A new Power Purchase Agreement reached between NL Hydro and a private company will help reduce the reliance on diesel generation for residents of Mary’s Harbour, Labrador.
President of St. Mary’s River Energy Limited, Allan Green, says they’re in the process of reactivating a small hydro plant on the St. Mary’s River that had been in operation from 1987 to 2007.
Green says they wanted to get the plant operating again, and had to renegotiate a longer-term contract with NL Hydro.
He says they partnered with renewable energy company, Natural Forces Wind, who have agreed to put some additional capital into the project. That will allow the plant to reactivate next year.
The deal means the hydro plant, once up and operating, will generate up to 20 per cent of the power used by Mary’s Harbour and Lodge Bay, which is on its own isolated grid.