sust-mar: Review of NSPI's Solicitation for Renewable Energy

Date: Tue, 28 Sep 2004 08:48:30 -0300 (ADT)
From: Larry Hughes <lhughes2@dal.ca>
To: Sustainable Maritimes <sust-mar@chebucto.ns.ca>
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____________________________________________________________________________
 
In mid-September 2004, Nova Scotia Power Incorporated (NSPI) released its
"Solicitation for Renewable Energy - 100 kW to 2 MW on Distribution", a
call for up to 20 megawatts of electricity from renewable energy sources. 
The Solicitation includes the rules and regulations that NSPI expects
Independent Power Producers (IPPs) to follow if they are to interconnect
to the provincial electricity grid.  The Solicitation also lists the
prices that NSPI will pay to IPPs for electricity generated; the payment
is based upon the location of the generation facility in the province. 
 
This paper examines the prices in terms of the net present value (NPV) 
calculations used by NSPI in their Green Power Rider application of late
2001.  The paper shows that the pricing formulae developed for this
Solicitation will not allow IPPs to generate sufficient revenue to cover
their costs.  Several alternative prices and pricing arrangements are then
discussed.  Finally, the paper considers ways in which the provincial
government could act to ensure the development of a viable renewable
electricity sector in Nova Scotia. 
 
Copies of the paper can be found at
www.dal.ca/~lhughes2/environment/NSPIsolisitation01.pdf


Larry Hughes, PhD
Professor                            Visiting Fellow [Sep 04 - Mar 05]
Department of Electrical and         Science and Technology Policy 
   Computer Engineering                 Research Unit
Dalhousie University                 University of Sussex
Halifax, Nova Scotia, B3J 2X4        Brighton, BN1 9QE
Canada                               England
 
v: 902.494.3950                      v: 44.1273.686758
f: 902.422.7535                      f: 44.1273.685865
e: larry.hughes@dal.ca
u: http://www.dal.ca/~lhughes2




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