Topic:"Regulatory Oversight" in M12177

June 30, 2026 Crystal Henwood Clerk of the Board Nova Scotia Energy Board 1601 Lower Water Street, 3rd Floor Halifax, NS B3J 3S3 Re: M12177 – Nova Scotia Power Inc. – Smart Grid Nova Scotia - Final Report Decision Directive – Distributed E...

AI summary The letter outlines key developments in Nova Scotia's electricity sector since the direction was issued to NS Power to develop a DERIR. These include the establishment of the Nova Scotia Energy Board, the creation of the IESO-NS, and ongoing proceedings related to DSM plans and the IRP. These changes impact DER integration and are shaping the regulatory framework.

WHAT THE DERIR IS AND ISN'T The objectives of the DERIR are to: - • Articulate a holistic, coordinated, and common vision for planning, enabling, and integrating DERs in Nova Scotia; - • Identify and prioritize key strategies and initiativ...

AI summary The DERIR (Distributed Energy Resources Integration Roadmap) provides a strategic, non-prescriptive vision for integrating DERs in Nova Scotia. It outlines key strategies and priorities, but does not specify implementation details, accountability, or funding. It serves as a coordination tool to align stakeholders on the roadmap's goals and sequencing.

Executive Summary Nova Scotia's electricity system is entering a period of significant transformation. Growing electricity demand, increasing adoption of distributed energy resources (DERs), and progressively ambitious decarbonization obje...

AI summary Nova Scotia's electricity system is undergoing transformation due to rising demand, increased DER adoption, and decarbonization goals. The Energy Reform Act has created new governance structures, including the NS Energy Board and IESO Nova Scotia. NS Power and Efficiency One have distinct roles, and coordination is essential as DERs grow. A DERIR has been commissioned to guide integration of DERs while supporting clean energy objectives.

Pillar 1: Planning for DERs This pillar focuses on establishing the foundations required for effective DER integration. Key priorities include strengthening governance and stakeholder coordination, building institutional capacity, developi...

AI summary This section outlines the priorities for Pillar 1, which focuses on planning for DERs. It emphasizes the need to strengthen governance, improve forecasting, develop valuation frameworks, and identify future regulatory needs to enable effective DER integration.

LOOKING AHEAD The DERIR represents an important first step. Implementation will require sustained commitment, collaboration, and clear accountability. Regulatory clarity and direction regarding leadership roles, responsibilities, and decis...

AI summary The DERIR is a significant initiative requiring commitment and collaboration. Regulatory clarity and stakeholder engagement are essential to ensure the roadmap reflects technological and market changes and meets customer needs.

tively managed DERs can provide benefits which support affordability, reliability, and environmental compliance and highlighted the importance of collaboration between E1 and NS Power[.](#page-16-0) 5 In tandem with increased DER adoption,...

AI summary The text discusses structural changes in Nova Scotia's electricity sector due to the Energy Reform Act, which established the NS Energy Board and IESO Nova Scotia. These reforms aim to enhance collaboration between entities like NS Power and E1 to manage distributed energy resources (DERs) effectively, supporting affordability, reliability, and environmental compliance.

Role of the DERIR The objectives of the DERIR are to: - • Articulate a holistic, coordinated and common vision to plan for, enable, and integrate DERs in Nova Scotia - • Identify and prioritize key strategies and initiatives - • Find broad...

AI summary The DERIR aims to provide a coordinated vision for integrating distributed energy resources (DERs) in Nova Scotia, identify key strategies, and align stakeholders on goals and initiatives. It builds on previous efforts and considers current policy and regulatory directions.

Summary of Roadmap The DERIR is built around three core pillars - 1. Planning for DERs proactively to leverage DERs as a resource for meeting emerging system needs. Planning supports coordinated governance, analytical foundations, and regu...

AI summary The DERIR is structured around three pillars: planning for DERs, enabling DER participation, and integrating DERs. These pillars aim to support coordinated governance, stakeholder alignment, and operationalization of DERs through strategies and initiatives. The roadmap includes 12 strategies and 28 initiatives based on stakeholder input and internal knowledge.

Planning for DERs

AI summary The document introduces the topic of planning for Distributed Energy Resources (DERs), highlighting the importance of integrating these resources into the energy system. It references the DERIR and other related systems and initiatives.

Qualitative Assessment Criteria Assessment Rationale Risk Management ●●● HIGH DER valuations frameworks should be regularly updated as the energy landscape evolves in Nova Scotia, including to maintain alignment with legislative changes an...

AI summary The text discusses the importance of regularly updating DER valuation frameworks to align with legislative and regulatory changes in Nova Scotia. It emphasizes the need for a benefit-cost analysis (BCA) framework to evaluate the cost-effectiveness of DER investments in a consistent and transparent manner.

Overview This strategy does not propose bypassing established legislative and regulatory processes. Instead, it recognizes that as the electricity system and DER landscape evolve, policy and regulatory frameworks in Nova Scotia may also ne...

AI summary This strategy emphasizes the need for regulatory adaptation to support DER innovation and flexible utility planning. Stakeholders stress the importance of regulatory oversight at all stages, express concerns about delays from slow processes, and raise questions about alignment with ongoing NSEB proceedings and affordability.

Qualitative Assessment Criteria Assessment Rationale Strategic Fit ●● MED Regulatory evolution can support DER integration efforts as needed. Potential regulatory changes are expected to become clearer as DER adoption grows and/or policies...

AI summary The qualitative assessment discusses the strategic fit, benefits, and cost favourability of regulatory evolution to support DER integration. It highlights that new regulatory models, such as Innovation Sandboxes, can encourage DERs and NWAs by enabling controlled testing of new technologies and approaches. Moderate incremental investment and stakeholder engagement are required.

Enabling DER Participation

AI summary The document discusses the integration of DER (Distributed Energy Resources) and the development of a DERIR (Distributed Energy Resources Integration Roadmap) to enable DER participation in the electricity system.

Overview This strategy aims to assess how alternative procurement pathways may complement customer programs to accelerate DER uptake in Nova Scotia, help reduce the cost of resource acquisition, promote operational efficiency, and foster c...

AI summary The strategy discusses alternative procurement pathways for DERs in Nova Scotia, comparing centralized procurement and utility ownership models. Stakeholders expressed concerns about transparency, the necessity of centralized models, and the alignment of utility ownership with provincial goals for competition and innovation.

Qualitative Assessment for Grid Interconnection Criteria Assessment Rationale Strategic Fit ●● MED Grid security and reliability initiatives can directly support the operation of a safe, secure, reliable system. Clear interconnection, prot...

AI summary The document evaluates the qualitative aspects of grid interconnection, focusing on strategic fit, benefits, cost favourability, and risk management. It emphasizes the importance of standards for DERs, reliability, and coordination across processes.

INDICATIVE TIMELINES AND INITIATIVE STAGING The three pillars, 12 strategies and 28 initiatives provide a strategic foundation for coordinated action prioritized within an indicative timeline: Foundational (in less than 5 years), Evolving...

AI summary The document outlines an indicative timeline and initiative staging for a strategic roadmap, divided into foundational, evolving, and emerging phases. It emphasizes that the roadmap is directional and subject to change based on jurisdictional reviews, stakeholder input, and external factors such as policy developments and regulatory matters.

Roadmap Governance "WHAT WE HEARD" Stakeholders emphasized that strong governance and coordination will be critical to successfully implement the roadmap . They called for clear assignment of responsibility and accountability, particularly...

AI summary Stakeholders emphasized the need for strong governance and clear assignment of responsibility to successfully implement the roadmap. They highlighted concerns about unclear roles, particularly for IESO-NS, and warned of potential inefficiencies and duplication if responsibilities are not clearly defined.

REGULATORY AND DECISION-MAKING PATHWAYS The roadmap assumes that most initiatives will proceed through established regulatory, legislative, and governance processes. At the same time, several initiatives represent new approaches or materia...

AI summary The roadmap outlines that most initiatives will follow established regulatory, legislative, and governance processes, but some new approaches or significant changes may need additional regulatory or legislative guidance to proceed.

Strategic fit was scored based on alignment across five perspectives. Criteria Description Alignment (NS Power and Regulatory Direction) Degree initiative supports NS Power's efforts to provide reliable, affordable, and clean electricity,...

AI summary Strategic fit was evaluated based on alignment across five perspectives, including regulatory direction, E1's DSM efforts, government policy, stakeholder alignment, and market need. The initiative's benefits to the electricity system and customers are highlighted.

We considered five indicators to assess potential risk. Criteria Description Precedent Existence of proven models or lessons from other utilities/jurisdictions that reduce risk and improve confidence. Criteria Description Complexity and Ti...

AI summary The text outlines five indicators used to assess potential risks in implementing new initiatives, including precedent, complexity and time, operational risk, social acceptance risk, and engagement/partnership potential. These indicators help evaluate the feasibility and impact of new technologies or programs.

Why are utilities engaging in DER integration efforts: - 1. What key industry trends are shaping utilities' DER integration strategies? - 2. What key barriers or enablers are influencing DER implementation? (e.g., interdepartmental coordin...

AI summary The document outlines three key questions regarding DER integration efforts by utilities, focusing on industry trends, barriers/enablers, and internal/external drivers such as policy and regulations.

How are utilities responding: - 4. What initiatives are being employed to support DERs? (e.g., technologies, use cases, strategies that support the planning, enablement and integration of DERs) - 5. What enabling infrastructure are utiliti...

AI summary The document outlines questions posed to utilities regarding their initiatives, infrastructure, and strategies for managing uncertainty and innovation in DER integration, as well as insights from regulatory proceedings related to DERs.

Enabling - Limited customer awareness or understanding of DERs and programs - Existing compensation mechanisms may not align with the full value that DERs provide across generation and T&D systems - Limited coordination between stakeholder...

AI summary The text highlights challenges in enabling distributed energy resources (DERs), including limited customer awareness, misaligned incentives, regulatory uncertainty, and lack of coordination in integration and deployment. It also emphasizes the need for better data sharing, interoperability, and standardized protocols to optimize DER dispatch and mitigate system impacts.

Innovation - Planning Risks: Planning processes are adapting to account for risk and uncertainty associated with when, where, and how many DERs will show up on a utility system. This includes scenario analysis, flexible signpost-based stra...

AI summary The text discusses innovation in utility systems, emphasizing planning, technology, and regulatory risks. It highlights the use of innovation funds, regulatory sandboxes, and pilot frameworks to support the integration of distributed energy resources (DERs) and test emerging technologies and strategies.