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To: Sustainable Maritimes (sust-mar) From: "resl" <resl@ns.sympatico.ca> Tip: if your message doesn't reach sust-mar, you probably sent it with html coding. Use your "Format" pull-down menu to switch to plain text format. ____________________________________________________________________________ "A Changing Environment for Renewable Energy in Nova Scotia," reports on the 2nd Interim Report of the Electricity Marketplace Governance Committee. This commentary was originally released April 14,2003 by the Renewable Energy Industry Association of Nova Scotia (REIANS) For more information please contact: Erik Twohig, Past Chair, REIANS 902-798-5085 et.resl@ns.sympatico.ca A Changing Environment for Renewable Energy in Nova Scotia By Erik Twohig, Past Chairman, Renewable Energy Industries Association of Nova Scotia Wednesday, April 16, 2003 The Nova Scotia Energy Strategy, Seizing The Opportunity, was released in December of 2001. Since that time some large steps towards increasing market access for renewable energy producers have been taken. With the release of the 2nd Interim Report of the Electricity Marketplace Governance Committee in mid-April, the Renewable Energy Industries Association of Nova Scotia (REIANS) believes that it is time to update the citizens of Nova Scotia on changes that are coming – and how these changes can benefit an independent renewable energy sector in Nova Scotia. Background The Nova Scotia Energy Strategy process of 2001 allowed Nova Scotians, through a variety of mechanisms, to put forward their views on the evolution of energy policy. REIANS was formed to respond to this initiative, and was only one of many, many individuals and groups that spoke to the Government about the need for tangible policies. Policies to encourage environmental stewardship in the energy sector; policies to provide access to electricity markets for independent renewable energy producers. >From this public consultation process, the Province of Nova Scotia published its policy document, Seizing the Opportunity, and subsequently established the Electricity Marketplace Governance Committee (EMGC) to determine how to put these policy initiatives into practice. In May of 2002 the EMGC met for the first time. The EMGC is comprised of seven member organizations and two observer organizations representing a variety of stakeholders, or customer interests, relating to electricity. Each of the organizations asked to participate in this venture does so bearing the costs of participation on its own, and with the commitment to stay the course. As of the time of this writing, we are preparing for meeting #24, each of which has been a full-day meeting. None of the parties on the EMGC (with the possible exception of Nova Scotia Power Inc.) had a real understanding of the complexity of the issues with which they would be dealing, or the extent of the time and commitment involved in order to be able to participate usefully in the process. The Committee agreed that issues relating to transmission were fundamental to all future deliberations, and the learning and deliberations surrounding this issue took the EMGC right up to December 2002, at which time the 1st Interim Report was issued. Today – The 2nd Interim Report As many people are aware, there have been a variety of initiatives in jurisdictions around the world relating both to the opening up (restructuring or deregulating) of electricity markets, and to providing “fair and equitable” access to those markets for renewable energy producers. Almost as many people are aware of the catastrophic failures, or the perception of failure, that have occurred in some of these jurisdictions. One of the main difficulties in media discussions about these events has been the inability on everyone’s part to understand the complex interrelationships that cause electricity marketplaces to function. The 2nd Interim Report deals with the issues that REIANS had been most eager to treat. Specifically, those issues revolve around the Energy Strategy Objectives of promoting renewables and the related topics of Market Scope and Market Model. Market Scope deals with the question of “to whom may renewable generators sell?” and Market Model deals with the question of “how do renewable generators contract for such a sale?” Below are listed, in point form, some of the highlights from the 2nd Interim Report recommendations relating to renewable energy producers. These points are not the complete recommendations, nor the complete list of recommendations, and should be taken in the context of the Report: . Nova Scotia adopt the EcoLogo® definition of renewable low-impact electricity; . Nova Scotia adopt a mandatory Renewables Portfolio Standard to take effect in 2006; . Sellers offering electricity from renewable generators constructed after 2001 be able to sell directly to electricity customers; . Sellers offering electricity from renewable generators constructed after 2001 be able to sell to electricity customers on the basis of financial contracts; . Qualifying generators with installed capacity of 100kw or less be eligible for net metering. Tomorrow – what happens next? The EMGC process provides specific recommendations to the Government of Nova Scotia. Once those recommendations are delivered to the Government, they will be considered, and if acceptable, are anticipated to be incorporated into the upcoming Energy Act. The new Energy Act is anticipated to be tabled in the Legislature for the Fall 2003 or Spring 2004 sitting for debate, and ultimately, passage and proclamation. Many people have commented on the slow pace of change, and the perception that “nothing is happening”. As participants in the EMGC, REIANS has experienced the challenge, difficulty, and complexity surrounding policy change. REIANS has also experienced the give and take that is required to take disparate views and reach beneficial outcomes. Project development takes time. Policy change takes time. Both have their risks. REIANS hopes and believes that the recommendations relating to renewable energy will meet with broad-based political support and that they will make their way through the legislative process in a timely fashion. Several REIANS members are proceeding on project development work on that basis. The recommendations will provide an opportunity for Nova Scotians. Both the citizens of Nova Scotia and the renewable developers in Nova Scotia now must prepare to step up to the plate. We have asked for it – will we support it? The full EMGC 2nd Interim Report is available on-line at: www.gov.ns.ca/petro/energystrategy/emgc ____________________________________________________________________________ If a friend forwarded this email to you, please consider joining sust-mar yourself. Just send 'subscribe sust-mar' to mailto:majordomo@chebucto.ca
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