Province Asks For New Green Rates, Independent Study

As a part of the new Nova Scotia strategy, the government through the Department of Energy, is opening another door for green energy producers in the province.

Energy Minister Bill Dooks will ask the Nova Scotia Utility and Review Board to create new rates for green energy producers to sell power to municipal utilities. These rates are also necessary for retail sales of renewable energy.

"We are working to build a sustainable green energy industry in Nova Scotia," said Mr. Dooks. "We want to make life easier for renewable energy producers while protecting the price of electricity for ratepayers and reducing greenhouse gases in the most efficient manner possible."

Mr. Dooks will work with industry, the board and the system operator to determine how much renewable energy can be safely integrated into Nova Scotia's electricity system while keeping both prices and emissions as low as possible. This work will be done through an independent study.

"Nova Scotians want more green energy," said Mr. Dooks. "And we want to avoid a situation where electricity prices go up while our greenhouse gas emissions stay the same."

Alberta is limiting wind power generation at 900 megawatts pending more studies. Nova Scotia's study will help determine our provincial limitations.

In January, Mr. Dooks introduced regulations that require about 20 per cent of Nova Scotia's electricity to be generated by renewable energy by 2013.

On Monday, March 12, Nova Scotia Power put out a tender for 130 megawatts of renewable energy as a result of the government's regulations. This will result in new investments of about $300 million in Nova Scotia.

The Utility and Review Board will be asked to set rates around the purchase of green energy shortfalls (top-up), the selling of surpluses (spill), and providing energy in the event of a breakdown (back-up). These rates are necessary if renewable to retail sales are allowed in the future.

Mr. Dooks said staff spent considerable time talking with industry but could not reach an industry consensus on moving forward with legislation in the spring.

"We need to create other options to sell green energy to Nova Scotians," said Mr. Dooks. "We were hoping industry would be able to agree on how to move this file forward. We will be working with industry in the coming months and take the best model for Nova Scotia and move it forward."

Mr. Dooks also said future federal decisions on climate change measures -- such as emissions regulations and carbon trading -- may affect how Nova Scotia proceeds.