Research the positive impact of increasing the renewable energy generation on the interconnected system in NL
The Muskrat Falls hydroelectricity facility is expected to come on-stream in late 2017. In the first year, about 60% of the power will be exported to Nova Scotia. Discussions of exporting beyond Nova Scotia into Northeast US have taken place. The current plan is that the export sales will be reduced annually to meet the estimated 2% increase of power usage by the interconnected customers in Newfoundland. From an economic perspective, can NL maintain the export sales at the first year level and encourage renewable energy development to compensate for increased consumption? The average increase is in the range of 20 megawatts annually or about 2/3 of the capacity of one of the two existing wind farms. The research involves the economic evaluation of promoting renewable energy given the sunk cost of the Muskrat Falls project, the market price in Nova Scotia and beyond and the practical technical limits of developing renewable generation in the province.