Overview: A push for independence from the NB Power grid
Several of New Brunswick’s largest industrial players are publicly advocating for an exit from the provincial utility’s power grid. The proposal envisions these companies generating their own renewable electricity, either on-site or through independent projects, rather than buying power from NB Power. Proponents argue the move could improve reliability, reduce long-term energy costs, and accelerate regional decarbonization. Critics warn that widespread separation could shift costs onto remaining ratepayers and complicate the province’s energy transition.
What’s driving the push?
Industry leaders point to rising energy prices, long-term price volatility, and a desire for greater control over energy supply as primary motivators. By investing in on-site solar, wind, or other renewables, companies could hedge against rate changes and ensure a stable energy footprint for heavy manufacturing, data centers, and other energy-intensive sectors. For some firms, the prospect of electrochemical storage, demand response agreements, and onsite microgrids adds an extra layer of resilience against outages and grid constraints.
Economic considerations
Advocates argue that while initial capital costs for on-site generation and storage can be significant, long-term operating costs may be more predictable. They cite potential reductions in energy taxes, avoided transmission charges, and the ability to tailor generation to facility-specific demand. Critics counter that such projects can require substantial up-front capital, complex permitting, and access to skilled labor to maintain reliability at industrial scales. They also warn about potential cross-subsidies in the current rate structure and the risk of higher bills for customers who remain connected to the grid.
What does this mean for NB Power?
NB Power, the province’s main electric utility, argues that a mass exodus by large customers could undermine the financial model that keeps rates stable for small businesses and residential customers. Utilities rely on a broad customer base to spread fixed costs—like grid maintenance and system upgrades—across all users. If many large customers disconnect, NB Power warns it could be forced to raise rates on the remaining customers to cover the fixed costs, potentially creating a cycle of higher bills and reduced demand elasticity for the grid.
Policy and regulatory context
Energy policy in New Brunswick sits at the intersection of provincial priorities, environmental targets, and ratepayer protection. Regulators typically require utilities to maintain grid reliability, fair access to energy, and transparent pricing. Any move toward unbundling or offering independent generation options to major customers would require regulatory approval, changes to market rules, and potentially new frameworks for power purchase agreements, net metering, and interconnection standards. Stakeholders on both sides say a careful, evidence-based process is essential to avoid unintended consequences for ratepayers and system reliability.
What alternative models exist?
Several models exist globally for large energy users who want more control over their power:
- On-site generation paired with energy storage and demand management, reducing peak demand charges.
- Independent power projects financed by the industrial customers themselves or by third-party developers under long-term power purchase agreements.
- Hybrid approaches where some facilities stay connected to the NB Power grid while others operate their own microgrids under clear regulatory rules.
Stakeholder perspectives
Proponents emphasize competitiveness, resilience, and accelerated decarbonization. They argue that modern renewable projects can deliver predictable costs and help New Brunswick attract and retain energy-intensive industries. Opponents stress the risk to the broader ratepayer base, potential capital flight, and the administrative complexity of managing multiple, customer-specific energy systems. Community leaders and small businesses worry about potential shifts in electricity pricing and grid reliability if large consumers disconnect.
What happens next?
Moving from proposal to policy will require dialogue among industry groups, the utility, provincial regulators, and the public. Any pathway to exit would likely involve staged pilots, comprehensive financial analyses, and the development of transparent interconnection standards and tariffs. In the near term, expect continued hearings, feasibility studies, and public debate about how best to balance industrial competitiveness with the needs of all NB Power ratepayers.
Bottom line
The debate over whether large NB industries should exit the NB Power grid underscores a broader tension in energy policy: how to empower energy-intensive sectors with reliable, affordable, and low-emission power while safeguarding the collective interests of ratepayers and the grid’s long-term stability. As this debate unfolds, the province will be weighing capital needs, environmental commitments, and the role of public utilities in a rapidly evolving energy landscape.
