B-1Proposed Tariffs - Amended March 2, 2011 2/28/2011
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7 Q. PLEASE DESCRIBE THE PROJECT TEAM'S OVERALL APPROACH TO THE 8 BALANCING OF COSTS AND POLICY OBJECTIVES? 9 A. The regulations governing the development of the COMFIT rates clearly call for them to 10 be cost-based. However, the developm...
AI summary The Project Team emphasizes balancing COMFIT rate development between cost-based regulations and fostering project growth. They propose the lowest rates achievable while maintaining reasonable development activity per resource class, acknowledging the need for judgment in rate-setting.
16 Q. PLEASE DISCUSS THE UNCERTAINTIES INVOLVED IN THE PROCEES OF 17 SETTING COST-BASED COMFIT RATES. 18 A. There are large, intrinsic uncertainties involved in setting these rates. In assessing the 19 cost of projects in each resource cla...
AI summary The response discusses the uncertainties involved in setting cost-based COMFIT rates, highlighting how assumptions about project parameters such as capacity factors and project ownership significantly affect the resulting rates for different types of renewable energy projects.
33 Q. PLEASE DESCRIBE YOUR RESEARCH ON DEBT. 34 A. We reviewed all comments submitted by stakeholders regarding debt assumptions. 35 Furthermore, we interviewed a broad range of lending experts representing national 1 banks, credit unions,...
AI summary The response outlines research on debt assumptions, including stakeholder comments and interviews with lenders (banks, credit unions, financing agents) and project developers. Most lenders operate in Canada and plan to engage in Nova Scotia's renewable energy markets, with some specializing in First Nations-related financing.
26 Q. WHAT HAVE YOU ASSUMED ABOUT THE INSTALLED COST OF THE PROJECT? 27 A. We assume a total installed cost of $268,000, including project development costs but 28 not interconnection costs. This assumption is based on information provided...
AI summary The respondent assumes a total installed cost of $268,000 for the project, based on data from multiple turbine installations in Canada and the U.S., as well as input from experienced developers and manufacturers.
1 The installed costs used in the model are within the range of figures reported to us by 2 these developers, manufacturers and CANWEA. 3
AI summary The installed costs used in the model are within the range of figures reported by developers, manufacturers, and CANWEA.
4 Q. HAVE YOU COMPARED YOUR RATE FOR SMALL WIND TO THE RATE 5 RECOMMENDED BY CANWEA? 6 A. Yes. Our total project costs (including interconnection, reserves and fees) come to 7 $6,427 per kW. This assumption is roughly consistent with CANWE...
AI summary The respondent compared their small wind project rate to CANWEA's recommendation. They noted their total project cost is higher than CANWEA's due to interconnection costs. They also calculated a required rate of $405 per MWh to achieve a 12% return, which is higher than CANWEA's $350 per MWh.
26 Q. WHAT HAVE YOU ASSUMED ABOUT THE PROJECT'S CAPACITY FACTOR? 27 A. We have assumed that small wind projects achieve an annual capacity factor of 23%. 28 This is based on conversations with developers, manufacturers and CANWEA, and on 2...
AI summary The respondent assumes a 23% annual capacity factor for small wind projects in Nova Scotia, citing input from developers, manufacturers, and CANWEA. While CANWEA suggests 20% and one developer mentions 25%, the consensus is that 23% balances conservative and high-end estimates.
1 Q. HOW DOES YOUR PROPOSED RATE COMPARE WITH OTHER BENCHMARKS? 2 A. In Vermont, the FIT rate for wind projects 100 kW or under starts at $208 per MWh and 3 escalates to $230 per MWh over the contract period. As of February 26, 2011, there...
AI summary The respondent compares the COMFIT rate for small wind projects to Vermont's FIT, noting Vermont's rate applies to larger projects (up to 100 kW) and includes 30% grants/ITCs. COMFIT's smaller 50 kW limit and lack of such incentives justify a higher rate. Ontario lacks a small wind FIT, with rates set above 50 kW projects. Vermont's FIT had limited adoption, suggesting insufficient robustness.
20 Q. WHAT HAVE YOU ASSUMED ABOUT THE INSTALLED COST OF THE PROJECT? 21 A. We assume total project costs of $3.8 million, or $2,520 per kW, based in large part on 22 conversations with Eon Windelectric Inc., Community Wind Farms, Grupo Gua...
AI summary The respondent assumes total project costs of $3.8 million, or $2,520 per kW, based on discussions with various wind energy developers and organizations. This estimate is 11% lower than 2008 project costs, reflecting falling turbine prices.
35 Q. WHAT HAVE YOU ASSUMED ABOUT THE PROJECT'S CAPACITY FACTOR? 1 A. We assume a capacity factor of 31% for wind >50 kW. Wind developers participating in 2 this proceeding have consistently stated that 30% was the appropriate assumption,...
AI summary The witness assumes a 31% capacity factor for wind projects over 50 kW, balancing wind developers' suggestion of 30% and Hatch Energy's conservative estimate of 32%, while noting that some argue for a higher capacity factor based on Nova Scotia's wind resources.
30 K. THE PROPOSED TARIFF FOR BIOMASS CHP 31
AI summary The document outlines the proposed tariff for biomass combined heat and power (CHP) projects under Nova Scotia's COMFIT and FIT programs. It references the SIS and mentions CANWEA's potential involvement, highlighting the regulatory review of biomass CHP's economic and systemic impacts.
32 Q. ON WHAT TYPE OF PROJECT HAVE YOU BASED THE BIOMASS CHP TARIFF? 7 Hatch, Nova Scotia Wind Integration Study , prepared for the Nova Scotia Department of Energy, 2008. 1 A. First, there is the question of what kind of steam host to ass...
AI summary The biomass CHP tariff is based on a small to medium sawmill's steam load (22 mmBtu/hr for 60% of hours annually), per ANSS input. The response highlights regulatory ambiguity around CHP definitions and ANSS's concern that tying electricity generation to steam host operations would deter projects due to risk.
23 Q. HOW DO ASSUMPTIONS ABOUT THE OPERATION OF A CHP PLANT AFFECT 24 THE COST OF ELECTRICITY? 25 A. They affect the COMFIT rate in three ways. First, the equipment needed to install a 26 system that can generate electricity when steam is...
AI summary Assumptions about the operation of a CHP plant influence the COMFIT rate through equipment costs, fuel use, and capacity factor. Condensing turbines require more expensive equipment and consume more fuel, increasing electricity costs, but they also have a higher capacity factor, which can lower the tariff rate by spreading fixed costs over more electricity generated.
23 Q. WHAT RATE ARE YOU PROPOSING FOR THE BIOMASS CHP TARIFF? 24 A. Based on the information we have received from stakeholders and our analysis of these 25 scenarios, we propose a COMFIT rate of $156 per MWh. First, we believe that it is...
AI summary The respondent proposes a COMFIT rate of $156 per MWh for biomass CHP, based on a condensing turbine scenario and an additional $9 per MWh to encourage broader CHP adoption. The rate balances ratepayer costs against COMFIT program goals.
13 Q. WHAT HAVE YOU ASSUMED ABOUT CHP PLANTS' CAPACITY FACTOR? 14 A. As the tariff will require the biomass application to be combined heat and power, there 15 are capacity factors involved with both the heat and the power generation. For...
AI summary The respondent assumes CHP plants operate at 85% power availability and 60% heat extraction, with sensitivity analysis showing higher COMFIT rates needed as steam capacity factors drop. Efficiency decreases with lower steam use, but including fuel costs at 52% efficiency aligns with CHP regulations.
20 Q. WHAT HAVE YOU ASSUMED ABOUT THE INSTALLED COST OF THE PROJECT? 21 A. We assume an "Equipment & Installation" cost of $3.9 million dollars, and a total project 22 cost of $4,447 per kW, including interest during construction and all f...
AI summary The respondent assumes an 'Equipment & Installation' cost of $3.9 million and a total project cost of $4,447 per kW, citing data from Vermont FIT proceedings (2009), Hatch Acres (2005), and CanmetEnergy (2007). Costs include financing and construction interest, with references to hydro projects in Vermont and Canada.
5 Q. WHAT HAVE YOU ASSUMED ABOUT THE PROJECT'S CAPACITY FACTOR? 6 A. We assume an annual average net capacity factor of 55%. Hatch Energy's Low Head 7 Hydro Market Assessment includes an estimate of 60%, and Seaforth Engineering also sugge...
AI summary The respondent assumes a 55% annual average net capacity factor for the project, citing estimates from Hatch Energy and Seaforth Engineering of 60%, but also referencing a 45% assumption from data in the Vermont FIT proceeding. The FIT rates in Vermont and Ontario are discussed as context for COMFIT rates.
30 Q. ON WHAT TYPE OF PROJECT HAVE YOU BASED THE TIDAL TARIFF? 31 A. We have based this tariff on a 500-kW installation employing one or more small, in-32 stream tidal generators. Examples of this technology include the TGU made by Ocean 3...
AI summary The tidal tariff is based on a 500-kW installation using small in-stream tidal generators, such as those made by Ocean Power Generation Systems and New Energy Corp. Larger in-stream generators and barrage systems are not considered for this tariff. The size was chosen based on discussions with Nova Scotia tidal developers to minimize complexity and risk.
Wilson Rickerson Mr. Rickerson has worked with a range of stakeholders on renewable energy policy design at the municipal, state and international level, and with feed-in tariff design specifically. Since 2008, he has worked as a consultan...
AI summary Wilson Rickerson is an expert in renewable energy policy and feed-in tariff (FIT) design, with experience working with organizations like the California Energy Commission, Renewable Energy Vermont, and the Heinrich Böll Foundation. He has developed FIT rate-setting models, advised on international climate finance mechanisms, and supported projects for the Inter-American Development Bank and Deutsche Bank.
Geoff Keith Geoff Keith has worked as an energy and environmental consultant for 15 years. He has assessed market opportunities around clean energy for several large energy companies and represented environmental advocacy groups in proceed...
AI summary Geoff Keith is an energy and environmental consultant with 15 years of experience in clean energy market assessments, renewable portfolio standards, and electricity disclosure requirements. He has developed models for distributed generation emissions, demand response programs, and integrated renewable energy strategies across nine U.S. regions, alongside emission rate assessments.
PROFESSIONAL EXPERIENCE Synapse Energy Economics, Inc. , Cambridge, MA. President, 1996 to present. Consulting on issues of energy economics, environmental impacts, and utility regulatory policy, including electric power system planning, a...
AI summary The text outlines professional experience in energy economics and utility regulatory policy, including consulting on electric power system planning, environmental impacts, climate change policy, demand-side management, and renewable resources. The individual held leadership roles at Synapse Energy Economics, Inc. and Tellus Institute, focusing on research and consulting related to electric system planning and regulation.
CEO, Meister Consultants Group, Inc., Boston, MA (2006-present) - Managing the international clean energy and climate change consulting practice for a 100-person transatlantic company. - Completed numerous feed-in tariff analysis and desig...
AI summary The CEO of Meister Consultants Group, Inc., has led international clean energy consulting, focusing on feed-in tariff (FIT) analysis and design for clients like NREL, CEC, HECO, and SEMI PV Group. Work includes policy frameworks, legal analyses, and global renewable energy strategy development, emphasizing FIT best practices and stakeholder engagement.
Policy Advisor, Center for Sustainable Energy at Bronx Community College , Bronx, NY (2005-present) - Coordinated the City University of New York's (CUNY) Million Solar Roofs partnership with the US Department of Energy (DOE). - Supported...
AI summary The Policy Advisor at Bronx Community College coordinated CUNY's Million Solar Roofs initiative with the US DOE, supported New York's Solar City Partnership and property tax abatements for renewables, and managed municipal energy efficiency and sustainable energy programs for public facilities.
Research Associate, Center for Energy & Environmental Policy, Newark, DE (2003-2005) - Served as the legislative assistant to the Delaware Senate Energy & Transit Committee. Drafted Delaware's renewable portfolio standard and performance c...
AI summary The Research Associate at the Center for Energy & Environmental Policy in Newark, DE (2003-2005) served as a legislative assistant to the Delaware Senate Energy & Transit Committee, drafting renewable portfolio standard and performance contracting legislation. They implemented projects modeling photovoltaic systems and energy efficiency technologies on public buildings through performance contracts.
Associate Director, Solar New York, New York State (2003). - Developed strategies for a public interest campaign in support of innovative solar energy financing models. - Worked with the State of New York to integrate photovoltaic technolo...
AI summary The Associate Director for Solar New York (2003) focused on creating public campaigns for solar energy financing and integrating photovoltaic technologies into New York's performance contracting programs, working with state authorities to advance renewable energy initiatives.
PROFESSIONAL ASSOCIATIONS & HONORS - Editorial Board Member, BioCycle magazine - Advisory Board Member, Solar America Board for Codes and Standards - Board Member, IFOK GmbH - Policy Fellow, Center for Energy and Environmental Policy - Pla...
AI summary The individual holds editorial and advisory roles in renewable energy publications and organizations, including memberships in the American Wind Energy Association and International Solar Energy Society. They have certifications in photovoltaic systems and peer review experience in energy policy journals.
PROFESSIONAL EXPERIENCE Synapse Energy Economics Inc., Cambridge, MA. Associate, 2001-2006, 2009-present. Areas of focus include environmental and economic analysis related to power generation and regional power systems; renewable energy c...
AI summary The professional experience highlights expertise in environmental and economic analysis of power systems, renewable energy, and policy. Work includes projects for organizations like the Natural Resources Defense Council, analyzing greenhouse gas reduction scenarios, and advising on electric industry restructuring. Focus areas include renewable energy costs, distributed generation, and sustainability initiatives.
The Effect of Income Tax Status on COMFIT Rates Re C la so ur ce ss C O M F I T Ra te As in su m g O Ta b le a xa w ne r C O M F I T Ra te As in No su m g a n- Ta b le O xa ne r w % D i f fe re nc e Av er ag e W in d 0 k W 5 ≤ $ 4 6 0 $ 4...
AI summary The document analyzes the impact of income tax status on COMFIT rates, comparing proposed rates for various energy sources (wind, hydro, tidal, biomass CHP) with average rates. It notes that biomass CHP rates are calculated for taxable entities, while others use average rates.
Interconnection Costs Included for in the Tariff Modeling ($2012) 0 W in d 5 k W ≤ 0 W in d 5 k W > C B io H P m as s Hy dr o T i da l S tu d ie s $ 1 0, 2 0 0 $ 7, 6 0 0 $ 7, 6 0 0 $ 7, 6 0 0 $ 7, 6 0 0 S N P I Eq ip u $ 3, 1 0 0 $ 8 4, 1...
AI summary The table details interconnection costs for various renewable energy sources (wind, biomass, hydro, tidal) in Nova Scotia's 2012 tariff modeling, showing total costs ranging from $13,300 to $285,000.
Table 1. Summary of Key Information from Modeling ($2012) W in d 5 0 k W ≤ W in d >5 0 k W B iom C H P as s Hy dr o T i da l S ( ) Pr j t ize M W o ec 0. 0 5 1. 5 2. 1 1 0. 5 $ Ca i ta l Co t ( ) p s $ 3 2 1, 6 7 4 $ 3, 7 7 9, 5 5 3 $ 8, 0...
AI summary Table 1 summarizes key information from modeling in 2012, including project sizes, capital costs, and financial metrics for various energy technologies such as wind, biomass CHP, hydro, and tidal. The table highlights differences in capital costs, revenue, and rates for each technology, with specific notes on biomass CHP calculations and COMFIT rates.
Table 2. Cost and Performance Assumptions for Wind ≤50 kW ($2012) As t io su m p n Va lu e Ca lc la t io u n Pr j Co t ts o ec s De lop t ve m en $ 0 & Inc lu de d in Eq ip t Ins ta l la t ion u m en Eq ip & Ins l la ion t ta t m en u $ 2...
AI summary Table 2 outlines cost and performance assumptions for wind energy systems with capacity ≤50 kW in 2012, including development, equipment installation, connection, maintenance, and debt servicing costs.
Existing Boiler Replaced in Year 10 in Steam-Only Scenario As t io su m p n S te -O ly am n Sc io en ar C H P Sc io en ar Ca lc la t io u n $ ( /y ) Ins ur an ce r $ 6 6, 7 0 0 % f f 2 ins ta l le d ts la te t in la t ion o co s es ca s a...
AI summary The document presents a comparison between a steam-only scenario and a combined heat and power (CHP) scenario in Year 10, focusing on financial and operational metrics such as insurance, load, royalty payments, residual value, and efficiency. The CHP scenario includes details on capacity, net efficiency, and taxes, while the steam-only scenario has numerical values for these metrics.
The Effect of Steam Demand on the CHP Rate ($2012) S Ca i Fa te ty to am p ac c r 2 0 % 3 0 % 4 0 % 5 0 % 6 0 % Operating Inputs Notes. Net Generator Capacity (MW) 0.05 Energy Production: 0.03 Net Capacity Factor 220/ Net of plant availabi...
AI summary The table presents financial and operational inputs and outputs for a Combined Heat and Power (CHP) project, including net generator capacity, energy production, operating expenses, and revenue assumptions. It includes metrics such as the net capacity factor, annual fuel cost, and return metrics like the 20-year equity IRR and debt service coverage ratio.
03-01-2011 Nov a S ia C OM FIT Mo del cot Win d ≤ 50 kW Ca sh Flo w W ork she Top et: Syn e E aps xhi bit I Ope ratin g Ye ar 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Gen ion (MW h) erat 101 101 101 101 101 101 101 101 101 101...
AI summary The document presents a table outlining a FIT model for a wind energy project with a capacity of 50 kW, detailing generation in MWh and revenue based on a fixed price of $459.90 per MWh over 20 years, with no escalation in prices.
Total Nov a S ia C OM FIT Mod el cot Lar Win d C ge ash Flo w W ork she et: Top Syn aps e E xhi bit J Ope ratin g Ye ar 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Gen ion (MW h) erat 4,07 3 4,07 3 4,07 3 4,07 3 4,07 3 4,07 3 4,07...
AI summary The text presents a table with a model related to Nova Scotia Power and a wind generation capacity in megawatt-hours (MWh) over a 20-year period, with consistent generation of 4,073 MWh each year. The table also includes a partial income statement and a standard offer price per MWh, though no specific figures are provided for these sections.
B-4Redacted Direct Testimony and Exhibits of Paul Chernick - on behalf of CA 3/17/2011
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NOVA SCOTIA UTILITY AND REVIEW BOARD In the Matter of: The Electricity Act and a hearing to determine Renewable Energy Community Based Feed-in Tariffs DIRECT TESTIMONY OF PAUL CHERNICK ON BEHALF OF THE CONSUMER ADVOCATE Resource Insight, I...
AI summary Paul Chernick, on behalf of the Consumer Advocate, provides direct testimony regarding the Renewable Energy Community Based Feed-in Tariffs under the Electricity Act during a hearing before the Nova Scotia Utility and Review Board on March 17, 2011.
11 II. Introduction - 12 Q: On whose behalf are you testifying? - 13 A: My testimony is sponsored by the Nova Scotia Consumer Advocate. - 14 Q: What is the purpose of your testimony? - 15 A: I review the basis for the draft tariffs for Com...
AI summary The testimony, sponsored by the Nova Scotia Consumer Advocate, reviews the draft tariffs for Community Feed-In Tariffs (COMFITs) developed by Synapse Energy Economics. It questions how the concept of 'community' was incorporated into cost estimates and compares COMFIT wind project costs with market-based wind projects. The testimony also computes the rate effects of the proposed tariffs under different levels of COMFIT development.
3 Q: Please summarize your review of the Synapse proposal. 4 A: I have two major complaints about the Synapse report, and a few minor points. 5 The first major point is that Synapse did not interpret its charge from the Board 6 to include...
AI summary The reviewer has two major complaints about the Synapse proposal: it failed to consider the impact of capacity development on rates and misinterpreted the concept of 'community' by excluding community support. The reviewer also highlights technical competence but notes several errors and assumptions that require attention.
14 Table 1: Comparison of Synapse-Proposed and Recommended COMFIT Rates 15 (Dollars per MWh) Synapse Proposal Recommendation Technology Fixed 2012 Variable Fixed 2012 Variable Small Wind $452 $400 Large Wind $139 $102 Biomass CHP $94 $62 $...
AI summary The text presents a table comparing Synapse-Proposed and Recommended COMFIT Rates for various technologies, including Small Wind, Large Wind, Biomass CHP, Hydro, and Tidal. It also raises a question about restrictions on COMFIT rates when preparing tariff sheets.
18 A: I suggest two such restrictions. First, it should be clear that no project will be 19 eligible for COMFIT if it might result in power flowing backwards in the 20 distribution substation, from the distribution side of the transformer...
AI summary The speaker suggests two restrictions for the COMFIT program: preventing power flow backwards in the distribution substation and limiting the total capacity to 3.5 MW to avoid excessive impacts on customer bills, drawing a comparison to the small wind category's 5 MW limit.
6 Q: What capacity factor underlies Synapse's proposed rate for wind projects 7 over 50 kW? 8 A: Synapse uses 31%, which is the average of a 30% value suggested by wind 9 developers (apparently without any documentary support) and a 32% va...
AI summary Synapse's proposed rate for wind projects over 50 kW is based on a 31% capacity factor, derived from an average of a 30% value suggested by wind developers and a 32% value from the Hatch report (2008). Synapse acknowledges that the Hatch report noted higher capacity factors in some zones, up to nearly 44%, but still describes the Hatch estimate as conservative.
6 Q: What would be a realistic estimate of capacity factor for large COMFIT wind 7 projects? 8 A: For the distribution-connected wind plants installed after 2007, NSPI's reported 9 energy output forecasts imply capacity factors that averag...
AI summary The response estimates that large COMFIT wind projects have an average capacity factor of 37%, with only two of eleven plants expected to fall below 31%. Earlier small wind units (2005–2007) had an average capacity factor of 26%, suggesting improvements in site selection by developers.
1 V. Benefits of Community Support for Renewable Power Projects
AI summary This section discusses the benefits of community support for renewable power projects, highlighting the importance of local engagement and participation in the success of such initiatives.
2 Q: How does the Synapse team view the effect of community involvement in 3 development of COMFIT projects? - 4 A: Synapse assumes that community involvement adds to the costs of project 5 development, and ignores almost all the benefits...
AI summary The Synapse team argues that community involvement in COMFIT projects increases costs and risks, leading to higher required returns and rates. They assume community investors behave like traditional capital market investors, ignoring the unique aspects of community ownership and its potential benefits. Synapse also contrasts COMFIT projects with purely profit-driven initiatives like Heritage Gas.
1 Q: What benefits would a community renewable project have, compared to a 2 commercial development? 3 A: A truly community-based project would benefit from municipal, university or 4 community financing; the donation of land and services;...
AI summary The response highlights benefits of community-based renewable projects, including municipal, university, or community financing, land and service donations, and property tax relief, contrasting them with commercial developments.
3 Q: Are you familiar with the financing of community energy projects? 4 A: Yes. In Massachusetts, a program was established under which a state agency 5 matched funding from local contributors to install panels on school buildings. I 6 pe...
AI summary The witness discusses community financing of renewable energy projects, citing examples from Massachusetts and other locations. These projects often involve public contributions and can yield low returns, but they demonstrate community interest in renewable energy initiatives.
- 25 The Appalachian Institute for Renewable Energy installed a PV system 26 financed by seven to 10 individuals, who paid $1,700/kW (after incentives) 1 and sell energy to AIRE at under 10¢/kWh. At a capacity factor is 17%, 2 with no esca...
AI summary The text discusses a PV system installed by the Appalachian Institute for Renewable Energy (AIRE), financed by individuals who paid $1,700/kW. It also explores the expected returns for community members investing in such projects, with interest rates ranging from 2% to 11%, and mentions the potential for in-kind donations such as land, labor, and equipment from local governments and contractors.
22 Q: Why would a community project expect property-tax relief? 23 A: If the local town or municipality owns the project, it would not tax its project 24 any more than it would tax its schools. Similarly, if local residents (and voters) 25...
AI summary A community project might expect property-tax relief as a way for local government to support the project without public expenditure. For the Synapse hydro project, property-tax exemption could reduce the required COMFIT tariff by $14.5/MWh.
7 VI. The Cost of Capital for Tidal Projects - 8 Q: What cost of capital did Synapse assume for tidal projects? - 9 A: Synapse assumed 100% equity financing at 15% return on equity. - 10 Q: Does this capital structure represent a community...
AI summary Synapse assumed a 15% return on equity for tidal projects, but this is viewed as a market-based commercial venture, not a community project. Tidal power is in the development phase, and early projects may not yield competitive returns, as seen with Verdant's demonstration project, which sells power at much lower rates than Synapse's estimate.
13 Q: How can the Board assess the reasonableness of the COMFIT rates proposed 14 by Synapse? 15 A: The Board should compare the proposed COMFIT rates to rates in similar 16 programs, especially if those programs have attracted application...
AI summary The Board can assess the reasonableness of the COMFIT rates proposed by Synapse by comparing them to similar programs, past NSPI renewables RFP prices, and the cost of renewable projects developed by NSPI. This ensures alignment with market rates and supports the development of COMFIT projects in Nova Scotia.
1 Q: Have these lower prices led to offers from small renewable projects? - 2 A: Yes. I have not been able to find any detail on the BC standard-offer projects. As of November 1, 2010, BC Hydro reports the following projects:8 3 - 4 Five h...
AI summary Lower prices have led to offers from small renewable projects, as seen in BC Hydro's reports of hydro and biogas projects, and in Vermont's FIT program with various small-scale projects. Ontario's FIT program also includes many small projects, though data on their sizes is limited.
4 Q: What NSPI RFP results can be used in testing the reasonableness of the - 5 Synapse-proposed COMFIT rates? - 6 A: Eleven recent wind projects are under contract to NSPI, most from the 2008 RFP - 7 for distribution-connected renewables.
AI summary The question asks about the use of NSPI RFP results in testing the reasonableness of Synapse-proposed COMFIT rates. The response mentions that eleven recent wind projects under contract to NSPI, mostly from the 2008 RFP, are distribution-connected renewables.
8 Table 3: Small Recent RFP Wind Plants Project MW In-Service Date Cape North 0.65 31-Dec-10 Spiddle Hill (distribution) 0.80 31-Dec-11 Watts Section, Sheet Harbour 1.50 31-Dec-10 Donkin Wind Farm 1.60 1-Jul-10 Granville Ferry Wind Power P...
AI summary Table 3 lists small recent wind power projects in Nova Scotia, including their capacities and in-service dates, with sources provided from NSPI attachments and a project website.
20 C. Comparison to Nova Scotia Power's Wind-Project Costs
AI summary This section compares the costs of wind projects in Nova Scotia to those of Nova Scotia Power. It highlights the financial implications and potential discrepancies in project expenditures.
6 VIII.Potential Rate Effects of COMFIT - 7 Q: Please describe your analysis of the rate impacts from implementation of 8 the COMFIT program. - 9 A: I estimated the impact on the Company's system-average rate from the purchase 10 of power...
AI summary The analysis estimates the impact on the Company's system-average rate from implementing the COMFIT program, considering both increased costs from COMFIT payments and reduced power-supply costs from purchases of renewable energy.
3 Q: How did you estimate the change to the current system-average rate due to 4 COMFIT projects? 5 A: I derived the rate impact from COMFIT purchases by estimating both the annual 6 payments at COMFIT rates and the annual power-supply cos...
AI summary The response explains how the rate impact of COMFIT projects was estimated by comparing annual payments at COMFIT rates with avoided power-supply costs. The analysis considers different cases, including limitations on capacity due to distribution constraints and assumptions about renewable resource utilization.
3 Table 4: COMFIT Cases (MW by Technology Group) Case Number 1 2 3 4 5 Description Small Wind Mostly Wind Balanced High Tidal High Penetration Small Wind 5 5 5 5 5 Large Wind 85 50 25 50 Biomass CHP 5 20 20 30 Hydro 4 20 20 35 Tidal 1 5 30...
AI summary Table 4 presents COMFIT Cases with different technology groups and their corresponding MW values. The table includes various energy technologies such as Small Wind, Large Wind, Biomass CHP, Hydro, and Tidal, along with their respective case numbers and totals. The summary also mentions an estimation of total annual COMFIT payments based on Synapse's proposed rates and assumed capacity factors.
6 Q: What is your estimate for the offsetting reduction in other power costs 7 associated with COMFIT purchases? 8 A: As with my calculation of COMFIT payments, I estimated annual generation from 9 COMFIT resources based on my assumptions...
AI summary The respondent estimates the offsetting reduction in other power costs associated with COMFIT purchases by considering three different measures of market value: export price, average fuel cost, and cost of renewable procurement. The analysis does not include integration costs of renewables, which may affect rate increases.
1 Table 5: First-year COMFIT Rate Effects Case Number and Description 1 2 3 4 5 Small Wind Mostly Wind Balanced High Tidal High Penetration Thousands of Dollars per Year If Avoiding Base Fuel $4,089 $32,465 $49,124 $91,913 $151,058 RFP Ren...
AI summary Table 5 presents the first-year rate effects of the COMFIT program under different scenarios, showing the impact on base fuel and RFP renewables. The table indicates varying levels of rate increases depending on the type and penetration of renewable energy sources.
19 A: No. NSPI will meet its RES targets, whether through COMFIT, RFPs, or NSPI 20 ownership. Neither NSPI nor the Board has shown any interest in acquiring 1 renewable energy in excess of the RES. If the government, the Board, or NSPI 2 d...
AI summary The text discusses NSPI's ability to meet its RES targets through various mechanisms like COMFIT, RFPs, and NSPI 20 ownership. It also raises a question about whether COMFIT projects at Synapse's proposed rates would be an efficient mechanism for increasing renewable supply or reducing coal use.
18 Q: Are there any of the COMFIT technology categories that particularly 19 concern you? - 20 A: Yes. It would be difficult to justify imposing on consumers the exorbitant prices 21 that Synapse proposes for small wind and tidal contracts...
AI summary The respondent expresses concern over the high proposed COMFIT rates for small wind and tidal projects, arguing that these rates are not justified given the significantly lower costs of wind energy and the environmental costs of coal. They also mention potential benefits of small wind and tidal projects, such as promoting household and small business participation and attracting tidal-power development in Nova Scotia.
14 Q: Do the Renewable Energy Regulations address the problem of these very 15 expensive resources? 16 A: Only with respect to small wind projects, whose total COMFIT capacity is limited 17 to 5 MW. I interpret the capacity cap as being in...
AI summary The respondent explains that the Renewable Energy Regulations only limit the capacity of small wind projects to 5 MW under COMFIT, aiming to mitigate rate impacts while promoting multiple goals. However, similar limits are not applied to tidal projects, which may be more expensive.
7 Dollars per MWh Small Wind Large Wind Biomass Hydro Tidal Synapse Proposed $452 $139 $156 $140 $652 Adjustments Biomass formula -$7 Wind CF −$22 6% debt, 11% equity −$52 −$13 −$7 Development Return −$254 Land Donation −$4 −$1 −$2 Reduced...
AI summary The text presents a table comparing proposed and corrected costs for various renewable energy sources, including adjustments for factors like debt, equity, and development costs. It also notes the inability to quantify the effects of in-kind donations, which may be significant for small wind projects.
6 Q: When tariff language is developed, what provisions should be included? - 7 A: The tariff should limit eligibility to projects that meet or exceed the following 8 requirements: - 9 approval from the Energy Minister, - 10 the requiremen...
AI summary The response outlines provisions for tariff language, including eligibility requirements such as approval from the Energy Minister, compliance with Renewable Electricity Regulations, and limits on tidal power under the COMFIT rate. It also references examples of tidal turbine sizes and compares the rate impacts of tidal and small wind generation.
- "Environmental Externalities: Current Approaches and Potential Implications for District Heating and Cooling" (with R. Brailove), International District Heating and Cooling Association 84th Annual Conference; June 1993. - "Using the Cost...
AI summary The text lists various presentations and papers on topics such as environmental externalities, cost recovery, integrated resource planning, and energy efficiency, presented at conferences and workshops between 1989 and 1993. These presentations were delivered by individuals and organizations involved in energy planning, utility regulation, and environmental policy.
oposals to protect ratepayers: limitation of base-rate treatment to fuel savings benefit of unit. 38. NHPUC 84-200; Seabrook Unit 1 Investigation; New Hampshire Public Advocate; November 15 1984. Cost of completing and operating Seabrook U...
AI summary The text references multiple regulatory proceedings involving nuclear power projects such as Seabrook Unit 1 and Seabrook 2, focusing on cost, probability of completion, prudence of decisions, and financial impacts. It includes references to various regulatory bodies and proceedings from the 1980s.
Exhibit PLC-1: NSPI 2011 ACE Plan UARB IR-5 Attachment 1 Page 1 of 1 Summary of RES Compliance Status Nova Scotia Renewable Energy Supply 2011 2013 2015 2020 Source Energy NS Electricity Sales Forecast (GWh) (Note 1) 11,603 11,558 11,328 1...
AI summary The document outlines Nova Scotia Power Inc.'s (NSPI) 2011 Alternative Compliance Plan (ACE Plan) under the Renewable Energy Supply (RES) requirements. It provides a timeline of renewable energy supply targets, including forecasted electricity sales, RES requirements, and contributions from various sources such as hydro, biomass, and wind. The plan also highlights shortfalls and potential options for meeting future renewable energy goals.
- 1) NSPI 2011 Base Cost of Fuel FAM Forecast, August 16, 2010; NSPI 10 Year Energy and Demand Forecast, April 30, 2010. - 2) RES for 2011 and 2013 are based on renewable energy sources post 2001; 2020 figure is a target only - 3) Renewabl...
AI summary The document outlines forecasts and requirements related to renewable energy sources for NSPI, including the exclusion of NSPI renewable energy from the 2011 RES and contingency planning for resource uncertainties. It also notes that the 2020 renewable energy target is aspirational.
B-11Evidence of Alliance of Nova Scotia Sawmillers 3/22/2011
37 passages
EXAMPLES OF BIOMASS-FIRED PROJECT FINANCINGS Cadillac Lakeview Lufkin Piedmont Capacity, MW 38.0 26.8 57.0 53.5 Location Mich., US Oregon, US Texas, US Georgia, US Developer Began op. in 1993 Iberdrola Aspen Rollcast Status Acq. of ope r....
AI summary The text presents examples of biomass-fired project financings, including details on capacity, location, developers, status, power purchase agreements (PPAs), and financing structures for projects in the US. It highlights the role of state laws, debt financing percentages, and additional security measures such as state pass-through and stimulus grants.
Q. ARE YOU AWARE OF SMALL BIOMASS PROJECTS WHICH HAVE SECURED DEBT FINANCING? A. I know of only one small biomass project that has been able to arrange project-level debt. NexBank made a loan to finance the 7.5 MW Big Valley biomass projec...
AI summary The respondent is aware of only one small biomass project, the 7.5 MW Big Valley project, which secured project-level debt financing from NexBank. NexBank is now considering foreclosure on this loan.
Q. WHAT IS THE MARKET DATA EVIDENCE? A. B&Co is active in the market for biomass-fired power projects. We represent both buyers and sellers, have many discussions with both about valuation, and we see the results of auctions. On that found...
AI summary The response discusses market data on expected returns for biomass CHP projects, noting that well-structured operating projects expect pre-tax returns of 14-15% and after-tax returns in the low teens. Development-stage projects require higher returns, up to 25% or more, with an average cost of capital of approximately 17.5% supported by valuation metrics like EV/EBITDA.
Examples of Power Project Experience Biomass and waste fired Big Valley Blue Lake Burney Forest Power Cadillac Central Wayne Colmac Energy Fort Bragg Imperial Valley RR Oroville Mendota Mesquite Lake RR Niagara Biomass SS Florence Sunshine...
AI summary The text lists examples of power projects across various energy sources, including biomass, geothermal, hydroelectric, natural gas, coal, and wind. These projects are named and categorized by type, reflecting a range of energy generation experiences.
s …," Project Finance Monthly , September 1998, pp 13-14. "Bidding Behavior," Independent Energy , October 1997, pp 32-35. "Managing Closing Risks …," Project Finance Monthly , July 1997, pp 12-13. "Merchant Plant Worth," Independent Energ...
AI summary The document text is a list of articles and publications related to energy and finance, focusing on topics such as power plant valuation, merchant plant deals, and utility asset sales from the late 1990s to early 2000s. It highlights discussions on project financing, PPA renegotiations, and market trends in the electricity sector.
RENEWABLE ENERGY COMMUNITY FEED-IN TARIFFS -and- In the Matter of: Electricity Act, R.S.N.S. 2004, c. 25, s. 1, (b) combined heat and power biomass facility Direct Testimony and Exhibits of: Patrick M. Hayes, P.E. - ESI On behalf of: Allia...
AI summary This document is a direct testimony and exhibits from Patrick M. Hayes, P.E. of ESI, on behalf of the Alliance of Nova Scotia Sawmillers, regarding the Electricity Act and a combined heat and power biomass facility in Nova Scotia.
Q. What is your occupation? - A. I work for a design / build engineering firm specializing in "environmentally friendly" steam and power facilities. My responsibilities include all conceptual - engineering, estimating, and proposal efforts...
AI summary The witness is an engineer with extensive experience in designing and building environmentally friendly steam and power facilities, including biomass-fired combined heat and power (CHP) plants. He has worked on numerous projects, including facilities for the US Department of Energy and industrial clients, and has expertise in project management, engineering, and budgeting.
Q. Describe ESI, Inc. of Tennessee. - A. ESI Inc. of Tennessee is a design engineering and construction firm that specializes in the engineering, procurement, and construction (EPC) of steam and power facilities. ESI brings innovative, cos...
AI summary ESI, Inc. of Tennessee is a design engineering and construction firm specializing in EPC of steam and power facilities. It provides innovative and environmentally friendly solutions and has worked with Fortune 500 clients. The testimony is provided on behalf of the Alliance of Nova Scotia Sawmillers to address Synapse Energy Economics' recommendations for the COMFIT program, focusing on biomass CHP projects.
III. DESIGN BASIS - Q. Should the facility be designed as a back-pressure or condensing / extracting system? - A. As discussed in the evidence submitted by Synapse, there is no clear definition of CHP provided by NSDOE. We agree with Synap...
AI summary The discussion addresses the design of a facility as either a back-pressure or condensing/extracting system. Synapse's evidence is referenced, noting that sawmills are a reasonable basis for the tariff. A condensing/extracting system is favored due to the variability in steam load from dry kilns and the need for a system that can operate independently, despite higher capital costs.
Q. How should capital cost be allocated between the electricity generated and steam used for process heat? - A. We do not agree with the rationale that the base cost of the boiler should be borne solely by the steam host. The evidence pres...
AI summary The response argues against allocating the boiler's base cost solely to the steam host, suggesting instead that both the steam and electrical users should share the capital cost and fuel expenses. The rationale is based on the intent of the COMFIT program to promote renewable energy and the risk of relying on steam sales for revenue.
Q. What is the calculated electrical usage of the facility? - A. The CHP facility will utilize a portion of the power it generates which is known as "parasitic loss". This power is used for the fans, pumps, motors, lights, etcetera in the...
AI summary The CHP facility's electrical usage includes parasitic losses of 348 kW, which are not considered in Synapse's calculations. This loss accounts for 14.4% of generation in condensing mode and 21.7% in full extraction mode.
1980-1989 In the early 80's, the dramatic difference in energy fuel costs between gas/oil and coal provided a substantial economic driving force for these conversion projects. In the mid 80's, the drop in gas/oil prices and more stringent...
AI summary In the 1980s, ESI transitioned from coal conversion projects to wood-fired boiler enhancements, driven by rising environmental regulations and the economic shift from coal to alternative fuels. ESI implemented efficiency improvements and purchased Bahco bark drying technology to support pulp and paper industry projects.
1990-1999 In the 90's, ESI was involved in several projects that represented both first-of-a-kind applications and emerging commercial technologies. These projects included: - A paper mill sludge conversion facility that receives, handles,...
AI summary In the 1990s, ESI participated in several innovative projects, including a paper mill sludge conversion facility, a carbon burn-out facility, a chemical recovery boiler retrofit, and a power boiler retrofit, all involving emerging technologies and first-of-a-kind applications.
2000-Present With the beginning of a new millennium, ESI has taken great strides in the proliferation of its business into the utility and power generation industry. Recent ESI projects include: - Complete equipment specification and desig...
AI summary ESI has expanded its involvement in the utility and power generation industry since 2000, completing various projects such as designing and constructing biomass and coal-fired facilities, combined cycle plants, and carbon burn-out facilities across the US.
2010 and Beyond As we enter this next decade, ESI will continue to focus on renewable energy projects and the cutting edge of environmental compliance technologies to remain a world leader in environmentally friendly industrial and utility...
AI summary ESI plans to focus on renewable energy projects and environmental compliance technologies in the coming decade. The company also aims to refine its engineering and construction practices and acknowledges the support of its customers throughout its history.
Project Description: ESI was the EPC Contractor for this new boiler system. This system included: one 60,000 pph bubbling fluidized bed boiler designed to produce 600 psig/700°F superheated steam firing sludge and coal; along with a NOx re...
AI summary ESI acted as the EPC Contractor for a new boiler system, which included a bubbling fluidized bed boiler, NOx reduction system, fuel handling systems, and a distributed control system. The project involved demolishing an existing steam generating system and upgrading controls to a new distributed control system.
Project Description: In a joint venture with Babcock & Wilcox, ESI converted an existing recovery boiler to a bubbling fluidized bed boiler. This system included: one bubbling fluidized bed boiler designed to produce 450,000 pph, 850 psig/...
AI summary ESI, in a joint venture with Babcock & Wilcox, converted an existing recovery boiler to a bubbling fluidized bed boiler, including systems for fuel handling, ash handling, and a new distributed control system, designed to produce high-pressure steam using sludge, wood waste, and tire chips.
(condensing / extracting facility) PRELIMINARY DESIGN BASIS Capacity 12.2 12.2 tons Number of Days 11.0 8.8 Density 45 45 lb/ft3 Design temperature 200 200 °F FLY ASH COLLECTION SYSTEM Type Mechanical Mechanical Total Capacity 41 52 pph De...
AI summary The text provides preliminary design basis details for a facility, including capacity, design temperatures, and specifications for fly ash collection and storage systems, as well as steam cycle design and turbine options for power generation.
CHP PLANT FACILITY STUDY Prepared for MARWOOD LTD NOVA SCOTIA, CANADA Prepared by ESI INC. OF TENNESSEE Project #688002 rev D MARCH 21, 2011
AI summary This document is a facility study for a Combined Heat and Power (CHP) plant, prepared by ESI Inc. of Tennessee for Marwood Ltd in Nova Scotia, Canada, as of March 21, 2011.
Recommendation As can be seen throughout this document, based on a "generic" site location and steam host – it appears that the significantly better investment would be the condensing/extracting facility based on economics.
AI summary The document recommends that, given a generic site location and steam host, a condensing/extracting facility would be a more economically viable investment compared to other options.
Executive Summary Page II-1 PRELIMINARY DESIGN BASIS ESI PROJECT NUMBER -688002 Revision C Description Marwood Revised By JSP Checked by TJB Revision Date 3/7/11 LOCATION Nova Scotia ELEVATION Plant 200 ENVIRONMENTAL Governing Code NSBCR S...
AI summary This document provides preliminary design basis information for a project in Nova Scotia, including location, elevation, environmental factors, fuel data, and availability parameters. It outlines technical specifications such as seismic zones, wind pressure, temperature ranges, and biomass fuel analysis.
Fuel (Biomass) Unloading and Handling System: - One (1) biomass receiving fuel feed hopper with live-bottom reclaim hopper and enclosure. The fuel feed hopper will accommodate self-unloading trailers only. The reclaim hopper will convey th...
AI summary The document outlines the components of a biomass unloading and handling system, including hoppers, conveyors, screens, hogs, electromagnets, and storage bins. These systems are designed to process and transfer biomass fuel efficiently to the boiler.
IN THE MATTER OF THE ELECTRICITY ACT and IN THE MATTER OF a hearing to determine Renewable Energy Community Based Feed-in Tariffs
AI summary This document pertains to a regulatory proceeding under the Electricity Act, specifically concerning a hearing to determine Renewable Energy Community Based Feed-in Tariffs.
Direct Testimony of Fenton Travis - Q. Mr. Travis please state your name, occupation and business address. - A. I am Fenton C. Travis. I am a Project Manager for Marwood Ltd., 66 Pleasant Valley Road, Brookfield, Nova Scotia. - Q. Summariz...
AI summary Fenton Travis is a Project Manager for Marwood Ltd. with experience in engineering, project management, and energy projects, including the development of a 25 MW biomass power plant and a CHP facility in Nova Scotia. He has managed various projects and has expertise in energy management and environmental assessments.
Q. Who is the Alliance of Nova Scotia Sawmillers (ANSS)? A. The ANSS is a group of companies that own forest products manufacturing facilities located in Nova Scotia that have unified to ensure that the COMFIT CHP rate set by the NSUARB is...
AI summary The Alliance of Nova Scotia Sawmillers (ANSS) is a group of forest products manufacturing companies in Nova Scotia that have joined together to ensure the COMFIT CHP rate set by the NSUARB accurately reflects the rate needed for successful project development in the province.
Q. Does ANSS agree with this approach? A. No. Since the purpose of the COMFIT is to procure renewable electricity, the ANSS does not believe that it is justifiable to approach the evaluation from the perspective of a boiler only scenario w...
AI summary ANSS disagrees with Synapse's approach to evaluating the COMFIT project, arguing that it unfairly places the cost of shared steam resources solely on the heat user. ANSS believes both the heat user and electricity rate payer should share the cost, as both benefit from the shared steam resource. Synapse acknowledged that some steam generated in a COMFIT CHP plan benefits electricity users.
Q. Has Synapse included an assessment of the power required to operate the CHP plant? - A. I do not see where Synapse has accounted for parasitic power losses associated with operating the power plant in their model. This is a significant...
AI summary Synapse has not accounted for parasitic power losses in the CHP plant model, which consume 14% of gross electricity production. Two options are presented: purchasing power at NSPI rates or self-consumption. Option 1 is deemed less costly for rate payers, but parasitic power losses must be included in the COMFIT rate calculation.
Introduction The Alliance of Nova Scotia Sawmillers (ANSS) is a group of forest industry companies that have unified to pursue the common goal of ensuring that there is a COMFIT available for biomass CHP and that the rate set for the COMFI...
AI summary The Alliance of Nova Scotia Sawmillers (ANSS) supports the NSUARB and Synapse's transparent process for determining COMFIT rates for biomass CHP. ANSS seeks to contribute to ensuring fair rates that reflect accurate generation costs and provide a fair return to project proponents.
Evaluation of Criteria for FIT Rate Model In determining how the model should be developed to calculate the COMFIT rate for the various technologies, we believe the model should be developed with a reasonable level of detail to ensure that...
AI summary The document discusses the development of a FIT rate model for COMFIT technologies, emphasizing the need for detailed models that reflect actual costs and considering project size limitations. It argues for separate models for different technologies due to varying risks and financial considerations.
Tariff Differentiation The cost of generating electricity from wind, tidal, hydro and biomass are uniquely different and will therefore require different tariffs based on the renewable energy types. It is also reasonable to differentiate t...
AI summary The text discusses the need for different tariffs for renewable energy sources like wind, tidal, hydro, and biomass, as well as the need to differentiate based on project size. It suggests using a 2MW plant as a benchmark for CHP COMFIT rates, which is suitable for sawmills in the group.
Biomass Gasification In addition to differentiation based on size and renewable energy type we feel that it is important to consider differentiation based on alternative technologies within a renewable energy type. We are specifically refe...
AI summary The text discusses the advantages of biomass gasification for CHP COMFIT, including higher efficiency, reduced biomass fuel use, lower emissions, and potential cost competitiveness with conventional systems as fuel prices rise. It argues for a separate COMFIT to incentivize gasification technology over conventional systems.
Data Granularity Our preference is toward a model that allows for enough detail to provide a fair representation of the cost of generating electricity with a CHP plant. We would error on the side of greater detail rather than less. The Ver...
AI summary The text advocates for a detailed model to fairly represent the cost of generating electricity with a CHP plant, favoring greater detail. It references the Vermont model as having reasonable granularity.
Data Sources The Vermont model appears to provide reasonable sources to derive data for the model. It is important that capital cost estimates, O&M costs, capital structure estimates, borrowing rates and all other variables are drawn from...
AI summary The text discusses the importance of using current and local data for modeling, particularly for Combined Heat and Power (CHP) generation costs in Nova Scotia. It outlines plans to conduct an engineering study with a local firm and consult the Canadian financial community and the forestry industry to determine key parameters such as fuel costs and capital structure.
Government Policy Risk The risk associated with the development of a biomass CHP plant is in large part greater than other technologies due to the significant influence that government policy has on biomass fuel prices. While all technolog...
AI summary The development of biomass CHP plants in Nova Scotia faces significant government policy risk, particularly due to biomass fuel price caps and land use policies. These policies limit biomass supply, increase market prices, and create uncertainty for developers. The NSUARB has approved a 60MW biomass project, but risks remain due to ongoing policy uncertainty.
Why a Backpressure Turbine Does Not Make Sense for This Application A backpressure turbine operates in conjunction with the demand from the heat load. Steam from a boiler is sent to the turbine and then onto the heat load at the specific r...
AI summary A backpressure turbine's electricity generation is tied to the sawmill's dry kiln operation, which depends on lumber market demand. This creates instability, as sawmills often shut down during poor market conditions, reducing turbine output. The lumber market has been volatile, leading to frequent shutdowns.
What About Efficiency? If we can agree that the condensing turbine with extraction is the only practical technology that will allow for the development of these projects, we can discuss the issue of minimum efficiency requirements. The eff...
AI summary The document discusses the challenges of enforcing minimum efficiency requirements for CHP plants, emphasizing that efficiency depends on variable factors like lumber market demand. It argues against efficiency standards that could inadvertently support coal use by limiting biomass electricity generation, which displaces fossil fuel-based power.
4. IRs from the Alliance of Nova Scotia Sawmillers (ANSS) ANSS IR 1. Reference Draft COMFIT Tariffs: Initial Calculations and Discussions, p. 7, Table 1, (a) Why has Synapse assumed 100% corporate ownership of biomass CHP projects? Answer:...
AI summary The Alliance of Nova Scotia Sawmillers (ANSS) raises questions about Synapse's assumption of 100% corporate ownership of biomass CHP projects and the mechanisms available to account for fuel risk in ROE calculations for biomass CHP projects.
B-23Renewable electricity Plan - A path to good jobs, stable prices, and a cleaner environment. 4/7/2011
57 passages
This Renewable Electricity Plan sets out a detailed program to move Nova Scotia away from carbonbased electricity towards greener, more local sources. The motivation for this plan is simple: nearly 90 percent of the province's electricity...
AI summary Nova Scotia's Renewable Electricity Plan aims to shift from fossil fuels to renewable energy sources. The plan sets a 25% renewable electricity target by 2015 and a 40% target by 2020, significantly increasing the province's reliance on clean, local energy and improving energy security and environmental health.
The Plan In addition to energy conservation and efficiency programs, the province will make an orderly transition to new, local,renewable energy sources. This plan uses several different mechanisms to achieve that transition. It creates a...
AI summary The plan outlines a transition to local renewable energy sources using various mechanisms, involving Nova Scotia Power, independent producers, and community organizations.
Larger Projects: Regulation + Competition Large and medium-sized renewable electricity projects will be split evenly between Nova Scotia Power (NSPI) and Independent Power Producers (IPPs). The Utility and Review Board (UARB) will evaluate...
AI summary Large and medium-sized renewable electricity projects in Nova Scotia will be divided between Nova Scotia Power and Independent Power Producers. The UARB will approve NSPI projects traditionally, while IPPs will compete through a bidding process managed by the Renewable Electricity Administrator.
Community Projects: Fixed Price To encourage a range of projects widely dispersed throughout the province, this plan establishes a community-based feed-in tariff (COMFIT) for an expected 100 megawatts of renewable electricity projects conn...
AI summary This plan introduces a community-based feed-in tariff (COMFIT) to support 100 megawatts of renewable electricity projects connected at the distribution level, along with programs to assist community groups with technical, financial, and regulatory aspects of project development.
Individuals: Enhanced Net Metering To give individuals and small businesses the opportunity to participate in green energy projects, the plan expands and enhances the current net metering program available to consumers through NSPI. Projec...
AI summary The plan enhances net metering for individuals and small businesses, allowing projects up to one megawatt with multiple meters in a single distribution zone to use two-way meters and receive retail rate payments for excess power produced annually.
Biomass: Proceed with Caution Government will approach the development of biomass for electricity production with caution. Electricity produced from co-firing biomass will play a role in meeting the 2015 target, but will undergo review for...
AI summary The government will proceed cautiously with biomass electricity generation, capping new forest biomass electricity generation at 500,000 dry tonnes and co-firing in thermal plants at 150,000 dry tonnes to ensure sustainability and meet 2015 targets.
Tidal: Safe Development The province will continue to invest in tidal energy research and development in the hopes that our unique tidal resource can eventually make a significant contribution to our energy needs. To encourage this develop...
AI summary Nova Scotia plans to invest in tidal energy research and development. A community-based feed-in tariff (COMFIT) is established for distribution-connected tidal projects, along with a special FIT for developmental tidal arrays connected to the grid at the transmission level.
Solar: Heat + Water Focus Solar will qualify as a renewable resource under the enhanced net metering program. Today, solar is used more economically for air and water heating rather than electricity generation. Its role may expand as the c...
AI summary Solar energy is recognized as a renewable resource under the enhanced net metering program. Currently, it is more economically viable for air and water heating than electricity generation, with potential for expansion as solar technology costs evolve.
Grid: Cleaner and Stronger To increase the grid's capacity to absorb intermittent energy from wind and tidal sources, the province will continue to encourage the use of locally-produced natural gas—a cleaner, quick-responding fuel that is...
AI summary The province aims to enhance grid capacity to handle intermittent renewable energy by promoting locally-produced natural gas as a balancing fuel. Upcoming studies will support grid upgrades and improvements to the interconnection with the North American grid.
Benefits + Costs In the process of transitioning to a system that is cleaner, more diverse, more domestic, and more secure, this plan will support as much as $1.5 billion in green investment—creating good jobs and growing the economy. Spec...
AI summary The plan supports $1.5 billion in green investment, creating 5,000 to 7,500 person-years of jobs in construction, supply, manufacturing, and maintenance. While upfront costs and short-term increases in electricity bills (1-2%) are expected, long-term benefits include stabilized fuel prices, energy security, and protection from fossil fuel volatility and future carbon costs.
Where We Are Now Ageneration ago, Nova Scotia made a deliberate decision to produce electricity from coal. The price was low and stable, and the supply was secure. It was mined right here—so investing in coal-fired generation seemed like a...
AI summary Nova Scotia historically relied on locally mined coal for electricity, but now imports coal, petroleum-coke, and fuel oil, leading to economic and political vulnerabilities. Most electricity now comes from imported fuels, with some from natural gas and renewables. This shift has economic and security implications for the province.
Estimated Cost of Imported Coal Used to Produce Electricity in Nova Scotia Although coal prices fluctuate, the general trend continues to climb upward. Reliance on imported coal also shackles Nova Scotia to the upward march of internationa...
AI summary The document discusses the increasing cost and environmental impact of imported coal used in Nova Scotia's electricity production, highlighting the need for a transition to renewable energy. It outlines the Renewable Electricity Plan, which aims to address energy challenges and improve affordability through clean energy and efficiency measures.
A Quick Guide to Electricity Units We measure the rate at which electricity is generated or used in watts .A 25-watt bulb uses 25 watts of power. We measure the amount of electricity generated or used in watt-hours .A 25 watt bulb that bur...
AI summary This document explains electricity units and highlights the need to transition from coal-fired electricity to cleaner, local, and renewable energy sources. It notes the significant investment in thermal generating stations and the importance of energy conservation and diversifying the energy supply.
Transforming our current electricity mix to one that is more local and green is important to our future energy security. The Government of Nova Scotia has set ambitious targets for generating more electricity from renewable sources, as wel...
AI summary Nova Scotia aims to increase renewable electricity generation to 25% by 2015 and 40% by 2020, supported by the Environmental Goals and Sustainable Prosperity Act. Conservation and efficiency are emphasized as critical to achieving these targets, alongside expanding renewable energy sources like wind, tidal, and biomass.
Total Amount of Renewable Electricity Supply Pre-2001 End 2009 2011 2013 2015 2020 1100 GWh/yr 1300 GWh/yr 1700 GWh/yr 2300 GWh/yr 3000 GWh/yr 4800 GWh/yr 9% 11% 14% 19% 25% 40% Underlying Principles 3
AI summary The table shows the growth in renewable electricity supply in Nova Scotia from pre-2001 to 2020, indicating a significant increase in both gigawatt-hours and the percentage of total electricity supply from renewable sources.
Strengthening Security Through Diversity Basing almost 80 percent of our electricity on imported coal and oil puts Nova Scotia at the mercy of international markets over which we have no influence. This plan seeks to ensure a more secure,...
AI summary Nova Scotia's reliance on imported coal and oil for 80% of its electricity makes it vulnerable to international market fluctuations. The plan aims to enhance energy security by diversifying into localized energy sources across the province.
Building Economic Opportunities in Rural Nova Scotia By focusing on renewable energy sources like wind and tidal, which are naturally abundant in Nova Scotia, this plan enhances opportunities to create good jobs and grow the economy in eve...
AI summary This plan emphasizes the development of renewable energy sources like wind and tidal in Nova Scotia to create jobs and boost the economy, particularly in rural areas. It highlights the potential for traditional industries like forestry and agriculture to benefit from sustainable energy initiatives and the global opportunities tied to Nova Scotia's tidal resources.
Maximizing Community Involvement and Social Benefits The plan offers opportunities for everyone – from community groups to First Nations, local not-for-profit organizations, businesses and individuals to actively participate in the develop...
AI summary The plan emphasizes community involvement and social benefits by allowing various groups, including First Nations and not-for-profit organizations, to participate in renewable energy resource development and share in the benefits.
Holding Ourselves Accountable This plan establishes some of the strongest renewable electricity goals in North America, and sets out a path for meeting those goals. This plan is about taking leadership—and ensuring that we live more within...
AI summary This plan establishes strong renewable electricity goals in North America and outlines a path to achieve them, emphasizing leadership and living within energy means.
Meeting the 2015 Commitment 4 Meeting the 2015 commitment for 25% renewable electricity supply, will be challenging, but it is achievable. We will use the following tools and mechanisms to get us there: - Large-scale, community-based, and...
AI summary Nova Scotia Power (NSPI) outlines strategies to meet the 2015 commitment of 25% renewable electricity supply, including large-scale projects, changes to regulation, and biomass requirements. NSPI will undertake large projects with competitive bids, and small community-based projects will be eligible for a Feed-In Tariff (FIT). An enhanced net metering program will also be introduced for businesses and homeowners.
1. Medium and Large-Scale Projects Most of the new renewable energy needed to meet 2015 and 2020 goals will come from industrial-scale projects. The Renewable Electricity Plan calls for a minimum of 600 GWh of new medium to large-scale ren...
AI summary The Renewable Electricity Plan emphasizes medium and large-scale renewable energy projects, with NSPI and independent producers each responsible for 600 GWh of new electricity. Projects will be developed through UARB regulation and competitive bidding. A new Renewable Electricity Administrator will manage the bidding process, and the government retains discretion to call for specific technology bids.
2. Community-Based Feed-In Tariff Small-scale producers typically cannot compete successfully against much larger developers in a competitive bidding process. More than 45 jurisdictions around the world, including Spain, Germany, Ontario,...
AI summary The Community-Based Feed-In Tariff (COMFIT) is introduced to support small-scale and community-owned renewable energy projects, allowing municipalities, First Nations, co-operatives, and non-profit groups to participate. Projects are connected at the distribution level, typically under 2 MW, with technical studies required. Large-scale projects continue to be procured through competitive bidding, while COMFIT will be reviewed in 2012 to meet a 100 MW target.
3. Enhanced Net Metering Net metering is a program that lets a consumer connect a small renewable electricity source to the grid through a special meter that measures electricity flows in two directions. For any electricity fed into the gr...
AI summary The document outlines an enhanced net metering program by NSPI, increasing power limits from 100 kW to 1 MW, allowing multiple meters under one account, and providing payment for surplus electricity at retail rates. This aims to support renewable energy adoption by homeowners and businesses.
4. Forest Products Associated Biomass Government will approach the development of biomass for electricity production with caution. Electricity produced from co-firing biomass will play a role in meeting the 2015 commitment, but will underg...
AI summary The government is cautious about using forest biomass for electricity generation, emphasizing the need for a Natural Resources Strategy to guide long-term planning. While co-firing biomass can help meet short-term renewable electricity targets, it is seen as inefficient compared to using biomass for heating. The strategy will include recommendations on sustainable harvesting practices and regulations.
Forest Biomass Used for Renewable Electricity Procurement Requirements
AI summary The document discusses procurement requirements related to the use of forest biomass for renewable electricity generation in Nova Scotia. It outlines the processes and considerations involved in acquiring and utilizing forest biomass as a renewable energy source.
Forest biomass used to generate renewable energy must comply with the following requirements: - 1. Vendor (i.e. the power producer) must make maximum use of wood wastes available from other manufacturing processes. - 2. Total regional harv...
AI summary Forest biomass used for renewable energy in Nova Scotia must comply with strict sustainability and certification requirements, including using wood waste, adhering to sustainable harvest limits, and obtaining FSC certification. The province also encourages First Nations participation and explores other bio-energy resources like agricultural biomass for future use.
5. Market Structure and Governance Nova Scotia's electricity market consists of a vertically integrated utility—NSPI—and six smaller municipal electric utilities.As an integrated utility, NSPI has responsibility for electricity procurement...
AI summary Nova Scotia's electricity market is dominated by NSPI, a vertically integrated utility responsible for procurement, grid operations, and meeting renewable energy targets. The Renewable Electricity Plan emphasizes the cost-effectiveness of an integrated utility while introducing changes to how NSPI procures renewable energy, aiming to enhance energy security, diversity, and affordability.
Achieving the 2020 Goal 5 The 25 percent commitment established for 2015 will have the force of law, with penalties for any failure to meet it. The 40 percent target for 2020 is a goal we aspire to. It does not yet have the force of law, b...
AI summary The text outlines the 25% renewable energy commitment for 2015 as legally binding with penalties for non-compliance, while the 40% target for 2020 is aspirational. It emphasizes the need for rapid transition to renewable sources like wind and tidal energy, along with increased use of natural gas, acknowledging the challenges and the government's determination to achieve a sustainable energy future.
The Renewable Resource Mix After 2015 Wind will be the mainstay of our efforts to reach the 2015 renewable energy commitment, with support from limited amounts of biomass. Natural gas will serve mainly to balance wind power, and to help en...
AI summary The document outlines Nova Scotia's strategy to achieve a 40% renewable electricity supply by 2020, emphasizing wind energy as the primary source, supported by biomass and tidal energy, with natural gas or clean imports used for balance. This represents a significant shift from the current energy mix.
Past Possible Energy Mix 2020: No Hydro Imports In the first decade, fossil fuels dominate but cleaner-burning natural gas begins to play a larger role.
AI summary The document presents a possible energy mix for 2020, noting that fossil fuels will dominate but natural gas will play a larger role as a cleaner-burning alternative. Hydro imports are not included in this scenario.
Future Coal and oil give way to increasing amounts of renewables (domestic and/or imported) and natural gas.
AI summary The future section of the document discusses the transition from coal and oil to increasing amounts of renewable energy sources, both domestic and imported, as well as natural gas.
The Role of Tidal Energy The sleeping giant amongst Nova Scotia's renewable energy sources is tidal power. Look up "tide" on Wikipedia, and you'll find a picture of the Bay of Fundy. Twice each day, 115 billion tonnes of water surge in and...
AI summary Tidal energy in Nova Scotia, particularly in the Bay of Fundy, has significant potential due to its high tidal range and water flow. However, challenges such as high costs, technical limitations, and environmental concerns remain. The government supports tidal energy research through initiatives like FORCE and the Renewable Electricity Plan.
• A Marine Renewable Energy Task Force: An interdepartmental task force will be established, assisted by the private sector, to develop strategies for commercializing marine renewable energy (tidal, offshore wind, and wave resources), and...
AI summary A Marine Renewable Energy Task Force will be established to develop strategies for commercializing marine renewable energy resources such as tidal, offshore wind, and wave energy, with support from the private sector and a focus on human resource development.
• A Tidal Feed-In Tariff: Tidal devices are still in the demonstration phase. The electricity they produce costs more than electricity from mature renewable sources. To support tidal development, the province will set a communitybased feed...
AI summary Nova Scotia plans to introduce a community-based feed-in tariff (COMFIT) for tidal projects and a special FIT for transmission-level tidal arrays to support the development of tidal energy, which is still in the demonstration phase and more expensive than other renewables.
• Identifying Potential Tidal Sites: In 2005, the Electric Power Research Institute (EPRI) identified eight sites in Nova Scotia with tidal current velocities averaging at least 1.5 meters/second: Cumberland Basin, Minas Channel, Minas Pas...
AI summary The document discusses the identification of potential tidal energy sites in Nova Scotia, including eight sites identified by EPRI in 2005 with high tidal current velocities. It also outlines the province's commitment to developing marine renewable energy legislation following the 2008 Bay of Fundy Strategic Environmental Assessment.
The Role of Natural Gas Akey obstacle to the development of renewable energy is the fact that our best renewable sources—wind and tidal—are by their nature intermittent. Because they depend on natural forces that come and go, intermittent...
AI summary Natural gas is presented as a necessary complement to intermittent renewable energy sources like wind and tidal in Nova Scotia. It is described as a cleaner alternative to coal and oil, capable of quickly adjusting to changes in energy demand, and is expected to play a larger role in electricity generation as the province moves away from coal.
New Roles and Responsibilities The Renewable Electricity Plan introduces some significant changes to the roles and responsibilities of key players in our electricity system.
AI summary The Renewable Electricity Plan introduces significant changes to the roles and responsibilities of key players in the electricity system.
Renewable Electricity Administrator (REA) The biggest change is the appointment of an independent administrator. Government will appoint the Renewable Electricity Administrator (REA) on the recommendation of the Minister of Energy after co...
AI summary The government is appointing an independent Renewable Electricity Administrator (REA) to oversee renewable electricity project competitions, ensuring fairness and transparency. NSPI will no longer directly participate in competitions but will issue RFPs for new projects, while the REA will evaluate bids and ensure accountability for meeting provincial targets.
Nova Scotia Power Inc. (NSPI) NSPI will continue to function as an integrated utility with an obligation to serve, legal responsibility to meet renewable energy targets,responsibility for system reliability compliance, and authority over p...
AI summary Nova Scotia Power Inc. (NSPI) will continue as an integrated utility with obligations to serve, meet renewable energy targets, ensure system reliability, and manage grid connections. NSPI may invest in equity or purchase imported renewable energy to meet needs at the lowest cost to customers.
Utility and Review Board (UARB) The UARB already has responsibility for approving cost recovery for renewable energy projects through the setting of electricity rates. Under the Renewable Electricity Plan, it will take on responsibility fo...
AI summary The UARB is responsible for approving cost recovery for renewable energy projects through electricity rates and will also set and periodically review FIT rates under the Renewable Electricity Plan based on government-established criteria.
Province of Nova Scotia The Province will continue to lead the development of renewable energy policy. It will consider criteria for setting FIT rates and the rules for awarding FIT contracts and competitive medium and large-scale projects...
AI summary The Province of Nova Scotia will lead renewable energy policy development, including FIT rate criteria and project approval processes. A one-window committee will streamline approvals, and the Province will support community-based and non-profit energy initiatives through technical and financial assistance.
Facilitation We expect the Community-Based Feed-in Tariff (COMFIT) to attract participants who need support developing renewable energy projects.A sustainable energy planning group will be established by government to help develop communit...
AI summary The Community-Based Feed-in Tariff (COMFIT) is expected to attract participants requiring support for renewable energy projects. A government-established planning group will coordinate efforts across various departments, authorities, and organizations to assist with project development, regulatory approvals, and financing.
Financing Renewable energy projects usually require a large infusion of upfront capital,with the expectation of long-term,stable returns. Many of the organizations eligible for COMFITs lack experience acquiring this kind of financing. The...
AI summary Renewable energy projects require significant upfront capital and long-term returns, which many COMFIT-eligible organizations lack the experience to secure. The province plans to collaborate with other organizations to develop financing tools, such as Community Economic Development Investment Funds (CEDIFs), to support community-based renewable energy projects.
Coordinating Approvals Renewable energy projects, whether large or small, require permits and approvals from various government departments and NSPI.A single entry point will assist citizens and developers. Government has successfully used...
AI summary The document discusses the implementation of a single public portal to streamline approvals and permits for renewable energy projects, following the success of a one-window steering committee in tidal energy development as part of the Renewable Electricity Plan.
Emissions Management Some renewable fuels, such as biomass,release air pollutants when burned. Government will determine the steps needed to ensure that renewable energy contributes to improved air quality. Biomass comes with its own suite...
AI summary The document discusses the need for government intervention to ensure that renewable fuels like biomass do not negatively impact air quality. It highlights the unique emissions from biomass and the potential interaction with pollution control equipment designed for coal, suggesting that operating approvals may need to be amended.
Federal Government In some cases, the provincial and federal governments have overlapping regulatory authority in renewable energy development. This crops up most often in renewable energy projects in the marine environment—those involving...
AI summary The provincial and federal governments have overlapping regulatory authority in renewable energy projects, particularly in marine environments such as tidal, wave, and offshore wind energy. The province will collaborate with federal authorities to ensure timely permitting that protects the public interest.
First Nations The Mi'kmaq have expressed interest in collaborating on the development of Nova Scotia's renewable energy sector.Continuing to build a positive relationship with the Mi'kmaq is a key priority for the province. Nova Scotia con...
AI summary The Mi'kmaq have shown interest in collaborating on Nova Scotia's renewable energy development. The province prioritizes building positive relationships with the Mi'kmaq and consults them on energy projects. Tools such as enhanced net metering, COMFIT, tidal array FIT, and competitive bidding are available to the Mi'kmaq. The province encourages developers to engage with the Mi'kmaq early in project development.
Legislation and Regulations Measures like the creation of the Renewable Electricity Administrator and the implementation of feed-in tariffs require new legislation or amendments to existing laws. - • Amendments to the Electricity Act will...
AI summary The text discusses legislative and regulatory changes required for the creation of the Renewable Electricity Administrator and the implementation of feed-in tariffs. It highlights amendments to the Electricity Act, changes to the Renewable Energy Standard Regulations, and potential new policies for biomass energy emissions control.
Supply Chain Development Many Nova Scotia suppliers and service companies have transferred skills from other industries to renewable energy. Nova Scotia has the largest concentration of companies specializing in ocean technologies of any p...
AI summary Nova Scotia's renewable energy sector is leveraging existing expertise from industries like offshore oil and gas and aquaculture to develop supply chain capabilities. The province has a strong cluster of companies specializing in ocean technologies, and opportunities are emerging in tidal and wind energy for local businesses in manufacturing, installation, and maintenance.
Electricity Transmission and Distribution in Nova Scotia Adding more renewable electricity to the transmission and distribution systems requires careful planning to maintain system reliability. This is particularly true because most of the...
AI summary The document discusses the need for careful planning and investment in Nova Scotia's transmission and distribution systems to accommodate renewable energy sources and maintain reliability. It highlights the importance of upgrading infrastructure to support intermittent renewable generation, remote locations, and large-scale wind projects, with analysis to be conducted under compliance standards and open for stakeholder feedback.
The Role of Imports and Exports Nova Scotia does not have abundant supplies of untapped hydro power, but nearby provinces do. One way to increase the renewable portion of our energy supply would be to import clean electricity from Newfound...
AI summary Nova Scotia lacks sufficient local renewable energy and relies on imports from nearby provinces. Expanding interconnections with New Brunswick and New England could improve renewable energy imports and exports, but requires significant infrastructure investment. A study by SNC Lavalin suggests that enhancing transmission capacity would support renewable energy integration and backup for intermittent sources.
Smart Technologies A smart grid delivers electricity using digital technology to manage a customer's energy use. For example, a smart grid could turn on domestic hot water heaters only at night, when demand is slack and the cost of produci...
AI summary Smart grid technologies use digital tools to manage customer energy use, potentially reducing costs and increasing reliability. NSPI will use a federal Clean Energy Fund grant to test smart grid technologies in Nova Scotia, focusing on integration with customer loads and intermittent renewables.
Things This Plan Does Not Do 9 Planning involves choices, and in developing this Renewable Electricity Plan, the government has chosen not to do several things. The province has decided to maintain a regulated electricity marketplace and n...
AI summary The Renewable Electricity Plan outlines key decisions not to pursue certain strategies, including maintaining a regulated electricity market, limiting independent power producers' roles in large projects, and not extending COMFIT to larger projects or solar energy. These decisions are based on grid limitations, economic considerations, and the need for market stability and rural development.
Costs and Benefits he transition from imported fuels to renewable electricity and cleaner local fuels will increase power bills in the short term, but offer lower and more stable rates in the long run. Not making this transition would shac...
AI summary The transition to renewable energy and cleaner local fuels will increase power bills in the short term but lead to lower and more stable rates in the long run. Continuing with current practices would expose ratepayers to volatile energy prices and rising costs associated with coal-fired power plants.
Creating Jobs and Investment in the Industries of the Future One goal of the Renewable Electricity Plan is to maximize the economic benefits of increased renewable energy generation—to create good jobs and grow the economy. The investment...
AI summary The Renewable Electricity Plan aims to create jobs and boost the economy by investing up to $1.5 billion in renewable energy, mainly wind projects. Local manufacturing of turbine components could increase provincial revenues by $30-45 million and create 5,000 to 7,500 person-years of employment. DSME's decision to manufacture wind towers and blades locally supports this goal.
Competitive Advantage of a Cleaner Energy Mix Nova Scotia's dependence on carbon fuels, especially coal and oil, threatens to become a significant impediment to trade and competitiveness as carbon tariffs and trade rules proliferate. By re...
AI summary Nova Scotia's reliance on carbon fuels like coal and oil could hinder trade and competitiveness due to increasing carbon tariffs. Transitioning to a cleaner, diversified energy mix will help maintain stable energy costs and support the province's businesses and goods in global markets.
Reduced Greenhouse Gas Emissions and Improved Air Quality Current methods of electricity generation produce 50 percent of Nova Scotia's greenhouse gas emissions, and the vast majority of our air pollutant emissions. The 2008 Nova Scotia Wi...
AI summary The Renewable Electricity Plan aims to reduce greenhouse gas emissions and improve air quality by displacing fossil fuels with renewables and natural gas. It outlines steps including legislative action, public hearings, and program reviews. The plan also estimates potential cost savings from increased wind capacity and mentions the Integrated Resource Plan's assumptions regarding carbon pricing.
07337Board Decision
34 passages
IN THE MATTER OF THE ELECTRICITY ACT .. and .. IN THE MATTER OF a hearing to determine RENEWABLE ENERGY COMMUNITY BASED FEED-IN TARIFFS BEFORE: Peter W. Gurnham, a.c., Chair Roland A. Deveau, a.c., Member Murray E. Doehler, P.Eng., CA, Mem...
AI summary The document outlines a hearing related to determining renewable energy community based feed-in tariffs under the Electricity Act. The Board sets COMFIT Tariffs following submissions and a hearing held in April 2011, with a decision made on July 4, 2011.
) In setting a tariff pursuant to this Section, the Board shall make allowance for the matters set out in the regulations. - (4) In setting a tariff pursuant to this Section, the Board shall determine - (a) the class or classes of generati...
AI summary This section outlines the responsibilities of the Board in setting tariffs for renewable low-impact electricity generation, including the qualifications of generators, the terms of the tariff, and the authority granted under the Public Utilities Act.
2.0 BACKGROUND [10] In April 2010, the Province released its "Renewable Electricity Plan", which sets out a detailed program to move Nova Scotia away from carbon-based electricity towards greener, more local sources. That Plan includes con...
AI summary In 2010, Nova Scotia released a Renewable Electricity Plan aiming to transition to greener energy sources and set renewable electricity targets. Amendments to the Electricity Act and the Renewable Electricity Regulations followed, establishing a 25% renewable electricity target by 2015 and 40% by 2020. The COMFIT tariff allows community organizations to generate and sell renewable electricity to the grid.
3.0 RENEWABLE ELECTRICITY REGULATIONS [14] Under s. 2 of the Regulations, the "feed-in tariff program" is defined as: "feed-in tariff program" means the program established by Section 4A of the Act under which a public utility permits a ge...
AI summary The document defines the feed-in tariff program under the Renewable Electricity Regulations, specifying that it applies to renewable low-impact electricity generation facilities. The Board is required to set separate tariffs for different classes of generation, including large and small wind, biomass CHP, and run-of-the-river hydroelectricity.
Community feed-in tariff qualifications - 20(1) For the purposes of clause 4A(8)(f) of the Act, in addition to the entities listed in clauses 4A(8)(a) to (e) of the Act, each of the following entities qualifies as a generator that may part...
AI summary The text outlines the qualifications for entities to participate in the community feed-in tariff program, including ownership requirements and eligibility criteria for generators. It also discusses the approval process and cost recovery mechanisms for participating generators, with references to the Board's role and the fuel adjustment mechanism.
[32] At the conclusion of Synapse's consultative process, it filed its evidence setting out its recommendations for the COMFIT tariffs: SYNAPSE RECOMMENDED TARIFFS CLASS AMOUNT Wind power projects 50 kW or less $452 per MWh Wind power proj...
AI summary Synapse submitted its recommendations for COMFIT tariffs, proposing different rates per MWh for various renewable energy projects, including wind, biomass CHP, run-of-river hydro, and in-stream tidal projects, with specific breakdowns for biomass CHP.
5.0 PRINCIPLES UNDERLYING THE FIT MODEL
AI summary This section outlines the principles underlying the FIT model, focusing on the framework and objectives that guide its implementation in Nova Scotia.
5.1 Overview [37] While much of the evidence during the hearing focused on a review of several numerical inputs to be used in the FIT model to calculate COMFIT tariffs for the various classes of generation facilities, there was also eviden...
AI summary The hearing focused on numerical inputs for the FIT model to calculate COMFIT tariffs, as well as principles guiding the Board in applying the FIT model for tariff setting.
5.3 Typical costs for most likely developments [42] In its Closing Submission, the Consumer Advocate characterized the task before the Board in this hearing: The Board has been given a difficult and challenging assignment. It has been inst...
AI summary The Consumer Advocate highlights the challenge of setting fair tariffs for various renewable energy sources, while Synapse outlines its approach to balancing cost and policy objectives in the COMFIT program. Assumptions about typical projects are necessary due to uncertainties in setting fixed tariffs for each resource class.
5.4 Whether all potential projects should be economically feasible [57] The Board refers again to the general approach adopted by Synapse in developing COMFIT tariffs for the respective classes of electricity generation facilities. Synapse...
AI summary The Board acknowledges Synapse's approach to setting COMFIT tariffs, which balances cost-based rates with fostering project development. It emphasizes that not all projects will be economically feasible under the approved tariffs, as setting higher rates to ensure feasibility would contradict legislative goals of just and reasonable rates and reasonable development activity.
5.5 Consideration of tariffs in other jurisdictions - [61] In assessing whether the proposed COMFIT tariffs are reasonable, Synapse, in addition to considering stakeholder feedback, compared the proposed tariffs "...to FIT prices adopted i...
AI summary The document discusses the comparison of Nova Scotia's proposed COMFIT tariffs with those in other jurisdictions such as Vermont and Ontario. Key differences include eligibility for tax credits, ownership requirements, and project size, which influence tariff levels. The Province supports benchmarking as a necessary approach, despite uncertainties in project cost estimates.
6.1 Overview [69] While the FIT model is applied to each different class of renewable lowimpact electricity generation facility (e.g., wind power greater than 50 kW, Biomass, instream tidal, etc.), some of the numerical inputs may have a c...
AI summary The FIT model is applied to various classes of renewable low-impact electricity generation facilities, with some numerical inputs having common applications across all types. The Board will discuss common inputs and assumptions, deferring detailed discussions on specific facility classes to later sections.
6.2.1 Submissions [71] In developing proposed tariff rates under the COMFIT models, Synapse did not make any specific assumptions about the project ownership. As noted earlier in this Decision, the approach that was adopted was to determin...
AI summary Synapse developed COMFIT tariff rates using a 'typical cost' approach to ensure low tariffs while encouraging development. They considered the impact of ownership structures, particularly cost of capital and income tax treatment, but found the net impact on most resource classes to be small. For certain projects, rates were averaged between taxable and non-taxable assumptions.
owing adjustments and considerations: - lower-cost capital for wind and hydro due to community support, - lower expected return for demonstration tidal projects. [Chernick Report, Exhibit B-4, p. 6] [83] Mr. Chernick is concerned about a c...
AI summary Mr. Chernick discusses the need for lower-cost capital for renewable energy projects in Nova Scotia, emphasizing community financing over commercial investment. He questions the appropriateness of high returns for projects that may benefit communities rather than external investors.
[85] The Board asked about the reduced ROE: Q: ... On page 25 on lines 17 through 19, you talk about operating at a known feedin tariff should reduce the risk of development comparing the proposal. Was this part of your analysis of why the...
AI summary The Board inquired about the reduced return on equity (ROE) of 11 percent compared to 13 percent, noting that a known feed-in tariff reduces development risk. The response explains that the lower ROE is due to the predictability of revenue under COMFIT compared to previous bids based on ecoenergy credits.
[86] This was explored by Keith Tawse, who in his reply argument stated: ...However, in cross-examination, (transcript of Hearings April 7th, 2011, pages 946-947), the Consumer Advocate was unable to provide any evidence as to the existenc...
AI summary Keith Tawse argues that without mechanisms to provide capital for large wind projects at less than market rates, Synapse's proposed rates should be accepted. Toby Couture suggests a return on equity of 13% is reasonable and that current tariffs are sufficient to attract investors.
7.0 WIND PROJECTS GREATER THAN 50 kW
AI summary This section of the document addresses wind projects greater than 50 kW, likely discussing regulatory considerations, compliance, and potential impacts on the energy grid and stakeholders.
7.1 Submissions - [92] Synapse proposes a tariff of $139 per MWh for wind projects greater than 50 kW. - [93] This proposed tariff is based on a single turbine 1.5 MW in size. Synapse assumed total project costs of $3.8 Million or $2,520 p...
AI summary Synapse proposes a $139 per MWh tariff for wind projects over 50 kW, based on a 1.5 MW turbine and total project costs of $3.8 million. The proposed tariff assumes a capacity factor of 31%, with contested evidence regarding appropriate capacity factors. Synapse also considered financing assumptions and benchmarked against Vermont and Ontario.
7.2 Findings [107] The major point of contention for large wind projects related to the assignment of a capacity factor. [108] The estimates for the capacity factor ranged from 31 % (Synapse, Scotian WindFields, Black River, and the EAC) t...
AI summary The Board evaluated capacity factor estimates for large wind projects, ranging from 31% to 37%, and concluded that 33% is appropriate, balancing concerns about overestimation and underestimation. The decision incorporates input from Synapse, the CA, CanWEA, and NRCan, and approves the tariff with a Compliance Filing.
8.0 WIND PROJECTS OF 50 kW OR LESS
AI summary This section of the document addresses wind projects with a capacity of 50 kW or less, likely discussing regulatory considerations, eligibility, or guidelines for such small-scale wind energy initiatives in Nova Scotia.
8.1 Submissions [113] Synapse assumed a tariff of $452 per MWh for wind projects of 50 kW or less. This proposed tariff is based on a model project with a single 50 kW (0.05 MW) turbine. [114] Synapse assumed an installed cost of $268,000,...
AI summary Synapse assumed a $452 per MWh tariff for small wind projects (50 kW or less), based on data from developers, manufacturers, and industry associations. Installed costs were estimated at $268,000, with financing at 50:50 debt/equity and a 13% return on equity. A 23% capacity factor was assumed for these projects.
8.3 Tariff Overlap Between Small and Large Wind Projects [134] The Board considers it should specifically address one point raised by Mr. Couture on behalf of the Ecology Action Centre. [135] Mr. Couture submitted that the significant disp...
AI summary The Board is considering concerns raised by Mr. Couture regarding the potential for developers to exploit the disparity between small and large wind project tariffs under COMFIT, leading to regulatory arbitrage and inefficiencies in the policy framework.
9.1.1 Findings on Definition [151] The Board finds that for a CHP facility to be entitled to a COMFIT it must produce both heat and steam, and that the primary purpose of the plant is to supply a steam host. [152] The Board also finds that...
AI summary The Board determines that a Combined Heat and Power (CHP) facility must produce both heat and steam with the primary purpose of supplying a steam host to qualify for a COMFIT. Additionally, the Board states that the costing of a tariff for a typical CHP plant should be based on producing approximately 2MW of electricity.
[176] He added at the hearing: That doesn't alter the fundamental risk profile of a biomass power project. The fundamental risk profile is driven by fuel; having to get it, having to burn it, and all the issues related thereto.... [Transcr...
AI summary The speaker argues that the fundamental risk profile of a biomass power project is primarily driven by fuel-related challenges, such as obtaining and burning the fuel, and associated issues.
[177] As for DIE ratios Mr. Bodington stated: I'm saying that Canadian investors without some of the benefits of the U.S. will have to raise more equity, and that will make the project more costly. But that doesn't make a project impossibl...
AI summary Mr. Bodington discusses the challenges of financing biomass projects in Nova Scotia, emphasizing the need for equity over debt due to high cost of capital and the reluctance of sawmills to invest in side businesses. He also notes that smaller projects (e.g., 2 MW) are not economically viable under current rate schemes.
9.5.3 Fuel Operating Costs [203] The total fuel consumption is driven by the size and availability of the plant, and the boiler efficiency. The Synapse FIT model is the one being used for turbine size, so any differences would be in availa...
AI summary The text discusses fuel operating costs for biomass CHP plants, focusing on differences in availability and boiler efficiency assumptions between the Synapse FIT model and ANSS. ANSS argues that Synapse's 80% boiler efficiency is inaccurate for woody biomass and that the model underestimates the efficiency of CHP facilities by not accounting for condensate return.
9.6 Overall Findings - Biomass CHP
AI summary The section titled 'Overall Findings - Biomass CHP' discusses the findings related to biomass combined heat and power (CHP) in the context of Nova Scotia's energy landscape. It highlights the potential benefits and challenges associated with biomass CHP as a resource for the region.
[215] The CA commented upon ANSS's rate calculation as follows: Since ANSS's proposed biomass COMFIT rate is based on a facility inconsistent with the regulations, the Board should not rely on ANSS's proposal. [CA Reply Submission, p. 3]
AI summary The Consumer Advocate (CA) criticized ANSS's proposed biomass COMFIT rate, arguing that it is based on a facility inconsistent with regulations and should not be considered by the Board.
[217] When discussing the St. FX project, Synapse had problems with it being considered a CHP: ... And frankly, that's one of the concerns I would have about this project because it has an overall efficiency of 28 percent, and I would have...
AI summary The discussion centers on the St. FX project's classification as a CHP and its efficiency concerns, with Synapse criticizing its low efficiency and higher costs. St. FX recalculates the rate using the Synapse model but argues the model is not suitable for a university heating plant. The Board accepts Synapse's conservative COMFIT rate approach and plans a review in three years.
10.1 Submissions [235] Synapse proposed a tariff of $652 per megawatt hour for in-stream tidal projects. They based this tariff on a 500 kilowatt installation employing one or more instream tidal generators. Synapse assumed total project c...
AI summary Synapse proposed a $652 per megawatt hour tariff for in-stream tidal projects, based on estimated costs and a 37% capacity factor. The Consumer Advocate recommended a lower rate of $398 per megawatt hour, while Mr. Couture supported the higher rate but suggested tariff degression. The Province responded by indicating that tariff degression could be considered in future reviews.
11.1 Submissions [245] For run-of-the-river hydroelectricity Synapse proposed a tariff of $140 per megawatt hour. They based this tariff on a one megawatt project of either penstock or in-river type. At a penstock plant, water is diverted...
AI summary Synapse proposed a $140 per MWh tariff for run-of-the-river hydroelectricity, based on a 1 MW project and considering residual value and O&M costs. They compared it to Vermont and Ontario FIT rates. Mr. Chernick recommended a lower rate of $114 per MWh, adjusting for debt, equity, and tax relief, while noting varying rates in other jurisdictions.
[262] In its Closing Submission, the CA stated: The Consumer Advocate further recommends that the tariffs include the following express provisions that are to be met by the project. - Approval from the Energy Minister. - The requirements o...
AI summary The Consumer Advocate recommends that tariffs for renewable energy projects include provisions requiring approval from the Energy Minister, compliance with specific regulations, and adherence to capacity limits. The Board also imposed a limit on tidal power under the COMFIT rate to manage rate impacts similarly to small wind limitations.
[263] In its Reply Submission, the Province submitted: In respect of the express tariff provisions recommended by the Consumer Advocate on the bottom of page 13 of his closing submissions, it is respectfully submitted that these matters ar...
AI summary The Province argues that certain tariff provisions recommended by the Consumer Advocate are already covered by existing regulations and may become inconsistent if regulations are modified in the future. The Board agrees that most of the recommendations are reasonable but notes that limits on generation facilities should be a matter of provincial policy. The Board also references the Renewable Electricity Regulations and the expected effective date of the tariffs.
14.0 SUMMARY [277] The Board held a hearing to determine Renewable Energy Community Based Feed-in Tariffs ("COMFIT"), pursuant to recent changes to the Electricity Act and the Renewable Electricity Regulations. [278] While there is no over...
AI summary The Nova Scotia Utility and Review Board held a hearing to determine COMFIT tariffs under the Electricity Act and Renewable Electricity Regulations. The Province expects about 100 MW of distribution grid capacity from COMFIT projects. The Board used a consultative process with Synapse to develop tariffs based on input cost assumptions and a discounted cash flow model.
U-15 (ii) - Presentation for Undertaking U-15(i)06759 4/14/2011
20 passages
Status of the ecoENERGY for Renewable Power Program Jimmy Royer Senior Technical Advisor Natural Resources Canada CanWEA 2010 - 26th Annual Conference and Exhibition > November 1-3, 2010 Montreal, Quebec
AI summary The document presents the status of the ecoENERGY for Renewable Power Program at the CanWEA 2010 conference, with Jimmy Royer from Natural Resources Canada providing an overview.
Status of Wind Energy in Canada - • By end of 2009, installed wind capacity totalled 3 290 MW, representing 1.3% of overall electricity production. - 3,547 MW installed as of September 2010 - • Federal incentives (with various provincial p...
AI summary By the end of 2009, Canada had installed 3,290 MW of wind capacity, representing 1.3% of total electricity production. This growth was supported by federal incentives such as the Wind Power Production Incentive (WPPI) and the ecoENERGY for Renewable Power program, along with provincial policies.
Yearly Growth of Canadian Wind Capacity •By end of September 2010, Canada had 3 547 MW installed wind capacity j4 there appears to be a space in the word "show s" where there should be none. jjensen, 10/25/2010
AI summary The text discusses the yearly growth of Canadian wind capacity, noting that by the end of September 2010, Canada had 3,547 MW of installed wind capacity. The document includes images and a note about a typographical error in the text.
The ecoENERGY for Renewable Power Program
AI summary The document introduces the ecoENERGY for Renewable Power Program, which is aimed at promoting renewable energy development in Nova Scotia. It includes visual elements such as images that may provide additional context or data related to the program.
ecoENERGY for Renewable Power
AI summary The document introduces the ecoENERGY for Renewable Power Program, which aims to support the development of renewable energy sources in Nova Scotia.
For Reference - • Announced in January 2007 as part of ecoENERGY Initiatives - • Support purchase of 14.3 GWh from low-impact renewable energy projects over ten years - Provide 1¢ per kilowatt-hour incentive - Total of $1.46 billion in inv...
AI summary The ecoENERGY for Renewable Power Program, announced in January 2007, supports the purchase of 14.3 GWh from low-impact renewable energy projects over ten years, providing a 1¢ per kilowatt-hour incentive. The program aims to reduce GHG emissions by 6.0 to 6.5 Mt/yr and includes wind, low-impact hydro, biomass, PV, geothermal, and marine energy projects, all commissioned before March 31, 2011.
Results to Date - • 332 projects applied to the program: - •18 000 MW of renewable power capacity - •85 % wind projects - • 100 projects with signed contribution agreements, with 5 more in negotiation totaling: - •Over 4 500 MW of capacity...
AI summary The document highlights the progress of a renewable power program, with 332 projects applying, 100 signed contribution agreements, and 67 wind projects totaling nearly 3,550 MW of capacity and $1.03 billion in funding over 10 years.
ecoERP Projects with Contribution Agreements - ≥100 projects signed - >4 301 MW installed - ➤ Wind benefited the most from the ecoERP program - > 74.3% of funding - > 79.1% of total capacity - Funding for other technologies - > Hydro: 22.2...
AI summary The ecoERP program has supported over 100 projects with more than 4,301 MW installed, primarily in wind energy, which received over 74.3% of funding and 79.1% of total capacity. Hydro, biomass, and solar also received funding, though to a lesser extent. This data is as of September 2010.
ecoERP Commissioned Projects Note: Q1: April to June Q2: July to September Q3: October to December Q4:January to March As of September 2010 - ¾72 projects commissioned to date for 3 119 MW - ¾28 projects (1 182 MW) left to be commissioned...
AI summary As of September 2010, 72 projects totaling 3,119 MW have been commissioned under the ecoERP program, with 28 projects (1,182 MW) remaining to be commissioned by March 31, 2011, excluding five projects in negotiation (about 200 MW).
Are we concerned? YES! However, last year 24 projects (829 MW) were commissioned during Q3 and Q4
AI summary The document indicates that 24 projects totaling 829 MW were commissioned during Q3 and Q4 of last year, signaling significant progress in energy development.
Performance of ecoERP Projects - Hydro - •Total of 13 projects (none in FY08Q1) - •Cumulative Performance is 77.9% of expected - •FY10 was the best at 88.2% of expected
AI summary The document discusses the performance of ecoERP projects related to hydroelectricity, noting 13 total projects with a cumulative performance of 77.9% of expected outcomes, with FY10 being the best year at 88.2% of expected performance.
Performance of WindProjects in Canada
AI summary This section discusses the performance of wind projects in Canada, focusing on their operational efficiency and contribution to the energy sector. It highlights the role of organizations such as the Canadian Wind Energy Association (CanWEA) and mentions programs like the ecoENERGY for Renewable Power Program.
Pr ov Pr j Na t o ec m e # Pr j ts o ec Ca i ty p ac ( M W ) Pr ov Pr j Na t o ec m e Pr j # ts o ec Ca i ty p ac ( M W ) A B C h in C hu W in d Fa te rm 3 0. 0 O N C lea Cr k W in d Fa r ee rm 9. 9 Ke les H i l l W in d Pr j t t t o ec 5...
AI summary The document contains a table listing various wind farm projects with their respective capacities in megawatts (MW). The table includes projects such as Chin-Chu Wind Farm, Keles Hill Wind Project, and others, along with their capacities.
Regional Breakdown Prairies Ontario Quebec Maritimes - • 12 projects - • 18 projects - • 5 projects - • 9 projects - • 652 MW - • 957 MW - • 419 MW - • 288 MW
AI summary The document provides a regional breakdown of renewable energy projects across Canada, listing the number of projects and their total capacity in the Prairies, Ontario, Quebec, and the Maritimes. Visuals and figures are included to support the data presented.
Performance of 44 Wind Projects by Quarter
AI summary The document presents the performance of 44 wind energy projects, organized by quarter, and includes visual data such as images and figures to illustrate the information.
Annual Capacity Factor 20 first Projects (840 MW) - Note that overall performance is better than with all 44 projects suggesting that later projects perform less than first one - This is not surprising since many projects built in later ye...
AI summary The text discusses the annual capacity factor of the 20 first projects (840 MW), noting that their overall performance is better than all 44 projects. It suggests that later projects, particularly those in Ontario, perform less effectively.
CF by Quarter Quebec High performance expectations for the first projects – subsequently corrected. Still about 89% of expected CF 5 projects: 419 MW
AI summary The text discusses the performance of five wind energy projects in Quebec, noting that initial expectations were high but were later adjusted. Currently, the projects are performing at about 89% of the expected capacity factor (CF), with a total capacity of 419 MW.
Performance Summary of Wind Projects by Region Variation of performance is different from region to region. This may be caused by fluctuating wind patterns or projects added to a region performing differently than precedent ones.
AI summary The performance of wind projects varies by region, potentially due to fluctuating wind patterns and differences in project performance compared to previous ones in the same area.
Conclusions - • Still tricky to arrive at good estimates for wind projects - • Yearly variation is different from region to region. It seems that El Nino, or other large influences, do not affect flow of wind equally between regions - • Hy...
AI summary The conclusions highlight challenges in estimating wind project outputs, noting regional variations in yearly wind patterns and the influence of phenomena like El Niño. Hydro projects help reduce variability, with wind and hydro showing different production trends across seasons.
Thank You! Visit our web site at: •http://ecoaction.gc.ca/ecoRP Contact us: Tel.: 613-996-4779 Fax: 613-995-8343 E-mail: [email protected] Front Line Wind Farm
AI summary The document contains a thank you message and contact information for the ecoENERGY for Renewable Power Program, along with images of the Front Line Wind Farm and links to the program's website.
06875Final Submission - Ecology Action Centre 5/2/2011
16 passages
Honorable Commissioners of the Board and Honorable Minister and Deputy Minister of Energy, While it may fall outside of the scope of the Utility and Review Board, the Ecology Actioo Centre recommends to both the Board and Government that i...
AI summary The Ecology Actioo Centre recommends immediate actions to address issues with the COMFIT program's implementation, emphasizing the need for a supportive environment for small-scale renewable energy investors and stakeholders. It highlights the importance of renewable energy for local economic and environmental benefits, as well as meeting Nova Scotia's renewable energy targets.
Introduction The Ecology Action Centre has acted on behalf of the Nova Scotian environment and population on a wide range of issues for over 40 years. Brennan Vogel (Bachelors Environmental Studies, University of Waterloo; Masters of Arts...
AI summary The Ecology Action Centre (EAC) supports the Community Feed-In Tariff (COMFIT) program but expresses concerns about its potential underperformance and risks. EAC argues that FITs are a better pathway for renewable electricity development and recommends policy clarification. The submission highlights issues with COMFIT and suggests considerations for the Board when setting rates.
Proposed COMFIT Rates
AI summary The document introduces the proposed COMFIT Rates, which are part of the Community-Based Renewable Energy Program for Investment and Transition. This initiative aims to support renewable energy development through community-based projects.
Wind $0.452 per kWh for wind projects ≤50 kW $0.139 per kWh for wind projects >50 kW - 1. EAC strongly supports the utilization of the linear interpolation model suggested by Mr. Couture of E3 Analytics to prevent clustering around the 50k...
AI summary The EAC supports using a linear interpolation model for COMFIT wind projects to avoid clustering around the 50kW threshold and improve scalability. The amended Electricity Act allows the Board to set multiple wind power tariffs. Legal interpretations of the regulations are discussed, emphasizing the Board's discretion in tariff-setting.
Recommendations: - 1. EAC strongly recommends that it is within the scope of the Board and the amended Electricity Regulations to approve the linear interpolation wind tariff model, based on the reasons given through the testimony and evid...
AI summary The EAC recommends that the Board approve a linear interpolation wind tariff model, citing Toby Couture's testimony. They also suggest including multiple baseline points for flexibility in COMFIT wind projects and urge immediate development of the model to make Nova Scotia the first in North America to implement it.
Biomass $0.156 per kWh in year 2012 for biomass CHP projects, composed of a fixed component of $0.094 per kWh and an escalating component of $0.062 per kWh representing the cost of fuel - 1. EAC is strongly opposed to the utilization of bi...
AI summary The Energy Advisory Committee (EAC) opposes the inclusion of biomass CHP in the COMFIT program due to unclear definitions, lack of efficiency standards, and concerns about carbon neutrality. It also highlights potential unfair advantages for biomass proponents and the risk of increased costs for rate-payers due to biomass fuel price escalations and reduced forest biomass availability.
Recommendations: - 1. The EAC strongly recommends that Board defer to the Minister of Energy and Natural Resources on the acceptability of approving the proposed COMFIT rate for biomass CHP, given the current policy landscape, lack of appr...
AI summary The EAC recommends that the Board defer approval of the COMFIT rate for biomass CHP due to policy uncertainty, lack of efficiency standards, and concerns about the impact on GHG reductions and rate-payer burdens. The approval could undermine provincial climate goals and natural resource management efforts.
Hydro $0.140 per kWh for run-of-river hydro projects - 1. EAC Supports Mr.Giroux"s assertions that Hydro projects in acid rain-impacted systems are in all likelihood the only systems in Nova Scotia where COMFIT hydro is possible because of...
AI summary The text discusses the potential for run-of-river hydro projects in Nova Scotia under the COMFIT program, highlighting environmental concerns and the need for further resource assessment. It also addresses challenges in estimating the actual number of viable hydro sites and the importance of establishing appropriate tariff rates.
Recommendations: - 1. As suggested by Mr.Keith, a resource assessment of the actual hydro potential in Nova Scotia is further required, giving consideration to environmental impacts and endangered species legislation, to justify setting a...
AI summary The document recommends deferring a decision on setting a COMFIT rate for hydro technology in Nova Scotia until a resource assessment is completed, considering environmental impacts and endangered species legislation, and seeking validation from the Minister of Energy and Natural Resources.
Tidal $0.652 per kWh for in-stream tidal projects - 1. Tidal is an experimental technology with an unproven technological track record to reliably and cost-effectively deliver renewable electricity to market. - 2. While the long-term poten...
AI summary The text discusses concerns about the COMFIT rate for in-stream tidal projects in Nova Scotia, highlighting the unproven track record of tidal technology and the risks of providing a lucrative COMFIT rate without similar support for proven technologies like Solar PV. It suggests improvements such as reducing the PPA length, introducing a degressive tariff design, and regular reassessment of the tidal tariff.
Distribution Grid Availability and Capacity - 1. EAC advocates for creating publicly accessible information about the NSPI-SO distribution grid availability and capacity as a means of facilitating and supporting collaborative COMFIT projec...
AI summary The EAC emphasizes the importance of publicly accessible information about NSPI-SO's distribution grid capacity and availability to support COMFIT project developments. The discussion highlights concerns about NSPI-SO's ability to accommodate connection requests and the impact of transparency on investor confidence in COMFIT projects.
Recommendations: 1. Based on the Board"s own consideration of distribution zone constraints in the Net Metering decision earlier this year (EAC Exhibit A), The Board should consider distribution zone availability and capacity issues as unr...
AI summary The EAC recommends that the Board address unresolved distribution zone capacity issues by requiring NSPI to provide a grid assessment and introduce an access guarantee for COMFIT projects. They also suggest implementing a transparent grid information tool to support investor confidence and financial mechanisms for COMFIT development.
Issues with Stakeholder Eligibility, Variability in COMFIT Stakeholders Abilities to Access to Debt Financing from Private Lenders and Raise Equity for Capital - 1. EAC questions the abilities of all COMFIT stakeholders to equitably access...
AI summary The EAC raises concerns about the unequal ability of COMFIT stakeholders to access debt financing and raise equity, due to eligibility restrictions and financial disparities. This may hinder participation, particularly for First Nations and municipalities, and could lead to unintended consequences in project development.
Recommendations: - 1. Given that there appears to be unreasonable inequity between eligible stakeholders in access to debt and abilities to raise capital through equity mechanisms such as CEDIFs, and this is partially based on inequitable...
AI summary The recommendations address inequities in access to capital for COMFIT stakeholders, highlighting issues with CEDIFs, municipal and Mi'kmaq participation, and the need for supportive mechanisms like loan guarantees and forgivable loans to enable COMFIT project development.
p. 1100 Mr. Couture: …I don't think it's a sound basis on which to build a policy. To assume hypothetically that that much capital enough to finance 300 gigawatt hours of or 50 to 300 gigawatt hours or renewable electricity per year will b...
AI summary Mr. Couture argues that assuming sufficient capital will be available to finance renewable electricity generation based on goodwill and lower-than-risk-adjusted rate of return is not a sound basis for policy design.
Mr.Couture, p. 1097-99 I don't think there's an average rate of return that a CEDIF project can assure or in any way guarantee… I think the concept that perhaps needs to be introduced here is of a risk adjusted rate of return. If I'm inves...
AI summary The speaker discusses the challenges of determining a risk-adjusted rate of return for CEDIF projects, emphasizing that renewable energy investments carry higher risks compared to low-risk investments like GICs. The speaker agrees with consultants' assessment that higher returns are necessary due to these risks.
07337Board Decision
38 passages
IN THE MATTER OF THE ELECTRICITY ACT .. and .. IN THE MATTER OF a hearing to determine RENEWABLE ENERGY COMMUNITY BASED FEED-IN TARIFFS BEFORE: Peter W. Gurnham, a.c., Chair Roland A. Deveau, a.c., Member Murray E. Doehler, P.Eng., CA, Mem...
AI summary The document outlines a hearing related to Renewable Energy Community Based Feed-in Tariffs under the Electricity Act. The Board sets COMFIT Tariffs following a hearing and written submissions.
) In setting a tariff pursuant to this Section, the Board shall make allowance for the matters set out in the regulations. - (4) In setting a tariff pursuant to this Section, the Board shall determine - (a) the class or classes of generati...
AI summary This section outlines the process for setting tariffs by the Board, including considerations for qualifying generation facilities, tariff adjustments, effective dates, and recovery through the rate base. It also specifies eligibility criteria for generators, such as municipalities, not-for-profit corporations, and Indigenous bands.
2.0 BACKGROUND [10] In April 2010, the Province released its "Renewable Electricity Plan", which sets out a detailed program to move Nova Scotia away from carbon-based electricity towards greener, more local sources. That Plan includes con...
AI summary In 2010, Nova Scotia released its Renewable Electricity Plan, aiming to transition from carbon-based to renewable energy sources. Amendments to the Electricity Act and the Renewable Electricity Regulations were enacted, establishing a 25% renewable electricity target by 2015 and a 40% target by 2020. The Plan also introduced the COMFIT tariff, allowing community organizations to generate and sell renewable electricity.
3.0 RENEWABLE ELECTRICITY REGULATIONS [14] Under s. 2 of the Regulations, the "feed-in tariff program" is defined as: "feed-in tariff program" means the program established by Section 4A of the Act under which a public utility permits a ge...
AI summary The section defines the feed-in tariff program under the Regulations, outlines the types of renewable electricity generation facilities for which the Board must set tariffs, and includes specific classifications such as large wind, small wind, and Biomass CHP. The Board is required to establish separate tariffs for different classes of generation facilities.
4.1 Synapse Model - [29] Synapse led the consultative process with the formal intervenors. Synapse proposed the adoption of a discounted cash flow model used to set feed-in tariffs in Vermont, USA in 2009. Under this model (the "FIT model"...
AI summary Synapse led the consultative process for the FIT model, adapting a discounted cash flow model from Vermont to Nova Scotia. The model was well-received by intervenors despite challenges to specific assumptions. Stakeholders were involved in reviewing and adjusting the model to suit local conditions.
[32] At the conclusion of Synapse's consultative process, it filed its evidence setting out its recommendations for the COMFIT tariffs: SYNAPSE RECOMMENDED TARIFFS CLASS AMOUNT Wind power projects 50 kW or less $452 per MWh Wind power proj...
AI summary Synapse filed its evidence recommending COMFIT tariffs for various renewable energy projects, including wind, biomass CHP, run-of-river hydro, and in-stream tidal, with specific rates per MWh for each category.
5.0 PRINCIPLES UNDERLYING THE FIT MODEL
AI summary This section outlines the principles that underlie the FIT model, which is designed to promote community-based renewable energy initiatives. It highlights the importance of equitable participation and the role of various stakeholders in the process.
5.2 Affordability provisions in the Renewable Electricity Plan [38] The Renewable Electricity Regulations direct the manner in which the COMFIT tariffs are calculated based on estimated cost. It is important to remember, however, that the...
AI summary The Renewable Electricity Plan in Nova Scotia includes affordability provisions that outline potential short-term increases in electricity bills due to the implementation of renewable energy initiatives, such as the COMFIT program. The plan acknowledges a 1-2% annual increase in electricity bills and estimates additional costs for single-family homes, especially those using electricity for heating. The Board emphasizes the importance of considering these cost implications when determining electricity rates.
5.3 Typical costs for most likely developments [42] In its Closing Submission, the Consumer Advocate characterized the task before the Board in this hearing: The Board has been given a difficult and challenging assignment. It has been inst...
AI summary The Consumer Advocate highlights the challenge of setting fair tariffs for diverse renewable energy sources. Synapse emphasizes balancing cost-based COMFIT rates with the need to encourage project development. Assumptions about typical projects are necessary but involve significant uncertainties.
5.4 Whether all potential projects should be economically feasible [57] The Board refers again to the general approach adopted by Synapse in developing COMFIT tariffs for the respective classes of electricity generation facilities. Synapse...
AI summary The Board adopts Synapse's approach to setting COMFIT tariffs, balancing cost-based rates with fostering project development. It acknowledges that not all projects will be economically feasible under the proposed tariffs, as setting rates high enough to ensure feasibility would lead to higher rates for ratepayers, conflicting with legislative goals.
5.5 Consideration of tariffs in other jurisdictions - [61] In assessing whether the proposed COMFIT tariffs are reasonable, Synapse, in addition to considering stakeholder feedback, compared the proposed tariffs "...to FIT prices adopted i...
AI summary The document discusses the evaluation of the proposed COMFIT tariffs in Nova Scotia by comparing them to FIT rates in other jurisdictions like Vermont and Ontario. Key differences include tax credits in the U.S., ownership requirements in Vermont, and project size eligibility. The Province supports Synapse's benchmarking approach, emphasizing the importance of considering these differences when assessing tariff reasonableness.
6.1 Overview [69] While the FIT model is applied to each different class of renewable lowimpact electricity generation facility (e.g., wind power greater than 50 kW, Biomass, instream tidal, etc.), some of the numerical inputs may have a c...
AI summary The FIT model is applied to various classes of renewable low-impact electricity generation facilities, with some numerical inputs having common applications across all types. The Board will discuss common inputs and assumptions, deferring detailed discussions on specific classes like Biomass to later sections.
6.2.1 Submissions [71] In developing proposed tariff rates under the COMFIT models, Synapse did not make any specific assumptions about the project ownership. As noted earlier in this Decision, the approach that was adopted was to determin...
AI summary Synapse developed COMFIT tariff rates using a 'typical cost' approach, assuming no specific project ownership. The Board approved this method, but Synapse also considered the impact of different ownership structures on cost of capital and income tax treatment. Taxable and non-taxable project statuses significantly affect COMFIT rates, with larger impacts observed for tidal projects.
owing adjustments and considerations: - lower-cost capital for wind and hydro due to community support, - lower expected return for demonstration tidal projects. [Chernick Report, Exhibit B-4, p. 6] [83] Mr. Chernick is concerned about a c...
AI summary Mr. Chernick discusses the importance of community financing for renewable energy projects, arguing against allowing commercial investors to benefit from 'Wall Street' returns. He suggests that if projects are largely funded by municipal, university, and community sources, a lower return may be reasonable.
7.0 WIND PROJECTS GREATER THAN 50 kW
AI summary This section discusses wind projects in Nova Scotia with a capacity greater than 50 kW, highlighting their significance and potential impact on the energy landscape.
7.1 Submissions - [92] Synapse proposes a tariff of $139 per MWh for wind projects greater than 50 kW. - [93] This proposed tariff is based on a single turbine 1.5 MW in size. Synapse assumed total project costs of $3.8 Million or $2,520 p...
AI summary Synapse proposes a $139 per MWh tariff for wind projects over 50 kW, based on a 1.5 MW turbine with total costs of $3.8 million. The model assumes a 31% capacity factor, which is contested, and includes O&M costs, financing assumptions, and benchmarking against Vermont and Ontario.
7.2 Findings [107] The major point of contention for large wind projects related to the assignment of a capacity factor. [108] The estimates for the capacity factor ranged from 31 % (Synapse, Scotian WindFields, Black River, and the EAC) t...
AI summary The Board evaluated capacity factor estimates for large wind projects, considering ranges from 31% to 37%. It found Synapse's 31% estimate too conservative, while Mr. Chernick's 37% could eliminate many typical projects. CanWEA's 33% was supported by NRCan data and deemed reasonable. The Board concluded 33% is appropriate and approved Synapse's tariff with a compliance filing.
8.0 WIND PROJECTS OF 50 kW OR LESS
AI summary This section of the document addresses wind projects with a capacity of 50 kW or less, likely discussing regulatory considerations, eligibility criteria, and potential implications for smaller-scale renewable energy initiatives in Nova Scotia.
8.1 Submissions [113] Synapse assumed a tariff of $452 per MWh for wind projects of 50 kW or less. This proposed tariff is based on a model project with a single 50 kW (0.05 MW) turbine. [114] Synapse assumed an installed cost of $268,000,...
AI summary Synapse's analysis of small wind projects in Nova Scotia includes assumptions about tariffs, installed costs, O&M expenses, financing structures, and capacity factors. These assumptions are based on data from developers, manufacturers, and industry associations, and are used to model the financial viability of such projects.
8.2 Findings [130] With respect to the capacity factor, Synapse proposed a rate of 23%. The Board considers Seaforth's comments to be reasonable in terms of supporting the 23% recommendation. Based on its review of the evidence, the Board...
AI summary The Board accepts Synapse's proposed tariff for small wind projects but adjusts the capacity factor, interconnection costs, and O&M expenses based on evidence from Seaforth, Scotian WindFields, and small wind operators. Adjustments include increasing the capacity factor to 23%, interconnection costs to $21,550, and O&M expenses to $4,500 per year.
8.3 Tariff Overlap Between Small and Large Wind Projects [134] The Board considers it should specifically address one point raised by Mr. Couture on behalf of the Ecology Action Centre. [135] Mr. Couture submitted that the significant disp...
AI summary The Board is considering concerns raised by Mr. Couture about potential 'regulatory arbitrage' in the COMFIT wind tariff structure, where developers may exploit the disparity between small and large wind tariffs by installing multiple small turbines instead of a single larger project, leading to inefficiencies and higher costs for ratepayers.
9.0 BIOMASS COMBINED HEAT AND POWER PLANT
AI summary This section of the document discusses the biomass combined heat and power plant, focusing on its role in energy generation and regulatory considerations.
9.1.1 Findings on Definition [151] The Board finds that for a CHP facility to be entitled to a COMFIT it must produce both heat and steam, and that the primary purpose of the plant is to supply a steam host. [152] The Board also finds that...
AI summary The Board determines that a Combined Heat and Power (CHP) facility must produce both heat and steam with the primary purpose of supplying steam to a host, and that tariff costing for a typical CHP plant should be based on producing approximately 2MW of electricity.
Mr. Hayes: - Q: What you're telling us is that this technology cannot be built for what regulators and governments in other jurisdictions have decided is a fair price, keeping ratepayers in mind? - A: In those provinces, it's been our expe...
AI summary Mr. Hayes discusses the challenge of building renewable energy plants at a cost that is affordable for ratepayers, noting that other jurisdictions have had to pay more than initially expected. He suggests that the affordability of such projects may conflict with the requirements of developers and that the impact of these projects on the overall rate base must be considered.
[169] Mr. Travis added: Mr. Chairman, I would just add to that that it's really not a whole lot different than the tidal or the small wind in that respect, that they're both higher cost and you know that they had the same challenges as bot...
AI summary Mr. Travis compares the cost and challenges of a technology to tidal and small wind energy, noting that they are similarly higher cost and face comparable challenges.
9.6 Overall Findings - Biomass CHP
AI summary The section 'Overall Findings - Biomass CHP' discusses the evaluation of biomass combined heat and power (CHP) projects, including their cost-effectiveness, environmental benefits, and role in Nova Scotia's energy strategy.
[215] The CA commented upon ANSS's rate calculation as follows: Since ANSS's proposed biomass COMFIT rate is based on a facility inconsistent with the regulations, the Board should not rely on ANSS's proposal. [CA Reply Submission, p. 3]
AI summary The Consumer Advocate (CA) argues that ANSS's proposed biomass COMFIT rate is based on a facility that does not comply with regulations, and therefore the Board should not consider ANSS's proposal.
[217] When discussing the St. FX project, Synapse had problems with it being considered a CHP: ... And frankly, that's one of the concerns I would have about this project because it has an overall efficiency of 28 percent, and I would have...
AI summary The St. FX project's efficiency of 28% raises concerns about its classification as a CHP and the resulting COMFIT rates. Synapse questioned the appropriateness of the tariff, while St. FX recalculated the required rate. The Board acknowledges the need to adjust COMFIT rates and will review them in three years, noting that Nova Scotia's rates are higher than those in other jurisdictions due to different criteria and incentives.
10.1 Submissions [235] Synapse proposed a tariff of $652 per megawatt hour for in-stream tidal projects. They based this tariff on a 500 kilowatt installation employing one or more instream tidal generators. Synapse assumed total project c...
AI summary Synapse proposed a $652/MWh tariff for in-stream tidal projects, citing high costs and technology immaturity. The Consumer Advocate suggested a lower rate of $398/MWh. Mr. Couture supported the higher rate but raised concerns about uncertainties in tidal power. The Province suggested tariff degression and deferred detailed consideration to future reviews.
10.2 Findings [243] While the Board is concerned about the high tidal tariff, it recognizes that this is both an experimental technology and is likely to be a small component of the overall COMFIT program. The Board notes that the Province...
AI summary The Board acknowledges the high tidal tariff but accepts it due to the experimental nature of the technology and its small role in the COMFIT program. It notes that a review of the Regulations will occur in 2012 and that all tariffs will be reviewed in three years. The Board approves the tariff as submitted by Synapse.
11.0 RUN-OF-THE-RIVER HYDROELECTRICITY
AI summary This section of the document discusses run-of-the-river hydroelectricity, a type of renewable energy generation that utilizes the natural flow of rivers without the need for large dams. It is likely to cover the regulatory considerations, environmental impacts, and integration into the electricity grid.
11.1 Submissions [245] For run-of-the-river hydroelectricity Synapse proposed a tariff of $140 per megawatt hour. They based this tariff on a one megawatt project of either penstock or in-river type. At a penstock plant, water is diverted...
AI summary Synapse proposed a $140 per MWh tariff for run-of-the-river hydroelectricity, based on a one-megawatt project. They compared this to Vermont and Ontario FIT rates, noting that Ontario's community-based rate in 2012 was $140 per MWh. Mr. Chernick recommended a lower rate of $114 per MWh, adjusting for debt, equity, and land donation factors.
11.2 Findings [250] Other than comments from the Consumer Advocate there was very little comment in the hearing on run-of-the-river hydroelectricity. [251] The Board also understands that there may be significant other challenges in securi...
AI summary The Board found limited discussion on run-of-the-river hydroelectricity during the hearing. It acknowledges challenges in securing approvals for such projects and accepts Synapse's cost determinations as reasonable. The Board will approve the tariff as submitted, with a review in three years and potentially as part of the Province's 2012 regulatory review.
12.1 Distribution system capacity [253] During the proceedings, the parties made several references to limited capacity being available on certain distribution feeders, which could restrict the number or size of generators that could be co...
AI summary During the proceedings, parties highlighted concerns about limited distribution feeder capacity affecting generator connections. The EAC questioned Synapse on the importance of transparency in grid capacity information for COMFIT project development, with Synapse affirming that public availability would improve efficiency by removing barriers related to grid congestion visibility.
[254] Brian Giroux also addressed this matter with the Synapse panel: '" did you guys do any analysis of the space within our distribution system to see if, in fact, there was room for some of these classes or some of these projects at all...
AI summary Brian Giroux raised concerns about the lack of analysis on distribution system capacity for COMFIT projects. The EAC recommended a transparent grid information resource, while NSPI argued that current processes already provide sufficient information. The Board agreed that public capacity information would help developers and directed NSPI and municipal utilities to create and maintain such a resource by September 30, 2011.
[262] In its Closing Submission, the CA stated: The Consumer Advocate further recommends that the tariffs include the following express provisions that are to be met by the project. - Approval from the Energy Minister. - The requirements o...
AI summary The Consumer Advocate recommends that tariffs include provisions such as approval from the Energy Minister and compliance with Renewable Electricity Regulations. The Board also set a limit on tidal power allowed on the COMFIT rate to manage rate impacts similarly to the small wind limitation.
[263] In its Reply Submission, the Province submitted: In respect of the express tariff provisions recommended by the Consumer Advocate on the bottom of page 13 of his closing submissions, it is respectfully submitted that these matters ar...
AI summary The Province argues that certain tariff provisions recommended by the Consumer Advocate are already covered by existing regulations and may become inconsistent if regulations are modified. The Board agrees with most of the recommendations but notes that limits on generation facilities should be a provincial policy matter. The Renewable Electricity Regulations set a 0.5 MW capacity limit for small-scale tidal generation. Tariffs will take effect upon the Board's final Order, expected in early September.
14.0 SUMMARY [277] The Board held a hearing to determine Renewable Energy Community Based Feed-in Tariffs ("COMFIT"), pursuant to recent changes to the Electricity Act and the Renewable Electricity Regulations. [278] While there is no over...
AI summary The Board conducted a hearing to determine COMFIT tariffs under the Electricity Act and Renewable Electricity Regulations. The Province expects COMFIT projects to use about 100 MW of grid capacity. Synapse used a FIT model to calculate tariffs that provide a reasonable return on equity for project owners, and the methodology was generally well-received by intervenors.
07827Board Order
14 passages
!N THE MATTER OF THE ELECTRICITY ACT - and- IN THE MATTER OF a hearing to determine RENEWABLE ENERGY COMMUNITY BASED FEED-IN TARIFFS BEFORE: Peter W. Gurnham, a.c., Chair Roland A. Deveau, a.c., Acting Vice-Chair urray E. Doehler, P.Eng.,...
AI summary This document outlines a regulatory proceeding concerning the determination of Renewable Energy Community Based Feed-in Tariffs under the Electricity Act. The hearing is presided over by Peter W. Gurnham, Chair, Roland A. Deveau, Acting Vice-Chair, and Murray E. Doehler, Member.
ORDER WHEREAS the Nova Scotia Utility and Review Board (the "Board") held a hearing to determine Renewable Energy Community Based Feed-in Tariffs ("COMFIT"), pursuant to recent changes to the Electricity Act and the Renewable Electricity R...
AI summary The Nova Scotia Utility and Review Board approved COMFIT tariffs and terms and conditions following a hearing and compliance filing by Synapse Energy Economics, Inc. The decision was made in July 2011, with the final approval effective September 7, 2011.
RENEWABLE ENERGY COMMUNITY-BASED FEED-IN TARIFF - WIND POWER PROJECTS 50 KW OR LESS
AI summary The document introduces the Renewable Energy Community-Based Feed-in Tariff for wind power projects of 50 kW or less, outlining the framework for small-scale renewable energy generation in Nova Scotia.
E ERGY PAYMENT The tariff for wind generators 50 kW or less consists of an energy payment only, undifferentiated by time of generation. The energy payment is $499 per MWh.
AI summary The tariff for wind generators with a capacity of 50 kW or less includes an energy payment of $499 per MWh, which is not differentiated by the time of generation.
SPECIAL CONDITIONS This tariff is available to a maximum of 5 MW of generating capacity summed across the province. Once 5 MW oftotal capacity has been approved for this tariff, it will be available to no other proj ects.
AI summary The tariff is limited to a maximum of 5 MW of generating capacity across the province. Once this limit is reached, no additional projects will be eligible for the tariff.
RENEWABLE ENERGY COMMUNITY-BASED FEED-IN TARIFF - WIND POWER PROJECTS GREATER THAN 50 KW
AI summary The document outlines the Renewable Energy Community-Based Feed-in Tariff for wind power projects greater than 50 kW, establishing a framework for community-based renewable energy initiatives.
ENE.RGY PAYMENT The tariff for wind generators greater than 50 kW consists of an energy payment only, undifferentiated by time of generation. The energy payment is $131 per MWh.
AI summary The tariff for wind generators over 50 kW includes an energy payment of $131 per MWh, which is not differentiated by the time of generation.
NEWABLE ENERGY COMMUNITY-BASED FEED-IN TARIFF - RUN-OF-RIVER HYDRO PROJECTS
AI summary The document introduces the NEWABLE ENERGY COMMUNITY-BASED FEED-IN TARIFF for run-of-river hydro projects, focusing on community-based renewable energy initiatives.
AVAILABILITY The tariffis available to electricity generating facilities that: - (1) have been approved by the Nova Scotia Department ofEnergy as eligible for this tariff; - (2) are interconnected at distribution voltage level (i.e., less...
AI summary The tariff is available to electricity generating facilities that meet specific criteria, including approval by the Nova Scotia Department of Energy, interconnection at distribution voltage level, signing a PPA with the utility, and not exceeding the minimum load capacity of the substation transformer.
RENEWABLE ENERGY COMMUNITY-BASED FEED-IN TARIFF - IN-STREAM TIDAL PROJECTS
AI summary The document discusses the Renewable Energy Community-Based Feed-in Tariff for In-Stream Tidal Projects, focusing on the regulatory framework and participation in the COMFIT program.
~/NE,RGYPAYMENT The tariff for in-stream tidal projects consists of an energy payment only, undifferentiated by time of generation. The energy payment is $652 per MWh.
AI summary The tariff for in-stream tidal projects is set at $652 per MWh, with payments made solely based on energy generated, without differentiation by time of generation.
AVAILABILITY The tariff is available to electricity generating facilities that: - (1) have been approved by the Nova Scotia Department ofEnergy as eligible for this tariff; - (2) are interconnected at distribution voltage level (i.e., less...
AI summary The tariff is available to electricity generating facilities that meet specific criteria, including approval by the Nova Scotia Department of Energy, interconnection at distribution voltage level, use of tidal generating devices under 0.5 MW, signing a PPA, and not exceeding the substation transformer's capacity.
RENEWABLE ENERGY COMMUNITY-BASED FEED-IN TARIFF BIOMASS COMBINED HEAT AND POWER PROJECTS
AI summary This section of the document introduces the Renewable Energy Community-Based Feed-in Tariffs Biomass Combined Heat and Power Projects, focusing on the COMFIT program and its implications for biomass combined heat and power (CHP) projects in Nova Scotia.
ENERGY PAYMENT The tariff for biomass combined heat and power plant projects consists of an energy payment only, undifferentiated by time of generation. The energy payment in will be $175 per MWh from January 1, 2012 through December 31, 2...
AI summary The energy payment for biomass combined heat and power plant projects is set at $175 per MWh from January 1, 2012, through December 31, 2012, with a fuel component of $75 per MWh and a non-fuel component of $100 per MWh. The rate may be adjusted over time according to specific mechanisms.
20110404-1Hearing Transcript — 4/4/2011 (Synapse)
38 passages
April 4, 2011 Hearing opens 1 U-7 To produce a Synapse model using Neal Livingston's assumptions - payback in years 15-20 233 U-8 To produce a Synapse model using Neal Livingston's assumptions - Pynn letter and payback in 10 years 251 DICT...
AI summary This document outlines a hearing by the Nova Scotia Utility and Review Board on renewable energy community-based feed-in tariffs under the Electricity Act and Renewable Electricity Regulations. The hearing commenced on April 4, 2011, with the Chair introducing the panel members and the process for the proceeding.
- THE CHAIR : Thank you. Page 6 NSUARB-BRD-E-R.10 13 MR. OUTHOUSE: Mr. Chair, I would ask 14 that Ms. Shaw be qualified as an expert to give opinion 15 evidence with respect to the type of equipment for a 16 biomass CHP and the operation a...
AI summary The Chair of the NSUARB is facilitating the qualification of experts, including Ms. Shaw and Mr. Keith, to provide opinion evidence on biomass CHP equipment, renewable energy technology costs, and spreadsheet models. Mr. Outhouse is questioning the experts on their qualifications and experience.
- generation. Unfortunately, none of the materials we - reviewed provided a definition of CHP. We addressed this - issue by assigning capital and operating costs so that the - steam host was responsible for a substantial portion of - the t...
AI summary The text discusses the treatment of combined heat and power (CHP) projects, including the allocation of capital and operating costs, the use of capital structures and financing costs, and references to the Renewable Electricity Plan and COMFIT rates for cost recovery.
- settled upon, and considered the structures and cost 1 Page 24 NSUARB-BRD-E-R.10 approved by the Board for the major utilities in Nova 2 Scotia. Our assumptions reflect our assessment that hydro 3 projects will be perceived as least risk...
AI summary The document discusses the development of COMFITs (Cost of Money, Fuel, Interest, and Taxes) for major utilities in Nova Scotia, focusing on capacity factors and the treatment of year-to-year changes. It outlines assumptions about risk levels for different energy projects and explains how capacity factors influence required rates. The approach to fuel cost adjustments for CHP projects is also detailed, balancing risk and incentive structures.
DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS THE CHAIR: I think we'll mark the 1 NSUARB-BRD-E-R.10 Page 27 Opening Statement as Exhibit B-16. 11 some judgment involved; however, the government was rather 12 clear that there's an expectati...
AI summary The discussion revolves around the criteria for determining a reasonable level of activity in renewable energy project development under the Province's policy. There is no specific number or criteria provided, and the expectation is to encourage diverse participation without setting strict targets.
- Community Feed-in Tariff? Page 36 NSUARB-BRD-E-R.10 12 tariffs have a specific adjustment, so there's a rate set 13 for non-community projects and then there's a separate 14 different rate that's specific for projects, depending on 15 th...
AI summary The text discusses the possibility of a community feed-in tariff, referencing the Ontario Feed-in Tariff as an example. It also explores whether revenue requirements have been determined for community organizations, such as a Band Council or university, undertaking renewable energy projects like biomass CHP, hydro, or wind.
- involved in the projects are so sort of difficult to work - with. It's a real challenge in terms of sort of getting - the commitments to purchase and deliver turbine and to - siting has been a tremendous challenge. - So the financing tha...
AI summary The discussion highlights the challenges in financing renewable energy projects, particularly in securing commitments for turbine delivery and siting. The speaker emphasizes the need for real financing and government subsidies to support these initiatives, citing tax credits and policies from Massachusetts as examples.
- matching projects. Page 44 NSUARB-BRD-E-R.10 1 In some cases if a community steps up 2 and does one project, they'll get something else. So 3 these are often multi-pronged deals that involve a lot of 4 different arrangements. 5 But where...
AI summary The text discusses the challenges faced by an organization in developing small wind projects, highlighting the limited role they have played beyond purchasing renewable energy credits. It also mentions reliance on advice from various stakeholders, including lenders, developers, and manufacturers, during the analysis process.
limitations to that and, you know, you'll get a chance to 1 examine such people later in the week, right? 14 actually get some projects and, in total, something 15 resembling 100 megawatts of connection to the distribution 16 system and no...
AI summary The discussion highlights the province's recognition that the renewables energy policy will involve costs and is not the least-cost approach. There is a focus on balancing objectives, including achieving renewable projects at the lowest reasonable cost and addressing barriers related to ownership and development.
hough it might be hard to figure - out the exact dollar. - MR. BIEWALD : Or in I suppose so, - DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS or most pointedly, I would say in terms of overcoming - barriers, so basically getting a project t...
AI summary The discussion focuses on the importance of community involvement in overcoming barriers to renewable energy projects, particularly in addressing NIMBY (Not In My Backyard) objections and facilitating local project siting. Community engagement is seen as a potential advantage in enabling projects to proceed and obtain necessary permits.
- all you can think of? Page 64 NSUARB-BRD-E-R.10 6 got overcoming local resistance, we've got job fair. 7 Anything else? 8 MR. KEITH: Well, we did consider, 9 especially after Mr. Chernick's first comments came in, 10 consider the possibi...
AI summary The discussion focuses on the challenges of relying on community-based organizations for installing green energy capacity, given their reliance on donations and limited success. It also touches on the potential for municipalities to access lower debt capital compared to commercial borrowers, though budgetary constraints were noted as a barrier.
based organization? 1 MR. BIEWALD: Well, I think we 2 3 4 subsidies and so on. That's indeed different from 5 Heritage Gas. 6 7 8 9 commercially viable, but is subject to all sorts of 10 11 12 that it's completely apples and apples. 13 MR....
AI summary The text is a transcript of a regulatory proceeding involving discussions about subsidies, financial returns, and lenders active in Nova Scotia's renewable energy markets. The discussion includes questions about First Nations' projects and research on the cost of debt.
- particular technology. 1 Page 98 NSUARB-BRD-E-R.10 Without getting into the issue of the 2 Board's jurisdiction, do you consider it a good 3 recommendation that perhaps there be a cap put on that 4 category project, as there is with smal...
AI summary The discussion revolves around the potential for a cap on tidal energy projects, similar to small wind, and the consideration of competitive pressures in the absence of an RFP process. The speaker emphasizes the importance of cost awareness and investor interest as indicators of market dynamics.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS annual report. I looked at the latest version. I thought 1 NSUARB-BRD-E-R.10 Page 111 I had the title of the report here, but I don't. 16 only scenario. 17 So in a sense, in order to allocate...
AI summary The text discusses the allocation of costs between steam-only and combined heat and power (CHP) systems, emphasizing the importance of including all project costs when evaluating standalone CHP projects. The discussion highlights the need for accurate cost assumptions to ensure fair allocation and reasonable development activity.
- load for the heat part of CHP being a sawmill where, you - know, in reality we've got interest from a university; - perhaps that level of interest from a university is a - little surprising. - So we might have to go back and look - at al...
AI summary The discussion revolves around the feasibility of a Combined Heat and Power (CHP) facility, specifically at a sawmill, and the interest from a university, St. Francis Xavier University, in a related project. There is a consideration of whether the assumptions made about the project are reasonable, especially in comparison to other jurisdictions and benchmark rates.
- And then I'll stop there. - MS. RUBIN: One of the key issues that - you had to address at the outset was what shape would this - project, what form would it take, whether it was a back - pressure or condensing turbine, and you settled on...
AI summary The discussion centers on the decision to use condensing turbines for a CHP project, noting that this choice allows electricity generation independent of steam demand, reducing risk compared to back-pressure turbines. The speaker confirms agreement with the Sawmillers on this decision.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. RUBIN: Right. Because that risk Page 126 NSUARB-BRD-E-R.10 1 MS. RUBIN: Okay. Now, that table is 2 a capital cost comparison of the condensing extracting 3 facility that has been costed b...
AI summary The discussion revolves around a capital cost comparison of a condensing extracting facility, with differing opinions on the feasibility and cost-effectiveness of the project. Ms. Shaw admits to not thoroughly analyzing the table, while Mr. Keith argues that market metrics support the current rate and that the Marwood project is too expensive to base a feed-in tariff on.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. SHAW: No, I think I'm saying NSUARB-BRD-E-R.10 Page 155 1 something different. I'm not saying that it's a zero 2 cost. I'm not saying that it's a zero dollar value, I'm 3 saying that it i...
AI summary The discussion revolves around the inclusion of engineering, project management, and construction management costs in a biomass CHP project. The speaker clarifies that these costs are not explicitly included in the current planning and assumes that the facility owner will handle these tasks. The conversation also touches on whether Nova Scotia Power is a competent entity to undertake such a project, referencing their use of an EPC contractor for a similar project.
process would be working as well. 1 Page 172 NSUARB-BRD-E-R.10 maybe you can help me out then. The only way I can assess 1 at a particular site and you've gotten a cost estimate or 2 a detailed cost estimate for that study for that 3 proje...
AI summary The discussion focuses on the availability and comparison of installed cost data for wind turbines and biomass CHP projects, highlighting the limited data available for biomass projects compared to wind. The testimony emphasizes the difficulty in obtaining detailed cost data for biomass CHP projects.
- expensive turbine generator so that the facility can - operate that generator when the steam host is not using - power because we think it's too risky for them to not do - that, we've opened up the door now so that they can - operate tha...
AI summary The text discusses concerns raised by the Alliance of Sawmillers regarding the regulation of a turbine generator. They argue for embedding a more expensive turbine generator in the electricity rate to allow operation without a steam host and for not establishing efficiency standards for the plant, despite regulatory requirements for combined heat and power (CHP) plants.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS And number three, made a lot of the 1 costs of the boiler onto the electric side, and we've 2 (inaudible) given in what we propose the first two of 3 those. We feel it would be a big mistake...
AI summary The discussion revolves around the allocation of costs for a boiler project between the electric side and steam hosting, emphasizing the importance of ensuring that projects meet Combined Heat and Power (CHP) requirements. The participants argue that allocating costs in a way that encourages CHP is a key policy consideration.
- there, is the desire to use the province's wood resource - as efficiently as possible. And the government, in its - materials talking about these regulations in a number of - places, points to a very strong desire to use the - province's...
AI summary The discussion revolves around the efficient use of the province's wood resource and biomass, emphasizing the preference for higher efficiency in utilization rather than electricity-only biomass plants. The conversation also touches on policy drivers and cost allocation for steam.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS reasons for doing so; what are the other policy factors to Page 188 NSUARB-BRD-E-R.10 9 allocation we have an end result, which is at this point, 10 we're recommending a rate that's higher th...
AI summary The discussion revolves around the allocation of steam generation costs to CHP plants and the potential impact of rate increases on biomass projects in Nova Scotia. Concerns are raised about the success of CHP plants under similar tariffs in other jurisdictions and the possibility of future challenges if rates are increased.
- starting with NSPI's allowed return and - MS. RUBIN: No, sorry, I'm talking - about the debt/equity split. - MR. KEITH : Oh, the debt/equity split. - They were based on our discussions with lenders and on the - debt/equity splits that ha...
AI summary The discussion focuses on the debt/equity split for a biomass-fired power project, with Mr. Keith noting that only two individuals from a broad range of lending experts and project developers had experience in financing small biomass projects. The conversation highlights a lack of specific experience with smaller-scale projects.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS fact to inquire about? When size of the project is a risk 1 NSUARB-BRD-E-R.10 Page 201 factor, would you not inquire about the size of the 2 project they'd financed? 3 MR. KEITH: Well, rather...
AI summary The discussion revolves around the financing of biomass-fired power projects, specifically the risk associated with the size of the project and the debt-to-equity ratio. The speaker explains that lenders consider various risk factors, including fuel costs, when determining financing structures, and notes that riskier projects typically require a higher proportion of equity.
into small wind were reliable. 1 NSUARB-BRD-E-R.10 Page 225 So in the model that I developed, it 2 was just a little bit different than yours but it was 3 based on the same cost per kilowatt as the model that you 4 used, and I just drew up...
AI summary The text discusses a model for a small wind project, including assumptions about financing, such as the SDIF's investment capacity and the potential debt and interest rates for the project. The discussion includes a back-and-forth between individuals regarding the assumptions and financial structure of the project.
- SDIF how do you give some assurance to the Board that - there's going to be any money to distribute to the SDIF - shareholders because the government's assumption is that - this is going to work because they said it's going to - work. Bu...
AI summary The discussion centers on the Small Developer Incentive Fund (SDIF) and concerns about its financial viability. The speaker questions how assurance can be provided to the Board that SDIF will have funds to distribute to shareholders, noting the government's assumption that the SDIF model will work without proper analysis. The response highlights that private businesses cannot undertake wind projects without forming a SDIF, municipality, or Aboriginal band, with some exemptions granted through political lobbying.
- specifically for wind. Page 238 NSUARB-BRD-E-R.10 1 So the whole reason we're having this 2 hearing, in essence, is because the government said they 3 want to have projects built owned by SDIFs. And I don't 4 see in the modelling that I...
AI summary The discussion centers on the feasibility of Small Developer Incentive Fund (SDIF) projects for wind energy, with concerns raised about whether these projects can be financially viable. The speaker questions how confidence can be given to the Board that the proposed approach will work and not lead to financial issues.
probably produce projects, or we could bump the rates up 1 NSUARB-BRD-E-R.10 Page 239 much higher in an effort to be certain that we produce a 16 the work you've done because I think it's fundamentally 17 important? 18 MR. RICKERSON: I don...
AI summary The discussion centers on the return on investment for wind projects in Nova Scotia, comparing them to feed-in tariff rates in Vermont and SDIF models. Concerns are raised about the SDIF model's effectiveness and investor satisfaction.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS it. SDIFs are great." They've been holding, you know, 1 public information sessions before this hearing, but 2 analytically it seems to not necessarily work. 3 And I guess the next I just wan...
AI summary The discussion highlights concerns from the Aboriginal community regarding the feasibility of small-scale renewable energy projects in Nova Scotia, particularly regarding the cost of raising capital and the challenges faced by minority-owned projects. The speaker references a letter from Mr. Pynn and mentions the need to address these concerns in tariff modeling.
it's a matter of concern to the Board or to this panel. Page 256 NSUARB-BRD-E-R.10 1 policy has said quite clearly that 51 percent of a project 2 has to be owned by SDIF and that would and ownership 3 would mean common shares. 4 MR. OUTHOU...
AI summary The discussion highlights concerns regarding SDIF ownership requirements and the feasibility of small hydro projects in Nova Scotia. It notes that commercial-sized hydro projects have not been developed in recent decades due to environmental and regulatory factors, and questions the appropriateness of modeling larger hydro installations.
- the reality of what's possible to do here? - MR. KEITH : I guess I would say that - rather than simply establishing a higher tariff rate based - on a smaller project that the government should do one of - two things: Either test the mark...
AI summary The discussion revolves around the approach to setting feed-in tariff rates for renewable energy projects, with a focus on testing the market with a lower tariff rate or conducting a comprehensive resource assessment before setting rates based on smaller projects to avoid accusations of windfall profits.
we're actually not clear what government's ultimate plan Page 262 NSUARB-BRD-E-R.10 15 B-4, on page 20, the tariff rates in Ontario, B.C. and 16 Vermont are fairly consistent within several percentage 17 points among biomass, hydro, and la...
AI summary The discussion highlights concerns about the higher proposed rate for biomass electricity in Nova Scotia compared to other provinces. The speaker explains that the difference is due to the scale of projects in Nova Scotia, which are smaller than those in Ontario and Vermont, and the inclusion of grants or incentives in other provinces.
- respond with no necessarily caps on efficiency or - special investigations for biomass efficiency and so on. - MR. SIMPSON: To say that biomass - electricity is inherently more expensive than medium and - large-scale wind projects or is...
AI summary The discussion focuses on the relative cost of biomass electricity compared to wind projects in Nova Scotia. Mr. Simpson questions whether biomass is inherently more expensive or if the higher cost is due to local parameters, while Mr. Keith responds that small biomass projects are significantly more expensive than modeled large wind projects.
- MR. SIMPSON: So would you say, then, - that a project could be determined to be combined heat and - power if it has the potential to produce both electricity - and have a use for the heat that's produced? - MS. SHAW: It's an interesting...
AI summary The discussion revolves around the definition and implementation of combined heat and power (CHP) projects under renewable energy regulations. The participants express uncertainty about how to meet the legal requirements for CHP projects due to a lack of clear guidance from the provincial government.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. SHAW: I would say that that was 1 NSUARB-BRD-E-R.10 Page 273 outside of what we were asked to do, which was to come up 15 St. Francis Xavier about their load and what they were 16 looking...
AI summary The discussion centers on the setting of a rate to attract sawmills to invest in biomass energy projects, with the assumption that sawmills were the lowest-cost opportunity, though this may have been incorrect based on received evidence. The rate was benchmarked against other market data and is considered reasonable, despite conflicting feedback from stakeholders.
- risk associated with fuel. Page 282 NSUARB-BRD-E-R.10 1 MR. KEITH: Yeah. So I guess the 2 answer to your question is we didn't have the resources to 3 do a real study of biomass fuel supply, but the anecdotal 4 evidence that we did look...
AI summary The discussion addresses the risk of rising biomass prices due to a cap on new electricity generation from forest biomass, which limits the amount of biomass that can be used for renewable energy purposes. The cap is interpreted as a limit on demand rather than supply, which may affect biomass pricing.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. VOGEL : I'll try and be brief. 1 NSUARB-BRD-E-R.10 Page 285 THE CHAIR: No, I didn't mean to hurry 2 you. When he said he was through, I meant I thought he 3 meant both of you were through...
AI summary Mr. Vogel asks Mr. Rickerson about the importance of supplementary mechanisms like initial capital for community groups to participate in renewable energy projects, particularly in the context of feed-in tariff programs. He references the SDIF stakeholder group and COMFIT framework in Nova Scotia.
20110405-1Hearing Transcript — 4/5/2011 (Synapse Panel, ANSS Panel)
43 passages
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS You know, I'm a fisherman. You want 1 NSUARB-BRD-E-R.10 Page 301 to find good bait, you want to cast it out there and get 16 In preparation for the COMFIT contract 17 and this process, what p...
AI summary The text discusses the preparation process for the COMFIT contract, including reviewing regulations, documents from the Nova Scotia Government website, and models for feed-in tariffs. It also mentions stakeholder engagement and information conveyed between November and March.
ossible projects, the entities that might fall under the, you know, community definition and all the kinds of projects that would happen. And I don't think that's necessary to doing our task and doing DICTUM DIGITAL INC. CERTIFIED COURT RE...
AI summary The discussion focuses on identifying viable projects that align with regulations and the Renewable Electricity Plan, acknowledging that some projects may require additional policy attention beyond the COMFIT process.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. RICKERSON: A pull of capital. 1 NSUARB-BRD-E-R.10 Page 311 MR. CHRISTMAS: Okay. And a 22 percent adder on wind, on a large wind, which is in DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS...
AI summary The discussion centers on a 22% adder on wind projects, a quarter billion dollar loan guarantee program for Aboriginal projects, and a tariff set at $135 per megawatt (13.5 cents per kilowatt). The conversation also touches on the rationale behind government support for Aboriginal renewable energy programs and the feasibility of securing financing guarantees.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS The Renewable Electricity Plan talks 1 NSUARB-BRD-E-R.10 Page 321 about, you know, ways the Province could encourage 2 development, engage encouraging developers to engage 3 directly with the...
AI summary The discussion focuses on strategies to encourage renewable electricity project development, particularly involving engagement with the Mi'kmaq community and addressing financing challenges. It highlights concerns about setting tariffs too high, which could lead to increased costs and unfair advantages for certain projects.
Page 334 NSUARB-BRD-E-R.10 1 NSUARB-BRD-E-R.10 Page 329 specifically include those costs in the model, I think 2 this does get back to the issue we need to find a broad 3 representative rate, so similarly, there may have been 4 specific tr...
AI summary The discussion addresses the challenges of incorporating specific transaction costs into a model for setting representative rates, noting that certain costs, such as those related to forming cooperatives or SDIFs, were not specifically accounted for. The response highlights the government's plan to establish a planning group and develop financing tools to support community-based renewable energy projects.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS come in with probably 85 percent financing, which would 1 NSUARB-BRD-E-R.10 Page 335 throw that ratio off the mark. 2 MR. RICKERSON: I've answered this in 3 your testimony exhibits. 4 MR. CHR...
AI summary The text discusses a regulatory proceeding involving financing challenges for projects not meeting a 1.5 benchmark over a 15-year period. The discussion includes references to potential relief measures and the role of the NSUARB in the process.
Development Corporation? 1 Page 336 NSUARB-BRD-E-R.10 Minas Basin Pulp & Power? 1 economic benefit from that, both to generate 100 megawatts 2 of electricity that we're talking about to meet our 3 renewable energy targets and to have diver...
AI summary The discussion revolves around the role of the Nova Scotia Utility and Review Board (NSUARB) in setting tariffs based on regulations, and whether different rates should be set for various technologies to achieve policy objectives such as renewable energy targets and economic diversity. The Chair clarifies that the Board's role is limited to setting tariffs according to existing regulations, not advising on policy matters.
their size. 1 Page 346 NSUARB-BRD-E-R.10 MR. RICKERSON: Well, I think Halifax 13 MR. RICKERSON: No. 14 MS. ASHWORTH: From what I understand, 15 the Municipal Act states that there's a cap on borrowing 16 for each municipality, right? And O...
AI summary The discussion centers on municipal borrowing regulations under the Municipal Act and their implications for COMFIT participation. It also touches on access to capital for different groups and the effectiveness of feed-in tariffs in renewable energy development.
I don't think they have the information you want but you - can ask your question. - MS. ASHWORTH: Okay. I'm just - wondering if, yeah, tidal technologies and the state of - development that they're in would lead you to believe that - they...
AI summary The discussion revolves around the lifespan of tidal technologies and the implications of proposed return on equity rates for community members investing in renewable energy projects, such as co-ops or CEDIFs.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS individual shareholder is there some projection of how 1 NSUARB-BRD-E-R.10 Page 353 much that might result in for that individual? 2 MR. RICKERSON: I guess it goes back 3 to our discussion ye...
AI summary The text includes a portion of a regulatory proceeding involving the NSUARB, where a discussion takes place about the impact of a wind project on individual shareholders and the conversion of operating expenses to annual required revenues, referencing Exhibit C and the Renewal Electricity Plan.
an estimate, it's obviously going to vary - across a number of projects but the impact of that - DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS variable, if we change it on the entire rate, is going to - MR. ROSCOE: Okay. Well, I'm glad you...
AI summary The discussion involves a question about capacity factors for small and large wind turbines, with the speaker asking if the numbers in Exhibits I and J were derived from a comparative analysis of existing turbines in the area. The response indicates that the numbers were based on a wide range of data points.
- have any disagreement with. Page 372 NSUARB-BRD-E-R.10 10 difference between capacity of value and capacity factor 11 or that we couldn't read. 12 But at least at one point in Hatch 13 I'll quote, Hatch says that there are different in s...
AI summary The discussion revolves around capacity factors and their use in calculating wind power contributions to the system. The participants reference data from Hatch, which provides a range of capacity factors, and discuss using an average or mid-range value (around 31%) for modeling purposes. The significance of using gross versus net capacity factors is also raised.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS factor of one of their turbines whether they're talking Page 380 NSUARB-BRD-E-R.10 1 say, may want to have a chat about this. 2 MR. RICKERSON: I just with the 3 adjustment suggested of that g...
AI summary The discussion revolves around a rate adjustment calculation, with a 6% difference leading to a $36 per megawatt hour change. There is also a mention of small wind turbines and metering on the low or high voltage side, though details are not fully explored.
- was the 1.5 percent as well? Page 388 NSUARB-BRD-E-R.10 10 Atlantic Canada, so that you're relying on input on what 11 it could on the market could be, which is I'm not 12 saying that's wrong. I'm just saying that, to be clear, 13 there...
AI summary The discussion revolves around the lack of a viable market for financed renewable energy projects in Atlantic Canada, particularly small wind projects, and the reliance on developers' input to estimate market potential. Developers have faced challenges in securing debt financing, and the use of COMFIT projects with long-term power purchase agreements is highlighted as a necessary approach due to the absence of an established market.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS version of this exhibit, as an undertaking, we'd like to Page 406 NSUARB-BRD-E-R.10 1 instead of holding up the whole group. 2 Okay. MR. KEITH: 3 MR. DOEHLER: So if I understand, the 4 number...
AI summary The discussion revolves around the capacity factor (COMFIT) and the ability of different community groups, including municipalities and First Nations, to participate in the program. The witness explains that a representative midpoint was used to model participation, rather than considering each group's individual constraints. The conversation also includes an introduction from a representative of a wind energy company involved in projects in Nova Scotia.
- My questions are around some of the - areas where the experiences we had with watts differs from - some of the assumptions you've made in your model. - And Mr. Roscoe has covered some of - this, so I'll try not to duplicate anything but...
AI summary The discussion centers on the 15-year amortization period for large wind projects (above 50 kilowatts) and whether lenders support this range. While lenders indicated that terms between 12 to 20 years are possible, there was no explicit commitment to the 15-year term.
- could do? 1 Page 410 NSUARB-BRD-E-R.10 MR. RICKERSON: They didn't give me a 2 specific probability. 3 MR PYNN: No. 4 Like 90 percent, 75 MR. RICKERSON: 5 percent. 6 MR. PYNN: Okay. Because our 7 experience was that none of the lenders wo...
AI summary The discussion focuses on the challenges of securing financing for a renewable energy project, particularly the difficulty in obtaining 15-year amortization periods and the lack of agreement on interest-joined construction rates among lenders. The conversation highlights the practical experience of lenders and the adjustments made during stakeholder proceedings.
- Bloomberg New Energy Finance Index, turbine index. 1 Page 416 NSUARB-BRD-E-R.10 MR. PYNN: Okay. So you didn't speak 2 to any turbine manufacturers directly? 3 MR. RICKERSON: No, we didn't. Not in 4 terms of prices for 1.5 megawatt turbin...
AI summary The discussion revolves around turbine pricing for 1.5 megawatt turbines, with input from developers rather than manufacturers. It also touches on the potential need for more expensive direct-drive turbines due to voltage control issues on the distribution system.
trouble sourcing the largest turbine manufacturers like GE or Siemens. But that said, especially with community wind
AI summary The text mentions difficulties in sourcing large turbines from manufacturers like GE or Siemens, but also references community wind projects, indicating potential interest in local or community-based energy initiatives.
overall efficiency of 28 percent, and I would have 1 Page 434 NSUARB-BRD-E-R.10 difficulty recommending that that project be allowed to 2 sell electricity on a tariff that was for combined heat 3 and power. 4 And another factor is that the...
AI summary The text discusses concerns regarding the efficiency of a biomass-to-electricity project at 28%, which increases fuel costs compared to a combined heat and power (CHP) facility operating at 60% efficiency. This raises questions about the financial viability and the justification for higher electricity costs.
projects, the kind of projects that no one's really seen - before. - And so that it was we felt it was a - good place to start. - MR. DOEHLER: And you realize of - course Heritage Gas has a rather large revenue deficiency - account which i...
AI summary The discussion revolves around the challenges of defining and categorizing small wind energy projects, particularly those below 50 kilowatts, and the uncertainty surrounding the Heritage Gas rate as a starting point for future projects.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS So if someone has a field of four 12 1 NSUARB-BRD-E-R.10 Page 449 and a half kilowatts is that or let's say a field of 2 four 15 kilowatts is that a 50 kilowatt project or a 60- 3 kilowatt pr...
AI summary The discussion revolves around the rate-setting for COMFIT projects, specifically whether a 50-kilowatt project refers to a standalone turbine or an aggregation of smaller turbines. There is uncertainty about how the government intends to apply the rate and whether it can account for project aggregation in the rate structure.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS And, again, that's when people 1 NSUARB-BRD-E-R.10 Page 469 recommend setting a tariff that's going to be applicable 2 to any number of projects based on an analysis of a 3 specific project a...
AI summary The discussion focuses on setting a tariff for renewable energy projects, emphasizing the need to avoid windfall profits and ensuring a reasonable number of viable projects. The speakers caution against overly specific rate-setting methods and highlight the importance of creative financing and market mechanisms in managing risks and encouraging investment.
money into these projects. We need a few. 1 of the questions that went to you know, this particular 2 entity would be hesitant to get involved in it or this 3 other entity would need 17 percent return. It so what? 4 What we really need is...
AI summary The discussion revolves around the need for viable investors, project developers, and lenders to support renewable energy projects. There is a mention of financial models and allocation methods, with some stakeholders questioning the use of incremental costs and suggesting a 50/50 split instead.
- What I'm looking for advice is on what the tariff should - say. - MR. RICKERSON: Given that we've - talked about testing the market, I think maybe after a - year to 18 months might not be bad. But then going - forward maybe once every ye...
AI summary The discussion focuses on the frequency of tariff reviews for different energy technologies, with suggestions ranging from annual to every two years, and considerations about the complexity of various technologies like wind and tidal.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS it's costing everybody to be here, including you guys. 1 NSUARB-BRD-E-R.10 Page 481 MR. BIEWALD: Understood. And there's 8 that they can be more persuasive in a year and half's time 9 too. 10...
AI summary The discussion centers on the limitations of a 100-megawatt cap and the potential for developing renewable energy projects, as well as a reference to Section 4(a)(iv) of the Act regarding tariff-setting duties. The conversation involves multiple participants and touches on regulatory procedures.
- tariff. Page 490 NSUARB-BRD-E-R.10 21 MR. RICKERSON: Yeah. For others, I'm 22 sorry, I don't have them with me. DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Page 494 NSUARB-BRD-E-R.10 1 MR. KEITH: Yes. 2 MR. DEVEAU: And I'm just wonderi...
AI summary The discussion centers on the source of a policy related to biomass usage, referencing the Renewable Energy Plan and Section 8 of the Regulations, which imposes a cap of 500,000 dry tonnes on biomass. The conversation explores whether this cap is intended to encourage efficient use of biomass resources.
Page 510 NSUARB-BRD-E-R.10 reasonably expect to get land donations or charitable donations. And we thought that it well, it didn't get us to the 100 megawatts of potential capacity. Otherwise, if there were that level of altruism, 100 mega...
AI summary The discussion revolves around the challenges of securing land and charitable donations for renewable energy projects, particularly in the context of the COMFIT rate and its impact on community willingness to donate. There is also a mention of cost considerations for different types of energy projects, including biomass, wind, and hydro, with varying amounts allocated for development and environmental costs.
- witnesses, please. Page 516 NSUARB-BRD-E-R.10 1 THE CHAIR: Sure. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1 NSUARB-BRD-E-R.10 Page 517 MR. FENTON TRAVIS, Affirmed: 2 MR. PATRICK HAYES, Affirmed: 3 MR. JEFFREY BODINGTON, Aff...
AI summary The document contains a portion of a regulatory proceeding in Nova Scotia, featuring the examination of Mr. Patrick Hayes by Ms. Rubin. Hayes is being questioned about his qualifications and his role in preparing a biomass CHP plant facility study based on the Synapse report.
- concerning power and pipeline projects. Page 524 NSUARB-BRD-E-R.10 1 MS. RUBIN: And then in 1990 and to 2 the present you founded and you are the President of 3 Bodington and Company? 4 MR. BODINGTON: Yes. 5 MS. RUBIN: And what is what d...
AI summary The text discusses Mr. Bodington's background with Bodington and Company, an investment banking firm specializing in power projects, including biomass, natural gas, and combined heat and power (CHP). He has been involved in over 400 power projects, with more than 20 being biomass-related.
B-15. Page 530 NSUARB-BRD-E-R.10 1 Do you adopt that evidence as true and 2 correct? 3 MR. TRAVIS: I do. 4 MS. RUBIN: Mr. Chair, Mr. Travis has 5 an opening statement for the panel. And I do have copies; 6 I've provided them to Ms. Bonang....
AI summary The Alliance of Nova Scotia Sawmillers (ANSS) provides an opening statement regarding the development of biomass combined heat and power projects, emphasizing the need for a rate set during the hearing that encourages reasonable development activity. They reference the COMFIT rate-setting process and question whether the proposed rate by UARB consultants will allow project construction.
Page 540 NSUARB-BRD-E-R.10 1 don't understand the question. 2 MR. LIVINGSTON: I believe that the 3 regulations in their final form determined that sawmillers 4 and biomass and tidal did not could get the a feed 5 in tariff rate that the Bo...
AI summary The discussion centers on the regulatory treatment of biomass and tidal energy projects, specifically how they differ from wind and hydro projects. The argument is made that sawmills, being integral to local communities, should be included in certain programs, and that these projects can be financed with 100% equity.
- so we'll have to test the market on that. - MR. BODINGTON : I will add to that - that many of the biomass plants which we have been - involved with that are up and operating had been financed - with 100 percent equity. So from my experie...
AI summary The discussion revolves around the financing of biomass plants, with Mr. Bodington asserting that many U.S. biomass plants are financed with 100% equity. Mr. Livingston questions whether these examples are relevant due to differences in U.S. tax laws, specifically investment tax credits for renewable energy.
risk profile is driven by fuel; having to get it, having to burn it, and all the issues related thereto. Those fundamental risk issues are what drive and the size in the case of a small project, financing to 100 percent equity. The 30 perc...
AI summary The discussion focuses on the risk profile of energy projects, particularly how fuel-related risks influence financing decisions. It highlights that in the absence of tax incentives, Canadian investors may need to rely more on equity, increasing project costs but not necessarily making them unfeasible.
which exists in the States? Page 544 NSUARB-BRD-E-R.10 9 negotiating amongst various parties. 10 Now, when it comes to a structure that 11 would involve, let's say, 51 percent ownership, I won't 12 dismiss that as impossible and I will giv...
AI summary The text discusses the structure of ownership and control in biomass CHP projects, particularly how a 51% ownership structure can be managed through contractual agreements, such as unanimous voting rights in an LLC, to ensure shared control and prevent unilateral decisions.
- sawmill this plant can get a true FIT. - I'm not clear on if it has to be - locally owned or not, first of all. So are you do you - have any clarity about that? - MR. TRAVIS : No, I'm not sure what the - ownership requirements are in ter...
AI summary The discussion revolves around the eligibility of a sawmill for a FIT or COMFIT, with uncertainty about ownership requirements and potential risks if a foreign entity owns the plant and receives a special feed-in tariff.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS set by the Board; is that possible the way you see it? 1 NSUARB-BRD-E-R.10 Page 549 MR. TRAVIS: Well, no. I mean, we 4 your view, do you feel that the support for the forest 5 products indust...
AI summary The discussion revolves around the setting of tariff rates for biomass electricity in Nova Scotia, with a focus on whether the support for the forest products industry should influence these rates. The respondent, Mr. Travis, argues that tariff rates should be based on cost and a reasonable return, rather than industry-specific considerations.
- explain exactly what you mean. I'm assuming that you're 1 Page 574 NSUARB-BRD-E-R.10 saying that that price of a non-renewable, a fossil fuel, 2 is going to go up over time. And are you basically 3 you're saying that that same sort of tr...
AI summary The discussion focuses on the price trends of fossil fuels and biomass, highlighting the volatility of biomass prices due to market forces and harvesting limits, contrasting it with the finite nature of fossil fuels. The conversation explores whether biomass can be considered a renewable resource and the potential for supply-demand imbalances.
demand is more than what you can go out and cut. Page 576 NSUARB-BRD-E-R.10 1 MR. TRAVIS: No, that's not what we're 2 saying. 3 MR. SIMPSON: Right. So we would 4 agree that there's 5 MR. TRAVIS: We can only there are 6 only going to be so...
AI summary The discussion centers on the limitations of biomass energy production in Nova Scotia, comparing it to sustainable harvesting practices in the forest products industry. It highlights the balance between supply and demand, and questions the definition and functionality of CHP systems in industrial settings.
- only running two out of 12 months like that. 1 MR. SIMPSON: This is my final 2 question here. 3 In your evidence, you state that from 4 an environmental perspective these projects should be 5 encouraged to produce as much energy as they...
AI summary Mr. Simpson questions the environmental perspective of encouraging biomass-generated energy projects, suggesting a potential conflict with the environmental community's stance in Nova Scotia. Mr. Travis references a letter to Synapse, explaining that biomass energy should be encouraged regardless of efficiency, with the ultimate goal of reducing fossil fuel use.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS or in their countries whereby they're going to increase 1 their biomass electricity usage by 95 percent by 2020 in 2 their plants. 3 Now, it's not to say that they're 4 definitely going to be...
AI summary The text discusses the increase in biomass electricity usage by 95% by 2020 as required by the European Union, and there is disagreement over the environmental benefits of biomass-generated electricity. The Nova Scotia Utility and Regulatory Board (NSUARB) acknowledges that biomass is classified as renewable under provincial regulations, despite differing scientific opinions.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS know, you'd be maybe looking at four of six of us that 1 would be capable of at that rate that would be it 2 would make economic sense for us to do so. 3 MR. McGRATH: And are there other 4 sa...
AI summary The text discusses a regulatory proceeding involving Nova Scotia Power and the Nova Scotia Sustainable Electricity Alliance, with a focus on the number of sawmills capable of generating electricity through combined heat and power (CHP) systems, and references financial market experience and evidence submitted by the Ecology Action Centre and NovaSea.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS some cases you have to a million dollars on a system NSUARB-BRD-E-R.10 Page 615 impact study, you can identify these kinds of constraints 7 MR. BODINGTON: Go ahead, and then 8 I'll say some m...
AI summary The discussion highlights the challenges faced by developers in securing financing for biomass CHP projects, emphasizing the need for pre-financing evaluations and permits. It also contrasts the risk profiles of regulated utilities and biomass CHP projects, noting higher equity rates required for the latter.
20110406-1Hearing Transcript — 4/6/2011 (ANSS Panel, St. Francis Xavier Univ, Consumer Adv. Panel)
43 passages
hand that I was supposed to assume that it was non- NSUARB-BRD-E-R.10 Page 631 16 of a generic biomass generation 17 facility for the Alliance." 18 MR. HAYES: Yes, sir. 19 MR. OUTHOUSE: Now, I'm just 20 interested in the term "generic." 21...
AI summary The discussion revolves around the assumption of a biomass generation facility being a brownfield project rather than a greenfield project, with specific considerations regarding steam pressure, infrastructure, and compliance with Canadian boiler code and ABMA standards.
recourse financing. Page 638 NSUARB-BRD-E-R.10 20 They've been unable to arrange any debt. That escalator 21 is viewed as a good thing but insufficient to cover fuel 22 risk. 1 Page 644 NSUARB-BRD-E-R.10 MR. HAYES: And I think we've 2 disc...
AI summary The discussion revolves around the challenges of arranging debt for projects due to the lack of a fuel escalator in the rate structure, which increases fuel risk for investors. This has led to project cancellations, as seen in the Vermont Biomass Tariff example, where no fuel escalator exists.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS businesses are here and employ people here and are 1 resident of Nova Scotia. I'm sorry, in that way I was 2 under the impression that's why it's considered community 3 or regional or local,...
AI summary The text discusses a conversation in a regulatory proceeding involving the eligibility of community organizations to participate in a biomass combined heat and power (CHP) tariff, and mentions an exemption successfully lobbied for by an organization to allow sawmills and companies to engage in CHP projects.
- lower. 1 Page 660 NSUARB-BRD-E-R.10 My response to that would be because 2 somebody looked at actual costs and determined what the 3 actual numbers needed to be. 4 And I'm not advising you that that's - 5 - that this is what you should p...
AI summary The speaker argues that Synapse's capital and operating cost estimates for a biomass project are unrealistic, citing the speaker's experience in building cost-effective biomass plants recognized internationally. The speaker emphasizes that the estimates do not align with actual project costs.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS They basically walked away from their 1 NSUARB-BRD-E-R.10 Page 663 original PPA, which they did sign with OPA, or they agreed 2 to with OPA. 3 THE CHAIR: But what you're telling me 4 is these...
AI summary The discussion revolves around the challenges of building power plants, with the argument that governments in certain jurisdictions are incentivizing projects outside of ratepayer cost considerations. A specific example is given of a 70-megawatt CHP plant in British Columbia with an adjustment mechanism to ensure ratepayers pay a flat rate.
- basically set a rate which would be tracked and would be - paid for the benefit of having renewable energy. - And that project was moving forward. - I think everyone was excited about that one until the - sawmills closed down because the...
AI summary The discussion references a past renewable energy project impacted by the 2008 economic downturn and current biomass plants with power purchase agreements tied to adjustable fuel mechanisms. The speaker notes that smaller facilities face higher rates due to scale, as regulated by existing policies.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS don't know because it's got to be cost based. I mean, 1 NSUARB-BRD-E-R.10 Page 665 you've got to protect both the ratepayer and the entity 2 building it because they're local and you want to...
AI summary The discussion revolves around the challenges of balancing ratepayer affordability with the needs of developers in a standalone grid system. It highlights the complexity of assessing the impact of small-scale generation projects on the overall rate base and the need for a cost-based approach to ensure fairness.
going to be to the ratepayer. 1 And I think that's I mean, if you 2 were asking my unsolicited opinion that's how I think 3 you'd do the analysis. 4 MR. TRAVIS: Mr. Chairman, I would 5 just add to that that it's really not a whole lot 6 di...
AI summary The discussion revolves around the cost implications of different energy technologies, including biomass, tidal, and small wind, with emphasis on the higher costs and challenges associated with these technologies. The impact of biomass CHP projects on rates and financing complexities is highlighted.
developer in the last three months and they told me that NSUARB-BRD-E-R.10 Page 671 1 MR. OUTHOUSE: At this time? 2 MR. HAYES: Yes. 3 MR. OUTHOUSE: Are they one of the 4 ones that's looking for the grant? 5 MR. HAYES: They are one of the o...
AI summary The conversation discusses a developer's attempt to secure a grant for a project, but they are unable to proceed due to an inability to raise equity under their current PPA. The discussion also references other companies involved in similar situations, though some are not directly involved.
- about that because you did use a large company. 1 Page 678 NSUARB-BRD-E-R.10 MR. BODINGTON: AES is one of the 2 largest in the world independent power companies. 3 MR. OUTHOUSE: So in calculating this 4 enterprise ratio you indicated tha...
AI summary The discussion involves Mr. Bodington explaining his use of a 5 enterprise ratio for a 2-megawatt biomass CHP project, noting that smaller companies typically sell for lower enterprise ratios. He justifies using 5 instead of 5.7, citing the impracticality of using a lower ratio for calculation purposes.
need? 1 NSUARB-BRD-E-R.10 Page 681 minutes. 21 mill who has a need, obviously, for some electricity and 22 some steam, and it has a certain existing facility which DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS 1 it's unhappy with. So it's...
AI summary The text discusses a scenario where a sawmill is considering building a new system to generate electricity, which it can sell back to the grid at a higher price than it can buy from the grid. The discussion raises questions about whether the benefits of this new system, such as improved efficiency and cost savings, should be considered when determining the cost of capital for the project.
MR. OUTHOUSE : Are you suggesting the NSUARB-BRD-E-R.10 Page 691 1 looks for 10 or $15 million. Are you suggesting that the 2 bank looks through JDI at the project and says, "We're 3 going to charge you X, 17.5 percent for the loan on that...
AI summary Mr. Outhouse questions whether a bank would charge a high interest rate for a 2-megawatt project, to which Mr. Bodington responds that banks would require additional recourse and ensure repayment from other business ventures if the project fails. He emphasizes that this is not speculation but based on standard lending practices.
MR. TRAVIS : Page 1, yeah. 1 Page 696 NSUARB-BRD-E-R.10 MR. OUTHOUSE: And you indicate in the 2 last paragraph on page 1 that you have recently had 3 experiencing managing the development of the 25-megawatt 4 biomass power plant intended t...
AI summary Mr. Travis discusses the development of a 25-megawatt biomass power plant in New Brunswick, developed by Marwood, which was a standalone project not tied to any existing operations. He mentions the attractive electricity market price of around 5.2 cents per kilowatt hour at the time.
around somewhere in the 14 cent range. 1 Page 698 NSUARB-BRD-E-R.10 export? 2 MR. TRAVIS: That's correct. 3 MR. OUTHOUSE: And the other project 4 that you refer to at the bottom of the page, there's the 5 one here in Nova Scotia 6 MR. TRAV...
AI summary The text discusses a conversation between Mr. Travis and Mr. Outhouse regarding Marwood's projects, including a bio-energy project in New Brunswick and a torrefaction process that converts green chips into a coal-compatible product. The conversation also mentions Marwood's manufacturing sites and its family-owned status.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS include the purchase of that parasitic power load. And so 1 I just put that caveat to that. 1 Page 714 NSUARB-BRD-E-R.10 biomass rate in North America today that is $320 or 2 anything approac...
AI summary The discussion revolves around biomass CHP rates and PPAs, with participants debating whether there are biomass CHP rates higher than the Synapse rate in North America. It is noted that while some PPAs are higher than the Synapse rate, no tariffs are known to be higher.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS the wood fibre. NewPage, as an example, is going to 1 NSUARB-BRD-E-R.10 Page 735 construct a 60-megawatt power plant, and they're going to 16 basis, that's absolutely correct. The larger you...
AI summary The discussion centers on the efficiency and cost implications of constructing a large-scale power plant, with emphasis on how increasing scale reduces cost per megawatt. It also touches on the impact of small CHP components in larger facilities and the trade-offs between thermal efficiency and cost benefits.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. MERRICK: Do you know whether the 1 university pays less than market debt depending on the 2 project? 3 MR. COADY: No, I do not. 4 MR. MERRICK: Do you know if on 5 occasion the university...
AI summary The discussion revolves around financing methods used by the university, including debt and fundraising, and Mr. Coady's involvement in a combined heat and power project at the university. He explains his personal interest in the project and his role in representing St. F.X. at the hearings.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS lay of the land was that Antigonish District Heating 1 Limited owned and operated that facility and St. F.X. 2 would be a steam host only. 3 But those were never substantially 4 tested becaus...
AI summary The text discusses the Antigonish District Heating project, which faced push-back from utilities due to concerns about existing capacity in the province. The project's development was hindered by technical challenges and financial considerations, including discussions with banks regarding debt financing and cost of borrowing.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS that got that changed into a feed-in tariff which removed 1 NSUARB-BRD-E-R.10 Page 779 the CEDIF restrictions. I just wondered if you or the 10 submitted those into our own model which we was...
AI summary The discussion revolves around the use of a CBCL model for rate derivation and the submission of evidence related to a biomass CHP plant. The original evidence included an EPC contract and capital and O&M costs, while financing assumptions were taken from Synapse's model.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS million BTU, if I understand it Page 792 NSUARB-BRD-E-R.10 16 financing arrangements much more complicated. 17 And if you're ever at risk of losing 18 your COMFIT, you're in trouble. And we b...
AI summary The testimony discusses challenges in financing renewable energy projects at universities, particularly the risk of losing COMFIT (Cost-Benefit and Compliance Laboratory) and the difficulty in finding other universities with similar interests to participate in the proceedings.
- other universities have found long-term energy solutions, - which is what this is all about, long-term energy - solutions in metro using natural gas. Both of the - universities there have systems now comparable to this - co-gen. - There...
AI summary The discussion highlights the potential for universities in Nova Scotia to adopt long-term energy solutions, including combined heat and power (CHP) systems, biomass-fired boilers, and wind turbines. The conversation notes that some universities are already implementing similar technologies, while others have not yet participated in such initiatives.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS energy problems, which most of them had. And St. F.X. has 1 Page 798 NSUARB-BRD-E-R.10 we've looked at that. We are going to move the plant out 6 MR. CHERNICK: Yes. My name is Paul 7 Chernick...
AI summary Paul Chernick, President of Resource Insight Inc., is testifying as a consultant for the Consumer Advocate in Nova Scotia. He has over 30 years of experience in utility regulation, including setting rates for renewables and co-generators, and reviewing power purchase agreements from both consumer and developer perspectives.
Page 812 NSUARB-BRD-E-R.10 NSUARB-BRD-E-R.10 Page 813 10 I how can you justify that not in a rich economy kind 11 of thing? 12 MR. CHERNICK: Well, when you talk 13 about a lower return, if we're talking about getting a 6 14 percent return...
AI summary The discussion centers on the justification for a lower return on investment in a community renewable project, particularly for those without financial means or skills. It highlights the importance of community support and the challenges of engaging communities with limited resources in renewable energy initiatives.
- should be refashioned into sort of community-flavoured - commercial FIT that Synapse assumes. - A related issue is what kind of goals - there are for the COMFIT program. And I think a number of - times on the stand Synapse expressed thei...
AI summary The text discusses the COMFIT program and its goals, including a reference to a 100-megawatt objective for community/small-scale renewable electricity projects. It notes that Synapse has assumed a commercial FIT model and that the 100-megawatt target may include projects beyond COMFIT, with existing projects already contributing to this goal.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS So the province is a large way towards 1 that objective if the objective is just what is written 2 down there already, and with net metering and other 3 programs, including continued RFPs, mo...
AI summary The speaker argues that the province is making progress toward its energy goals through existing programs and net metering. They also suggest that requiring a COMFIT to produce 100 megawatts is overly restrictive and express hope for community-led projects. The discussion also addresses the issue of regulatory arbitrage, noting that it is not a concern in Nova Scotia due to limitations on small wind projects.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS large reserve requirement, which even if you assume that 1 NSUARB-BRD-E-R.10 Page 831 the reserve requirement is financial reserves have to 2 be as large as he says they do, he assumes an amo...
AI summary The text discusses a reserve requirement and its financial implications, pointing out errors in assumptions regarding amortization and debt-related reserves. It also references project contracts and capital costs associated with a CEDIF and NSPI, highlighting discrepancies in financing assumptions.
that the project accepted a contract from NSPI at about $127 a megawatt hour, which is considerably lower than - also higher than Synapse's assumption. - If you just plug those two numbers - into the Synapse model, I get a total pre-tax re...
AI summary The text discusses a project contract with NSPI at a rate of $127 per megawatt hour, which is lower than Synapse's assumptions. It estimates a pre-tax return on investment of about 8 percent, with potential higher returns after tax credits. Concerns are raised about the accuracy of reported wind capacity factors, which could impact investor confidence.
- And the capacity factors that I Page 834 NSUARB-BRD-E-R.10 1 reported in my evidence were those that had been accepted 2 by NSPI and used by the company in figuring out whether it 3 was meeting its requirements for renewable energy. 4 TH...
AI summary The text discusses capacity factors used by NSPI in determining compliance with renewable energy requirements. It also includes a cross-examination where the difference between FIT and COMFIT is clarified, noting that COMFIT is limited to community organizations.
within a community. 1 Page 842 NSUARB-BRD-E-R.10 And within the definitions of this 9 community effort or community project versus the actual 10 rules and structure around what the government is 11 proposing that these projects work under,...
AI summary The discussion centers on the structure and ownership of community projects under Nova Scotia's CEDIF framework. The speaker argues that while CEDIF is an option, municipalities, non-profits, and other entities can also own such projects, and clarifies that the regulations do not limit ownership to CEDIF structures.
- But you're assuming in one way that - communities working together have a higher efficiency and - lower cost than, let's say I mean, I'm President of a - CEDIF, so I have experience with that. I'm also trying to - be a private developer...
AI summary The speaker challenges the assumption that community groups can achieve lower costs than private entrepreneurs in energy projects, arguing that communities may need to hire expensive engineering firms, unlike experienced entrepreneurs who may have in-house capabilities.
se, have a certain - capability to do that study. - So I don't understand where the basis - for you making assumptions on lower cost really come from - because they don't seem to be based in any fact. - MR. CHERNICK: Well, obviously the -...
AI summary The discussion focuses on the feasibility of community involvement in renewable energy projects, with concerns raised about the basis for assumptions regarding lower costs. The speaker argues that community support can provide advantages such as funding and resources, while the other party questions the validity of these assumptions and references the CEDIF and its commission structure.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Commission has. In fact, if they consider, let's say, the 1 NSUARB-BRD-E-R.10 Page 853 CEDIF group in some way to be too close as the developer 9 mention the Hatch Report. 10 I'm a little bit...
AI summary The discussion revolves around the capacity factors of wind units owned by or selling to NSPI, with a reference to the Hatch Report and a disagreement with Synapse's use of lower capacity factors. The speaker suggests that developers are improving in identifying good wind sites, leading to higher capacity factors in newer units.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS that to my knowledge, at least, all the previous wind 1 NSUARB-BRD-E-R.10 Page 861 project CEDIFs haven't returned haven't made dividends 2 to their shareholders so that, in effect, there's w...
AI summary The discussion highlights concerns about the lack of returns from renewable energy CEDIFs in Nova Scotia, creating a negative business climate for investment. The witness also questions the feasibility of municipalities investing in CEDIFs, suggesting legal challenges may exist.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS On page 15 in line 9 to 11, you 1 suggested that lower interest rates are available than 2 what a number of parties have brought forward and Synapse 3 has brought forward, and also the equity...
AI summary The discussion centers on the availability of lower interest rates for renewable energy projects, with arguments that investors who support such projects may be willing to accept lower returns compared to market rates. The speaker references CEDIFs raising equity at rates below 10 percent and suggests that community-supported projects may attract investment at lower returns due to their environmental and cultural benefits.
it would at 17 percent? It would reduce the four - percent to 3.4 percent or something like that. - MR. LIVINGSTON: And are you you - may or may not have been at the hearing, but I think at - the biomass hearing last year for NewPage Port...
AI summary The discussion revolves around the potential impact of small wind projects on Nova Scotia Power's renewable standards compliance, with Mr. Livingston questioning Mr. Chernick about Nova Scotia Power's previous skepticism regarding these projects, as expressed by Robin McAdam.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS is, if I were to tell you that I agreed with Mr. Pynn's 1 NSUARB-BRD-E-R.10 Page 883 comment that outside equity is looking for in the range of 12 you want to direct me to something? 13 MR. V...
AI summary The discussion revolves around the Nova Scotia Utility and Review Board's consideration of changes to wind and tidal energy tariffs. The conversation questions whether the proposed rate design, which would pay more for smaller turbines, is cost-effective and whether the evidence supports such changes.
So you're not going to have the system running amuck. 1 Page 892 NSUARB-BRD-E-R.10 either using the kind of approach I laid out or the one 2 that E3 Analytics laid out and you're wrong about the 3 shape, then you could wind up giving devel...
AI summary The discussion highlights concerns about the design of a capacity and energy rate structure, emphasizing the need to avoid incentives that could lead to inefficient project sizes. The speaker suggests careful consideration in tariff design to ensure smaller projects remain viable and avoid disparities in pricing across different sizes.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS whether these turbines last 20 years or less, five years, 1 the ones that would be installed in the next few years are 2 basically loss leaders. They're demonstration projects. 3 And Nova Sco...
AI summary The discussion highlights concerns about the profitability of tidal energy demonstration projects in Nova Scotia, suggesting that lower rates could attract equipment developers. It also raises issues about distribution zone capacity constraints and the need for transparency in interconnection processes.
- total gigawatt hour sales? - MR. CHERNICK: Well, I did the - calculations of what would happen at various megawatt - penetrations for various technologies at Synapse proposed - rates and at my proposed rates. Obviously it's less than - w...
AI summary The discussion focuses on the potential employment benefits of the Community Feed-in Tariff program in rural Nova Scotia, with Mr. Chernick noting that some installation and maintenance work may be done locally, while other tasks may require specialized personnel.
- the policy level that that trade off is worthwhile. And - I'm I am not in the position to substitute my judgment - for that of the government. - On the tidal, getting some small - amount of expensive tidal development installed and - rai...
AI summary The speaker discusses the potential benefits of tidal energy development in Nova Scotia, suggesting a cap on total investment to ensure cost control. They also note that large wind projects are treated differently in procurement processes and highlight the importance of cost-effective project implementation.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS whether it's a 2-megawatt unit on one hill and a 2- 1 megawatt on another or 10 2-megawatt units in the same 2 windy rural location, I think the benefits for the 3 community would be very sim...
AI summary The speaker discusses the potential benefits and costs of different renewable energy projects, including small hydro and biomass, noting that while there may be some community benefits, there are also environmental and economic trade-offs. They express uncertainty about the viability and impact of these projects.
- So you'd suggested as alternatives - also Labrador Hydro and NSPI construction. If you were - requested to do so, could you provide capital cost - information with regards to these suggestions, in - particular Labrador Hydro, in comparis...
AI summary The discussion revolves around alternative energy projects, including Labrador Hydro and NSPI construction, with a focus on capital costs and the exclusion of new coal plants as alternatives. The conversation also touches on the phase-out of existing coal plants.
- MR. VOGEL : Almost you did leave - out some stakeholder groups. - MR. CHERNICK: And I don't know - anything about co-operatives and not-for-profits. - MR. VOGEL : The biomass CHP. - MR. CHERNICK: They I think that - varies dramatically....
AI summary The discussion highlights concerns about stakeholder participation in biomass CHP projects, with some groups facing difficulties while others may proceed if given a high enough rate. The conversation also touches on the potential challenges faced by First Nations in participating due to other factors.
20110407-1Hearing Transcript — 4/7/2011 (Consumer Adv. Panel, Cdn. Wind Energy Panel, EAC - T. Couture)
51 passages
April 7, 2011 Questions from Mr. Doehler 1014 Questions from Mr. Deveau 1017 Questions from The Chair 1022 Further Cross-Examination by Mr. Outhouse 1029 Further Cross-Examination by Mr. Reynolds 1035 Further Cross-Examination by Mr. Towse...
AI summary The text outlines various documents and proceedings from April 4 and April 7, 2011, including questions from individuals, cross-examinations, and submissions related to energy and regulatory matters. These include work papers, contracts, and policy guides.
April 7, 2011 U-14 To provide the success rate of the RFP Projects (NSPI); also to indicate which Mr. Chernick understands failed and to identify which projects were completed by NSPI 975 U-15 To confirm from data on Capacity Factor from N...
AI summary The document outlines various matters under consideration by the NSUARB, including the success rate of RFP Projects, the availability of capacity factor data for Nova Scotia, and the Spanish Biomass fuel price adjustment clause. It also includes procedural details and participant interactions during a hearing.
them. 1 Page 918 NSUARB-BRD-E-R.10 MR. MORIN: No, I wanted to just point 2 out three of those requirements as relevant to the 3 discussion this morning. 4 One is the requirement for a business 5 case that's viable, and part of that is unde...
AI summary The discussion centers on the requirements for a viable business case for tidal energy projects, including community support and development costs. The participants acknowledge the need to understand the specific financial and regulatory challenges associated with tidal energy, such as permitting and licensing differences compared to other renewable projects.
- successful is the amount of huge amount of volunteer - time. We all serve as Board members with corporate - expertise, community expertise, travel, conferences. It's - been five years to get to today and setting these rates. - And it is...
AI summary The speaker discusses the challenges of hitting hard costs, including development and capital costs, which exceed community contributions. They also mention the importance of advocacy and policy making to ensure communities can own their resources, and highlight the complexity of tidal energy site determination compared to wind energy.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Christmas' point, it is in our budget today, a Mi'kmaq 1 ecological knowledge study. Not particularly relevant to 2 the other classes under this COMFIT; maybe large wind. 3 So those costs are...
AI summary The discussion revolves around the development costs of tidal and large wind energy projects, particularly the challenges of in-kind support and the need for specialized equipment. The speaker acknowledges that tidal energy may not benefit from the same level of community in-kind support as large wind energy due to its unique requirements.
DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS ultimately comes from the manufacturer who'd be using the 1 NSUARB-BRD-E-R.10 Page 927 COMFIT structure as a way of testing and demonstrating the 2 technology and being able to say we've instal...
AI summary The discussion revolves around the COMFIT structure as a method for testing and demonstrating renewable energy technology, with a focus on community partnerships and commercial viability. The conversation also touches on ownership and financing arrangements for renewable energy projects.
- so more a comment than a question. I believe that that - statement doesn't hold. - Page 17 and 18, under "Reality Check" - we have the section on comparing tidal rates to previous - Nova Scotia Power RFP processes which is not possible w...
AI summary The discussion revolves around the inapplicability of comparing tidal energy projects to Nova Scotia Power's historical RFP processes for large wind projects. The participant confirms that the previous comments were specific to large wind and not tidal energy. Nova Scotia Power is expected to initiate a feed-in tariff process for tidal initiatives in Minas Passage.
Nova Scotia Power. Page 930 NSUARB-BRD-E-R.10 1 Most of the projects which are to come 2 have either recently or are to come online with Nova 3 Scotia Power are in areas of the province which are noted 4 for their high capacity factor. 5 I...
AI summary The discussion centers on the capacity factors of wind energy projects in Nova Scotia, with concerns raised about whether projects in high-capacity areas may distort evidence and affect the relevance of proposed adjustments. The Hatch Report is referenced, noting that no regions have lower capacity factors than estimated by Synapse. A trade-off between resource distribution and efficiency is highlighted, and the use of COMFIT for certain projects is mentioned.
to be overpaying for the wind projects in the very best 1 Page 938 NSUARB-BRD-E-R.10 MR. TOWSE: I would agree that that's 2 not the purpose of the COMFIT, and I would also agree that 3 a capacity factor of 31 percent doesn't allow you to b...
AI summary The discussion revolves around the Community Feed-in Tariff (COMFIT) program and concerns about whether proposed adjustments to capital rates for wind projects are reasonable, particularly in relation to capacity factors and debt availability. The speaker disagrees with the argument that a low debt rate of 6% is reasonable for these projects.
- that kind at that kind of level. 1 Page 942 NSUARB-BRD-E-R.10 When something outside of their core 7 going to be the major driving force behind financing these 8 projects I would have said you would have 100 percent debt 9 at 6 percent....
AI summary The discussion revolves around the financing of renewable energy projects, with a focus on the debt/equity ratios and the potential for community members or institutions to provide debt outside traditional financial institutions. The conversation includes estimates of capital requirements and debt levels for large-scale projects.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. TOWSE : Thank you. Thank you for 1 Page 950 NSUARB-BRD-E-R.10 MR. CHERNICK: Yes. 2 MR. TOWSE: We will go on to look at 3 the amount of equity that you that would be required. 4 The assumi...
AI summary The discussion centers on the equity required for COMFIT projects and the ability of communities to invest in wind projects through CEDIFS. Mr. Chernick admits he is not aware of the amount of money CEDIFS has raised, and Mr. Towse offers to provide a link to relevant government websites.
your argument that I expect to see in your submission. Page 960 NSUARB-BRD-E-R.10 8 the adversities, I'm not familiar with. 9 Thank you. MR. TOWSE: 10 THE CHAIR: Did you make a property 11 tax adjustment for large wind? 12 No. MR. CHERNICK...
AI summary The text contains a transcript of a regulatory proceeding involving testimony and questioning. The discussion includes references to wind energy, tax adjustments, and the CEDIF investment returns. It highlights interactions between the chair, participants, and the Nova Scotia Sustainable Electricity Alliance.
if that incentive a strong incentive as you've called 1 NSUARB-BRD-E-R.10 Page 967 it financing mechanism is having a hard time raising 2 the 75 million that we will need for the COMFIT program, 3 that co-ops and not-for-profits might have...
AI summary The discussion revolves around the COMFIT program and its financing challenges, particularly the difficulty in raising 75 million dollars. The purpose of COMFIT is to provide assurance to community groups that there is a market for power, and it is suggested that financing could be largely debt-based rather than relying on equity from a single sector.
- Sorry. Page 974 NSUARB-BRD-E-R.10 1 Can you explain any experience you've 2 had in feed-in tariff design and rate setting previously? 3 MR. CHERNICK: Well, as I mentioned in 4 my opening my introduction, I guess, going back to the 5 earl...
AI summary The text discusses a regulatory proceeding involving feed-in tariff design and rate setting. Mr. Chernick mentions his experience with setting rates for renewable energy facilities in the U.S. and is questioned about the cost-effectiveness of feed-in tariffs compared to RFP processes. He admits he is not familiar with the relevant international literature.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS large wind farm, if you've got 20 to 30 turbines, you're 1 going to have somebody nearby to take care of the routine 2 work and when something happens you're probably not going 3 to want to w...
AI summary The discussion revolves around the economic benefits of local versus international developers in wind farm projects, with emphasis on the importance of local ownership for long-term economic growth. The Department of Energy's stance on community ownership is questioned in relation to economic development.
- they'll either be owned by commercial developers or - they'll be owned by COMFIT-eligible parties or they'll be - owned by NSPI, or maybe some other entity will emerge as - an owner. - But somehow it will get built because - there's a re...
AI summary The discussion centers on the ownership structure of renewable energy projects, with consideration of whether community ownership could yield economic benefits. The speaker suggests that regardless of ownership, the province's renewable energy targets will be met, and potential benefits may be offset by costs elsewhere.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS difference, but there may be some, depending upon how you 2 MR. PYNN: Okay, that's all I have. 3 Thanks. 4 THE CHAIR: Thanks very much. 5 St. F.X. I don't see Mr. Coady here. 6 Wind Prospect...
AI summary The text includes a portion of a regulatory proceeding where Mr. Outhouse references the Renewable Electricity Plan and the Community Feed-in Tariff (COMFIT), asking Mr. Chernick about his interpretation of the plan and Synapse's analysis, specifically regarding the 100 megawatts target.
- glad somebody read my testimony. 1 Page 1016 NSUARB-BRD-E-R.10 MR. DOEHLER: At least more than just 2 me. Okay. So those should be reversed. 3 MR. CHERNICK: Yes. Thank you very 4 much. 5 MR. DOEHLER: On page 13 no, sorry. 6 That's alread...
AI summary The text contains a conversation between participants in a regulatory proceeding, discussing the Synapse proposal's fuel escalation rate and the risk reduction associated with a known feed-in tariff. The discussion highlights concerns about double-counting fuel escalation and the impact of known versus uncertain pricing mechanisms.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS be clear. Six percent is debt, 11 percent is equity on 1 small wind, large wind and hydro; on biomass and tidal, 19 me to be a pretty good deal for a testing facility. 20 MR. DEVEAU: And in r...
AI summary The discussion revolves around Nova Scotia's position in tidal energy development, with reference to the COMFIT program. The conversation highlights Nova Scotia's potential leadership in tidal energy and explores other jurisdictions with similar initiatives.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS don't really care whether you go to page 31 or 35. But I NSUARB-BRD-E-R.10 Page 1027 1 want you to step me through your rate impact table. It's 2 one of them. Maybe using your "Balanced," whi...
AI summary The discussion revolves around a rate impact table and the calculation of costs associated with COMFIT projects. The speaker explains that they multiplied the tariff rate by the capacity factor and number of megawatts to determine total bills, then subtracted either the base fuel cost or an estimated cost for new renewable projects.
- percent. NSUARB-BRD-E-R.10 Page 1029 15 be included in the tariff; that's all. 16 THE CHAIR: Okay. 17 The format. MR. REYNOLDS: 18 I'm still not sure I THE CHAIR: 19 understand your question, but go ahead and ask it. 20 You mean are ther...
AI summary The text includes a dialogue from a regulatory proceeding where Mr. Chernick outlines conditions for projects to be included in the tariff, such as approval from the Minister, compliance with regulations, and specific capacity limits for small wind and tidal projects. The discussion involves procedural and regulatory considerations related to tariff design and project requirements.
membership first. 1 Page 1054 NSUARB-BRD-E-R.10 Scotian Windfields, Mr. Roscoe? 15 operation and maintenance costs. 16 Earlier this week under cross 17 examination the Synapse group referred to information they 18 received from CanWEA in t...
AI summary The discussion centers on operation and maintenance costs for small wind turbines, with the Synapse group referencing information from CanWEA and the witness indicating that detailed data on 50 kilowatt wind turbines is not available from membership sources.
- MR. BARRY : Do you know what size - turbines it would have represented? - MR. LEVY : It would have been a broad - based grouping. As I said, ranging in sizes from small - kilowatt machines into the 100, 250 kilowatt machines, in - speaki...
AI summary The discussion revolves around the size of wind turbines and the operating and maintenance costs associated with them, with Mr. Levy providing general information about turbine sizes and acknowledging a lack of specific data on 50 kilowatt members and soft costs for maintenance.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Upon resuming at 2:03 p.m. 1 NSUARB-BRD-E-R.10 Page 1077 MR. OUTHOUSE: Mr. Chair, during the 2 lunch break Mr. Levy approached me and he indicated that 3 he had been able to confirm a point o...
AI summary Mr. Levy clarifies that in Quebec, community wind projects under 25 megawatts have a starting price of $12.5 cents per kilowatt hour, fully indexed to CPI. The Ecology Action Centre calls Toby Couture of E3 Analytics to provide opinion evidence on COMFIT and feed-in tariffs.
are going to expect. So some of the assumptions around the amount of public goodwill that is available for these projects does not materially reduce the costs of developing a renewable energy project. In fact, there's evidence to suggest t...
AI summary The speaker argues that community-based renewable energy projects are not less costly to develop due to public goodwill, and in fact may be more expensive due to challenges faced in financing and perceived risk. This is supported by experiences in Ontario and the U.S.
I guess what I would dispute is that that is a material impact on the levelized cost of energy production from community based projects. I don't think the impact is substantive enough and there are or that it's even substantive at all. Pag...
AI summary The speaker disputes the claim that the levelized cost of energy production from community-based projects is significantly impacted. They argue that smaller turbines are less economically efficient compared to larger ones and suggest a more flexible tariff structure would allow communities to choose turbine sizes based on their financial resources.
DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. COUTURE: Clearly there are other 1 NSUARB-BRD-E-R.10 Page 1091 small advantages but I suppose I would answer the question 7 none of those legal and additional charges. 8 So it's case by cas...
AI summary The discussion revolves around community opposition to wind energy projects and its impact on project development. Mr. Couture highlights that while community projects may experience less opposition on average, there is often significant opposition to wind turbines even within closely knit communities. He also shares his experience with public hearings on community wind projects in New Brunswick in 2008.
supply chain system. Page 1096 NSUARB-BRD-E-R.10 1 So in those countries, the typical 2 rate of return targeted under the feed-in tariff ranges 3 from 5 to 9 percent. 4 So there is some MR. MERRICK: 5 advantage. 6 MR. COUTURE: In mature we...
AI summary The discussion focuses on the expected rate of return for renewable energy projects in Nova Scotia, contrasting it with rates in more developed markets like Germany. The speakers note that Nova Scotia lacks the mature supplier chain and experience to achieve lower rates of return, and there is uncertainty about the profitability of CEDIF projects.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Now, as the market matures, the risk 1 NSUARB-BRD-E-R.10 Page 1099 of developing projects goes down because you get more 2 experienced developers, you get greater track record, you 3 get more...
AI summary As the renewable energy market matures, the risk of developing projects decreases due to more experienced developers and streamlined procedures. However, at this early stage in Nova Scotia, risks remain high, leading to higher required returns for investors. There is also recognition of socially responsible investing in community projects, even at lower rates of return.
Page 1108 NSUARB-BRD-E-R.10 - another incentive, yes, offered. - MS. RUBIN : Yeah. Insofar as you are - aware, there is no such incentives, tax breaks or property - tax exemptions available to biomass CHP producers here in - Nova Scotia? -...
AI summary The discussion centers on the lack of tax incentives or property tax exemptions for biomass CHP producers in Nova Scotia, contrasting with the U.S. and highlighting the challenges in using U.S. tariff comparisons for rate design in Nova Scotia.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Now, I stand to be corrected on that, 1 NSUARB-BRD-E-R.10 Page 1109 but the tariff design did not assume the full capture of 2 reflective or not is debatable. 3 And there have been cost-based...
AI summary The discussion highlights the adoption of cost-based rates for solar photovoltaics in some U.S. states, such as Florida and Texas, and notes that this approach is relatively new within the context of feed-in tariff-like policies in the U.S. The shift is attributed to changes in electricity restructuring and recent FERC rulings.
- prepared to allow states to set cost-based rates. And - they've recently made a ruling on that. - But as I mentioned, it's a fairly new - development and by and large, states have not been doing - that. - MS. RUBIN : Would you agree that...
AI summary The discussion focuses on the importance of setting rates based on costs to encourage successful project development, particularly in the context of feed-in tariffs and biomass CHP projects. Accurate input costs, especially capital costs, are highlighted as essential for deriving cost-based rates.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. COUTURE : Yes. 1 NSUARB-BRD-E-R.10 Page 1119 (SHORT PAUSE) construction of the tariffs; that's a difficult enough task. But go ahead. Okay. My last question, MS. RUBIN: DICTUM DIGITAL INC...
AI summary The discussion centers on the need for a fuel price adjustment mechanism in feed-in tariff programs for renewable energy resources dependent on fluctuating fuel prices. The speaker emphasizes that such adjustments are necessary to ensure project profitability and notes that most jurisdictions with biomass in their feed-in tariffs include similar provisions.
- equity. 1 NSUARB-BRD-E-R.10 Page 1137 Would you believe that contributions 2 from a community could be counted as equity? 3 MR. COUTURE: From a financial 4 standpoint, no. 5 MS. CAMERON: So there's been some 6 discussion about the advant...
AI summary The discussion centers on the challenges communities face in developing renewable energy projects, including collective action problems, lack of track record, and difficulty accessing financial expertise, which make them less attractive to lenders compared to commercial developers.
- Advocate's articulation of that reality. - What I was trying to bring attention - to is that it's not necessarily an advisable basis on - which to build public policy or renewable energy policy - for that matter. - The presence of an end...
AI summary The speaker argues that relying on goodwill and free money is not advisable for renewable energy policy. They suggest that renewable energy projects should aim to do better than break even to attract investment. They agree that a 13% return on equity is reasonable, though they acknowledge some debate around the exact figure. They also believe current tariffs are adequate to attract investors.
- lasted. 1 Page 1144 NSUARB-BRD-E-R.10 So I think the assumption of building 2 the financing for a tidal project on the basis of a 20- 3 year production 20 years of electricity production is 4 over-optimistic. 5 I think it's generally ack...
AI summary The discussion addresses the financing assumptions for tidal energy projects, suggesting that a 20-year production period may be overly optimistic. It also considers performance-based incentives to encourage technological improvements and questions whether ratepayers should bear the cost of incentivizing new technologies.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. LIVINGSTON: With small wind, for 1 instance I'm interested from other jurisdictions what 2 you know about small wind because for instance if I'm a 3 farmer and I want to set up a 50 kilow...
AI summary Mr. Livingston discusses the limitations on small wind energy installations in Nova Scotia, noting that farmers and small businesses are restricted to net metered rates or CEDIF structures unless exemptions apply. He questions whether other jurisdictions have found small wind to be viable, despite the Board's lack of jurisdiction over this issue. Mr. Deveau responds that the question is irrelevant if the Board has no authority.
- that in. If the turbine unit comes from a less credible, - less well established manufacturer that's certainly going - to push up the required debt yield from the lender's - standpoint because it's a riskier technology. - I mean wind sma...
AI summary The discussion highlights the increased risk associated with small wind turbines from less established manufacturers, leading to higher required debt yields and higher tariffs for small wind. The speaker notes that other jurisdictions, like Switzerland and the U.S., have separate categories and incentives for small wind projects.
- projects the policy was not as effective as policy - makers had hoped at meeting targets. - California has particularly suffered - from this and is now far from meeting its targets as a - result of at least the report argued as a result...
AI summary The text discusses the inefficacy of certain policy mechanisms, such as RFPs, in meeting targets, citing California's struggles. It contrasts this with feed-in tariffs, which reduce risk for developers and result in lower electricity prices. The high upfront costs of RFPs are identified as a barrier.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS So there's significantly higher risk, 1 and that risk means that the investors that are investing 2 in large RFP-type processes tend to require a higher rate 3 of return, whereas under a feed...
AI summary The speaker discusses the perceived higher risk in RFP-type processes compared to feed-in tariffs, which leads to higher required returns for investors. Feed-in tariffs offer price transparency and guaranteed grid access, potentially lowering costs. However, the speaker acknowledges that economic anomalies exist, and further research is needed to explain discrepancies in cost outcomes.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. COUTURE : Yeah. Yeah. No, that's 1 a I think your first there is precedent for that, 2 and this may be of interest to the Board in the years 3 ahead. 4 Germany encountered this problem wh...
AI summary The text discusses a precedent in Germany where a national mechanism was created to cost-share renewable energy procurement across regions to address uneven electricity prices caused by clustered wind development in the 1990s. This approach is presented as a potential solution for similar challenges.
- April 2010. 1 Page 1166 NSUARB-BRD-E-R.10 Switzerland's policy was adopted with 2 that carve out in 2008, and I have not heard of clustering 3 in wind occurring there, and I'm not familiar with the 4 situation in Greece or Italy on that...
AI summary The discussion centers on wind energy tariff structures and potential clustering issues. Concerns are raised about how different tariff rates for wind projects under and over 50 kilowatts might influence project development, with the possibility that communities may split larger projects into smaller ones to maximize returns.
built 500 or 700, they've either got to go to 1.5 to get 1 Page 1170 NSUARB-BRD-E-R.10 under is capped at 5 megawatts? 2 MR. COUTURE: M'hm. 3 MR. OUTHOUSE: And you appreciate that 4 rate point was set by government and not by this Board, o...
AI summary The discussion centers on tidal energy tariffs, with reference to reports from the U.K. and cost estimates from the Allen Study and Ageitus et al. The participants question whether these reports use the same or different cost estimates for tidal turbines.
- scale globally. None of us have any or at least I - don't have any idea what they may be in tidal projects. - Do you have any special insight that - you can give the Board on that? - MR. COUTURE: I think it's maybe too - early even to st...
AI summary The discussion focuses on the early stage of tidal power development, with the speaker emphasizing that economies of scale for tidal power are not yet established due to the technology being in the pilot and pre-commercial phases. Reliable cost curves based on scale are not yet available.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Allen study, given the assumption I think you raise a 1 NSUARB-BRD-E-R.10 Page 1181 good point, that based on the assumption that they were 2 talking about 100-megawatt project, that does acc...
AI summary The discussion centers on the reliability of cost estimates for a 100-megawatt project, noting potential economies of scale but also expressing concerns about the accuracy of the model and performance risks associated with turbines. There is a suggestion that a higher tariff may be necessary to incentivize market participation despite uncertainties.
- harvesting, but it may not reflect the supply and demand - - the price that's actually generated in the market by the - laws of supply and demand. - MR. COUTURE: And then you bring the - - -I think that's a very important factor in this,...
AI summary The discussion centers on the impact of biomass and CHP electricity supply on market prices, as well as the consideration of plant-specific fuel pricing in feed-in tariffs. Mr. Couture notes that increased supply from such projects could tighten the market and raise prices, while Mr. Outhouse references Mr. Bodington's suggestion of plant-specific indexing in feed-in tariffs.
- with the wood locally. - So if there are any trade-offs there - that come in a more governmental level. In terms of the - policy itself, I think that the adjustment mechanism, as - it stands now, should be sufficient in the near term to...
AI summary The discussion centers on the biomass cap regulation in Nova Scotia, with Mr. Couture acknowledging the 500,000 dry tonnes limit and noting that it may influence the availability of biomass. He suggests the need for periodic review of adjustment mechanisms and their inputs.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS suggesting, then, is someone comes in now, they get the 1 Page 1204 NSUARB-BRD-E-R.10 to track and simultaneously encourage technological 2 change. And I think tidal is actually what often 3...
AI summary The discussion focuses on the degression rate for tidal energy tariffs and the variety of turbine sizes available in the market. The witness explains that emerging technologies like tidal energy may have higher degression rates due to expected cost reductions, similar to photovoltaics. The Chair inquires about the number of turbine sizes available between 50 kW and 1.5 MW, and the witness responds that there are a finite number of standard turbine sizes available.
- 2.5 million or something and you have another person - selling a 800 or 900 kilowatt turbine for slightly only - slightly more, it may make it more attractive to buy the - slightly larger turbine unit for that economy. - And that's a dec...
AI summary The text discusses the decision-making process for selecting wind turbine sizes based on economic factors and wind conditions. It highlights that different turbines perform better under varying wind regimes and suggests an intermediary turbine size to balance cost and efficiency, enabling better decision-making for individual projects.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. COUTURE: No, I have seen other 1 I followed it fairly closely when these negotiations were 2 happening in the U.S. There was a big discussion around 3 biomass in Florida because they don'...
AI summary The discussion revolves around biomass energy initiatives in the U.S., particularly in Florida, and the inclusion of inflation and diesel components in contracts. It also mentions periodic reviews of adjustments, with a suggested interval of 18 months to allow for market stabilization and data collection.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS say, for instance, that they got in before the next guy 1 NSUARB-BRD-E-R.10 Page 1213 and therefore their project should receive precedence. 9 the degression might degression rate might eithe...
AI summary The discussion revolves around the potential use of a rapid degression schedule as an alternative to a cap in tidal power development, arguing that it could stimulate market growth and encourage innovation while protecting ratepayers from higher costs.
20110408-1Hearing Transcript — 4/8/2011 (Black River Panel, Jonathan Barry, Daniel Roscoe, Paul Pynn & J. Barry)
17 passages
April 7, 2011 Questions from Mr. Doehler 1014 Questions from Mr. Deveau 1017 Questions from The Chair 1022 Further Cross-Examination by Mr. Outhouse 1029 Further Cross-Examination by Mr. Reynolds 1035 Further Cross-Examination by Mr. Towse...
AI summary This section of the regulatory proceeding document includes questions from various individuals and requests for specific documents, such as a suggestion formula for a biomass tariff reopener, a spreadsheet using the Synapse model for St. F.X. data, and a spreadsheet showing the positive rate of return for CEDIF investors.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS record, we'll note it and then we'll come back we'll 1 clear the room at the end of your cross-examination and 1 NSUARB-BRD-E-R.10 Page 1229 MR. NEAL LIVINGSTON, Affirmed: 2 OPENING STATEMENT...
AI summary Neal Livingston, President of Black River Wind Limited and other renewable energy companies, presents evidence about the exclusion of independent power producers from policy discussions, expressing concern about the Board's responsibility to ratepayers and the impact on cost and risk.
- go down because of the cost of equity going down, one of - those drivers can come from government playing a role. - I also wanted to say that I find - Mr. Pynn's evidence very interesting because our situation - as Black River Wind is th...
AI summary The speaker discusses the impact of government involvement on the cost of equity and highlights alignment with Mr. Pynn's evidence regarding financial realities. They emphasize the importance of a strong renewable energy policy to foster economic development and reduce risk for ratepayers, suggesting the province is not currently getting it right.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS I don't have any insight into that except to say that in 1 NSUARB-BRD-E-R.10 Page 1239 this region, which I believe is much more difficult to 9 this is important you asked this question becau...
AI summary The speaker discusses the equity return expectations in a 2-megawatt example, noting that equity typically seeks 20-24% returns during the loan payback period and higher returns afterward. However, they caution that later years of a project may involve higher risks, such as equipment failure, which could lead to significant costs.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS distributable to the equity shareholder at a 20 percent 1 NSUARB-BRD-E-R.10 Page 1251 level to 30 percent level and if there was anything left 2 over that I thought was reasonable for us as t...
AI summary The discussion centers on a bid process for a project, with concerns about underbidding and the uncertainty of future equipment costs. The speaker mentions that their bid was accepted despite uncertainties, and they aimed to ensure the bid was robust enough to account for potential delays and cost fluctuations.
- the table? So one of the questions becomes, "If we're the - first guys in can we get an upside later on?" - And my opinion is that that scenario - is again problematic because when if you go and form a - CEDIF and you bring in other CEDI...
AI summary The speaker argues that forming a CEDIF may lead to problematic scenarios where initial high-risk investors do not receive upside benefits, potentially leading to underfunded projects and increased burden on ratepayers. They suggest that a classic entrepreneurial approach, as seen in biomass or tidal projects, may be more effective.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS and they say, "Well, it's just a high-risk project. You 1 NSUARB-BRD-E-R.10 Page 1263 know, it's small, you know, failures." And we say, "Oh, 2 the equipment comes with 12-year warranties. Yo...
AI summary The discussion highlights concerns about the risks and returns associated with investing in CEDIF versus traditional energy sources like NSPI, noting differences in risk profiles and ethical considerations. It also references Synapse's assumptions about project costs.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS you think about needing another 5 percent in your budget, 1 is that extra 5 percent in your budget, is that extra 5 13 We had that discussion yesterday with him. 14 I'm wondering from your ex...
AI summary The discussion revolves around the potential need for an additional 5% in the budget and whether CEDIFs will recognize the full 65% value or if it is overstated. The speaker supports small businesses and communities participating in renewable energy initiatives.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS government puts out isn't fully understood operationally 1 NSUARB-BRD-E-R.10 Page 1271 and isn't quite as operational as they'll often make it 2 seem. 3 MS. ASHWORTH: Is that everything for 4...
AI summary The testimony discusses three wind projects (Creignish Rear, South Cape Mabou, and Irish Mountain) under Power Purchase Agreements (PPAs) by Black River Wind Limited, clarifying they are not related to CEDIF and are scheduled for completion by the end of 2011.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS the answers though. 1 NSUARB-BRD-E-R.10 Page 1279 MR. MERRICK: It won't be the first 2 time. 3 THE CHAIR: So Scotian WindField. 4 MORIN: It seems to me that your MR. 5 mic particularly is low...
AI summary The testimony discusses issues with the Synapse model's underestimation of interconnection costs, site maintenance, and electrical losses in small wind projects. It also highlights the difference in scale between CanWEA's survey and the COMFIT program, suggesting that maintenance and operation costs for small wind can vary significantly.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS In particular, we'd also like to 1 address the comments that have been made by the Consumer 11 that you have some sort of an interest in? 12 MR. ROSCOE: Yes. We still have a 13 financial inte...
AI summary The discussion involves Mr. Roscoe's financial interest in the Digby Wind Farm, which is owned by Nova Scotia Power, and the challenges faced in project development due to changes in municipal bylaws and financial issues. The Annapolis County bylaw change has been appealed to the Board.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS The projects have yet to be financed, 1 NSUARB-BRD-E-R.10 Page 1291 so, generally it involves some form of scenario of a group 11 MR. ROSCOE: Yes, we are still 12 proceeding with the project,...
AI summary The discussion revolves around a project that has yet to be financed and the company's approach to organizing itself in relation to the COMFIT tariff and CEDIFs. The company is not eligible for COMFIT but is collaborating with CEDIFs to develop projects on behalf of community organizations.
- However, that has not yet to trickle its way down. - MR. CHRISTMAS Okay. - MR. ROSCOE : And secondly, I would - suggest that one of the main reasons that their - investments have only been in sort of operating companies - rather than pro...
AI summary The discussion highlights the limited participation of CEDIF groups in large-scale projects like the Digby Wind Farm, due to the high capital requirements. The speaker suggests that COMFIT offers a more accessible opportunity for equity investment in revenue-generating assets.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS good segue to my next question, was that obviously the 1 NSUARB-BRD-E-R.10 Page 1307 Mi'kmaq are interested in the COMFIT process, and 2 specifically large and the small wind in that. 3 Do yo...
AI summary The discussion focuses on the feasibility of returns for CEDIFs under proposed rates and the potential restructuring of CEDIFs to function more like a venture capital pool. Mr. Roscoe suggests that rates in the 13% range are feasible but notes that financial arrangements depend on rate-setting decisions.
take place, what's referred to as behind the meter. - THE CHAIR : Yeah. - MR. ROSCOE : Which is at the which - is likely at a very similar if not exact voltage that the - turbine is producing. So any production records from that - turbine...
AI summary The discussion focuses on the technical aspects of net metering, specifically the voltage differences between turbines and the grid, and how this impacts production records and meter placement. The conversation highlights that net metering projects use parallel connections and that meters for these projects are likely to be placed on the high voltage side of the grid.
- have ownership in is the Watts project. - MR. MERRICK : And where is that - located? - MR. PYNN : Near Sheet Harbour in Watts - Section. - MR. MERRICK : All right. And what - size? - MR. PYNN : One point five (1.5) - megawatts. - MR. MER...
AI summary The discussion outlines various wind energy projects, including the Watts project near Sheet Harbour, the West Cape project in PEI, the Fermeuse Wind Project in Newfoundland, and other smaller projects like Higgins Mountain and Springhill. The focus is on project locations and sizes.
- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Thunder Bay we were involved in the 1 NSUARB-BRD-E-R.10 Page 1323 development side of that. That was 100 megawatts. Digby 2 Neck we were owners/engineers for Nova Scotia Power on 3 that one....
AI summary The testimony discusses the involvement of the speaker in various energy development projects in Nova Scotia, including the Watts project, which recently went into operation. The speaker mentions their role as owners/engineers and highlights the financing of the Watts project, though some details are confidential.