NB Power executive says gas plant best option for stability, despite backup plans

NB Power is voicing concerns about a proposed AI data centre in Saint John.

The realization that New Brunswick’s population was outpacing the province’s power supply came to NB Power’s chief commercial officer in 2023.

He said the load forecast, based on population growth and GDP indicators, showed the province could run out of power by 2028 during a peak demand event, like a severe cold snap.

Today, Brad Coady says that concern still stands.

“A lot of new apartments and condos going up. A lot more density in housing. And of course, all of those connections add up and when you look back at NB Power and see the aggregate, that’s what’s driving the demand growth in our province right now,” he said.

That’s why the utility is banking on the proposed 400-megawatt natural gas plant, slated for Tantramar, N.B.

That plant, which would be built and run by U.S. company ProEnergy, hasn’t been met with much support in the area.

Coady says, while there are backup plans, it’s “certainly a concern” if it doesn’t get the approvals it needs to move forward.

“It’s prudent utility planning, a very complex business that we operate in, that we always have plans B, C, D, E, maybe even F, in terms of, what would you do if you couldn’t do the thing that you’re trying to do?” he said.

“What I’d say is the RIGS (Renewable Integration and Grid Security) project is the best solution for New Brunswickers based on all the work that we put into it. I can’t come up with a second plan that would match it, and anything else that we could do would be way more expensive.”

The aim is for that plant to be operational by the end of 2028 – the same year two companies would like to see an AI data centre open in Lorneville, N.B.

Data centres house massive servers and IT infrastructure, which require a lot of water and power.

In this case, the proposed centre would produce about half of its power needs on site. The other half – 190 megawatts – would come from the grid.

Green Party Leader David Coon says Quebec has a process for industries like data centres that New Brunswick should adopt.

“What needs to happen with the data centres, because of their tremendous demand for power and water, is that there needs to be a process by which, if one of these data centres wants to set up that they have to make an application to the province and to the utility so they can determine whether they prioritize them versus some other development that may be coming along,” he said.

There’s no legislation that allows NB Power to say no to new industry’s power demands, but Coady says it is possible for the utility to strike some sort of an agreement with the companies behind the centre.

“We could serve you for most of the time. But hey, when it’s going to add pressure or when we say you’re going to actually use up all the power that we have in the province, no, we don’t want to serve you on those days or those hours. Does that work for you? Because if it works for you, it might work for us,” he said.

And he wonders if there’s a way to integrate the load that could offset rates, taking some pressure off New Brunswickers.

“And that’s the opportunity. If we can’t figure out a way forward on that path there’s probably not a path forward for data centres in New Brunswick,” he said.

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