NOVEMBER 5, 2014 International Conference on Ocean Energy
Emera Investments Northeast Wind Partner Assets Algonquin (24.2%) 2
Emera Strategy Market Opportunity: Demand For Cleaner Affordable Energy Drivers Environmental Regs & Standards Social & Political Demand Fuel-Source Diversification Energy Independence & Stability Emera Strategy: Leverage the unique linkages and adjacencies of Emera s assets, capabilities & relationships to create development opportunities. Dividend Target: 6% CAGR through 2019 Focus Renewables Transmission (renewables to market) Gas Generation and Transportation Utilities 75-80% Regulated Earnings Strategic Initiatives: Maritime Link and Labrador Island Link New England Transmission New England Gas Generation Gas supply in Maritimes, New England & Caribbean Fuel to Assets Projects Greening of Generation Renewing Aging Infrastructure 3
Federal Federal Coal Coal Emission Emission Requirements Requirements 4
5 Where will our power come from?
Supply Provides Flexibility by 2020 2020 Natural Gas 5% Other 4% Coal 21% Renewables (Domestic 27%) 70% Other 4% 2020 Natural Gas 35% Renewables (Domestic 27%) 40% Coal 21% 6
Lower Churchill Phase 1 and Maritime Link MUSKRAT FALLS (MF) GENERATION & LABRADOR TRANSMISSION (LTA) $4.2 billion project value 824 MW hydroelectric facility 4.9 TWh/yr 100% Nalcor owned LABRADOR ISLAND LINK (LIL) $2.79 billion project value 900 MW capacity 1,100 km Emera to invest $370 million for a 35% equity interest in the LIL MARITIME LINK (ML) $1.577 billion project value 500 MW capacity 170km undersea link 100% Emera owned for 35 years TRANSMISSION LINES Existing Transmission Lines Proposed Northeast Energy Link NSPI, Emera Maine Transmission Lines Utility Service Area 11
Subsea Transmission Cable Planning to use HDD for cable to shore Two, 200 kv HVDC cables from NL to NS. approx. 170 km Photo: Nexans 8
Local Benefits The Maritime Link $70 M in contracts awarded in Atlantic Canada 300 jobs/year (600 at peak) during construction. Reduces CO 2 &, balances for more renewable development. Helps stabilize prices. Creates Atlantic electricity loop; access to energy options. Lower Churchill Projects: (Muskrat Falls & LIL) During construction, Muskrat Falls & Labrador Island Link will cost approx. $7 billion, creating opportunities for local businesses. Together, the Maritime Link project, Muskrat Falls and LIL create approx. 9500 direct person years of work. Joint Benefits MOU offers business in both NS & NL equal access to $8.5 billion in economic activity. 9
ON Northeast Transmission Development Strong interest in long-term QC contracts for renewable energy from Northern Maine/Canada. MUSKRAT FALLS (MF) GENERATION & LABRADOR TRANSMISSION (LTA) NL LABRADOR ISLAND LINK (LIL) NB PE MARITIME LINK ME NS NY VT NH Wind Facility MA Hydro Facility PA NJ CT RI WV MD
Emera s Tidal History: Barrage Annapolis Tidal Station Opened in 1984 First & only in North America. 20 MW (Daily output 80-100 MWh) 11
Emera s Tidal History: 2009 Demo. Project 10 meter in-stream turbine Deployed in Bay of Fundy 2009 Retrieved in 2010 12
Emera and Tidal Today Part of a group, led by OpenHydro, to deploy multi-phase tidal array in Bay of Fundy. Goal to develop commercial tidal industry in the region. Phases 1 (2015): 4 MW array. 2 (2017): installation of additional 12 MW. 3 (2019): increase array size to 50 MW 4 (2020+): 300 MW commercial project. 13
Building a Local Industry Currently, 10 permanent staff in NS (mainly local hires). Local manufacturing; Turbine assembly at site. Team will grow as we move to next phase. Projected: 950 direct/indirect jobs when producing 100 MW/year. 14
Local Spending: Phase 1 (4MW array) 30% procured outside Nova Scotia 30% OUTSIDE NOVA SCOTIA Blades, Coils, Bearings, Laminates, Blades Laminates Magnets, Power Coils Conversion Magnets Bearings Power Conversion 70% PROCURED IN NOVA SCOTIA Journals Subsea Base Barge End Caps, Buoyancy, Venturi, Lifting Inner System & Outer Ring, Journals, End caps Subsea Base, Buoyancy Barge, Lifting System, Venturi Capital Equipment Capital Equipment Inner & Outer Ring. 70% procured in Nova Scotia 15
Emera and Offshore Floating Wind Maine Aqua Ventus I To harness offshore wind energy for clean, quiet renewable generation. Pilot project: 2 Turbine, 12 MW off coast of Maine Partnership with University of Maine Future goal: 500 MW deep water project 16
Why offshore Wind in Maine? Maine s largest untapped renewable resource equivalent to roughly 156 nuclear power plants. 17
Future possibilities Offshore Floating Wind in the Caribbean Exploring application for this technology in other jurisdictions. Long term vision for opportunity. Ocean Thermal Energy Conversion(OTEC) Old technology, reapplied news way. Centralized offshore power plants. Future opportunity for the Caribbean market. 18