Topic:"Procurement Practices" in M11307

Item 3d: Procurement Strategy for Variable Renewable Resources Develop a procurement plan for incremental variable renewable resources, targeting approximately 1000MW[5](#page-15-7) by 2030. Anticipated renewable procurements and programs,...

AI summary The document outlines a procurement plan targeting 1000MW of variable renewable resources by 2030, leveraging programs like Green Choice, Community Solar, and Renewable to Retail. It emphasizes regular procurements, engineering resources, and studies to reduce curtailment of renewable generation.

A. NSPI should maximize use of best practices competitive procurement to mitigate costs, risks in needed resource investments We note that the Evergreen Update includes a substantial amount of identified investments in the near term that a...

AI summary NSPI must adopt competitive procurement practices to manage costs and risks associated with significant near-term investments outlined in the Evergreen Update, including 1,500 MW wind, 200 MW solar, transmission upgrades, battery storage, and synchronous condensers by 2030.

B. NSPI should expeditiously further assess solar capacity additions and include both solar and wind together in procurement decisions NSPI states that "[t]he addition of 200 MW of solar capacity is consistent among all scenarios by 2030 a...

AI summary The text recommends that NSPI expedite further assessment of solar capacity additions and integrate solar and wind resources in procurement decisions. It highlights the need for competitive solicitations and all-source procurements to ensure effective renewable resource planning.

D. Procurement Bates White offers constructive comments on the use of best practice competitive procurements. (Bates White, pp. 3-6) We endorse Bates White's comments and elaborate on some of them. Bates White's well-advised recommendation...

AI summary The text endorses Bates White's recommendations for best practice competitive procurements, emphasizing all-source RFPs, cautious handling of utility-affiliated projects, and stakeholder engagement. It highlights regulatory differences in procurement oversight and corrects a misstatement about joint dispatch agreements and IRPs.

Specific Recommendations: Future Analysis & Action Plan Items All Source RFP Process Bates White and Grid Strategies on behalf of the Consumer Advocate recommend all source RFP processes to acquire generation and infrastructure assets deem...

AI summary The Consumer Advocate recommends all-source RFP processes to meet decarbonization targets, while NS Power anticipates multiple procurements, some managed by the Province. NSUARB approval is required for capital investments, with stakeholder engagement. The Electrification Study will be published in 2023, and wind integration studies will address curtailment reduction and system reliability.

Manager, Capital Filings Feedback Item # Stakeholder/ Feedback Document Reference Page Theme/Feedback NSPI Response 1 Bates White Pg. 3 RFP Process NSPI should maximize use of best prac�ces compe��ve procurement to mi�gate costs, risks in...

AI summary Bates White recommends that NSPI use competitive procurement practices with binding offers to manage costs and risks in resource investments. NSPI acknowledges the feedback but notes that procurement decisions are outside the scope of the IRP and will involve multiple processes, including those administered by the Province and subject to NSUARB review.

that correctly iden�fying the need for capacity is paramount for all subsequent IRP runs. The study should also ask whether energy to meet those peak demands should be stored in a batery, a tank, a lake or in a regionally linked, diversifi...

AI summary The text discusses the importance of accurately identifying capacity needs for Integrated Resource Plan (IRP) runs and suggests exploring energy storage options to meet peak demand. It also addresses potential changes in customer behavior related to heat pumps and the impact of decarbonization policy on NS Power. Additionally, it recommends best practices for procurement, including all-source RFPs and stakeholder engagement.

will be released to stakeholders for their review and NS Power will request feedback on the findings. will be evaluated by further study work (Updated Ac�on Plan page 7), including generator site– specific system impact studies for new var...

AI summary The document discusses the evaluation of further study work, including site-specific system impact studies for new variable renewable generation and the potential need for synchronous condensers. It also mentions the development of a procurement strategy for solar and wind resources as part of the Integrated Resource Plan (IRP) Action Plan.

(Response to Stakeholders, p. 4) We further pointed out that customers who maintain fossilfueled hea�ng systems for peak condi�ons use those systems beyond peak condi�ons, depending on energy pricing and equipment efficiency. We are concer...

AI summary The feedback highlights concerns about NS Power's failure to consider non-peak usage of dual-fueled heating systems in future analyses and emphasizes the need for competitive procurement practices in resource investments. NS Power acknowledges the feedback but notes that procurement decisions are outside the IRP's scope and will be managed by the Province.

that correctly iden�fying the need for capacity is paramount for all subsequent IRP runs. The study should also ask whether energy to meet those peak demands should be stored in a batery, a tank, a lake or in a regionally linked, diversifi...

AI summary The text emphasizes the importance of accurately identifying capacity needs for Integrated Resource Plan (IRP) runs and explores options for storing energy to meet peak demands. It also discusses the need for clear standards in trade-offs between resource options and how customer behavior may change with increasing carbon prices and heat pump adoption. Bates White recommends all-source RFPs and stakeholder processes for procurement planning.

will be released to stakeholders for their review and NS Power will request feedback on the findings. will be evaluated by further study work (Updated Ac�on Plan page 7), including generator site– specific system impact studies for new var...

AI summary The document discusses the evaluation of further study work on generator site-specific system impact studies for new variable renewable generation, including the potential addition of synchronous condensers. It highlights the need for a comprehensive and system-wide review of this issue. Additionally, it mentions the development of a procurement strategy for solar and wind resources, which NS Power agrees to prioritize.

- NS Power also addressed concerns about its pace to address 2030 decarbonization targets, including phasing out coal-fired generation and attaining 80% of renewables on the system. The Utility submitted that its Evergreen IRP process, inc...

AI summary NS Power outlined its Evergreen IRP process and 'Path to 2030' plan to meet 2030 decarbonization targets, including phasing out coal and achieving 80% renewables. It committed to detailed capital investment reporting, external studies on electrification strategies, and collaboration with the Province on procurement. Stakeholders emphasized the need for multi-stakeholder analysis of Hybrid Peak Mitigation and the importance of the Reliability Tie project and federal Clean Electricity Regulations.

1. Integration of New Renewable Energy With respect to the first item in particular, PHP specifically notes Synapse's comment at page 4 of its report: "Action Item 3d is development of a procurement strategy for solar and wind resources, a...

AI summary PHP supports Synapse's emphasis on developing a renewable procurement strategy and addressing curtailment risks for wind and solar. The IRP may underestimate wind energy integration, requiring urgent studies to minimize costs and curtailment. NSPI's ongoing studies (Roadmap Item 1, 2023) should be prioritized and shared with IRP participants promptly.

Conclusion Finally, PHP notes Bates White's comments on page 3 of its report that should all the resources that the IRP calls for to be in place by 2030 be pursued, "such an aggressive schedule and scope of resource additions will place a...

AI summary PHP emphasizes the need for transparency, collaboration, and cooperation among NSPI, market participants, and the Board to achieve Nova Scotia's 2030 renewable energy targets. It highlights the challenges of the IRP's aggressive resource procurement schedule and urges the Board to stress these requirements in its comments on the NSPI IRP Action Plan.

Renewable procurement approach should prioritize customer benefits The updated IRP calls for significant near-term and long-term renewable resource additions. The SBA recognizes the importance of those resources to meet policy and planning...

AI summary The updated IRP emphasizes renewable resource additions while urging NSPI to adopt procurement strategies that limit customer costs and risks. SBA highlights the need for regular smaller procurements, termination penalties in contracts, and learning from other regions to balance economies of scale with customer protections amid volatile markets.

- 5.2. ESC endorses and adopts Synapse's recommendation for " accelerated study to determine the value of considering an increased pace of battery storage implementation " 8 . ESC would welcome opportunities to participate as a stakeholder...

AI summary ESC supports Synapse's recommendations for accelerated battery storage studies, higher capacity scenarios to reduce curtailment, and NSPI's procurement plans integrating energy storage with renewables. ESC emphasizes energy storage's role in curtailment mitigation and advocates for storage integration in wind/solar projects.

- firming of energy import and export assumptions. They recommended NS Power re-run the analysis of the Atlantic Loop as more information becomes available. - Synapse recommended that the development of the Reliability Tie continues to be...

AI summary Synapse recommends NS Power re-analyze the Atlantic Loop, prioritize the Reliability Tie, develop solar/wind procurement strategies, and address curtailment. They support electrification planning and 4-hour battery storage by 2030. E1 agrees with Synapse's recommendations for IRP implementation and action plan items.

- NS Power also addressed concerns about its pace to address 2030 decarbonization targets, including phasing out coal-fired generation and attaining 80% of renewables on the system. The Utility submitted that its Evergreen IRP process, inc...

AI summary NS Power addressed decarbonization targets, submitting its Evergreen IRP Action Plan and Roadmap. It committed to filing a capital investment plan by December 2023 and participating in provincial procurement processes. Stakeholders emphasized the need for third-party studies on electrification strategies and urgency for the Reliability Tie project. The Board incorporated the 'Path to 2030' document into the 2024 ACE Plan proceeding.