Natural Resources

Frequently Asked Questions - Energy

General Energy FAQs

  1. Apart from hydroelectric power, what other renewable sources of energy resources are being produced in the province?
  2. Does the province have any 'green power' rates?
  3. What is the Atlantic Accord?
  4. What constitutes the offshore area?
  5. What is the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB)?
  6. What is the Energy Council?
  7. Why is Newfoundland and Labrador a member of the Energy Council?

General Energy FAQs

1. Apart from hydroelectric power, what other renewable sources of energy resources are being produced in the province?

Newfoundland and Labrador Hydro, a Nalcor Energy company, currently has agreements to purchase energy produced by two 27-megawatt (MW) wind projects, which each consists of nine three-MW wind turbines. In 2008, Hydro purchased wind power from the first commercial wind development in Newfoundland, located in St. Lawrence. The Fermeuse wind site became operational in May 2009. These two wind developments are owned and operated by private-sector companies that were successful respondents to competitive request for proposal processes implemented by Hydro.

The province is also home to a growing wood pellet industry. Three wood pellet manufacturing facilities are in various stages of development or operation and the Provincial Government offers a wood pellet appliance rebate to encourage homeowners to install wood pellet stoves and furnaces to heat their homes.

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2. Does the province have any 'green power' rates?

Not at present. It is worth noting that almost all the power generated in the province, and about three-quarters of power consumed within the province, comes from a renewable source: water.

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3. What is the Atlantic Accord?

The Atlantic Accord is the agreement (dated February 11, 1985) between the Government of Newfoundland and Labrador and the Government of Canada on offshore petroleum resource management and revenue sharing. Among other things the agreement provides for the joint management of the offshore area by a federal-provincial board (the C-NLOPB opens new window) and the collection of royalties as if the petroleum resources were located on land.

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4. What constitutes the offshore area?

As defined in the Atlantic Accord legislation:

"offshore area" means those submarine areas lying seaward of the low water mark of the Province and extending, at any location, as far as

(a) any prescribed line, or

(b) where no line is prescribed at that location, the outer edge of the continental margin or a distance of two hundred nautical miles from the baselines from which the breadth of the territorial sea of Canada is measured, whichever is the greater.

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5. What is the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB)?

The C-NLOPB opens new window is the federal-provincial agency put in place to administer petroleum related activity in the offshore area. The C-NLOPB’s duties include (among other things) the issuance and administration of petroleum rights, drilling approvals and seismic program approvals. The C-NLOPB also reviews and approves development plans. Certain decisions of the C-NLOPB (called fundamental decisions) are subject to approval by the federal and provincial energy ministers. Fundamental decisions include decisions regarding lands to be offered in a Call for Bids and the approval of development plans.

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6. What is the Energy Council?

The Energy Council is a legislative organization of ten energy-producing states ranging from the Gulf of Mexico to the Arctic Ocean. These member states produce more than 80 per cent of United States (U.S.) oil and gas output and include leading coal, uranium, and renewable energy-producing states. The province of Newfoundland and Labrador, the province of Alberta and the nation of Venezuela are the Energy Council’s three international affiliates.

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7. Why is Newfoundland and Labrador a member of the Energy Council?

Newfoundland and Labrador became a member of the Energy Council in December 2001. Government is committed to actively pursuing all opportunities to encourage and promote new investment in this province’s energy resource base.

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