New Electricity Act To Encourage Renewable Energy, Competition

ENERGY--New Electricity Act To Encourage Renewable Energy, Competition

More of Nova Scotia's electricity will come from renewable resources in the future. That's one of the changes that will result from the Electricity (2004) Act, introduced today, Sept. 23.

Energy Minister Cecil Clarke said the renewable energy provision of the act means anyone selling electricity to retail customers in Nova Scotia must ensure that a minimum portion of the supply comes from renewable resources. Regulations to be made under the act will state that by 2010, five per cent of Nova Scotia's electricity supply must come from renewable resource generating capacity that was built after 2001.

The renewable resource technologies include small-scale hydroelectricity, wind power and electricity generated from bio- mass fuels.

"These are proven technologies that promise clean, sustainable electrical supplies for generations to come but they can carry substantial costs and financial risks to developers," said Mr. Clarke. "We are reducing these risks with this act by giving developers certainty about what their markets in Nova Scotia will be."

The act implements four of the recommendations of the Electricity Marketplace Governance Committee. In 2003, the joint government- industry committee made 89 recommendations on how the province could implement the electricity provisions of Nova Scotia's Energy Strategy.

Among these is a requirement for Nova Scotia Power Incorporated to establish a tariff or toll for moving power from other generators over its transmission system. The tariff would be subject to approval by the Utility and Review Board. The power corporation has already filed an application for the rate with the board.

The proposed Electricity Act would also allow six municipally operated electrical companies to buy power from generators other than Nova Scotia Power.

"This act will now accelerate efforts for a cleaner, greener electricity market in Nova Scotia," Mr. Clarke said. "It advances the commitment we made in our energy strategy to develop an electrical energy supply that's secure, reliable, affordable and produced in an environmentally responsible manner."