CIB Commits $138.2M To NS Energy Storage Project

Apr 12, 2024 - one year ago

The First Indigenous Equity Initiative investment from CIB becomes the largest energy storage project in Atlantic Canada.

CIB Commits $138.2M To NS Energy Storage Project — *Rendering of energy storage facility. (CNW Group/Canada Infrastructure Bank)*

The Canada Infrastructure Bank (CIB) is committing $138.2 million to support the development of Atlantic Canada's largest planned energy storage project by Nova Scotia Power Inc. (NS Power) in collaboration with Wskijinu'k Mtmo'taqnuow Agency Ltd. (WMA), an economic limited partnership owned by 13 Mi'kmaw communities.

CIB's first Indigenous Equity investment in Atlantic Canada's largest energy storage project.

Under terms of these arrangements, NS Power, Nova Scotia's main electricity provider, will receive a loan of up to $120.2 million while WMA will receive an equity loan of up to $18 million. The project, which is subject to regulatory approval, involves the construction and deployment of energy storage facilities in the communities of White Rock, Bridgewater and Waverley.

Energy storage technologies are essential in Nova Scotia's move towards more renewable electricity. The CIB's investment will support the province's plan to retire coal-based power generation and reach 80 per cent renewables by 2030. As the province continues to bring more renewable energy onto the grid, storage facilities will help ensure reliable electricity service is available when Nova Scotians and Mi'kmaw communities need it, by drawing and storing electricity during off-peak periods and releasing it to the grid when needed.

Phased construction activities on the proposed project sites are planned to begin in 2024 and continue through 2026, with the first site operational in 2025. These facilities are key components to helping reduce Nova Scotia Power's greenhouse gas emissions by 98,000 tonnes annually.

The project is also WMA's first equity participation with Nova Scotia Power. CIB's equity loan to WMA is its first under the Indigenous Equity Initiative (IEI). The IEI fills a market gap by providing Indigenous communities access to capital and opportunities to invest in infrastructure projects across Canada.

The CIB's equity loan supports a CIB target of investing at least $1 billion in projects which benefit Indigenous communities in Canada. The CIB's $10 billion Clean Power priority sector addresses financing gaps in new projects such as renewables, district energy systems and energy storage.

Source: Canada Infrastructure Bank