Two words in caught the ear of many East Coasters: 鈥淎tlantic Loop.鈥 It鈥檚 a new term for a historic idea, and it could be a boon for in a region that has struggled economically for decades. If successful, it could also show the rest of Canada how to move electrons across borders鈥攁 simple idea that has never managed to break through the provinces鈥 separate electricity grids.
But first, some context.
At its core, the Atlantic Loop is about improving how Atlantic Canada鈥攑lus Quebec鈥攇enerates and moves electricity within and between provinces. It would take clean electricity generated from big hydro dams in both Quebec and Newfoundland and Labrador and send it south, providing clean electricity to the Maritime provinces and possibly even the eastern U.S. states (see map).
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What鈥檚 now being called the 鈥淎tlantic Loop鈥 is a rebranding of a concept that鈥檚 been around for decades, as federal and Atlantic governments have worked toward a more integrated interprovincial electricity grid (see).
In fact, about half of the Loop is already built. The Maritime Link, a subsea transmission cable running from the south of Newfoundland to Cape Breton, should start moving electricity from Muskrat Falls to Nova Scotia in 2021.
The big missing piece is now the north-south transmission infrastructure running from Muskrat Falls in N.L., through Quebec, and down into New Brunswick, Nova Scotia, and the U.S. Yet it鈥檚 also the most important鈥攁nd contentious鈥攑iece (I鈥檒l come back to this). Last week, the Canada Infrastructure Bank to generate, store, and transmit clean energy between provinces, territories, and regions. While it鈥檚 still unclear where these dollars will flow, there鈥檚 a chance some might help complete the Loop.
Electrifying the Atlantic bubble
The Atlantic Loop could be a major driver of in the region.
Start with the economic benefits: As the world continues to to a low-carbon economy, the Atlantic Loop could breathe new competitive life into a regional economy desperate for new sources of growth and jobs. Atlantic Canada is already leading in many areas of clean energy, such as leading research in battery storage between , in the Bay of Fundy, and a handful of micro-grid pilot projects throughout the region ( and ). The Atlantic Loop would help the region move where global markets are already going and enable innovations in clean energy to flourish.
Completing the loop would also have big climate benefits. A lot of electricity in the Maritimes鈥攏amely in N.S. and N.B.鈥攊s still dirty. Importing more clean hydro electricity from QC and N.L. would allow these emissions-intensive provinces to get off coal and oil earlier than planned and help . Transmission lines to the eastern U.S. states would allow them to do the same. A bigger baseload of clean electricity from N.L. could also help the Maritimes accelerate the development of intermittent renewables (e.g.,. or .).
Finally, electrifying the region with clean energy comes with health benefits. While the region generally enjoys clean air, parts of Atlantic Canada鈥攅ven remote and rural areas鈥攅xperience high levels of air pollution (see graph below).
Electrifying heavy industry, transportation, and buildings, and phasing out coal-fired power plants, could drive healthier outcomes for all Atlantic Canadians.
Ensuring we don鈥檛 go in circles
Finishing the Atlantic Loop sounds like a no-brainer to a lot of East Coasters like myself鈥攊t offers real hope for a region trying to find its competitive edge. But like any major infrastructure project, we should keep a skeptical eye. We still don鈥檛 have details on how or when the Loop would be completed, or how much it鈥檒l cost. A big unknown, for example, is whether N.L. will build another hydro dam at Gull Island, at a time when the.
We also can鈥檛 ignore the political elephants in the room. The benefits from the Atlantic Loop are unlikely to fall evenly across the five provinces, creating thorny questions around jurisdiction and fairness. In particular, these distributional implications could reignite historical tensions: Quebec and Newfoundland have when it comes to energy projects (to put it mildly). Completing the Loop would require consent and support from a QC government that holds a lot of bargaining power. Linking with the Eastern U.S. would add even more stakeholders to the table,.
Fortunately, the major players are already. Here, the federal government could play an important role as mediator and financier.
A model to replicate?
Whether this works on the east coast ultimately has big implications for the rest of Canada. British Columbia and Manitoba鈥攍ike Quebec and N.L.鈥攁lso have an abundance of clean energy. Yet moving their clean electrons west and east across provincial boundaries has historically. Strengthening transmission lines to Alberta and Saskatchewan, which both have emissions-intensive economies, could help drive the same benefits that are on the table for Atlantic Canada.
Completing the Atlantic Loop is an exciting opportunity for and beyond. But it鈥檚 still too early to tell where the true benefits and costs lie. This type of infrastructure would last decades and have serious implications on the economy, on taxpayers, on health and well-being, and on the environment.
Like other East Coasters, I eagerly await to see what comes next. Just as Atlantic Canada has bonded together to successfully manage COVID-19 (so far, at least), it now has the opportunity to show the same leadership in breaking down provincial barriers with generating and moving clean electricity.
