Premier Danny Williams said a multi-billion-dollar transmission link between Labrador and Newfoundland will ensure a future supply of green electricity for the province.

Williams, who announced a new energy plan on Tuesday, said the transmission link — which will cost taxpayers at least $2 billion — may be expensive, but is necessary.

Danny Williams wants a transmission link between Labrador and Quebec built by 2015.
(CBC)

Under the energy scheme, which was released within days of an expected provincial election call, the transmission link will be completed by the time the planned Lower Churchill hydroelectric megaproject in Labrador comes on stream in 2015.

"Once the Lower Churchill begins producing power, and the transmission link is complete, 98 per cent of Newfoundland and Labrador's energy will come from renewable clean sources," Williams said.

The themes of the energy plan — which most prominently calls for a 10-per-cent provincial stake in future oil and gas projects — will probably be repeated during the election campaign.

Newfoundland and Labrador decided last year to develop the two-site Lower Churchill project by itself. The province has not locked down buyers for the energy, let alone a means of routing it to markets, although Ontario has expressed a keen interest.

Williams said if the Lower Churchill project falls off the rails, the province will install scrubbers at the oil-burning power station in Holyrood to reduce emissions.

NDP Leader Lorraine Michael, however, said there's no reason to wait to clean up Holyrood, where area residents have long complained about air quality and health problems.

"If we're serious about our clean air and the emissions, then we've got to clean that up first," she said.

"The transmission line is so far down the road, and I think we need to have both the short-term and long-term plan for Holyrood."

Williams acknowledged Tuesday he will need federal help to pay for the Lower Churchill project and the transmission link.

Simon Lono, a Liberal candidate in St. John's who has been speaking on behalf of the party on energy issues, said he's skeptical Williams will get it.

"It's easy to make guarantees about money that you don't have in place," Lono said.

Williams has been touting the Lower Churchill as a way for Canada to meet targets on cutting greenhouse gas emissions. His energy plan aims to cut provincial emissions by 1.3 million tonnes before 2015.