News & Updates
Three Contracts Awarded to Nova Scotia Renewable Energy Projects
HALIFAX, NS: Contracts for 355 GWh of renewable electricity have been awarded to three Nova Scotia-based wind projects:
• South Canoe Wind Project (Oxford) between Chester and Windsor led by Oxford Frozen Foods (78 MW);
• South Canoe Wind Project (Minas) located in Lunenburg County led by Minas Basin Pulp & Power (24 MW); and,
• Sable Wind Project led by the Municipality of the District of Guysborough located near Canso (13.8 MW)
Nova Scotia Power Inc. (NSPI) is a minority investor in these projects. The RFP was open only to Independent Power Producers (IPPs). Under the Renewable Electricity Regulations no more than 49% of an IPP can be held by an electric utility such as NSPI.
The three projects are scheduled to be in service by January 2015 and are an important part of Nova Scotia’s target to provide 25% of the province’s electricity from renewable resources. The projects will bring local benefits to the province’s communities, including jobs and local investment.
The procurement process administered by the Renewable Electricity Administrator (REA) was kicked off in September of last year. Power Advisory LLC was appointed as the REA by the Government in July of last year, after a competitive application process. Under the province's terms of reference, the administrator’s mandate was to select independent power producers in a fair, transparent and competitive manner. The RFP process is a key part of the Nova Scotia government’s transition from carbon intensive generation.
The average purchase price from these three projects is in the mid $70/MWh range, causing them to be the lowest cost renewable energy projects procured in Nova Scotia since renewable energy targets were set in 2007. John Dalton, President of Power Advisory LLC noted that “these prices are a clear indication that we achieved the objective that the Government set for us as the REA, to achieve best value for ratepayers.” Dalton attributed the success of the competitive procurement process to working closely with stakeholders and a power purchase agreement that efficiently allocated risk and favourable conditions in the wind turbine market.
Nineteen proposals were received in response to the RFP offering about eight times the procurement target of a minimum of 300 GWh of renewable energy, indicating that the process was highly competitive.
For more news and updates, please see the REA News Archive.