Stewart McKelvey is pleased to present Energy Watch - a review of key legislative and policy advancements in the renewable energy sector in 2023 in each of Nova Scotia, Newfoundland and Labrador, and New Brunswick, and a look forward to anticipated activities in 2024.
Atlantic Canada's renewable energy sector is growing rapidly. Research from the Canadian Renewable Energy Association pointed to a national growth rate of 10.5% in wind, solar and energy storage sectors in 2022. With Atlantic Canada's geography offering us significant renewable opportunities, we expect the region to benefit significantly from continued growth. Multiple levels of government, industry partners and post-secondary institutions are collectively working to understand and anticipate the impacts to regional economies and foster direct investment, ensuring the sector's considerable growth is sustainable.
Sustaining this type of progress requires two key ingredients: collaboration and innovation. In anticipation of the unique needs of the renewable energy industry, from both a legal and strategic perspective, Stewart McKelvey has applied our innovative approach to the practice of law to the needs of the sector – firmly positioning ourselves as Atlantic Canada's Renewable Energy Law Firm.
With a dedicated practice area and team of lawyers focused on tomorrow, we have developed our expertise and demonstrated Thought Leadership. In addition to representing many clients in burgeoning energy sectors, our lawyers have published a series of articles – the Winds of Change – focusing on the growth of regional energy initiatives and providing clients and stakeholders insight into treetop considerations facing the industry. In addition, Prevailing Winds: Regulatory Frameworks and Commercial Realities for Developing Wind and Green Hydrogen Projects in Nova Scotia and Newfoundland and Labrador, was written by members of our Energy Group and recently published in the Alberta Law Review.
Over the course of 2023, many of our lawyers attended national and international energy conferences to better understand, assess and contribute to, the global demand for Atlantic Canadian renewable energy sources. As regulatory frameworks and commercial realities in the renewable energy sector continue to emerge and evolve, our Energy Group will continue to remain at the forefront of these developments.
We are well positioned to help support clients and industry partners grow the sector and provide clean, renewable energy solutions developed in and for Atlantic Canada. 2024 will undoubtedly bring more change and growth to this exciting industry; Stewart McKelvey will continue to be at the forefront compiling knowledge and insight to our clients' benefit.
Nova Scotia
Nova Scotia made significant progress in the development of its renewable energy sector in 2023, including the release of the Province's 2030 Clean Power Plan.1 Lawyers from Stewart McKelvey's Energy Group remained up to date with all local and regional progress in this area throughout the year.
Nova Scotia's 2030 Clean Power Plan
Nova Scotia's 2030 Clean Power Plan (the "Plan"), released in October 2023, introduces the key components of the Province's proposition to eliminate the burning of coal as a source of energy by 2030 and promote new renewable energy.2 In addition to phasing out coal, the Plan looks to achieve a target of 80% renewable energy generation by 2030. It also notes the need for significant investment in onshore and offshore wind, hydrogen and energy storage solutions, and calls for bringing online the following quantities of new renewable energy by 2030:
- Onshore wind: 1,000 MW
- Solar: 300 MW
- Fast-acting Hydrogen Capable Generators: 300 MW
The Plan also calls for 300-400MW of battery storage capacity by 2030. In connection with transmission, it calls for a new transmission line between Nova Scotia and New Brunswick while noting that the Province is no longer considering the Atlantic Loop project prior to 2030.
As described above, the Plan provides for 300 MW of large-scale solar generation by 2030.3 The use of solar has significantly expanded across Nova Scotia, with net metering being strengthened through legislation and 7,000 Nova Scotians having installed solar4 , and in the fall of 2023, Nova Scotia launched the Community Solar Program and Commercial Net Metering.5 It is expected a further $150 million in solar investments will be made throughout Nova Scotia in 2024.6
In December 2023, Nova Scotia Power Inc. ("NSPI"), Nova Scotia's privately-owned power utility, submitted its report "The Path to 2030" to the Nova Scotia Utility and Review Board ("UARB"). This report is largely consistent with the Plan regarding the push to 80% renewable energy sales by 2030.7
Launch of the Green Choice Program
The Green Choice Program (the "GCP") was enabled through amendments to the Electricity Act in 2020.8 A major goal of the GCP is to enable Nova Scotia to procure 100% renewable electricity for all federal government facilities, per the Province's agreement with the Federal Government.9 Additionally, the GCP will now allow many large-scale electricity customers to procure up to 100% of their electricity from renewable energy.10 The goal of the GCP is to secure new projects that will generate 350 MW of renewable electricity beginning in 2027 to 2028.11
The Green Choice Program Regulations were released by the Province on September 8, 2023. These regulations cover participant eligibility, the application process, proponents, as well as fees, benefits and credits. A more detailed review of the regulations by our Energy Group can be found online.
In December 2023, the Province issued requests for proposals for potential proponents (suppliers of qualifying renewable electricity) and opened the application process for participants (consumers of qualifying renewable electricity) for the GCP. Selected proponents are expected to be notified in September 2024.12 The commercial operation date for the program is expected to be December 31, 2028.13 The form of power purchase agreements that will be entered into by successful proponents has been submitted by the GCP administrator to the UARB for approval.14
Sleeved PPAs and renewable energy storage: amendments to the Electricity Act and Regulations
On April 12, 2023, Royal Assent was granted in respect of amendments to the Electricity Act (the "Act") through Bill 264.15 The amendments allow the Province to issue requests for proposals for energy storage solutions such as large-scale batteries.16 The goal of these amendments was to get more storage in Nova Scotia's system faster, allowing rapid development in this area.17 Prior to the passage of Bill 264, only NSPI was authorized to own this type of storage system.
On November 9, 2023, further amendments to the Act were passed which promote the supply of additional renewable energy facilitated through "sleeved" power purchase agreements ("Sleeved PPA(s)") entered into by renewable energy suppliers, NPSI, and a customer.18 Renewable energy Sleeved PPAs involve the sale of energy from a renewable energy generator to a customer, with NSPI managing sale and delivery from the generator to the customer as the owner of the electrical grid.19 These amendments also enable the Province to approve energy storage solutions.20
Amendments made to section 4AA of the Act grant the Minister of Natural Resources and Renewables the power to require NSPI to enter into a Sleeved PPA and to purchase energy from a specific generation facility. NSPI must then sell that energy to a specific customer as determined by the Minister.21 The amendments provide the Minister with the authority to determine the terms included in Sleeved PPAs.22 Further, the amendments clarify that the terms of a Sleeved PPA under subsections 4AA(2) and 4AA(2A) are not subject to approval by the UARB.
Amendments were also made to section 4D of the Act. These amendments allow the Province to approve energy-storage projects proposed by NSPI and to determine the terms and conditions for these projects.23 These terms and conditions can relate to size and location of the energy storage projects.24 These changes allow the Province to approve innovative energy storage solutions more quickly. Previously, NSPI required the approval of the UARB for these types of large-scale projects. The Province enacted the Prescribed Energy-Storage Projects Regulations on December 21, 2023, under section 4D of the Act. These regulations require NSPI to install three 50 MW grid scale batteries at sites adjacent to specified NSPI substations in Lunenburg, Kings and Halifax Counties.25 The regulations further require NSPI to prepare annual reports issued to the UARB and Minister of Natural Resources and Renewables up to and including 2030 regarding the use of each battery project.26
Offshore wind roadmap modules
In 2022, Nova Scotia set a target to offer leases for five gigawatts of offshore wind energy by 2030.27 A first call for bids is planned for 2025.28 To reach this goal, the Province has begun to establish a framework for the development of offshore wind projects through the release of the Offshore Wind Roadmap. This will consist of three modules:
- Module 1, released in May, 2023, outlined what is needed to complete the legislative and regulatory regime for offshore wind. A detailed review of Module 1 by Stewart McKelvey's Energy Group can be found online;
- Module 2, expected to be released in Spring 2024, will outline the supply chain and infrastructure opportunities for offshore wind; and
- Module 3, expected to be released in Fall, 2024, will outline input from Indigenous peoples, as well as industry, academic and community stakeholders.29
Module 1 indicated the Province's willingness to pursue early wind development for nearshore areas solely under the Province's jurisdiction.30 The module announced that seabed rights issuances would begin as early as 2024 for these nearshore areas.31 In November, 2023, the Province retreated on this commitment, indicating that it would not pursue early development of nearshore wind projects, instead focusing on wind development in offshore areas jointly managed with the Federal Government.32
Module 1 further noted the Province's commitment to introduce mirroring legislative amendments to the Federal Government's amendments made through Bill C-49. Bill C-49, and mirroring provincial legislation, are required to modernize and amend the mandate of the Canada-Nova Scotia Offshore Petroleum Board to create the regulatory regime for offshore wind development in joint federal-provincial managed offshore areas. Our Energy Group provided a detailed review of Bill C-49 in June, 2023.
Nova Scotia releases Green Hydrogen Action Plan
On December 15, 2023, the Province released its Green Hydrogen Action Plan (the "GHAP") which is intended to facilitate the growth of the Province's nascent green hydrogen industry.33 The GHAP lists seven goals and 23 associated action items to achieve these goals. The goals identified in the GHAP are intended to promote the economic, social and environmental benefits associated with a green hydrogen industry.34
Programs have been initiated to incentivize investment in the equipment required for low-emitting energy generation and storage. At the federal level, examples of programs to promote green hydrogen include the Clean Hydrogen Investment Tax Credit recently announced by the Government of Canada, the Clean Technology Investment Tax Credit, and the Canada Growth Fund.35 Provincial programs in development to support green hydrogen include the Nova Scotia Clean Fuels Fund and the Hydrogen Innovation Program. Additionally, Invest Nova Scotia, a provincial Crown Corporation with an economic development mandate, has updated the Innovation Rebate Program and initiated a Low-Carbon Technology Stream (as part of the Early Stage Commercialization Fund), to support decarbonization initiatives by businesses in Nova Scotia.36
At the national level, the Federal Government intends to create regional hubs for green energy production. The Province aims to establish Nova Scotia as a regional hub, given its strategic position as a gateway to international markets. To date, the Province has amended various laws and regulations to enable the development of the sector in Nova Scotia, including amendments passed in late 2022 which (i) will, upon proclamation, permit hydrogen facilities to be wholesale electricity customers; (ii) add hydrogen to the provincial gas distribution system; (iii) provide for the regulation of hydrogen pipelines, and (iv) provide for underground storage of hydrogen and ammonia.
Footnotes
1. Nova Scotia Department of Natural Resources and Renew-ables, "Nova Scotia's 2030 Clean Power Plan" (2023) online (pdf): Government of Nova Scotia < https://beta.novascotia.ca/sites/de-fault/files/documents/1-3582/nova-scotia-clean-power-plan-pre-sentation-en.pdf >
2. Ibid.
3. Nova Scotia's 2030 Clean Power Plan, supra note 1, at 10.
4. Ibid at 12.
5. Ibid at 12.
6. Ibid at 12.
7. Nova Scotia Utility and Review Board, M11017, NS Power, The Path to 2030 (22 December 2023) online: https://uarb.novas-cotia.ca/fmi/webd/UARB15 [The Path to 2030].
8. Nova Scotia, Ministry of Energy and Mines, News Release, "Government Amends Electricity Act" (26 February 2020), on-line: Government of Nova Scotia < https://news.novascotia.ca/ en/2020/02/26/government-amends-electricity-act >
9. Ibid.
10. Natural Resources and Renewables, "Green Choice Pro-gram for Large-Scale Electricity Customers" (2023) online: Government of Nova Scotia < https://novascotia.ca/news/re-lease/?id=20231201006 >
11. Ibid.
12. Nova Scotia Green Choice Program, "12/15/2023 Participant Application is Live" (2023) online: < https://novascotiagcp.com/up-dates >
13. Nova Scotia Green Choice Program, "Nova Scotia Green Choice Program Timeline" (4 December 2023) online: < https://no-vascotiagcp.com/timeline-%26-terms >; Nova Scotia Green Choice Program, "Updates" online: < https://novascotiagcp.com/updates>
14. Nova Scotia Green Choice Program, "Power Purchase Agree-ment (PPA) Notice of Application", online: < https://novascotiagcp. com/proponent-documents >
15. Bill 264, An Act to Amend Chapter 25 of the Acts of 2004, the Electricity Act, 1st Sess, 64th Leg, Nova Scotia, 2023 (assented to 12 April, 2023).
16. Natural Resources and Renewables, "Electricity Act Amend-ments Allow More Energy Storage Solutions" (22 March 2023) online: Government of Nova Scotia < https://news.novascotia. ca/en/2023/03/22/electricity-act-amendments-allow-more-ener-gy-storage-solutions >
17. "Bill 264, An Act to Amend Chapter 25 of the Acts of 2004, the Electricity Act", 2nd reading, House of Assembly Debates, 23-62, (23 March 2023) at 5084 (Hon Tory Rushton)
18. Bill 337, An Act to Amend Chapter 25 of the Acts of 2004, the Electricity Act, 1st Sess, 64th Leg, 2023 (assented to 9 November 2023) < https://nslegislature.ca/legc/bills/64th_1st/3rd_read/b337.htm >
19. Natural Resources and Renewables, "Amendments Will Bring More Renewable Energy, Storage to the Grid" (2023) online: < https://novascotia.ca/news/release/?id=20231013003 >
20. Ibid.
21. Bill 337, supra note 18, s 1(1).
22. Ibid, s 1(2).
23. Ibid, s 2(1) and (4).
24. Ibid, 2(4)
25. Prescribed Energy-Storage Projects Regulations, NS Reg 250/2023, s 3.
26. Ibid, s 3(5).
27. Natural Resources and Renewables, "Province Sets Offshore Wind Target" (2022) online: Government of Nova Scotia < https:// novascotia.ca/news/release/?id=20220920003 >
28. Government of Nova Scotia, "Offshore wind" online: Govern-ment of Nova Scotia < https://novascotia.ca/offshore-wind/ >
29. Ibid.
30. Government of Nova Scotia, "Nova Scotia Offshore Wind Roadmap Module 1" (2023) at 12, online (pdf): Government of Nova Scotia < https://novascotia.ca/offshore-wind/docs/off-shore-wind-roadmap.pdf >
31. Ibid at 13.
32. Natural Resources and Renewables, "Offshore Wind Proj-ects in Jointly Managed Waters to be Regulated First" (2023) online: Government of Nova Scotia < https://news.novascotia. ca/en/2023/11/22/offshore-wind-projects-jointly-managed-wa-ters-be-regulated-first >
33. Government of Nova Scotia, "Green Hydrogen Action Plan" (2023), online (pdf): https://novascotia.ca/green-hydrogen/docs/ green-hydrogen-action-plan.pdf
34. Please consult the Green Hydrogen Action Plan, supra note 33, for a full listing of the goals and associated actions.
35. The Canada Growth Fund is a subsidiary of Canada Devel-opment Investment Corporation with a mandate to promote private sector investment in Canadian businesses and projects that pro-mote economic transformation and the achievement of net-zero. Please see here for more details: https://www.cgf-fcc.ca/
36. For program details and guidelines, please see: Invest Nova Scotia, "Innovation Rebate Program" online: < https://investnovas-cotia.ca/export/programs-services/innovation-rebate-program > ; Invest Nova Scotia, "Early Stage Commercialization Fund" online: < https://investnovascotia.ca/start-up/acceleration-initiatives/ear-ly-stage-commercialization-fund >
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