Renewable Electricity PlanA path to good jobs, stable prices, and a cleaner environment.
April 2010
© Crown copyright, Province of Nova Scotia, 2010
This document is available on the Internet at: www.gov.ns.ca/energy. For further information about Nova Scotia’s Renewable Electricity Plan, please contact Nova Scotia Department of Energy, 400-5151 George Street, PO Box 2664, Halifax, Nova Scotia B3J 3P7. Tel: (902) 424-4575
Table of Contents
Executive Summary 2
1.0 Where We Are Now 4
2.0 Where We Need to Go 6
3.0 Underlying Principles 8
4.0 Meeting the 2015 Commitment 9
•MediumandLarge-ScaleProjects
•Community-BasedFeed-InTariff
•EnhancedNetMetering
•ForestProductsAssociatedBiomass
•MarketStructureandGovernance
5.0 Achieving the 2020 Goal 16
•RenewableResourceMixAfter2015
•TheRoleofTidalEnergy
•TheRoleofNaturalGas
6.0 New Roles and Responsibilities 20
•RenewableElectricityAdministrator
•NovaScotiaPowerInc.
•UtilityandReviewBoard
•ProvinceofNovaScotia
7.0 The Role of Government 21
•Facilitation
•Financing
•CoordinatingApprovals
•EmissionsManagement
•LocalGovernment
•FederalGovernment
•FirstNations
•LegislationandRegulation
•SupplyChainDevelopment
8.0 Building a Secure, Reliable Network 23
•TransmissionandDistribution
•RoleofImportsandExports
•SmartTechnologies
9.0 Things This Plan Does Not Do 25
10.0 Costs and Benefits 26
11.0 Implementation 28
2 Renewable Electricity Plan
Executive Summary
ThisRenewableElectricityPlansetsoutadetailed
programtomoveNovaScotiaawayfromcarbon-
basedelectricitytowardsgreener,morelocalsources.
Themotivationforthisplanissimple:nearly90
percentoftheprovince’selectricitysupplycomesfrom
fossilfuels—mostofitcoal.Coalmademoresensewhen
itwasminedhereinNovaScotia,butnowwebuyitfrom
others.Thisover-relianceonasinglefuelsourceweakens
ourenergysecurity,bindsustothevolatileandupward
trendofinternationalprices,anddrainswealthaway
fromtheprovince.Equallyimportant,ithasanegative
impactonbothourhealthandourenvironment.
Theprovinceiscommittedtomakingachange—
andtokeepingitscommitmenttomakelifebetterfor
NovaScotiafamilies.
The Commitment: 25% Renewable Electricity by 2015.
Thisplancommitsthe2015targetof25percent
renewableelectricitytolaw.Bythatdate,NovaScotia’s
totalrenewableelectricitycontentwillhavemore
thandoubledfrom2009levels—andtheequivalentof
morethan300,000homeswillbepoweredbyclean,
localsources.
The New Goal: 40% Renewable Electricity by 2020.
The2020goalplacesNovaScotiainapositionofglobal
leadership.Itmayrequireexpandedgridconnections
withourneighbours,andmayincludeagreatlyexpanded
rolefortidalenergyaswelearnmore.By2020,thisgoal
meansNovaScotiawillhavetheequivalentofmorethan
500,000homesrunningonrenewablepower—more
thanenoughenergyforeveryresidentialcustomerin
theprovince.
The PlanInadditiontoenergyconservationandefficiency
programs,theprovincewillmakeanorderlytransition
tonew,local,renewableenergysources.Thisplanuses
severaldifferentmechanismstoachievethattransition.
ItcreatesaroleforeveryonefromNovaScotiaPower
(whowillcontinuetheirregulatedobligations)andlarge
independentproducers,tocommunityorganizations
andcommittedcitizens.
Larger Projects: Regulation + Competition
Largeandmedium-sizedrenewableelectricityprojects
willbesplitevenlybetweenNovaScotiaPower(NSPI)
andIndependentPowerProducers(IPPs).TheUtility
andReviewBoard(UARB)willevaluateandapprove
NSPI-sponsoredprojectsinthetraditionalway.
Independentproducerswillcompeteforprojectsin
abiddingprocessmanagedbyanewauthority,the
Renewable Electricity Administrator.
Community Projects: Fixed Price
Toencouragearangeofprojectswidelydispersed
throughouttheprovince,thisplanestablishesa
community-basedfeed-intariff(COMFIT)foran
expected100megawattsofrenewableelectricityprojects
connectedtothegridatthedistributionlevel.Theplan
alsointroducesavarietyofprogramstoassistcommunity
groupsinthetechnical,financial,andregulatorywork
neededtodeveloptheseprojects.
Individuals: Enhanced Net Metering
Togiveindividualsandsmallbusinessestheopportunity
toparticipateingreenenergyprojects,theplanexpands
andenhancesthecurrentnetmeteringprogram
availabletoconsumersthroughNSPI.Projectsuptoone
megawatt,andconnectedtomultiplemeterswithina
Renewable Electricity
Plan
3
Executive Summary
Renewable Electricity Plan
singledistributionzone,willbeeligibletousetwo-way
meters,andparticipantswillreceivepaymentatretail
ratesforanyexcesspowertheyproduceoverayear.
Biomass: Proceed with Caution
Governmentwillapproachthedevelopmentofbiomass
forelectricityproductionwithcaution.Electricity
producedfromco-firingbiomasswillplayarolein
meetingthe2015target,butwillundergoreviewfor
post-2015use.Toensuresustainability,pendingrelease
oftheNaturalResourcesStrategy,thisplancapsnew
electricitygenerationfromforestbiomassat500,000dry
tonnes(~600-700GWh)abovecurrentuses.Co-firing
inthermalplantsiscappedat150,000drytonnes
(150GWh).
Tidal: Safe Development
Theprovincewillcontinuetoinvestintidalenergy
researchanddevelopmentinthehopesthatour
uniquetidalresourcecaneventuallymakeasignificant
contributiontoourenergyneeds.Toencouragethis
development,thisplanestablishesacommunity-based
feed-intariff(COMFIT)fordistributionconnected
tidalprojects,aswellasaspecialFITcoveringdirect
incrementalcostsrelatedtodevicedeploymentfor
developmentaltidalarraysconnectedtothegridatthe
transmissionlevel.
Solar: Heat + Water Focus
Solarwillqualifyasarenewableresourceunderthe
enhancednetmeteringprogram.Today,solarisused
moreeconomicallyforairandwaterheatingratherthan
electricitygeneration.Itsrolemayexpandasthecostof
solartechnologychangesinthefuture.
Grid: Cleaner and Stronger
Toincreasethegrid’scapacitytoabsorbintermittent
energyfromwindandtidalsources,theprovincewill
continuetoencouragetheuseoflocally-produced
naturalgas—acleaner,quick-respondingfuelthatisideal
forbalancingintermittentsupplies.Newstudieswilllay
thegroundworkforupgradingourowngrid,andour
modestinterconnectiontotheNorthAmericangrid.
Benefits + Costs
Intheprocessoftransitioningtoasystemthatis
cleaner,morediverse,moredomestic,andmore
secure,thisplanwillsupportasmuchas$1.5billion
ingreeninvestment—creatinggoodjobsandgrowing
theeconomy.Specifically,theplanwillcreatejobsin
construction,supply,manufacturingandmaintenance,
generatinganestimated5,000to7,500person-years
insidetheprovince,withopportunitiesinbothurban
andruralareas.Therearecostsassociatedwithmoving
inthisdirection—especiallyupfront.Addingrenewables
mayaddanaverageofonetotwopercentperyearon
electricitybillsintheshortterm.
ButinthelongrunNovaScotiawillbefarbetter
off.Renewableelectricitypricesdon’tgoupovertimein
thesamewaythatcarbon-basedfuelswill.Controlling
ourownsuppliesofenergygivesussignificantenergy
security.Movingtowardslocalrenewablesourceswill
helpstabilizefuelpricesinthefuture—protecting
consumersfromboththevolatilityoffossilfuelpricing
andthefuturecostsofcarbon.
Thisplantakesabalancedapproachtothe
challengingtaskoftransformingourelectricity
system—adirectioncriticaltotheprovince’seconomic
andenvironmentalfuture—withopportunitiesforall
NovaScotianstoparticipate.
4 Renewable Electricity Plan
Where We Are Now
A generationago,NovaScotiamadeadeliberate
decisiontoproduceelectricityfromcoal.Theprice
waslowandstable,andthesupplywassecure.Itwas
minedrighthere—soinvestingincoal-firedgeneration
seemedlikeasmartwaytoensurejobsandaffordable
electricityforNovaScotians.
Thatrealityischanging.Risingcostsandincreasing
internationalcompetitionforcedourminestoclose.
Today,thecoalburnedinNovaScotiacomesfromdistant
shores.
Today,almost80percentoftheelectricityconsumed
herecomesfromimportedcoal,petroleum-coke,orfuel
oil.Therestcomesfromnaturalgas—acleaner,locally
producedfuel—andfromrenewablesourceslikehydro,
wind,andtidal.
Everytimeyouturnonalightswitch,moneyflows
fromyourpocketoutofthecountrytoplaceswherethe
coalweburnoriginates.Notonlydoesthisdrainwealth
fromtheprovince,itputsNovaScotiansatthemercyof
politicalturmoilandnaturaldisastersinfarawaylands.
$250.00
$200.00
$150.00
$100.00
$50.00
02003 2004 2005 2006 20082007
Please note that prices are based on blended prices from multiple suppliers dependent on BTU value, world price, sulphur contents, FX rates.
Source: NSPI
mill
ions
of
do
llars
Estimated Cost of Imported Coal Used to Produce Electricity in Nova Scotia
1
Although coal prices fluctuate, the general trend continues to climb upward.
5Renewable Electricity Plan
RelianceonimportedcoalalsoshacklesNovaScotia
totheupwardmarchofinternationalfuelprices,driven
bythedevelopingworld’sinsatiableappetiteforenergy.
Eachtimepricescareenupwardandstarttocomeback
down,theyalwaysseemtosettleataleveljustabithigher
thanwheretheystarted.
Coalisalsoamajorsourceofpollution.Burning
itproducesnitrogenoxides,sulphurdioxide,mercury,
andparticulatesrequiringevermoreexpensiveemission
controlsandcleanermixesoffuelstoprotectpublic
healthandtheenvironment.
Burningcoalandoilgeneratesgreenhousegases
thatcontributetoclimatechange—aproblemwehavea
responsibilitytoaddressasglobalcitizens.
Inshort,NovaScotia’seconomyhasbeenexposed
toinsecureoverseassuppliesofanincreasinglyexpensive,
unhealthy,environmentallyunfriendlyfuel.Weneedto
beginchangingthat,andthisistheplanfordoingso.
TheRenewableElectricityPlanisfocusedon
helpingNovaScotiaaddressthechallengesoftherapidly
changingworldenergyenvironment—andmakinglife
moreaffordableinthelongrun.Itincorporatesthe
strategicdirectionofpreviousenergypolicy,andexpands
onitinanumberofkeyareas.
Thisplanispartofalargerstrategyoncleanenergy
productionandusetobereleasedinthecomingyear.The
strategywillencompassmorethanelectricitygeneration.
Itwillcoverseveralaspectsofenergypolicy,including:
• Allsourcesofrenewableenergy(forelectricity,space
andwaterheating,andtransportation),
• Energyefficiency(includingconservation,efficiency,
andmanagingdemand),
• Locally-produced,cleanerfuels(encompassingnatural
gassuppliesandmarkets),and
• Economicandenvironmentalopportunitiesthat
emergeasNovaScotiamovestoacleaner,moresecure
andsustainableenergyfuture.
AspartofthepreparationforthisRenewable
ElectricityPlan,aconsultingteamfromDalhousie
University,ledbyDr.DavidWheeler,facilitatedextensive
public,multi-disciplinaryconsultationsinthesummer
andfallof2009.Thoseconsultationsconfirmedthat
NovaScotiansarepassionateaboutdevelopingour
renewableenergyresources.Thefinalreport,dubbed
the“WheelerReport”includedrecommendationsfor
implementingrenewableenergyintheshort,medium,
andlong-term(beyond2020).Thisplandrawson
theadviceofDr.Wheeler,aswellasarangeofother
informationsources,tobuildapracticalplanforournear
andmid-termenergyfuture.
Where We Are Now
Coal-firedelectricityneedstobegraduallyreplaced
withfuelsuppliesthatarelocal,cleaner,more
secure,andmoresustainable.Itcan’tbedoneovernight.
Forone,becauseNovaScotia’selectricalutilityhasahuge
investmentinthermalgeneratingstationsthatareonlypart
waythroughtheirusefullife.Butwemustbegintheprocess
ofweaningourselvesoffcoal.Thismeanspracticingenergy
conservationtoforestallgrowthindemandforelectricity,
andbroadeningtheenergysupplybasetoincludea
significantlylargerlocal,renewablecomponent.
Transforming our current electricity mix to one that is more local and green is important to our future energy security.
TheGovernmentofNovaScotiahassetambitious
targetsforgeneratingmoreelectricityfromrenewable
sources,aswellassettingthefirstandonlyhardcapson
greenhousegasemissionsinNorthAmerica,insupport
oftheEnvironmental Goals and Sustainable Prosperity
Act (EGSPA).Theprovinceiswellonitswaytomeeting
thetargetsfor2011and2013establishedunderthe
RenewableEnergyStandard.ThisRenewableElectricity
Planfocusesonwheretogofromthere.
LastJuly,theprovince’snewgovernmentmadea
commitmentthat25percentofourelectricitywouldcome
fromrenewablesourcesby2015.ThisRenewableElectricity
Plandetailsthestepsbywhichwewillmeetthattarget.
Italsoestablishesanevenmoreambitiousgoal
for2020:bythatdate,theplanistohave40percentof
electricityproducedfromrenewablesources.Achieving
thatgoalwillcuttheprovince’scoalconsumptioninhalf
injust10years.
Wemeasuretherateatwhichelectricityis
generatedorusedinwatts.A25-wattbulbuses
25wattsofpower.
Wemeasuretheamountofelectricitygenerated
orusedinwatt-hours.A25wattbulbthatburns
foranhouruses25watt-hoursofelectricity.
Becausethisplanoftendiscusseslargeamounts
ofelectricity,weuseaseriesofprefixestodescribe
verylargeamounts.
1,000 watts = 1 kilowatt (kW),thepowerused
byatypicalhome.
1000 kW = 1 megawatt (MW),thepowerusedby
about1,000homes.
1000 MW = 1 gigawatt (GW),thepowerused
byaboutamillionhomes.
1 gigawatt-hour (GWh) = 1 million kilowatt-hours.
NovaScotiacurrentlygeneratesandconsumes
about12,000GWhofelectricityperyear.
6
Where We Need to Go 2
Renewable Electricity Plan
A Quick Guide to Electricity Units
7Renewable Electricity Plan
NovaScotiacurrentlyconsumesjustover12,000GWh
ofelectricityperyear.Thattotalneedstobekeptfrom
growing,orthepercentage-basedtargetsforrenewable
electricitywillbethatmuchhardertoachieve.Energy
conservationandefficiency,therefore,arecriticalnotonly
tokeepingenergybillsundercontrol,butforachieving
renewableenergytargetstoo.Infact,conservationisby
farthesinglebiggeststepthatcanbetaken—eitherasa
societyorasindividuals—tosafeguardourenergyfuture.
Inthefallof2009,theprovincecreatedEfficiency
NovaScotia,anarms-lengthnon-profitcorporation,to
bettermanageuseofelectricity.EfficiencyNovaScotia
willindependentlyoverseetheelectricitydemandside
management(DSM)programnowoperatedbyNova
ScotiaPower(NSPI)andcontractwithgovernment
todeliverprogramsthatwillreducedemandfor
non-electricenergyuse.DSMisanindustrytermfor
programsthatencourageutilitycustomerstouseless
electricity,especiallyattimesofpeakuse,whensupplies
arestrainedandgeneratingcostssoar.
Beyondconservation,theclearestpathtostable,
secure,sustainableelectricitysupplieslieswith
maximizingtheuseofrenewableenergy.
Renewableenergyissustainablebecauseitcomes
fromsourcesthatnaturereplenishes:rivers,tides,wind,
sunshine,plants,andforests.NovaScotiaisblessedwith
abundantsuppliesoftheseresourcestohelpusmeetour
2015commitmentandour2020goal.Wehavesubstantial
windsupplies.Theenergyunleashedeverysixhoursinthe
BayofFundyrepresentsoneofthegreatesttidalresources
ontheplanet.Wehaveaplentifulsourceofbiomass.Solar
technologiesforelectricityareemergingandwilllikelyplay
alargerroleaspricesdecline,andthetechnologyforusing
energyfromthesunforheatingisbecomingestablishedin
NovaScotiaandmaybeevenmorepromisingpost-2015.
Ofthe12,000GWhofelectricitytheprovince
consumeseachyear,onlyabout11percentcomesfrom
renewablesources.Assumingconservationprograms
anddemandmanagementkeepoverallelectricity
consumptionfromrising,another1,700GWhof
renewableelectricity(neworunderconstruction)is
neededby2015tomeetthecommitment.Section4of
thisplandetailsthepoliciesandprogramsgovernment
willusetoachievethat2015commitment.
Thenewgoalof40percentrenewableelectricity
suppliesby2020doesnotyethavetheforceofregulation.
However,itshowsthedirectionandpacegovernment
wantstomaintaininthequestforasecure,sustainable
energysupply.Toachievethatgoal,afurther1800GWh
peryearofrenewableenergyneedstobeharnessedby
2020—tenshortyearsfromnow.Section5ofthisplan
laysoutthepathforreachingthisgoal.
Pre-2001 End 2009 2011 2013 2015 2020
1100GWh/yr 1300GWh/yr 1700GWh/yr 2300GWh/yr 3000GWh/yr 4800GWh/yr
9% 11% 14% 19% 25% 40%
Total Amount of Renewable Electricity Supply
Where We Need to Go
Between 2009 and 2015, Nova Scotia will more than double its renewable electricity supply, growing nearly 8 times faster than the period between 2001 and 2009.
*2011 and future amounts forecast based on 12,000 GWh/yr of total provincial electricity sales.
8 Renewable Electricity Plan
Underlying Principles 3Severalprinciplesguidedthedevelopmentofthis
RenewableElectricityPlan:
Managing Costs for RatepayersThecurrentelectricitypathleavesNovaScotiadependent
onrisinginternationalcoalandoilprices.Thisplanseeks
tomakelifemoreaffordablebystabilizingelectricityrates
overthemediumandlong-terms.Itestablishesapathto
manageableandpredictableenergybillsforNovaScotia
familiesandbusinesses.
Strengthening Security Through DiversityBasingalmost80percentofourelectricityonimported
coalandoilputsNovaScotiaatthemercyofinternational
marketsoverwhichwehavenoinfluence.Thisplanseeks
toensureamoresecure,stable,reliablesupplyofenergy.
Akeytoachievingthatgoalistodiversifyintomore
localizedenergysources,spreadmorewidelyaround
theprovince.
Building Economic Opportunities in Rural Nova ScotiaByfocusingonrenewableenergysourceslikewindand
tidal,whicharenaturallyabundantinNovaScotia,this
planenhancesopportunitiestocreategoodjobsandgrow
theeconomyineveryregionofNovaScotia.Traditional
ruralindustrieslikeforestryandagriculturecanbuild
wealthandaddjobsbydevelopingthesustainable
renewableenergysourcestheymanagealready.And
capitalizingonNovaScotia’sunparalleledtidalpotential
canbuildanindustryhereathomewithopportunities
aroundtheworld.
Protecting Our Environment and Ensuring Sustainability NovaScotiaistheonlyjurisdictioninNorthAmerica
withabsolutecapsongreenhousegas(GHG)emissions
fromtheelectricitysector.Therearealsoincreasingly
stringentlimitsonharmfulairpollutants.Thisplan
buildsonthatleadershiproleandwillensureacleaner,
moresustainablefuture—keepingtheprovince’s
commitmenttomakelifebetterforallNovaScotians.
Maximizing Community Involvement and Social BenefitsTheplanoffersopportunitiesforeveryone–from
communitygroupstoFirstNations,localnot-for-profit
organizations,businessesandindividualstoactively
participateinthedevelopmentofrenewableenergy
resources.Workingtogether,wecanallshareinthe
benefits.
Holding Ourselves AccountableThisplanestablishessomeofthestrongestrenewable
electricitygoalsinNorthAmerica,andsetsoutapath
formeetingthosegoals.Thisplanisabouttaking
leadership—andensuringthatwelivemorewithinour
ownenergymeans.
9Renewable Electricity Plan
Meeting the 2015 Commitment 4Meetingthe2015commitmentfor25%renewable
electricitysupply,willbechallenging,butit
isachievable.Wewillusethefollowingtoolsand
mechanismstogetusthere:
• Large-scale,community-based,andsmall-scale
renewableelectricityprojects
• Changestoelectricityregulation
• Requirementsforbiomass.
Becauselargeprojectsproducethelowest-cost
renewableelectricity,NSPIwillundertakesomeofits
ownlargerenewableenergyprojectssubjecttoapproval
bytheUtilityandReviewBoard(UARB).Independent
powerproducerswillhaveanequalallocationofthese
projects,subjecttocompetitivebids.
Costcontrolisnottheonlyprincipleunderlyingthe
transitiontorenewableenergy.Toensureevenbroader
participation,smallcommunity-basedpowerprojects
willbeeligibleforaFeed-InTariff(FIT).
The FIT guarantees qualified participants a fixed price for the renewable electricity they produce over a fixed period of time. The price typically reflects the cost of generating the electricity, plus a reasonable return for the producer.
Finally,businessesandhomeownerswhoproduce
renewableelectricitywillbeeligibletoparticipateinan
enhancednetmeteringprogram(tentimesthelimitof
thecurrentnetmeteringprogram)thatcreditsthemfor
excesspowertheyfeedintothegridagainstthecostof
anypowertheyconsume.
Inshort,there’saroleandopportunityforeveryone:
homeowners,FirstNations,municipalities,community
groups,farmers,businesses,developers,andNSPI.
Here’showthethreenewmechanismsforbuying
renewableelectricitywillwork.
1. Medium and Large-Scale Projects
Mostofthenewrenewableenergyneededto
meet2015and2020goalswillcomefrom
industrial-scaleprojects.TheRenewableElectricityPlan
callsforaminimumof600GWhofnewmediumto
large-scalerenewableelectricity,producedinequalparts
byNSPIandindependentpowerproducers.
TheUARBwillevaluate,approve,andregulate
projectsproposedbyNSPIinthetraditionalmanner.
Independentproducerswillcompeteforprojects
undertheirallocation.Topromotefairnessandefficiency,
projectswillbesecuredthroughcompetitivebiddingin
responsetorequestsforproposals(RFPs).
Mostofthenewrenewableenergyprojectsnow
underdevelopmentorinoperationresultedfrom
competitiveRFPsissuedin2007.Financingproblems
stalledseveraloftheseprojects,butit’sclearthatsome
ofthetroublesstemmedfromtheworldfinancialcrisis
ratherthanashortcomingoftheRFPmodelitself.
10
Meeting the 2015 Commitment
Renewable Electricity Plan
Usingthetwomethods—UARBregulationand
competitivebidding—inparallelwillhelpdetermine
whichmodelgivesthebestvalueforratepayersforfuture
policydevelopment.
Theprocessfordevelopingthesemediumandlarge
projectswillincludethefollowingfeatures:
• NSPIwillcontinuetofollowthecurrentprocessfor
developingitsshareofrenewableenergyprojects,
seekingapprovalfromtheUARBtorecovercosts
fromratepayers.
• Acompetitivebiddingprocessforindependentpower
producerswillbeopentoallqualifiedproducers
exceptNSPI.
• Anewindependentauthority,theRenewable
ElectricityAdministrator(REA),willmanagethe
competitivebiddingprocessesandselectwinning
projects.(TheroleoftheRenewableElectricity
AdministratorisdescribedmorefullyinSection7
oftheplan.)
• Independentpowerproducerscanformpartnerships
withNSPI,butNSPIcanhavenomorethan49%
ownershiporoperatingauthorityofsuchprojects.
• Governmentretainsthediscretiontocallforbids
forrenewableelectricityprojects,includingspecific
technologiessuchastidal.
• Thebiddingprocessforrenewableelectricityprojects
involvingforestproductsmustensurethatthe
managementanduseoftheresourceconformsto
sustainabilitystandardsandregulations.
2. Community-Based Feed-In Tariff
Small-scaleproducerstypicallycannotcompete
successfullyagainstmuchlargerdevelopersina
competitivebiddingprocess.Morethan45jurisdictions
aroundtheworld,includingSpain,Germany,Ontario,and
Vermont,haveestablishedfeed-intariffs(FITs)thatsupport
andencouragesmall-scaleandcommunityownership.
Theseprogramsletnewcomersparticipateintherenewable
electricityindustry,andencouragethedevelopmentof
multipleprojectsoverwidely-dispersedruralareas.
ThisplanintroducesaCommunity-BasedFeed-
InTariff(COMFIT)toencouragethedevelopmentof
localrenewableenergyprojectsbymunicipalities,First
Nations,co-operatives,andnon-profitgroups.Most
communitiesarenotdirectlytransmissionconnected,
butareservedthroughlocaldistributionsubstations
thataredesignedtoaccommodatetheelectricityneeds
ofthespecificcommunity.Projectswillbeconnectedto
thegridatthedistributionlevel.Duetodistributionlevel
capacity,projectswilltypicallybelessthan2MW,but
potentiallyupto5or6MWdependingonlocation.The
sizeoftheprojectsthataredistribution-connectedwill
requiretechnicalstudyonacasebycasebasis,andwillbe
limitedbyareaoperatingconstraints.
Thisapproachmanagescostsandgivesusexperience
withtheintroductionofintermittentpowersourcesat
thedistributionlevel.Renewableelectricityfromlarge-
scalecommercialprojectswillcontinuetobeprocured
throughthecompetitivebiddingprocess,becausethis
offersthebestvalueforratepayers.Atthistime,aFIT
forlarge-scaleprojectswouldlikelyhaveasignificant
impactonelectricityrates.Governmentwillreview,and
ifappropriateadjust,theCOMFITprogramin2012,to
ensurethatwelearnfromourexperienceandensurethat
theobjectiveofsupplying100MWthroughcommunity/
small-scalerenewableelectricityprojectsismet.
11
Meeting the 2015 Commitment
Renewable Electricity Plan
Governmentisproceedinginthismannerbecause
NovaScotia’selectricitysystemdoesn’treadilylenditself
tointermittentenergyconnectedatthedistributionlevel.
Thechallengesaresimilartothoseinvolvedinplanninga
highwaysystem.Thetransmissionsystemfunctionslike
amajor100-serieshighway,whilethedistributionsystem
operatesmorelikeanetworkofsmall,localroads.Just
asasuddeninfluxofunexpectedtrafficontolocalroads
canproducegridlock,theintroductionofintermittent
electricityatmanydifferentpointsaroundtheprovince
couldoverwhelmthedistributionsystem.Anychanges
intheoverallsystemrequirecarefulplanning,justlike
changestoroadsandhighways.
NovaScotia’sCOMFITwillincludethe
followingfeatures:
• Municipalities,FirstNations,co-operatives,local
non-profits,aswellassmallbusinessesoperating
throughCommunityEconomicDevelopment
InvestmentFunds(CEDIFs),willbeeligibletoreceive
theCOMFIT.
• Thepurposeoflimitingaccesstocommunity-based
participantsistoensurethatprojectsarerootedin
thecommunityandinvestmentreturnsremainthere.
Regulationswillestablishtheprecisedefinitionof
communityfollowingconsultation.
• Electricityproducedfromwind,biomass,tidal,wave,
in-streamhydroaswellascombinedheatandpower
projectswillbeeligibleforCOMFITratesthatreflect
basiccost-recovery,includingthecostofcapital.
• COMFIT-eligibleprojectswillconnecttothegrid
atthedistributionlevel(i.e.belowasubstation).
(Note:seetidalsection,p.18,regardingaspecialFIT
fortidalarraysatthetransmissionlevel.)
• TheUARBwillsettheCOMFITrateaccordingto
government-setcriteria.
• In2012,governmentwillreviewtheprogramand,if
appropriate,adjusttheCOMFITprogramtoensure
thatwelearnfromourexperienceandensurethat
theobjectiveofsupportingcommunity/small-scale
renewableelectricityprojectsismet.
Thecommunity-basedFITwillincrease
geographicaldistributionofrenewableelectricitysources,
therebycontributingtoourenergydiversityandsecurity.
Itshouldalsopromotegreaterpublicunderstandingand
acceptanceofrenewableresources.Anditwillprovide
ruraleconomicactivityassociatedwiththeconstruction
andoperationofrenewableenergyprojects—helping
creategoodjobsandgrowtheeconomy.
(Section 7 contains more detail on tools to support
community-based renewable energy projects.)
12
Meeting the 2015 Commitment
Renewable Electricity Plan
3. Enhanced Net Metering
Netmeteringisaprogramthatletsaconsumer
connectasmallrenewableelectricitysourcetothe
gridthroughaspecialmeterthatmeasureselectricity
flowsintwodirections.Foranyelectricityfedintothe
grid,theconsumergetsacredittooffsetthecostof
electricitydrawnfromthegrid.Thismechanismhelps
homeownersandbusinessesoffsetthecostoftheir
commitmenttosustainability.
NSPI’scurrentnetmeteringprogramwillbe
enhancedunderthisplan.Intheexistingprogram,the
amountofpowergeneratedcannotexceed100kW.
Projectsarelimitedtoasinglemeter.Thereisno
paymentforanyoverallsurplusfedintothegrid,only
acredituptothevalueofpowerconsumed.Thenew,
enhancedprogramintroducedbythisplaneasesthose
restrictions.Itwill:
• Beavailabletoeveryone
• Coverallrenewableresources
• Increasepowerlimitsfrom100kWto1MW
• Letcustomerssupplyelectricitytomultiplemeters
underoneaccountwithinasingledistributionzone
uptoanoveralllimitof1MW,and
• Providepaymenttocustomersattheirretailclassrate
foranyoverallsurpluselectricityproducedonan
annualbasis.
NSPIwillworkwiththeDepartmentofEnergyto
createanewon-lineenhancednetmeteringguideand
applicationformtomaketheprocesseasier.
4. Forest Products Associated Biomass
Governmentwillapproachthedevelopmentof
biomassforelectricityproductionwithcaution.
Electricityproducedfromco-firingbiomasswillplaya
roleinmeetingthe2015commitment,butwillundergo
reviewforpost-2015use.
Forestharvestingpracticesareacontentiousissue
inNovaScotia,subjecttowidedebate.Governmentis
currentlydevelopingaNaturalResourcesStrategy1that
willlikelyrecommendenhancedornewguidelinesand
regulationsforallusesofbiomass.Long-termplanning
forgeneratingelectricityfromforestbiomasswillhaveto
awaitthatstrategy.Prudentinterimdecisionsarepossible
nowhowever.
Althoughforestbiomassisaplentifulresource
here,usingwoodsolelyforthepurposeofgenerating
electricitythroughco-firingisinefficient.Farmore
energyisextractedfrombiomassusedtoheatwateror
livingspaces.Along-termstrategyforcleanerenergy
supplieswillrecognizewood’sgreatervalueasaheat
source,orasacombinedsourceofheatandelectricity.
However,usingbiomasstogenerateelectricityinthe
shortandmedium-termcanhelpdevelopthesupply
chainthatwilleventuallyservethesemoreefficientand
valuableuses.
1TheDepartmentofNaturalResourcescommissionedapanel
chairedbyformerChiefJusticeConstanceGlubetoprepareareport
andrecommendationsthatisfocusedonfourelements—forests,parks,
minerals,andbiodiversity—thatwillinformthedevelopmentofa
NaturalResourcesStrategy.Itwilllikelyrecommendenhancedornew
rules,regulations,andguidelinesfortheharvestingofwood.The
strategywillalsoconsidertheuseofbiomassforenergy.
13
Meeting the 2015 Commitment
Renewable Electricity Plan
Managedandregulatedresponsibly,forestbiomass
harvestingissustainable,andcancontributetothe
province’sshort-termrenewableelectricitytargets.
BiomassuseinNovaScotiaisalreadyareality,
includingfirewoodinover100,000homes,a22MW
biomasselectricalco-generationfacilityinBrooklyn,
asawmillproducingheatandpower,pulpandpaper
plants,twopelletmanufacturingplants,numerous
greenhouseoperations,sawmilllumberdryingkilns
andwood-relatedindustriesthatpowertheirfacilities
withproductionwaste.Institutionalusersincludethe
NovaScotiaAgriculturalCollegeandSouthShoreand
AnnapolisValleyRegionalHospitals.
Fieldinventoriesandsupplymodelsconstructed
bytheDepartmentofNaturalResourcesfoundthat
750,000drytonnesofnewforestbiomasscouldbe
sustainablyharvestedandusedtogenerateelectricityfor
the2015commitment.Dr.DavidWheeler’sstakeholder
advisoryprocessarrivedatacomparable,ifslightlylarger,
number.However,thenumbercouldbereducedifthe
forthcomingNaturalResourcesStrategyintroduces
changestocurrentharvestmanagementpractices.
Assessmentoftheimmediatedemandforforest
biomassgenerationsuggeststhatanamountbelow
750,000drytonnescouldbeprudentlyadopted.Theuse
offorestbiomassforelectricityproductionhelpsdiversify
ourelectricitysupply,makescost-effectiveuseofexisting
infrastructure,andhelpssupporttheforestsector.But
inthelongerterm,forestbiomassiscertaintofindmore
valuableusesthanasasimplesubstituteforcoalinNova
Scotiathermalpowerplants(whereheatenergymay
belost).Therefore,theplanimplementsthefollowing
interimrequirementsandplansforbiomass,pending
releaseoftheNaturalResourcesStrategy:
• Toensuresustainability,pendingreleaseofthe
NaturalResourcesStrategy,thisplancapsnew
generationfromforestbiomassataconservative
500,000drytonnes(600-700GWh)abovecurrentuses
forelectricitygeneration.Thiscapwillaccommodate
foreseeablebiomassprojects,includingmodest
amountsofco-firinginNSPIthermalplants,projects
developedbyforestproductscompanies,andalimited
amountofcommunityforestbiomassgeneration.
• Co-firinginthermalplantswillbecappedat150,000
drytonnes(150GWh)andwillcounttowardthe
renewableenergyneedsfor2015.However,co-firing
willbeconsideredabalancingfuelsourcethathelps
NSPImaintaincompliance.Projectsapprovedunder
theCOMFITwilltakeprecedence,andifthereisno
roomunderthecap,co-firingwillyield.
• Operatingapprovalsforthermalpowerstations
co-firedwithbiomasswillneedtoberevisedto
controlemissions.
• Theprovincewillalsoreviewtheuseofbiomassfor
co-firingoncetheNaturalResourcesStrategyisreleased.
After2015,governmentwillassessthecontinued
applicabilityofco-firingtomeetthe2020goal.
• Inordertoqualifyasrenewableenergy,forestbiomass
mustbeharvestedusingsustainablepractices,in
amannerconsistentwithlicenserequirements
forCrownLandestablishedforNewPagePort
Hawkesbury.
(See following page for Forest Biomass used for
Renewable Electricity Procurement Requirements.)
• Otherbio-energyresources,suchasagricultural
biomass,mayhavepotentialforelectricitygeneration
andheating,butfurtheranalysisisneededto
determinewhethertheycanplayasustainablerole.
AsoutlinedintheClimateChangeActionPlan,
governmentwilldevelopabio-resourcesstrategy
in2011todeterminethebestpotentialusesfor
bio-energybasedfuelsandthebestpoliciesto
encouragetheiruse.Thestrategywilltakeintoaccount
greenhousegasesandotherairemissionsproduced
throughthelifecycleofvariousbio-fuels.
• Large-scalebiomassprojectsestablishedby,or
connectedwith,existingforestproductsmanufacturers
maybeoperatedbytheforestproductscompany,an
independentnon-utilitypartner,orbyNSPI.
• NSPImaycallforbidsonlarge-scalebiomassprojects
andtheRenewableElectricityAdministratorwill
evaluatethemeritsofthebidsandselectthewinning
bidder.
Forest biomass used to generate renewable energy must comply with the following requirements:1.Vendor(i.e.thepowerproducer)mustmakemaximumuseofwoodwastesavailablefromother
manufacturingprocesses.
2.Totalregionalharvestmaynotexceedprovince’sestimateofthesustainableharvest.
3.Vendormustmaintain/obtainForestStewardshipCouncil’sMaritimeStandardforestcertificationonlands
theyownorcontrol.
4.VendorshallhelpandencourageprivatewoodlotownersinitssupplyareatoobtainFSCcertification.
5.VendormustbearegisteredbuyerundertheForests Act.
6.Allfuelfromforestharvestingandsilviculturemustcomeonlyfromstemboles.Vendorsshallnotharvestor
acquirefuelfromcoarseorfinewoodydebris,treecrowns,tops,orstumpsfromforestryoperations.Vendors
mayusefuelmadefromothertreepartsonlyifitoriginatesinanon-forestryoperation,suchasagricultural
landclearing,highwayrightofwayclearing,orcommercialorresidentialconstruction.
7.Forestbiomassusedasfuelmustcomefromlowqualitylogs.Vendorsmustapplythebestutilizationpractices
toensurediversionofhigherqualitystemstoproductionofothermanufacturedwoodproducts.
8.VendorsmustseekNovaScotiabuyersabletousebetterqualitylogsandpulpwood.
9.TheprovinceencouragesvendorstoseekopportunitiesformembersofFirstNationscommunitiesinNova
Scotiatoparticipateinthesenewactivitiesinamutuallyacceptablemanner.
Forest Biomass Used for Renewable Electricity Procurement Requirements
14 Renewable Electricity Plan
Meeting the 2015 Commitment
5. Market Structure and Governance
NovaScotia’selectricitymarketconsistsofa
verticallyintegratedutility—NSPI—andsixsmaller
municipalelectricutilities.Asanintegratedutility,NSPI
hasresponsibilityforelectricityprocurement,system
operation,gridaccess,maintenanceofthetransmission
anddistributionsystems,andmeetingitsrenewable
energytargets.
TheRenewableElectricityPlanrecognizesthe
cost-effectivenessofhavinganintegratedutility,aswell
astheneedforacentralbodythatcontinuestohavethe
followingresponsibilities:
• AmandatetoserveNovaScotians
• Systemplanningandoperations,including
schedulingofmedium-andlarge-scalerenewable
electricitysupplies
• AccountabilityformeetingoverallRenewableEnergy
Standard(RES)targets
• Systemreliabilityandcompliancewithinternational
standards,includingoversightoftechnicalcompliance
forthetransmissionanddistributionsystems.
However,thisplanintroducesseveralchangestothe
wayNSPIbuysrenewableelectricity,asdetailedinthe
sectionsabove.Theresultwillbeasystemofrenewable
energydevelopmentthatensuresNovaScotiansbenefit
fromastableandreliablesupplyofcleanelectricity.
Changesestablishedbythisplanaremeantto
encourageproductionofrenewableenergyfromvaried
sourcesatlocationswidelydistributedacrosstheprovince.
Thiswillprovidegreaterenergysecurityanddiversity.
Thedetailscanbeadjustedasexperiencewithrenewable
technologyincreases,andastechnologiesbecomemore
affordable.Insomecases,aslightlyhigheramountwillbe
paidforrenewableenergysupplies.Butthiswillactasa
hedgeagainstthecertaintyofmuchhighercoalprices
andmuchhigherenvironmentalcompliancecostsinthe
yearstocome—ultimatelymakinglifemoreaffordablefor
NovaScotians.
15Renewable Electricity Plan
Meeting the 2015 Commitment
Achieving the 2020 Goal 5The25percentcommitmentestablishedfor2015will
havetheforceoflaw,withpenaltiesforanyfailureto
meetit.The40percenttargetfor2020isagoalweaspire
to.Itdoesnotyethavetheforceoflaw,butitrepresents
government’sconsideredjudgmentaboutwherewe
shouldbebythatdate.Rapidtransitiontorenewable
energysourcesandcleanerlocalfuelsrepresentsabig
undertakingforallparticipantsinourenergyeconomy.
Weexpecttolearnaswegoalong,andthecurrent
approachmaybeadjustedasyoungtechnologies
matureandnewtechnologiesemerge.Nooneshould
underestimategovernment’sdeterminationtosecurea
stable,sustainable,cleaner,andmoresecureenergyfuture
forNovaScotia.
Meetingtherenewableelectricitygoalsfor2020will
requiredevelopmentofourmostabundantrenewable
energyresources,windandtidal,andacomplementary
expansioninuseofourlocal,cleanerfuelalternative,
naturalgas.
The Renewable Resource Mix After 2015
W indwillbethemainstayofoureffortstoreach
the2015renewableenergycommitment,with
supportfromlimitedamountsofbiomass.Naturalgas
willservemainlytobalancewindpower,andtohelp
ensurecompliancewithgreenhousegasregulationsand
emissionstandards.
Beyond2015,theprovincewillconsiderseveral
optionstoachievea40%renewableelectricitysupply
by2020:
• Moreintermittentrenewableenergysources,suchas
windandtidal,backedbynaturalgas
• Morestablerenewableenergysourcessuchasbiomass
• Morecleanenergyimportedfromneighbouring
provinces.
Itseemslikelythatthelargestportionofnew
renewableenergyin2020willcomefromwind,withthe
restcomingfrombiomassandtidal,balancedbyeither
naturalgasorcleanimports.Therearemanypossible
combinations,buteachonerepresentsasignificantmove
awayfromwherewearetoday.
16 Renewable Electricity Plan
Other Fossil* 75.3%
Natural Gas 13.3%
Renewables** 11.3%
Achieving the 2020 Goal
Energy Mix 2001
Potential Energy Mix 2015
Energy Mix 2009
Possible Energy Mix 2020: No Hydro Imports
Other Fossil* 82%
Other Fossil* 60%
Other Fossil* 40%
Natural Gas 10%
Renewables** 8%
Natural Gas 15%
Renewables** 25%
Natural Gas 20%
Renewables** 40%
Potential Energy Mix 2020
17Renewable Electricity Plan
Past
Future
In the first decade, fossil fuels dominate but cleaner-burning natural gas begins to play a larger role.
Coal and oil give way to increasing amounts of renewables (domestic and/or imported) and natural gas.
* includes coal, pet coke, oil, diesel, non-renewable imports
** includes hydro, wind, biomass, tidal
* includes coal, pet coke, oil, diesel, non-renewable imports
** includes hydro, wind, biomass, tidal
* includes coal, pet coke, oil, diesel, non-renewable imports
** includes hydro, wind, biomass, tidal
* includes coal, pet coke, oil, diesel, non-renewable imports
** includes hydro, wind, biomass, tidal
18
Achieving the 2020 Goal
Renewable Electricity Plan
The Role of Tidal Energy
ThesleepinggiantamongstNovaScotia’srenewable
energysourcesistidalpower.Lookup“tide”on
Wikipedia,andyou’llfindapictureoftheBayofFundy.
Twiceeachday,115billiontonnesofwatersurgein
andoutoftheBay.Thedailytotalexceedsallthewater
flowingdownalltheriversintheworld.
TheUS-basedElectricPowerResearchInstitute
(EPRI)estimatesthatunderwaterturbinescould
safelyextract300megawatts(MW)ofenergyfromthe
MinasChannelalone.Someestimatesplacethetotal
extractableenergypotentialoftheBayofFundyashigh
as2,000MW.
Butthesearestillearlydays.Manytechnicaland
economicchallengesliealongthepathtosuchan
achievement.In-streamtidaltechnologiesareintheir
infancy.TurbinesoperatingintheBayofFundymust
withstandcurrentsmovingatspeedsupto5metresper
second,ornearly10knots.Thecostofinstallingthem
remainshigh.Manyoperationalandenvironmental
issuesmustbesettledbeforecommercialdevelopment
canoccur.
However,thefactthattidaltechnologyisjust
emergingandcostsmaydropsignificantly,combined
withNovaScotia’suniquetidalresourceandtheresearch
alreadyunderwayhere,givestheprovinceachanceto
leadthedevelopmentofwhatcouldsomedaybeamajor
world-wideenergyindustry.
Governmenthassupportedtidalenergythrough
FORCE(FundyOceanResearchCentreforEnergy),a
non-profittestcentrethatencouragespublicandprivate
researchontidalenergy.TheRenewableElectricityPlan
expandsthatsupportwiththefollowingcommitments:
• AMarineRenewableEnergyTaskForce:
Aninterdepartmentaltaskforcewillbeestablished,
assistedbytheprivatesector,todevelopstrategies
forcommercializingmarinerenewableenergy(tidal,
offshorewind,andwaveresources),andthehuman
resourcesneededtosupportthem.
• ATidalFeed-InTariff:
Tidaldevicesarestillinthedemonstrationphase.
Theelectricitytheyproducecostsmorethanelectricity
frommaturerenewablesources.Tosupporttidal
development,theprovincewillsetacommunity-
basedfeed-intariff(COMFIT)fordistribution
connectedtidalprojects.Inaddition—giventhat
researchcurrentlyunderwayprovestidaltobeboth
safeandfeasible—theprovincewillauthorizeaspecial
FITfordevelopmentaltidalarraysconnectedatthe
transmissionlevelthatreflectsthecostoftheturbines
andtheirdeployment.
19
Achieving the 2020 Goal
Renewable Electricity Plan
• IdentifyingPotentialTidalSites:
In2005,theElectricPowerResearchInstitute(EPRI)
identifiedeightsitesinNovaScotiawithtidalcurrent
velocitiesaveragingatleast1.5meters/second:
CumberlandBasin,MinasChannel,MinasPassage,
CobequidBay,DigbyGut,PetitPassage,Grand
Passage,andGreatBrasd’OrChannel.Thesesites
havepotentialfortidalpowerdevelopment.There
areprobablymanyotherplacesintheprovincewith
potentialforsmall-scaletidalprojects.Aspartofthis
plan,theprovincewillidentifyandassessadditional
sitesthathavepotentialfortheseprojects.
Inresponsetothe2008BayofFundyStrategic
EnvironmentalAssessment,theprovincecommitted
todevelopmarinerenewableenergylegislation.This
legislationwillensurethatmarinerenewableenergy
projectshaveappropriatelicensingprocedures,
environmentalprotection,workerandpublicsafety,and
resourceconservation,builtaroundrecognitionforother
usersanduses.Consultationonthemarinerenewable
legislationwilltakeplaceoverspringandsummer2010
withtheexpectationoftablingnewlegislationinthe
legislatureforthefallsitting.
The Role of Natural Gas
A keyobstacletothedevelopmentofrenewable
energyisthefactthatourbestrenewable
sources—windandtidal—arebytheirnature
intermittent.Becausetheydependonnaturalforces
thatcomeandgo,intermittentsourcescannotprovide
aconstantstreamofelectricity.Inutilityjargon,they
arenotdispatchable.Theycannotbeturnedon(oroff)
wheneverthepowergridoperatorneedsthem.Inorder
forthemtoplaymorethanaminorroleinourelectrical
system,intermittentsuppliesneedtobebalancedwith
other,fast-respondingenergysources—preferablyones
thatarealsocleanandlocal.
Naturalgasfitsthebillnicely.Althoughitisafossil
fuel,naturalgasburnsfarcleanerthancoaloroil.It
releaseslesscarbon,muchlesssulphurdioxide,fewer
nitrogenoxides,andvirtuallynoashorparticulate
matter.Unlikecoalfiredplants,gasturbinescanstart
upandshutdownquicklytomatchchangesinthewind
andtides.NovaScotiahassubstantialdepositsofnatural
gasbothoffshoreandonshore;itsusealsobenefitsour
economy.
Naturalgaswillplayalargerroleinourelectricity
generationaswemoveawayfromcoal.Thegovernment
willoutlineitsplansfornaturalgasdevelopmentasone
partofthestrategyoncleanenergyproductiontobe
releasedinthecomingyear.
20
New Roles and Responsibilities
Renewable Electricity Plan
TheRenewableElectricityPlanintroducessome
significantchangestotherolesandresponsibilities
ofkeyplayersinourelectricitysystem.
Renewable Electricity Administrator (REA)Thebiggestchangeistheappointmentofanindependent
administrator.GovernmentwillappointtheRenewable
ElectricityAdministrator(REA)ontherecommendation
oftheMinisterofEnergyafterconsultationwith
interestedparties.TheREAwillconductcompetitions
forrenewableelectricityprojects.NSPIwillretain
responsibilityforelectricityplanning,butwillnolonger
takeadirectroleincompetitions.Instead,whenanew
mediumorlarge-scalerenewableelectricityproject
isneeded,NSPIwillrequestissuanceofanRFP.The
REAwilloverseethecompetition,evaluatethebids,
anddeterminethewinner.Governmenthasmadethis
changetoensurethattheelectricitysystemisfairand
transparent.TheREAwillalsoensurethatsuccessful
biddersareaccountablefordeliveringprojectstoward
theachievementofprovincialtargets.
Nova Scotia Power Inc. (NSPI)NSPIwillcontinuetofunctionasanintegratedutility
withanobligationtoserve,legalresponsibilitytomeet
renewableenergytargets,responsibilityforsystem
reliabilitycompliance,andauthorityoverprojects
connectingtotheelectricalgrid.Inasituationwhere
NSPIneedstosecureadditionalrenewableelectricity,the
companywillhavetheabilitytomakeequityinvestments
orpurchaseimportedrenewableenergyasrequired,and
atthelowestpossiblecosttocustomers.
Utility and Review Board (UARB)TheUARBalreadyhasresponsibilityforapproving
costrecoveryforrenewableenergyprojectsthrough
thesettingofelectricityrates.UndertheRenewable
ElectricityPlan,itwilltakeonresponsibilityforsetting
andperiodicallyreviewingFITrates,basedoncriteria
establishedbygovernment.
Province of Nova ScotiaTheProvincewillcontinuetoleadthedevelopment
ofrenewableenergypolicy.Itwillconsidercriteriafor
settingFITratesandtherulesforawardingFITcontracts
andcompetitivemediumandlarge-scaleprojects.Under
aone-windowcommittee,theProvincewillcoordinate
thevariousapprovalsandpermitsadevelopermayneed
underprovincialandfederallegislation(seeSection7for
moredetailonone-windowcommittee).TheProvince
willalsoprovidetechnical,planning,andfinancial
adviceandtrainingtofacilitaterenewableenergy
projects,especiallyforcommunity-basedparticipants
andnon-profitgroupssupportingcommunityenergy
development.
6
21
The Role of Government 7
Renewable Electricity Plan
TheGovernmentofNovaScotiarecognizesthatit
hasalargeroletoplayintransformingNovaScotia’s
electricitysectortoonethatissecureandsustainable.
Governmentwillprovideguidanceinprojectdevelopment,
approvalsandpermitting,andaccesstofinancing.
Facilitation WeexpecttheCommunity-BasedFeed-inTariff
(COMFIT)toattractparticipantswhoneedsupport
developingrenewableenergyprojects.Asustainableenergy
planninggroupwillbeestablishedbygovernmenttohelp
developcommunity-basedprojects.Theplanninggroupwill
co-ordinateandsupporttheeffortsofvariousdepartments,
regionaldevelopmentauthorities,municipalities,regional
sustainabilityoffices,andnon-governmentalorganizations.
Thegroupwillassistwithbusinessplans,technicalfeasibility
studies,grantapplications,publicoutreach,regulatory
approvals,andfinancingguidance.
FinancingRenewableenergyprojectsusuallyrequirealargeinfusion
ofupfrontcapital,withtheexpectationoflong-term,stable
returns.ManyoftheorganizationseligibleforCOMFITs
lackexperienceacquiringthiskindoffinancing.The
provincewillworkwithotherorganizationstodevelop
financingtoolstosupportcommunity-basedrenewable
energyprojects.CommunityEconomicDevelopment
InvestmentFunds(CEDIFs)maybeonesuchtool.
Coordinating ApprovalsRenewableenergyprojects,whetherlargeorsmall,
requirepermitsandapprovalsfromvariousgovernment
departmentsandNSPI.Asingleentrypointwillassist
citizensanddevelopers.Governmenthassuccessfully
usedaone-windowsteeringcommitteetomanagethe
responsibilitiesofseveraldepartmentsinvolvedintidal
energydevelopment.AspartoftheRenewableElectricity
Plan,governmentwillimplementasingle,publicportal
tohelpdevelopersofotherrenewableenergyprojects,
startingwithapprovalsandpermits.
Emissions ManagementSomerenewablefuels,suchasbiomass,releaseair
pollutantswhenburned.Governmentwilldeterminethe
stepsneededtoensurethatrenewableenergycontributes
toimprovedairquality.Biomasscomeswithitsownsuite
ofemissions.Biomassburnedinthermalelectricityplants
caninteractwithpollutioncontrolequipmentdesignedfor
coal.Governmentwillconductananalysistodetermine
whetheroperatingapprovalsmustbeamendedtoreflect
thecharacteristicsofbiomassco-firing.
Local GovernmentMunicipalgovernmentswillbeonthefrontlinesofthe
transformationtorenewableelectricity.Manyrenewable
energyprojectswillbesubjecttomunicipalregulatory
authority.Forexample,theMunicipal Government Act
givesmunicipalitiesauthoritytosetminimumdistances
betweenwindturbinesandresidentialbuildings,
businesses,andpublicbuildings.Theprovinceandthe
UnionofNovaScotiaMunicipalitieshaveworkedtogether
todevelopmodelwindturbinebylaws.Theprovince
willcontinuetoworkwithmunicipalitiestoensurethat
renewableenergyprojectsdonotnegativelyimpactthe
public,andmunicipalbylawsdonotpresentunnecessary
barrierstocleanerenergydevelopment.
22
The Role of Government
Renewable Electricity Plan
Federal GovernmentInsomecases,theprovincialandfederalgovernments
haveoverlappingregulatoryauthorityinrenewableenergy
development.Thiscropsupmostofteninrenewableenergy
projectsinthemarineenvironment—thoseinvolvingtidal,
wave,andoffshorewindenergy.Theprovincewillcontinue
toworkwithfederalauthoritiestoensuretimelypermitting
thatprotectsthepublicinterest.
First NationsTheMi’kmaqhaveexpressedinterestincollaborating
onthedevelopmentofNovaScotia’srenewableenergy
sector.Continuingtobuildapositiverelationshipwiththe
Mi’kmaqisakeypriorityfortheprovince.NovaScotia
consultswiththeMi’kmaqonallenergyprojectsthrough
theMi’kmaq-NovaScotia-CanadaConsultationTermsof
Reference.Allthetoolsthisplanprovides—enhancednet
metering,theCOMFIT,thetidalarrayFITandcompetitive
bidding—areavailabletotheMi’kmaq.Inaddition,the
provincehascommittedtoencouragingdevelopersto
engagedirectlywiththeMi’kmaqattheearlystagesof
projectdevelopment.
Legislation and RegulationsMeasureslikethecreationoftheRenewableElectricity
Administratorandtheimplementationoffeed-intariffs
requirenewlegislationoramendmentstoexistinglaws.
• AmendmentstotheElectricity ActwillgivetheUARB
authoritytosetratesforFeed-InTariffs,basedon
governmentpoliciesandobjectives.TheUARBwill
continuetooverseeandregulateNSPI’scostsandrates.
• OtherchangestotheElectricity Actwilldelegateauthority
formanagingcompetitivebidstothenewRenewable
ElectricityAdministrator.Governmentwillretainthe
authoritytorequirereportingandaudits.
NSPIwillcontinuetomanagetechnicalcomplianceand
commercialrelationshipswithsuppliers.
• ChangestotheRenewable Energy Standard Regulations
(toberenamedtheRenewable Electricity Standard
Regulations)willentrenchthe2015commitmentasa
legislatedtarget,anddetailaccountabilitymeasuresto
ensurethatitismetorexceeded.
• Afteranalyzingpolicyoptions,newpoliciesorother
toolsmayneedtobecreatedtoensureairemissionsfrom
biomass-derivedenergyareproperlycontrolled.
• UponpublicationoftheNaturalResourcesStrategy,
andtheestablishmentofaplanforbiomassenergy,
theprovincemaychangerequirementsforsustainable
harvesting.
Supply Chain DevelopmentManyNovaScotiasuppliersandservicecompanieshave
transferredskillsfromotherindustriestorenewableenergy.
NovaScotiahasthelargestconcentrationofcompanies
specializinginoceantechnologiesofanyprovincein
Canada.Ouroffshoreoilandgas,aquaculture,fishing,and
nationaldefenseindustrieshavecreatedaclusterofmore
than300firmswithspecificexpertiseinoceanmapping,
marineengineering,sub-seafabricationandinstallation,
remotemonitoring,andsafetyandsurvivaltrainingin
offshoreenvironments.
NovaScotia’semergingrenewableenergysector,
especiallyintheareasoftidalpowerandwindenergy,will
createopportunitiesforlocalcompaniestoprovidenew
goodsandservices.Potentialbusinessopportunitiesinclude
assessmentandpermitting,civilconstructionandsite
preparation,manufacturingandfabrication,installation,
testing,commissioning,inspection,andmaintenance.
Theprovincerecentlyawardedacontracttoidentify
andquantifyrenewableenergyopportunitiesforfabricators
andsuppliers,withresultsexpectedlaterthisspring.
23Renewable Electricity Plan
Electricity Transmission and Distribution in Nova ScotiaAddingmorerenewableelectricitytothetransmission
anddistributionsystemsrequirescarefulplanningto
maintainsystemreliability.Thisisparticularlytrue
becausemostofthenewrenewablesourcesavailable
tousproducepowerintermittently.Meetingthe2013
RenewableEnergyStandardmayrequireadditional
loadmanagementtechniquesandmodestinvestmentin
transmissioninfrastructure.Movingbeyondthe2013
standardwillrequirelargertransmissioninvestmentsin
NovaScotia’selectricalgrid.Newlineswillbeneeded
toserveremotelocations,increasedcapacitytodeliver
newrenewableelectricitygenerationandasystemthat
candealwiththeintermittentnatureofmuchofour
renewableenergy.
Furtheranalysiswilldeterminewhetherthere
arestrategicopportunitiesinpartsoftheprovince
toexpandthetransmissionsystem.Thiscouldcreate
opportunitiesformorerenewableenergydevelopment
inruralNovaScotia.Anupgradedtransmissionsystem
couldalsomaximizeopportunitiesforlarge-scalewind
projects.NSPIwillcarryoutthisanalysisunderreliability
compliancestandardssetbytheNorthAmerican
ElectricReliabilityCorporationandtheFederalEnergy
RegulatoryCommission.Theanalysiswillbeopenfor
commentandfeedbackfromstakeholders.
The Role of Imports and ExportsNovaScotiadoesnothaveabundantsuppliesof
untappedhydropower,butnearbyprovincesdo.One
waytoincreasetherenewableportionofourenergy
supplywouldbetoimportcleanelectricityfrom
NewfoundlandandLabrador,NewBrunswick,or
Quebec.Whilenotquitelocal,suchimportswouldbe
farcleanerandmoresecurethanthecoalandoilwe
currentlyuse.
Althoughonlyenoughrenewableelectricityis
currentlyproducedtomeetNovaScotia’sneeds,there
maybepotentialtoexportelectricityinthefuture.
ElectricitydemandinNovaScotiaishighlyseasonal.
Inlatesummer,demanddropsaslowas850MW
(comparedtoapeakof2,300MWinwinter).Without
theabilitytoexportexcesspowerinperiodsofslacklocal
demand,asignificantamountofrenewableenergymay
bewasted.Asproductionofrenewableelectricitygrows,
theneedforaninterconnectedregionaltransmission
systemtobalancethesupplyanddemandwillbecome
moreurgent.
Unfortunately,atthemoment,NovaScotiaisalmost
anislandintermsofelectricity.Asingle345kilovolt
transmissionline,plustwomuchsmallerlines,connect
NovaScotiawiththeNorthAmericanelectricalgrid.
That’senoughtoensuresystemreliabilityattimesof
highdemand,butwellshortofwhatwouldbeneeded
toimportamajorpartofNovaScotia’selectricityneeds.
Bycontrast,NewBrunswickhasaboutfivetimesthat
capacityinitsinterconnectionswithNewEnglandand
centralCanada.Inthefuture,itwillbenecessaryto
expandourinterconnectionwithNewBrunswick.
Building a Secure, Reliable Network 8
24
Building a Secure, Reliable Network
Renewable Electricity Plan
ArecentstudybySNCLavalinconcludedthat
enhancingNovaScotia’stransmissiongrid,andadding
asecondinterconnectionwithNewBrunswick,would
greatlyimproveNovaScotia’sopportunitiestoimport
andexportrenewableenergy.Itcouldalsohelpsolve
theproblemofhowtobackupintermittentenergy
sourceslikewindandtidalpower.Expandingour
interconnectionwithNewBrunswickwouldrequire
expensiveupgradesonbothsidesoftheborder.Recent
loadgrowthintheMonctonareahasfurtherconstrained
NovaScotia’sinterconnectionwithNewBrunswick
duringsystempeaks.
TheSNCLavalinstudyidentifiedapotential
interconnectionwithNewEnglandviaasubmarinecable.
Atthistime,thishassignificantcostimplicationsand
wouldrequirefurtherfeasibilitystudiesandcooperation
betweenNovaScotiaandNewEngland.
Intheotherdirection,thedevelopmentofLower
ChurchillHydroinLabradorhasthepotentialtoprovide
clean,low-impactrenewableenergyimportstoNova
Scotia—butthatdevelopmentisatleastsixyearsoff.
Itwouldrequirenewtransmissionlines,including
underseaconnections.
Governmentwillcontinuetoexploreopportunities
toexpandandintegratetheregionalenergygridinorder
tosharelargehydroandenhancedrenewableenergy
developmentwithourneighbours.
Smart TechnologiesAsmartgriddeliverselectricityusingdigitaltechnology
tomanageacustomer’senergyuse.Forexample,asmart
gridcouldturnondomestichotwaterheatersonlyat
night,whendemandisslackandthecostofproducing
electricityislow.Smartmeterscanencourageconsumers
toadjustthetimetheyheatwateroruseenergy-gobbling
homeappliances—especiallyifdoingsowillsavethem
money.Thesesystemscansaveenergy,reducecosts,and
increasereliability.Experiencefromotherjurisdictions
hasshownthatsmartmetersaremosteffectivewhen
accompaniedbytimeofuserates(priceofelectricity
dependsonthetimeitisused).Bettermanagementof
theelectricitysystembecomesevenmoreimportantas
moregenerationcomesfromintermittentsources.
NSPIwilluseitsshareofamulti-milliondollargrant
fromthefederalCleanEnergyFundtoinstallsoftware
andmanagementsystemstostarttestingsmartgrid
technologiesinNovaScotia.Theprojectwillfocusonthe
integrationbetweensmartgridtechnologies,customer
loads,andintermittentrenewableresources.Theproject
willhelpthecompanybetterunderstandtheeffectof
smartgridsoncustomerbehavior,andthetypeofloads
thatcanbecontrolledbyreal-timedemand.
25Renewable Electricity Plan
Things This Plan Does Not Do 9P lanninginvolveschoices,andindevelopingthis
RenewableElectricityPlan,thegovernmenthas
chosennottodoseveralthings.
Theprovincehasdecidedtomaintainaregulated
electricitymarketplaceandnotopenittocompetition.
Openingthesystemtoprivatesaleswouldposemajor
challengesforanelectricalsystemthatisnotwell-
connectedtotheNorthAmericangrid.Openingthe
marketwouldraisedifficultquestionsforthosewhostay
behind:Whowillcarryoutplanning?Whowillsupply
powerwhenthewindspeeddrops?EvenOntario—a
provincewithmoreenergyoptionsthanNovaScotiaand
accesstolotsofenergybeyonditsborders—haslargely
reversedderegulation.IfNovaScotiaeventuallymoves
toregionalcooperationandregionalsystemoperation,
thesechoicescanberevisited.
Governmenthasdecidednottoletindependent
powerproducersbuildallthemediumandlarge-scale
renewableenergyprojects.Inessence,therearetwo
competingmodelsforselectingnewpowerprojects:
UARBregulationofanintegratedutility,andcompetitive
bidsbyindependentproducers.However,NovaScotia’s
lackofarobustconnectiontotheNorthAmericangrid
limitscompetition.Withoutthatelement,competitive
bidsmaynotbethebestmodel—thatwasthejudgment
in2001.Thisplanallowsthetwomodelstooperatein
parallel.Theresultswillallowgovernmenttodetermine
thebestwaytobalancethedevelopmentprojectsinthe
future.
GovernmenthaschosennottoextendtheCOMFIT
tolargerprojects.Justasacommercialfarmcanproduce
vegetablescheaperthanagardenpatch,anindustrial-
scalewindfarmcanproduceelectricitycheaperthana
backyardturbine.Therearemanyeconomiesofscalein
renewablepowerproduction.Nevertheless,aconscious
decisionhasbeenmadetoencouragesmallaswellas
largerrenewableelectricityprojects.Thisispartlyto
ensurewidelydispersedenergysources,andpartlyto
encourageruralcommunityeconomicdevelopment.
AFITwillresultinsomewhatmoreexpensiveelectricity
thanopencompetitivebidding,butitgivesthesesmaller
projectsadegreeofmarketcertainty.
Atthistime,thereisnosolarCOMFIT.Although
solartechnologiesaretechnicallyfeasible,theystill
comeatahighcostthatcouldsignificantlyaffect
electricityratesifsupportedbyafeed-intariff.However,
Governmentrecognizesthecurrentvalueandpotential
ofsolarenergyandhasincludeditasaqualifying
renewableresourceundertheenhancednetmetering
program.Inseveralyears,thecostofsolartechnology
willchangeandsolarwilllikelyhavealargerroleinthe
renewableenergymix.
Renewableelectricityproducedfromsmalllocal
projectswillbeslightlyhigherpricedthanelectricity
fromlarge-scaleprojects.Butsincethetotalamountof
powerfromCOMFITprojectswillstartoutsmall,the
overallimpactonratesislow—estimatedatlessthan
onepercentonatypicalconsumer’sbill.Ofcourseuntil
theUARBsetstheCOMFITrate,andweseehowfullyit
istakenup,thepreciseimpactcan’tbecalculated
withcertainty.
26 Renewable Electricity Plan
Thetransitionfromimportedfuelstorenewable
electricityandcleanerlocalfuelswillincreasepower
billsintheshortterm,butofferlowerandmorestable
ratesinthelongrun.Notmakingthistransitionwould
shackleratepayerstothewildpriceswingsandtherelentless
upwardmarchofinternationalenergymarkets.
Andinthelongrun,thisplanisaboutmakinglife
moreaffordable—doingnothingwouldcostmore.The
shareofNSPI’soverallcoststhatgotofuelhasbeen
increasing.Sohasthecostofexpensiveequipmentand
suppliesneededtocontrolharmfulemissionsfromcoal-
firedpowerplants.Wecankeepgoingdownthatpathand
doomconsumerstoanunsustainablefuture,orwecanbite
thebulletandmakethenecessaryinvestmentstohavea
secure,safe,affordable,andsustainableenergyeconomy.
Howhardisthatbullet?Governmentestimatesthat
measuresinthisplanwillresultina1-2%increaseannually
onelectricitybills.Toreach2015,thiswouldaddanaverage
ofapproximately$10-$20annuallytotheaveragesingle
familyhomeelectricitybill(closerto$20-$40ifelectricityis
usedforheating).
NSPI’s2009IntegratedResourcePlan(IRP)also
estimatedthecostofaddingmorerenewableelectricity
tothesystemtobeabouttwopercentperyearover2009
electricityrates.Boththe2007and2009IRPstudiesconfirm
thatenergyefficiencyandconservation,incombination
withrenewableenergy,aretheleastcostoptionstomeet
energydemandandenvironmentalobjectivesoverthe
longertermforNovaScotians.
Inaddition,costincreasesareanticipatedtobe
partiallyoffsetbyreducedconsumptionasaresultofthe
demand-sidemanagement(DSM)programcurrently
operatedbyNSPI,andinfuturebyEfficiencyNovaScotia.
Costs and Benefits 10
$0.70
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
$0.0
$/kW
h
Electricity Prices for Selected Locations
References All prices are for residential consumers in 2007. Prices for Canadian cities are from Hydro Quebec, Comparison of Electricity Prices in Major North American Cities. Rates in effect April 1 of each referenced year. Residential electricity prices for consumers using 1,000 kWh of electricity. Prices for International Cities are from International Energy Agency, Key World Energy Statistics 2009.
Irel
and
Hal
ifax
Toro
nto
Cha
rlo
ttet
ow
n
Mo
ntre
al
Uni
ted
Kin
gd
om
Fran
ce
Ital
y
New
Zea
land
Den
mar
k
Spai
n
$0.30
$0.25
$0.20
$0.15
$0.10
$0.05
$0.0
Cost of Energy In North America
$/kW
h
ReferenceHydro Quebec, Comparison of Electricity Prices in Major North American Cities. Rates in effect April 1 of each referenced year. Residential electricity prices for consumers using 1,000 kWh of electricity. All prices are measured in $/kWh.
2005 2006 2007 2008 2009
HalifaxMonctonMontrealToronto
VancouverSan FranciscoNew YorkBoston
Nova Scotia’s electricity rates compare with neighbouring jurisdictions, but are far more vulnerable to market volatility and future carbon regulation because of high coal content. Areas with high green content (e.g. large hydro: Montreal and Vancouver, at right) are likely to have greater price stability.
27
Costs and Benefits
Renewable Electricity Plan
Creating Jobs and Investment in the Industries of the FutureOnegoaloftheRenewableElectricityPlanistomaximize
theeconomicbenefitsofincreasedrenewableenergy
generation—tocreategoodjobsandgrowtheeconomy.
Theinvestmentneededtomeetthe2015commitment
of25percentrenewableelectricitycouldbeasmuchas
$1.5billion.Muchofthisinvestmentwillbespentin
NovaScotia,creatingjobsinconstruction,supply,and
manufacturing—mainlyinvolvingwindenergyprojects.
Moreoftheinvestmentwillstayintheprovinceifturbine
bladesandtowersarealsomanufacturedhere.DSME’s
recentdecisiontomanufacturewindtowersandblades
attheformerTrentonWorksplantincreasesourcapacity
forsuchmanufacturing.
Dependingupontheamountofworkcarriedout
locally,investmentinrenewableelectricitytomeetthe2015
commitmentwillproduceestimatedprovincialgovernment
revenuesof$30-45million(throughdirectandspinoff
effects),andemploymentof5,000to7,500person-years.
Competitive Advantage of a Cleaner Energy MixNovaScotia’sdependenceoncarbonfuels,especiallycoaland
oil,threatenstobecomeasignificantimpedimenttotradeand
competitivenessascarbontariffsandtraderulesproliferate.
ByreachingandexceedingGHGreductionstargets,and
achievingacleaner,morediversifiedsupplyofenergyacross
allsectors,theprovincewillbeintheoptimumpositionto
maintainstable,competitiveenergycosts.ThatwillhelpNova
Scotiabusinessescompeteinworldmarkets.AndNovaScotia
goodsandserviceswillremainattractiveforpurchasersand
consumerswantingtoreducetheircarbonfootprint.
Reduced Greenhouse Gas Emissions and Improved Air QualityCurrentmethodsofelectricitygenerationproduce50
percentofNovaScotia’sgreenhousegasemissions,andthe
vastmajorityofourairpollutantemissions.
The2008NovaScotiaWindIntegrationStudy
estimatedthattheadditionof311MWofinstalledwind
powercapacitymightavoid$8to$9millioninGHG
emissioncosts.Withanincreaseto581MWofinstalled
windcapacity,avoidedGHGcostshavethepotentialto
impactelectricityratesby2-3%.2
ThisRenewableElectricityPlandisplacesfuelslike
coalandoilwithreduced-emissionrenewablesandcleaner,
locally-producednaturalgas.Theresult:cleaner,healthier
air,andreducedcostsforeveryone.
2EstimatesarebasedontheassumptionsmadeinNovaScotiaPower’s
2007IntegratedResourcePlanthatcarbonwouldbesubjecttoan
additionalprice.
28 Renewable Electricity Plan
Implementation 11TheRenewableElectricityPlanintroducespolicies
thatarenewtoNovaScotia.Somestepscanbe
takenrightaway.Otherswilltaketimetoimplement.
Newprogramsandrulesalsorequireperiodicreviewto
ensuretheymeetpolicyobjectives.
Stepstoimplementandmonitorthisplaninclude:
• TheMinisterofEnergywillintroducelegislation
duringthespring2010sessionofthelegislature.
• Cabinetwillimplementregulationsthissummer,after
consultation.
• TheUARBwillholdpublichearingstosetvarious
FITrates.
• AfterpublicationoftheNaturalResourcesStrategy,the
provincewillreviewthebiomassstandardsestablished
bythisplan.
• Governmentwilldevelopastrategytomaximize
economicandenvironmentalbenefitsfromthe
transitiontocleaner,morerenewableandsecure
energysupplies.Thestrategywillprovideaframework
forplansinvolvingenergyconservation,efficiency,
anddemandmanagement;spaceheatingandwater;
transportationenergyuse;andnaturalgas.
• GovernmentwillreviewtheCOMFITprogramin2012.
Renewable Electricity
PlanA path to good jobs,
stable prices, and a cleaner environment.