A fresh invitation has been issued to energy developers to construct additional onshore wind farms in Nova Scotia to help meet a forthcoming renewable energy goal and boost the province’s power supply. Peter Craig, the Department of Energy’s director of electricity, emphasized the importance of these wind projects in securing cost-effective long-term contracts for consumers. Power Advisory, a consulting firm overseeing the procurement process on behalf of the government, recently initiated the new request for proposals as part of the Green Choice program. This initiative aims to connect significant energy consumers, such as the provincial government, Walmart, Michelin, and educational institutions, directly with renewable energy sources.
After the initial Green Choice program attracted six successful bids, four projects withdrew before finalizing contracts. Following consultations with industry experts and an evaluation of the first round, adjustments have been proposed for this new call for proposals. These modifications are vital as the projects are expected to operate for 25 years post-commissioning and are crucial to achieving the mandated target of an 80% renewable energy-powered grid by 2030.
In a new development for the Green Choice procurement, projects coming online before December 31, 2029, will receive a 25% bonus for the power they generate until the end of 2030. This incentive aligns with the renewable energy target and aims to secure the most cost-effective energy solutions for consumers. The shift towards wind power displacing coal energy by 2030 is seen as a financially advantageous move, even with the additional incentive pricing.
However, the current stance is under scrutiny by stakeholders before the energy board. Some parties are requesting detailed justification for the province’s position. Other modifications for this round of Green Choice include provisions for price adjustments based on inflation and tariffs impacting project costs.
This new round also introduces an earlier requirement for a letter of credit, holding developers accountable with a payment to Nova Scotia Power if contract breaches occur. The energy board is currently assessing the proposed power-purchase agreement that successful bidders will be asked to sign. Some developers have expressed concerns regarding the contract terms, citing excessive risk allocation. The final decision on these matters will rest with the energy board to balance all stakeholder interests.