Commentary by Michelle Robichaud, President of Atlantica Centre for Energy
Atlantic Canada is well-positioned to supply itself and the world with clean, secure and competitively priced energy. But geopolitical influences, provincial utility constraints and changing federal priorities threaten the region’s future prosperity.
While disruption brings challenges, it also creates opportunities.
The energy sector is the foundation for a sustainable, secure and thriving future for New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
With a long-standing history in energy development, encompassing both conventional and renewable sources, the region possesses abundant and accessible natural resources needed to help supply growing regional demand as well as energy for export. And, it can be developed responsibly and safely through partnerships and leadership, especially with and from First Nations.
The region already produces low-carbon offshore oil, hosts the largest oil refinery in Canada, and houses the country’s first liquified natural gas (LNG) terminal. These assets, combined with world-class onshore and offshore wind resources, full-service port infrastructure, modern pipeline and grid connectivity with Québec and New England, and receptive host communities for nuclear energy, represent a transformational economic opportunity.
FACT: 90 per cent of Natural Gas used in the Maritime provinces is imported from the United States and accounts for 12% of end-use demand, on top of being used to help generate electricity and refine fossil fuels.
The Trump Administration’s trade actions represent a paradigm shift in North American geopolitics. Simply put, President Trump’s actions are drawing Canada into an unwanted economic war with the United States, threatening Atlantic Canadian businesses, industry, workers and this region’s prosperity.
FACT: New Brunswick and Prince Edward Island are among the Canadian provinces most dependent upon trade with the United States.
The region home to large established export businesses relying on competitively priced energy costs to remain viable. By targeting new domestic and export markets, the region can address energy security issues and reduce economic reliance on the United States.
A unified approach to energy is vital.
Each of the Atlantic provinces is too small to compete individually to attract the national and international investments needed to realize their shared economic potential. Each province’s voice alone is too soft to be heard loudly with national policies. Each province alone is too limited to develop its energy assets as cost-efficiently and reliably as possible for ratepayers.
By working together and amplifying Atlantic Canada’s united voice both nationally and internationally, the region has a much higher probability of unlocking the full potential of our vast energy and natural resources.
FACT: More than half of the national cost to phase out coal-fired electricity generation is borne by Nova Scotia despite having less than 3 per cent of the national population.
The transition to clean and renewable energy is essential for both environmental and economic reasons. By leveraging the region’s unique strengths, Atlantic Canada can be positioned as a reliable, competitive supplier for emerging international energy markets.
In an evolving national policy environment, where the next federal policies are currently unknown, a collective voice will help ensure the region’s priorities are at the forefront in federal policy development, such as unlocking investment tax credits, offshore oil and wind development regulations, or adjusting timelines to develop large projects.
By working together, the region can also facilitate more coordinated infrastructure development, streamline provincial regulatory processes, promote workforce development and enhance public engagement.
Atlantic Canada needs a shared vision and plan to optimize the region’s energy and natural resources.
The energy sector needs to plan well beyond short-term political cycles and to focus on the next 25 years, and to share information and resources that allow for this planning to be effective.
As the voice for the largest energy producers and consumers in Atlantic Canada, the Atlantica Centre for Energy urges all four Atlantic Provinces to work together to optimize our regional energy systems, diversify energy markets and attract new energy investments.
References
Natural Gas Facts:
- Liberty Utilities services 12,400 customers in 14 communities in New Brunswick.
- Eastward Energy services 9,000 customers in 7 counties in Nova Scotia, including Halifax Regional Municipality.
- All natural gas comes through the Maritimes & Northeast Pipeline, which services two industrial customers directly (Liberty & Eastward Energy), as well as NB Power and Nova Scotia Power for electricity generation. It also serves 3 compressed natural gas customers (Island Gas, Irving Oil and Eastward).
Coal Transition Cost Estimates:
- Canada Gazette, Part I, Volume 152, Number 7: Regulations Amending the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations: “The total cost for complying with the proposed Amendments is estimated to be $2.2 billion, resulting in a net benefit of $2.7 billion. More than three quarters of the costs is attributable to compliance measures in Nova Scotia and New Brunswick, with Saskatchewan and Alberta making up most of the remaining costs. Much of the incremental burden for compliance may be passed on to consumers in the form of higher retail electricity rates in affected provinces.”
Export Businesses:
- Over 90% of New Brunswick’s exports are destined to the US, most of that refined petroleum products. (Atlantic Economic Council, ATLΛNTIC Insights: Atlantic Canada’s US Trade Vulnerabilities, Jan 16, 2025)
- Saint John, NB is the most tariff-exposed community in Canada, largely because of energy imports and exports.
Atlantica Centre for Energy
Atlantica Centre for Energy provides a unique meeting ground for industry, government, the education and research sectors, and the community at large to foster partnerships and proactively engage in energy-related issues. As the voice of energy in Atlantic Canada, the Centre’s membership represents some of the largest employers, energy producers, distributors, and consumers in the region.