New Brunswick

Overview

The Government of New Brunswick chapter is respectfully submitted from the Department of Natural Resources and Energy Development (DNRED) – Energy Branch as the policy group responsible for regulating the Energy sector in New Brunswick through legislation, regulation and other policy instruments. The chapter also includes input from Opportunities New Brunswick (ONB), the crown agency with the mandate to foster economic development and job creation in the Province.

The Minister of the DNRED is the Minister responsible for New Brunswick Power Corporation (NB Power). NB Power is a vertically integrated electric utility, established in the Electricity Act as a crown corporation. NB Power is required to maintain safe, reliable and low-cost electricity service to New Brunswick homes and businesses. DNRED, and particularly the Energy branch, does not have a budget or mandate to pursue economic development directly, but is an enabler as the policy branch responsible for this sector. ONB is the Crown Agency with a mandate to foster economic activity, and job creation.

In addition to the Government of New Brunswick’s (GNB) participation in the development of the Small Modular Reactor (SMR) Roadmap released in 2018, GNB invested $10 million to establish the Advanced Nuclear Research Centre to progress the research and design of two Advanced Generation IV SMR designs. This initial funding was matched by two technology vendors: ARC Nuclear Canada and Moltex Energy, who subsequently opened offices in Saint John, to progress the research and design activities necessary to get their designs through the appropriate regulatory processes.

Since the initial investment in 2018, the Province has been working closely with NB Power, and the vendors to progress the designs through the Canadian Nuclear Safety Commission’s voluntary Vendor Design Review process. Many activities are underway related to research and design, in collaboration with the Centre for Nuclear Energy Research (CNER) at the University of New Brunswick, and Canadian Nuclear Laboratories (CNL). The approach has the benfit of leveraging existing capacities and expertise, identifying areas where capacities are needed, and seeking solutions to build capacities and fill these gaps. GNB, and NB Power are continuing to oversee vendor progress throughout the due-diligence process to unlock the economic potential of these new technologies. New Brunswick’s goal is to be a global leader in Advanced SMRs.

Carbon free emissions sources are needed for future domestic and international energy needs. NB has invested in technologies that aim to do this and address historical challenges with available nuclear power, namely: reducing the long-term waste inventory, support variable output renewable generation, and electric system stability, and reliability.

Beginning in 2020, 40% of the electricity sold to in-province customers by NB Power is required to come from renewable sources. In 2019/20, NB Power was able to exceed this regulated 40% target by 4%. Coupling this with the output from the 660MW CANDU-6 baseload operated reactor at Point Lepreau, 80% of in-province electrical energy consumption was supplied from clean energy sources. In province renewable energy and nuclear power generation have avoided over 6 Mt of GHG emissions from the electricity sector in New Brunswick per year.

GNB continues to make progress on the actions identified in the 2016 Climate Change Action Plan and is actively participating in the development of the Atlantic Clean Power Plan. Both plans are supportive of achieving further carbon emissions reductions of the electricity sector. As we continue to decarbonize, we need to maintain affordable access to energy, and a stable and reliable bulk electric system. Most New Brunswick homes and businesses rely on electric resistance heating and with limited access to natural gas, carbon free sources of flexible electricity generation will be needed. This need is compounded when considering the general increased focus on electrification. While the cost of developing wind and solar energy sources has declined, and electric storage technologies have improved, storage and renewables alone are not likely to be enough. We must maintain cost effective service for customers, particularly in the winter months while taking into consideration land use and life cycle environmental impacts the energy sources we will be dependent upon, will have on future generations.

The benefits associated with the successful construction of two demonstration units at Point Lepreau include 11,000 jobs, $1 billion provincial GDP, and $120 million in Provincial Government revenue. We are prepared to continue to support these efforts by leveraging our existing infrastructure, regional supply chain, academic institutions, and agility as a government to seek to successfully develop these technologies.

New Brunswick’s existing supply chain is currently able to take advantage of these opportunities and is prepared to service a majority of the SMR commercialization and development components as it continues to develop. Another portion of the local supply chain is actively engaged and is preparing to pivot to service the industry. This helps to ensure that a quality New Brunswick product plays a key role in Canada’s low-carbon transition. The economic benefit from these developments is realized, not just through the technology vendors themselves, but from the external infrastructure required to support them.

The export of SMR technology and services to other regions of the world represents a significant opportunity for New Brunswick and Canada alike. GNB will continue to collaborate with our respective vendors, communities, Indigenous Nations and stakeholders to assist in the development and commercialization of advanced nuclear technologies, and to capitalize on direct and indirect economic benefits as a result.

In December of 2019, the Premiers of New Brunswick, Ontario and Saskatchewan signed a joint Memorandum of Understanding (MOU). The MOU requires the provinces to work together with the CEO’s of the respective electric utilities to explore the latest technology in nuclear power generation to provide carbon-free, affordable, reliable and safe energy, while unlocking economic potential across Canada. Work is on-going on the deliverables of the MOU which include a feasibility study (expected November 2020), and a strategic plan for SMR deployment (expected winter 2021).

GNB fully supports the principles outlined in the SMR Action Plan and is committed to continuing to deliver and progress the following actions, identified in the SMR Roadmap. GNB’s early action and continued support for the development of Advanced SMRs in NB and Canada, is a demonstration of the need for future low-emissions sources and transitioning towards a low-carbon economy.

ACTIONS