The coal-fire plants in the state of Nova Scotia managed by Nova Scotia Power Inc. will continue to receive fuel under a new deal that will allow the company to continue burning coal for a longer period of time.

The new deal ensures that state will be able to meet its target for greenhouse gas emission reductions while power plants will continue to have fuel to generate power. A draft agreement between the federal government and Nova Scotia government will allow the state to avoid rules that would force closure of power plants.

The deal also beings reprieve for coal and fire plants that would have been forced to close from 2015 after 50 years in operation. State government estimates had shown that the cost of having abandoned plants would be around $1.3 billion.

Jason Hollett, executive director of the province's climate change directorate said, "This deal gives us the flexibility to achieve those reductions in a way that is in the best interests of Nova Scotians."

The state will use its own regulatory framework to reduce its emissions by 25 per cent by 2020. Following that, the state will prepare a new emission reduction plan till the year 2030..