Hydro and tidal dreams squashed
Finance minister says Nunavut can't afford hydro mega project
Stewart Burnett
Northern News Services
Friday, June 5, 2015
IQALUIT
Finance Minister Keith Peterson threw a wet towel on visions of a hydro or tidal facility in Nunavut any time soon.
"The tidal energy is, how to say it, immature technology," Peterson said in the legislative assembly.
He was responding to Iqaluit-Tasiluk MLA George Hickes, who asked if the government could use savings from lower fuel costs to invest in alternative energy sources.
"(Tidal energy) hasn't been well tested around the world," said Peterson.
"I'm not convinced that it will work here. Hydro energy, as we all know, is very expensive. We're talking in the neighbourhood of $250 million to possibly $500 million, and those are numbers we're working with, but that's the reality. Currently, the hydro project work is more or less on hold and we're not going anywhere with the tidal energy."
Hickes said that he is a strong proponent of moving forward on a proposed hydroelectric project near Iqaluit.
"I always have been and will continue to be a strong proponent of alternative energy solutions for Nunavut and investments in that course of action," said Hickes.
He asked Peterson if the federal government's increased debt cap for Nunavut of $650 million would allow room for the Qulliq Energy Corporation to move forward on the Iqaluit project.
Peterson said with the airport project and the government's current debt, it is already close to $400 million in the red.
His estimated cost for the hydro project in the range of $500 million would
put the government well above its debt cap.
He said the government will have to see some solid proposals and there are huge demands in Nunavut for critical infrastructure.
"Any significant investment in Nunavut is going to have to have a solid business case and rationale," said Peterson.
"As a government, we simply can't afford mega projects in Nunavut."
