 2016. We have reduced greenhouse gas emissions by 34% from our 2005 levels, already exceeding Canada's national target. We expect to nearly double those reductions by 2030 to a targeted reduction of 58% in the electricity sector.
We have also reduced by one-third the amount of coal that we've used in electricity generation, which is equivalent to reducing three coal units or closing the emissions from those coal units. However, we haven't been able to put a lock in the door of those units because we require the capacity from those units to meet reliability. Transforming to cleaner electricity isn't as simple as replacing energy from one type, such as coal, or energy with another type like wind or solar because our renewable energy is intermittent. We need firm sources of clean energy that can quickly ramp up to compensate when the wind isn't blowing or the sun isn't shining. Our customers don't consume energy intermittently. We must match their lifestyle by providing a total energy package every minute of every day.
Strong electricity interconnections with our neighbours are essential to our energy future. Transmission that provides Nova Scotia with access to clean energy gives us the opportunity, not only to address renewable energy deficits but, potentially to share with our neighbours the new clean energy infrastructure that has been built in Nova Scotia.
Our vision for electrification of our economy and stronger interconnections is directly aligned with our national and regional climate action plans. Opportunities include new cross-border transmission connections, adding even more renewables to the whole North American power grid and the promotion of clean and efficient electricity transportation.
For Atlantic Canada, new and stronger interconnections will leverage large-scale hydro assets from both Quebec and Newfoundland and Labrador, creating long-term energy sustainability for all of eastern Canada, contributing to stability in electricity prices for customers here in Canada and in the U.S. and enabling significant carbon reduction. Incremental jobs would also be created for the new infrastructure.
Emera and Nova Scotia Power recognize the value of strategic electricity interconnections and regional collaboration and we have invested in developing expertise in that area. We have connected Nova Scotia to New Brunswick, New Brunswick to Maine, and now Newfoundland and Labrador to the rest of North America for the first time in history.
Emera Energy is an active trading and marketing presence in eastern Canada and New England, and Nova Scotia Power is actively engaged with New Brunswick Power to dispatch electricity generation regionally and find efficiencies together.
Recently, Emera has proposed a 500- to 600-kilometre submarine transmission link to carry clean energy from Atlantic Canada to Massachusetts, known as the Atlantic link, in collaboration with New Brunswick Power and independent power producers.
Building infrastructure takes time, and the cost is significant. Infrastructure lasts many decades, and it should be maintained for the long term and used for its full life to extract the best value for customers from the investment.
What helps developers is a clear view about the ultimate objective and some certainty that there is a commitment to stay on that path. Whether it's through legislative, regulatory, or funding mechanisms, all of these can contribute to the feasibility of large electricity interconnection projects.
Planning on a regional basis, whether for transmission infrastructure or even emission reduction, presents an opportunity to reduce or eliminate in-region transmission tariffs. The tariffs create trade barriers for clean energy to move to market.
We see great opportunity in Atlantic Canada, as well as the neighbouring provinces and states. We see alignment and opportunity between our vision, efforts, and government priorities.
We are aligned on the priority to reduce carbon emissions from the electricity sector. We see alignment in terms of our country's relationship with the United States on the need for regional solutions and export opportunities that reduce carbon emissions, both in clean energy generation and in the transmission infrastructure to move that clean energy where it is needed. Looking forward, we see the possibility of moving Atlantic Canada towards a regional self-sufficiency with zero-carbon energy.
Our strategy is straightforward. We want to see cleaner electricity generation used for more purposes: more renewable generation, better regional transmission interconnections, and electrification of home heating and transportation. This will lead to permanent economy-wide emission reductions and regional collaboration and sharing of resources, such as clean generation and transmission infrastructure, and it will create new clean energy jobs.
Thank you.