NSPI, NovaKnowledge, independents back government energy plan
 
By Brian Flinn & Scott Higgins, Transcontinental Media
Nova Scotia Business Journal

More windmills are expected to sprout across Nova Scotia over the next six years, thanks to new renewable-energy targets.

The Tory government adopted benchmarks on Thursday that Nova Scotia Power Inc. already indicated it plans to meet. And the utility will face fines of $500,000 per day if it falls behind. “We are going to compel Nova Scotia Power to purchase more renewable energy,” Energy Minister Bill Dooks said. “As our green energy use goes up in this province, our greenhouse-gas emissions will go down.”

NSPI gets 12.5% of its electricity from renewable sources. The new targets will bring that level to 15% by 2010 and 20% by 2013.

The utility has to buy the additional 300 megawatts per day from independent producers. Independents welcomed the news. “What this means for our industry is potentially just under $1 billion worth of capital investment over the next five to six years,” said Cape Breton Power Ltd. director Luciano Lisi, whose company already generates wind power near Glace Bay.

Most of the new power is expected to be produced by wind turbines, because it’s the most viable technology. NSPI currently draws power from 41 windmills. All but two are owned by independents.

John Woods, project director for Ventus Energy Inc., said new wind-farm development stalled recently. That’s all going to end. “We just need the legislation to come forward,” he said. “Once that happens, Nova Scotians will sit back and watch these things appear all over the province.”

The new targets are contained in regulations already passed by cabinet. In addition, Dooks said he will introduce legislation this spring that will allow renewable-power producers to sell green credits to municipalities, industry and the public. Those are expected to become valuable as part of a future emissions plan.

NSPI spokesperson Margaret Murphy said her company welcomes the new targets. She said it does not anticipate the plan will lead to power hikes. Last year, NSPI said the targets could add $83 million to power bills. “When you have regulation, you have certainty,” Murphy said. “You work towards it.”

Dooks first indicated the province is moving toward the 20% threshold during an industry conference in September. Another NSPI spokesman told The Daily News at the time the company already indicated to government it supports the target, and was already moving in that direction.

Murphy said the utility is now preparing a new call for proposals from independents. NSPI was late meeting its last voluntary target. The company was supposed to increase renewable power from 10% to 12.5% between 2001 and 2005. It was almost a year late. Murphy said the hold-up resulted from one project delay.

NovaKnowledge also congratulated the province of Nova Scotia for taking action to increase electricity generation from renewable energy sources on Friday.

NovaKnowledge set a target in its 2006-07 Report Card recommending 20% of the province’s electricity be generated by renewable energy sources by 2015, up from its present level of less than 7%.

“We’re pleased this target, set by the government, exceeds our recommendations,” said Tim Outhit, executive director of NovaKnowledge. “It shows a commitment to environmental sustainability that will open the door to increased competitiveness, new business opportunities, and also strengthen innovation in the province.”

Halifax Daily News and The Daily Business Buzz