© Crown copyright, Province of Nova Scotia, 2012
This document is available on the Internet at: www.gov.ns.ca/energy
For further information about Nova Scotia’s Marine Renewable Energy Strategy, please contact Nova Scotia Department of Energy, 400-5151 George Street, PO Box 2664, Halifax, NS B3J 3P7
Tel: (902) 424-4575
Table of Contents
Executive Summary 2
1.0 Introduction 4
2.0 The Potential for Marine Renewable Energy 8
in Nova Scotia
3.0 State of the Marine Renewable Energy Sector 9
•WaveEnergy
•OffshoreWind
•TidalEnergy
•TidalRange(TidalHeight)
•TidalCurrent(In-streamTidal)
4.0 Strategic Objectives 13
5.0 How Will We GetThere? Our Strategic Plans 15
•ResearchPlan:BuildingtheScience
•DevelopmentPlan:ANewIndustry
•RegulatoryPlan
6.0 What We Will Do: Implementation 34
•TheFutureofTidalEnergyinNovaScotia
•WorkPlanTimelines
7.0 Appendix A: Proposed Licensing System 36
8.0 Appendix B: Who Is Involved? 41
2 Nova Scotia Marine Renewable Energy Strategy
Executive SummaryMarine
Renewable Energy
Strategy
N ovaScotiahasanaturaladvantageinan
innovative,emergingrenewableenergyresource:
theocean.Surroundedbytheocean,wehaveabundant
marinerenewableenergyresourcesfromoffshorewind,
wavesandtides—particularlytides.OurBayofFundy
hasmorethan160billiontonnesofwaterflowwitheach
tide,deliveringacommercialpotentialofapproximately
2,400megawattsofpower.Since2006,considerable
attentionandresourceshavebeenfocusedonresearching
anddevelopingin-streamtidalenergyinNovaScotia.
Thetidalenergyindustryisstillinitsinfancyandmany
technicalchallengesremainbeforelarge-scalecommercial
developmentwilltakeplace.
NovaScotiaisalreadyamongtheworldleaders
intidalenergydevelopmentandiswell-positionedto
becomeaglobalplayerinthisemergingenergyindustry
withitsrichheritageofmarineresearch,knowledgeand
innovation,anditsnaturaladvantages.
ThisStrategyisdrivenbyopportunityandneed.
ItispartoftheProvince’sCleanerEnergyFramework
thatservesasanumbrellaforseveralcleanerenergyand
sustainableenergyplans.TheStrategysetsoutbroad
policy,economicandlegalconditionsforrenewable
energyprojects,technologiesandservicesfromtheocean,
inanticipationofcommercialdevelopmentandthe
establishmentofanewindustry.
TheimplementationoftheStrategywillprovide
theopportunitytodelivercost-competitiverenewable
electricitytoserveNovaScotia’sneedformorediversified
andstableenergysources.Itwillalsoprovidethe
opportunitytoapplylocalknowledgeandskillstoexport
toglobalmarketsinthefuture.ThisStrategyisabout
securingglobalopportunitiesforeconomicgrowthand
investment.Ifsuccessful,tidalenergywillmeangood
jobs,acleanerenvironmentandmorestableelectricity
pricesinthelong-term.
ThisStrategyisconsistentwithfeedbackreceivedby
stakeholders,thepublicandtheMi’kmaqofNovaScotia
throughvariousconsultationsconductedbytheNova
ScotiaDepartmentofEnergysince2007.TheProvinceis
committedtoanincremental,adaptiveapproachtothe
developmentofin-streamtidalthatprotectstheinterests
ofallNovaScotians.
TheStrategyconsistsofthreemainplanstoaddress
Research,Development,andRegulatoryinitiativesthat
havebeenestablishedtoachieveNovaScotia’svision
tobea global leader in the development of technology
and systems that produce environmentally sustainable,
competitively priced electricity from the ocean.Waveand
offshorewindpowerarepartofthemixinthestrategy,
buttidesaretheprimaryfocus,givenNovaScotia’s
uniqueadvantageindevelopingandgrowinganew
tidalindustry.
Research PlanResearchiscrucialtocreatingcommerciallyviable,
sustainabletechnologiesthatwillfosteracompetitive
industryinNovaScotia.Theprovince’sroleistofoster
partnershipsandmulti-disciplinaryresearchprojects
thataddressknowledgegaps,anddevelopanintegrated,
long-termresearchplanthatbringskeyplayerstogether.
Inparticular,thisstrategyisintroducinganewresearch
body—TidalEnergyResearchForum—thatwillcontribute
tosharinginformationoncurrentresearchprojects
underway.Itwillalsohelpinestablishingresearchpriorities
andbringingtogetherkeyorganizationsengagedintidal.
3
Executive Summary
Nova Scotia Marine Renewable Energy Strategy
Development PlanWhilethereisameasureofconsensusarounddesign
elementsofin-streamtidalenergydevices,thereis
nooneproventechnology.Wewillencouragetidal
developmentintheProvincebyensuringthatthedesign,
installation,andoperationofin-streamtidalenergyare
environmentallysustainable;thecostsareultimately
competitivewithotherrenewableenergysources;and
thatNovaScotiatakesmaximumeconomicadvantage
ofthisopportunity.Developingnewtechnology,creating
amarket,andbuildingasupplychainareessentialto
thegrowthofatidalpowerindustryinNovaScotia.
Akeyareaoffocusfortheprovince’sMarine
RenewableEnergyStrategyisontechnologyincubation,
amechanismthatcanspeeddevelopmentandfoster
entrepreneurship.
NovaScotiaiswell-positionedinthedevelopment
ofbothsmall-scaleandlargescaletidaltechnologies.
TheFundyOceanResourceCentreforEnergyhas
alreadyestablishedakeyroleforlarge-scaledevelopment.
Small-scaledevicesarenotnormallydesignedtooperate
instrongandfast-movingcurrentsliketheMinas
Basin.Thedevelopmentofsmall-scaletidalenergy
projectsatthecommunitylevelcanbringneweconomic
opportunitiestoruralNovaScotiaandhelptodevelop
theknowledge-baseforlarge-scale,commercialtidal
development.Learningandknowledgecanbesharedand
transferredbetweensmall-scaleandlarge-scalesectors.
Partnershipsbetweentechnologydevelopers,
powercompanies,andinvestorswillbeastrongfactor
inmakingcommercialtidalpowerareality.The
ultimategoalistodevelopthetechnologyandretainthe
intellectualpropertyinNovaScotiawhiledeployingthat
technologylocallyandexportingitworldwide.
Regulatory Plan
Themarineenvironmentsupportsmanyusersand
uses.Multiplepublicinterestsinashared,public
resourcerequirestheinvolvementofmultiplefederal
andprovincialregulatoryauthorities.Alegislative
frameworkandregulatorysystemisrequiredtoensure
thatprojectsanddevelopmentproceedwithappropriate
licensing,environmentalprotection,communitybenefits,
andprovincialrevenue.Itisimportanttoensurethat
thepublic,stakeholders,andtheMi’kmaqarefully
apprisedandengagedinissuesrelatedtoplanning,
development,environmentaleffects,economic
opportunities,andregulatoryoversight.Theregulatory
planincludesarobustandeffectiveregulatoryand
environmentalprotectionsystemaswellasapublicand
stakeholderengagementplanfoundedonaccountability
andtransparency.
ThedevelopmentofMREtechnologieswillhelp
toreducetheprovince’srelianceonforeignsourcesof
fossilfuels,reduceharmfulgreenhousegasemissions,
andcreatenewwealthandjobshereathome.Research,
collaboration,andtestingto-datehavepositioned
NovaScotiatotakeadvantageofthisopportunity.This
Strategyoutlinesavisionforthefutureoftidalenergy
inNovaScotiaandtimelinestomoveforward.
4 Nova Scotia Marine Renewable Energy Strategy
Introduction
T hesun,thewind,crops,forests,evenheatdeepinside
theearthitselfareallincreasinglyrecognizedas
energysources.Worldwide,peopleareseekingrenewable
energytoreplacefossilfuels.Themostnaturalplace
forNovaScotianstolookistheplacethathasalways
providedalivelihoodandaneconomicmainstay—the
ocean.
Thethrivingheritageofshipbuildingexcellence
recentlywonNovaScotiathebiggestsingleshipbuilding
contractinCanada’shistory.Nowtheheritageofocean
know-howandinnovation,alongwiththenatural
advantageoftidesthatrisehigherandrushfasterthan
anyothersontheplanet,opensopportunitiesfornew
sourcesofpowerthatareasdependableasthetides.
Howmuchenergydotideshavetooffer?Hydro
powerhasbeenaroundalongtime,andmostofitcomes
fromthepowerofarushingriver.TheBayofFundy
movesmorethan160billiontonnesofwaterwithevery
tide.That160billiontonnesismorewaterthanthe
combinedflowofeveryfreshwaterriveronearth—four
timesmore!
Thatismassivepower.Itwilltaketimefornew
technologiesandinnovationtoharnessthatpower,but
giventhedepletionoftraditionalglobalenergysources
andthetollthatburningthemistakingontheplanet,it’s
onlyamatteroftime.Tidalpowerdevelopmenthasgreat
potentialtocreatenewwealthandsupportjobsherein
NovaScotia.
Expertiseinmarinerenewableenergy(MRE)
developmentwillbeindemandglobally.Thetechnology
willbenew,butNovaScotiancompaniesarealready
leadingthenationandbecomingglobalplayersin
innovativemarinetechnologies.Marinerenewable
energyisnext.
Thepagesthatfollowmapoutastrategy—nota
how-toguide,butahigh-levelplantomaintainandbuild
onthemomentumthathasalreadybeguntodevelopin
theMREsectorintheprovince.Thinkoftheprospects:
anew,dependablesourceofpower;expertisethatwillbe
indemandworldwide;andneweconomicopportunities
inpartsoftheprovince.Marinerenewableenergyis
anaturalfitforNovaScotia,andNovaScotiahasthe
naturaladvantagestobetheworldleader.
Marinerenewableenergyismorethantides—waves
packsomepowertoo,andoffshorewindsarestronger
andmoreconstantthanonshorewind.Waveandoffshore
windpowerarepartofthemixinthestrategy,buttides
aretheprimaryfocus,atleastinitially.NovaScotiahas
auniqueadvantageindevelopingandgrowinganew
tidalindustry.Thehighcurrentvelocitiesandextreme
tidalrangeoftheBayofFundycreateanopportunityto
addressthemanychallengesofworkinginsuchaharsh
environmentbyestablishingimprovedstandardoperating
procedures,andbestpracticesfordesigninganddeploying
monitoringplatformsandinstrumentsinhigh-flowareas.
TechnologydevelopedtosurviveintheBayofFundyis
expectedtoworkinanystrongtidalenvironment,thus
meetingthe“FundyStandard.”
Developmentofrenewableenergyfromtheocean
canbeacriticalelementintheprovincialagendaforthe
future,specificallybyhelpingto
• contributetoNovaScotia’slonger-termrenewable
electricitymix
• reduceemissionsofgreenhousegasesandother
pollution
• provideadiverseandmoresecuremixofenergy
• supportnewandgoodjobsthatbuildwealthand
exports
1
5Nova Scotia Marine Renewable Energy Strategy
NovaScotiahaslegislatedtargetstoreplacepower
generatedfromfossilfuels.By2015,25percentofthe
province’selectricitywillcomefromrenewablesources,
andby2020,thetargetis40percent.1Itisexpectedthat
tidalenergywouldmakealonger-termcontribution
toNovaScotia’selectricitymixpost-2020.Inaddition,
NovaScotiaiscommittedtoareductioningreenhouse
gasemissionsto10percentbelow1990levelsby2020,
undertherequirementsoftheEnvironmentalGoalsand
SustainableProsperityAct.Also,thefederalgovernment
isproposingnewregulationsongreenhousegas
emissions,whichwilladdfurtherrequirementsinthe
decadetocome.Theprovinceintendstoreduceenergy
consumptionandensuretheenergyweusecomesfrom
fuelsthatemitreducedlevelsofharmfulgreenhouse
gases,ornoneatall.
Thisisanambitiousprogramofenergysecurity
andenvironmentalresponsibility.Theprovincehas
undertakeninitiativessuchasStrategicEnvironmental
Assessments,thecreationofsmall-andlarge-scaleFeed-
inTariffs,andthedevelopmentofaworld-classtidal
demonstrationcentre(FundyOceanResearchCentrefor
Energy—FORCE)todrivesuccess(theseinitiativesare
describedlaterinthedocument).FORCEwascreated
asahuboftidalpowerresearchanddevelopment.
Communityengagementandenvironmentalresearch
andmonitoringarepartofthemandateoftheOffshore
EnergyResearchAssociationofNovaScotia,theoffspring
oftwopreviousprovincialcreations:theOffshoreEnergy
EnvironmentalResearchandOffshoreEnergyTechnical
Researchassociations.2
Theprovinceisputtingtogetheraregulatory
frameworktoprotectNovaScotians’interestsand
environment,andforgingformalandinformalalliances
toinvent,design,test,anddeveloptherighttechnology
toharnessthetides’powerwhileprotectingothermarine
interestsandthenaturalenvironment.
TheMarineRenewableEnergyStrategyispartofthe
province’sCleanerEnergyFramework,whichwillserve
asanumbrellaformanyinitiativesandidentifyareasthat
requirefurtherinvestigationandresearch.TheCleaner
EnergyFrameworkpromotesusinglessandshiftingthe
compositionofourenergysupply,focusingonfourelements:
• energyefficiencyandconservation
• naturalgas
• renewableenergy(forelectricity,heat,and
transportation)
• research,innovation,andinvestment
Introduction
1TheRenewableElectricityPlanandRenewableElectricityRegulationsundertheElectricityActestablishedtheserequirements.2TheOffshoreEnergyResearchAssociationofNovaScotia(OERANS)isanamalgamationofOEERAssociationandOETRAssociation.OEERandOETRAssociationwereestablishedinMarch2006asindependent,not-for-profitcorporationswhosemissionistoleadenvironmental,renewableandgeoscienceenergyresearchthatenablesthesustainabledevelopmentofNovaScotiaenergyresourcesthroughstrategic partnershipswithacademia,governmentandindustry.
FORCE beach aerial.
6 Nova Scotia Marine Renewable Energy Strategy
Introduction
ItisnoteworthythatNovaScotia’splanforacleaner
energyeconomyalsoincludesenhancednaturalgasuse
aswellasrenewablesources.Whilenaturalgasisstilla
fossilfuel,itburnsmorecleanlyandcostslessthanother
fossilfuels,andisavailableinabundantlocalsupply.
NaturalgasandhydrosourcessuchastheMuskratFalls
hydroprojectontheLowerChurchillRiverarealso
excellentback-upforrenewableenergysourcesthatare
producedintermittentlyaccordingtonaturalvariations
inwind,sun,andtides.
Basedonconsultationtodate,marinerenewable
energyispredominantlyviewedpositivelybyNova
Scotiansasaclean,renewableresourcethatcould
contributetotheprovince’senergyneeds,helpreduce
greenhousegasemissions,andprovidelocaleconomic
opportunities.Aswell,thenewenergyindustryoffersthe
promiseofgoodjobsandastrongeconomy.
A Window of OpportunityMarinerenewableenergyisinitspioneeringstage
worldwide.Manytechnologiesareindevelopment,but
thereisnoclearleaderintheraceforthemostefficient
orcosteffective.Therearejustasmallnumberofwave
andtidalenergydeploymentsintheworld.Thecostof
electricityfrommarinerenewableenergyresourcesis
notyetcompetitivewithothersources,andwhilethere
isagrowingbodyoftechnicalandresearchknowledge,
thereisalsomuchtolearnabouthowthetechnologywill
interactwiththeenvironment.Incrementaldeployment
andgrowthwillallowresearchers,academics,theindustry,
andgovernmentstoanswercriticalquestionswhile
workingtogetherascommerciallyviabletechnologyis
developed.Theywilllearnbydoing,gainexpertisein
efficienttechnology,reducethecostoftheelectricity,and
mitigateanyadverseenvironmentaleffects.
Risingoilandcoalpricesandagrowingdemand
forcleanenergyaremakingrenewableenergymore
attractiveworldwide.TheEuropeanUnionhassignificant
experienceindeveloping,deploying,andtestingMRE
devices.Memberstateshavesetanambitioustargetto
deploy1.95GWofmarinerenewableenergyby2020.3
Theworldwideefforttodevelopcommercially
viabletidalpoweroffersawindowofopportunityfor
NovaScotiatoinventsolutionsandgainexpertisethat
canbeexportedtootherjurisdictions.Buildingonlocal
andglobalexperience,NovaScotiacanplayamajorrole
inthecreationofnewtechnologiesandapproaches.
Therearemultiplelocationsacrosstheprovincewhere
bothsmall-andlarge-scaleprojectscanbedeveloped
andcontributetoboththelocaleconomyandtoglobal
energyknow-how.
Building on Sound AdviceBeforepreparingthisstrategy,theprovincecommissioned
renownedoceanographerDr.RobertFourniertolead
publicconsultationonoptionstoguidedevelopment
oftheMREsectorandassociatedlegislationand
regulations.4Dr.Fournierfoundsignificantinterestand
enthusiasminNovaScotiaformarinerenewableenergy.
The“FournierReport,”titledMarine Renewable
Energy Legislation: A Consultative Process,offers27
recommendations,oneofwhichisthatastrategicplan
formarinerenewableenergy,withanemphasison
in-streamtidalenergy,bedeveloped.
3www.bwea.com/pdf/marine/Wave_Tidal_energy_UK.pdf4www.gov.ns.ca/energy/resources/spps/public-consultation/ marine-renewable-energy/Fournier-Report-English.pdf
7Nova Scotia Marine Renewable Energy Strategy
Introduction
Thegovernmentalsoconsultedpotentialdevelopers
andsuppliersthroughthe2011TidalSymposiumand
relatedworkshops,andNovaScotiaplayedaleadingrole
inthecreationofCanada’sMarineRenewableEnergy
TechnologyRoadmap.5Thatadviceandexperienceplus
localresearchwentintothispractical,yetambitious,
strategytodevelopanindustrythatwillcreatenew
opportunitiesforNovaScotiaandenergysolutionshere
andaroundtheworld.
Strategy: The Mission and the GoalResearch,collaboration,andtestinghavepositionedNova
ScotiatomovetothenextlevelofMREdevelopment.
Anadaptive,stagedapproachtodevelopmentwillensure
thatenergyprojectsareeconomicallysoundandthat
environmental,social,andcommunityinterestsare
protectedandadvanced.
TheMarineRenewableEnergyStrategy’smission
isforNovaScotia/Canadatobeagloballeaderinthe
developmentoftechnologyandsystemsthatproduce
environmentallysustainable,competitivelypriced
electricityfromtheocean.
Thegoalofthisstrategyistosupportthegrowthof
themarinerenewableenergyindustryinorderto
• secureasafe,stable,anddiversifiedsupplyportfolioof
affordableelectricityforNovaScotia
• developmarinerenewableenergytechnologyand
expertisefordomesticandexportmarketsthatwill
supportjobsandwealthhereathome
Guiding Principles 6
Theprovinceiscommittedtothesafedevelopmentof
marinerenewableenergyresourcesinthebestinterests
ofNovaScotians.Developmentwillbeguidedbythese
principles:
• Protectthemarineecosystem
• Embracecollaborationandconsultation
• Employanadaptiveandstagedapproachto
development
• Ensurethathealthandsafetyaretoppriorities
• Ensureenvironmentalprotectionandconservation
ofnaturalresources
• Recognizeandrespectotherusesandusersofthe
oceanandbalanceinterests
• Developtheindustryinasustainablemanner
• Maintainandensurecommunitysustainability
Inadditiontotheprincipleslistedabove,the
provincewillcontinuetoconsultwiththeAssemblyof
NovaScotiaMi’kmaqChiefsundertheMi’kmaq-Nova
Scotia-CanadaConsultationTermsofReferenceonthe
developmentofMarineRenewableEnergyLegislation.
5Source:www.oreg.ca/web_documents/mre_roadmap_e.pdf6ThefirstandsecondrecommendationsfromtheFournierReport are(1)CreateastrategicplanforthedevelopmentoftheMREsectorwithanimmediateemphasisontidalin-streamenergy;and(2)[Adopt]asetofguidingprinciplesfortheMREsector.Also,theFournier ReportadvisedcontinuedengagementwiththeMi’kmaqontheMREsector(Recommendation7:Needforcontinuedconsultationwith FirstNations).
8 Nova Scotia Marine Renewable Energy Strategy
The Potential for Marine Renewable Energy in Nova Scotia 2Realizing Our Potential
Marinerenewableenergyhasthepotentialto
makeasignificantcontributiontoNovaScotia’s
cleaner,greenerelectricityfuture.Alargein-stream
tidalprojectwithacapacityof300MWcouldreplace
approximately10percentofNovaScotia’scurrentpower
supply.ThatisroughlyequivalenttooneofNS’sexisting
coal-firedgenerators.Powerfromin-streamtidaldevices
isexpectedtostartcontributingelectricityaroundthe
middleofthisdecadeandcouldmakeasignificant
contributiontoelectricalgenerationpost-2020.
Tidalenergyisanidealrenewableenergysource
becauseitismorepredictablethanwindandsolarpower,
reducingtherequirementforback-upcapacity.That
advantagemakestidalavaluableadditiontoadiverse
mixofelectricitythat,overtime,willimprovereliability
andpotentiallyreducepowercosts.
In2009,NovaScotiaenactedGreenhouseGas
EmissionsRegulationsundertheEnvironmentActand
becamethefirstprovinceinCanadatocappowerplant
emissionsofgreenhousegasesandairpollution.More
stringentemissionreductionsareexpectedinthecoming
decades.
PowerfromMREsourcesdoesnotemitgreenhouse
gases,andwillmoveNovaScotiaclosertoitsgreenhouse
gasandairpollutionreductiontargetsbydisplacing
electricityfromfossilfuels.
Asanemergingenergysector,thishasimmense
potentialforeconomicgrowthalongsidethe
developmentofanewpowersource.Theopportunities
foradvancesintechnologyandinnovationsin
engineering,marinefabrication,marineoperations,
projectdevelopment,financing,andotherserviceand
supplyindustriesareconsiderable.NovaScotia’sstrategic
advantageisnotlimitedtotheheightorforceofthetides,
butincludesskillsandexpertisegainedfromatradition
ofoffshoreworkandamultitudeofmarineindustries.
Tidalenergycanhelpfillagrowingglobaldemand
forrenewableenergy.TheInternationalEnergyAgency
in2010estimatedthat800TWh/year7wouldcomefrom
in-streamtidalenergy.Bycomparison,theMuskratFalls
portionoftheLowerChurchillprojectisexpectedto
produce4.9TWh/yearofelectricity.
7Source:www.iea-etsap.org/web/E-TechDS/PDF/E08-Ocean%20 Energy_GSgct_Ana_LCPL_rev30Nov2010.pdf
Cap d’Or.
9Nova Scotia Marine Renewable Energy Strategy
State of the Marine Renewable Energy Sector 3G lobally,theMREsectorisevolving.Theocean
holdsvastenergypotential.Waves,offshore
wind,andtidalenergyareenergysourcesthatoffer
opportunities.
Wave EnergyOceanwavesproducedbywindspassingoverthesurface
ofthewatercanbeconvertedintoelectricitywhen
energyisextractedfromthesurfacemotionofwavesor
frompressurefluctuationsbelowthesurface.Thereare
approximately50competingdesignsbeingtestedaround
theworldinsearchofcommerciallyviablewave-energy
technology.Thecostofwaveenergyisestimatedbythe
InternationalEnergyAgency(IEA)intherangeof$0.20
to$0.75perkWh.Powergeneratedbyonshorewindis
presentlypricedat$0.07to$0.09perkWhinNovaScotia.
NovaScotia’sbestwaveresourcesarefarfromland,
makingtestinganddevelopmentexpensive.Otherparts
oftheworldwithbetterwavesclosertoshorehavea
competitiveadvantage.Wavetechnologyis,therefore,a
lowerpriorityforNovaScotia,butthiscouldchangewith
technologyadvancement.
Offshore WindOffshorewindisthemostmatureMREtechnologyand
thefirsttoachievecommercialviability.Thebiggest
advantageoftheoffshorewindisthatwindsblowfaster
overtheocean,sooffshoreturbinesproducemore
electricity.Today,offshorewindisbuildinguponwell-
establishedtechnologyusedonshoreandis,therefore,
currentlythelowest-costMRE.A2011reportbythe
InternationalEnergyAgencyputthecurrentcosts
between$0.17and$0.35perkWh.Nevertheless,offshore
windiscurrentlylesseconomicalthanonshorewind,due
tothesignificantlyhigherconstructionandmaintenance
costsassociatedwiththeseprojects.Asthetechnology
matures,therearefeweropportunitiestoinnovatethan
thoseaffordedbytidalpower.
Thereisconsiderableinterestinexploring
offshorewindprojectsinCanada.TheNaikunoffshore
windprojectoffVancouverIslandreceivedapositive
environmentalassessmentlastyear.Threecommercial-
sizedprojectsarecurrentlyunderconsiderationforthe
GreatLakes.
TheUnitedStates,theUnitedKingdom,and
Norwayhavedevelopedpolicies,regulations,and
legislationtosupportoffshorewinddevelopment.The
offshorewindsectorisgrowing,andprojectsarebeing
plannedfartherfromlandindeeperwater,requiring
biggermachinesandtechnologicalimprovements.
Alternativedesignconcepts,includingfloatingbases,are
alsounderconsideration.
InNovaScotia,offshorewindfaceschallenges.
Inordertominimizeimpactoncoastalcommunities,
especiallygiventheimportanceofthescenicshoreline
inNovaScotia,careshouldbetakenoverthelocationof
theseprojects.Canso Coastal Barrens.
10
State of the Marine Renewable Energy Sector
Nova Scotia Marine Renewable Energy Strategy
Tidal EnergyHarnessingenergyfromtidesisnotnew.Itstartedwith
waterwheelsandlatermovedtothedevelopmentof
tidalbarragesandtidaldams.Therearetwomethodsfor
capturingtidalenergy—fromtherisingwaterorfromthe
speedofthetidalcurrent.
Tidal Range (Tidal Height)Onewaytoextractenergyisfromtheriseandfallofthe
tide,calledtidalrangeortidalheight.Thisapproachuses
aholdingbasinandadam,barrage,orlagoonstructure.
Waterflowingfromthehighsidetothelowsidedrivesa
turbine,muchlikeariverhydrodam.
Barrages:Barragesareessentiallydamsacrossafulltidal
estuary.Whenthetidecomesinandout,thewaterflows
throughtunnelsinthebarrageandgenerateselectricity.
Lagoons:Tidallagoonsuseawalledimpoundmentlikea
breakwatertoencloseanareaofshallowcoastalsea.Tidal
wateristrappedandreleasedthroughturbinesbuiltinto
theimpoundmentwalls.
Tidal reefs and wings:Thereareotheremergingtidal-
rangetechnologiesaroundtheworld,suchastidalreefs
andtidalwings.Tidalreefsusenewtechnologywith
floatingconcretecaissons,maintainingaconstantheight
differenceof2meters.Tidalwingsarebuiltinsegments
andaresitedalongtheshoreofanestuaryratherthan
acrosstheopening,whichpreservesfreepassagefor
marinemammals,fish,andshipping.8
Tidaldamsandbarragesarematuretechnologies
thathavebeeninuseformanyyearsandarelesscostly;
however,thereisconcernaboutsiltbuild-up,and
modelshaveshownthattheresultingblockedbaysand
rivermouthscancauseadverseenvironmentaleffects.
Preliminarystudiesindicatethattidallagoontechnology
andtheotheremergingtidalrangeconceptsnoted
abovemayhavelessofanenvironmentalimpactthana
traditionalbarragedesign.
NovaScotialedthecountryintidalrange
deploymentwhenthe20MWAnnapolisRoyalTidal
PowerPlantwascommissionedin1984.Itremainsthe
onlytidalbarrageplantofitskindinNorthAmerica.
Electricityproducedfromtidalrangetechnologycosts
from$0.14to$0.27perkWh.
8 Offshore power: building renewable energy projects in U.S. waters,2009
The Annapolis Royal Generating Station.
11
State of the Marine Renewable Energy Sector
Nova Scotia Marine Renewable Energy Strategy
Tidal Current (In-stream Tidal)Tidalcurrent(orin-stream)technologyextractsthe
kinetic(free-flowing)energyfromtidalcurrents.These
currentsaregeneratedwhenwatermovesthrough
naturalconstrictions,suchasbaysandinlets.Initial
modelingandresearchshowsthatin-streamtidal
developmenthasfeweradverseenvironmentaleffects
thantheolderbarrageanddamtechnology.
Ingeneral,threetechnologiesareusedtoconverttidal
currentsintoelectricity:horizontalaxisturbines;vertical
axisturbines;andoscillatinghydrofoils.Theycanbe
deployedonthesurface,ontheseabottom,orinbetween.
Therearenoknownenvironmentalconcernsrelatedto
in-streamtidaldevices,butifproblemsaredetected,the
devicescanbere-oriented,relocated,orremoved.
InCanada,in-streamtidaltechnologywasfirst
installedin2006atRaceRocksonsouthernVancouver
Island.AnotherprojectnearCampbellRiveron
VancouverIslandiscurrentlyunderregulatoryreview.
Anumberofsimilartechnologieshavebeendeployed
inriversthroughoutCanadaandmayofferlessonsfor
tidalpowerinNovaScotia.Between2006and2008,
sixin-streamtidalenergydevices,eachwiththecapacity
of35kW,wereinstalledinNewYork’sEastRiver
(RooseveltTidalEnergyProject).Duringthisperiod,
theydelivered70MWhofenergytoanearbysupermarket
andparkinggarage.InNovaScotia,theFundyOcean
ResearchCentreforEnergy(FORCE),locatedinthe
MinasPassage,wascreatedin2009todeployandtest
in-streamtechnologies.
Thereislimitedexperienceinassessingthecosts
associatedwithlarge-scaletidalenergy.Todate,costshave
beenhigh—intherangeof$0.44to$0.51perkWh
Atlantis deploys at EMEC.
Nova Scotia Power OpenHydro pre-deployment, Halifax Harbour.
12
State of the Marine Renewable Energy Sector
Nova Scotia Marine Renewable Energy Strategy
forinitialdeployments.Itisanticipatedthatcostswill
decreasesignificantlyoncemoredevicesaredeployed
andtechnologicalinnovationimprovesefficiencies.Costs
perkilowatttendtobehigherforsmallerprojects(due
toeconomiesofscale):atacommunityscale,smaller
devicesinNovaScotiacanapplytoreceiveaFeed-in
Tariff 9of$0.652perkWh.Thispriceisalsoexpectedto
falloncetechnologyandmethodsbecomemoremature
(formoredetailsonFeed-inTariffs,refertosection5).
9Feed-inTariff:Thepriceestablishedtocovertheproductioncosts ofnew,renewableenergysources,andpaidtotheproducer.Thecost isspreadacrossthedistributionmarket.FirstdevisedinCalifornia, FITwasperfectedinGermanywhereitisresponsibleforoneofthemostadvancedandeconomicallyvibrantrenewableenergyindustriesintheworld.
Small-scale tidal energyinNovaScotiarefers
tocommunity-basedprojects—devicesproducing
equalorlessthan500kWandconnectedtothe
distributionsystem.
Large-scale tidal energyinNovaScotiarefersto
singledevicesorarraysofdevicesproducingmore
than500kWandconnectedtothetransmission
system.
In-stream Tidal Energy Technologies
Maximum Power with 5% Reduction in Flow
This map shows the mean power that can be extracted from the tidal currents through passages around Nova Scotia while reducing the volume of water flowing through the passage by only 5%. The values are calculated using numerical simulations of the tidal currents through the passages with power extracted by a turbine fence extending across the passage. In Cape Breton, the values are calculated using the characteristics of the flow and power extraction theory.
Great Bras d’Or Channel 1.1 MW
Barra Strait 0.6 MW
Minas Channel 2400 MW
Digby Gut 76 MW
Petit Passage 9.5 MW
Grand Passage 4.5 MW
N O V A S C O T I A
N E W B R U N S W I C K
13Nova Scotia Marine Renewable Energy Strategy
Strategic Objectives
Where Are We Headed?
A successfulMarineRenewableEnergyStrategywill
meetkeystrategicobjectivesinNovaScotiafor
economicgrowthandenergysecurity.Theseare:
Build and maintain public trust through science, accountability, and transparencyThemarineenvironmentiscomplexandsharedbymany
users.Itisapublicresourceandassuchtheowners—
NovaScotians—musttrusthowMREisdeveloped
andoperatedtoensuresustainableandbeneficial
growth.Publicacceptanceandtrustmustbeearnedand
maintained.Ageneralunderstandingofthescienceand
atransparentandaccountableregulatoryregimewill
help.Environmentalmonitoringandprotection,public
reporting,maintainingthehigheststandardsofhealth
andsafety,andprovidingongoingopportunitiesfor
publicandstakeholderengagementareessential.
Develop approaches and technologies that are technically, economically, and environmentally sustainableUltimately,tidalenergymustbecommercially
competitivewithotherrenewableenergysources.
Advancesinoverallprojectdevelopmentandtechnology
arerequired.Theprovincewillpromoteinnovationand
research,establishanefficient,predictableregulatory
system,andencouragethedevelopmentofmarket-
competitivetechnologiesbypromotingcollaboration
whereexpertiseandotherstrengthsexistamonglocal
andregionalindustry,researchers,andgovernments.
Build an industry in Nova ScotiaGenerationsofNovaScotianshaveadaptedandevolved
theirskillstoseizeeveryopportunitytheoceanshave
offered.Marinerenewableenergyisnext.Successwill
resultingoodjobsintheprovince,alongwithknowledge
andtechnologythatisindemandworldwide.
4
New Energy Corporation 5kW, EnCurrent Turbine test.
14 Nova Scotia Marine Renewable Energy Strategy
Strategic Objectives
Consult and collaborate with Mi’kmaq10
TheMi’kmaqcommunityhasexpressedinterestin
collaboratingonthedevelopmentofNovaScotia’s
renewableenergysector.Continuingtobuildapositive
relationshipwiththeMi’kmaqisakeypriorityfor
theprovince.Theprovincehassoughtinputfromthe
Mi’kmaqofNovaScotiaondevelopmentsintheMRE
sectorsince2006.
TheMi’kmaqwereconsultedintheBayofFundy
SEAprocess,andaMi’kmaqEcologicalKnowledgeStudy
wasconductedontheMinasChannelareaofthebayto
ensurethatMi’kmaqtraditionaluseandknowledgewere
includedintheassessment.
Throughengagementwiththeprovince,theAssembly
ofNovaScotiaMi’kmaqChiefshasbeencontinually
informedonthedevelopmentoftheFORCEtidal
demonstrationproject,andMi’kmaqrepresentativeshave
beenparticipatingintheEnvironmentalMonitoringAdvisory
CommitteeandtheCommunityLiaisonCommittee.
TheprovincegrantedfundingtotheKwilmu’kw
Maw-klusuaqnNegotiationOfficeforthedevelopmentof
aMi’kmaq-specificrenewableenergystrategy.Thestrategy
willsupporttheMi’kmaqinsuccessfullypursuingdirectand
indirectrenewableenergyopportunitiesinNovaScotiaand
ensuringtheirparticipationintherenewableenergysector.
Inadditiontoongoingconsultationconducted
throughtheMi’kmaq-NovaScotia-CanadaConsultation
TermsofReference,theprovinceiscommittedto
workingwiththeAssemblytocollaborativelydevelop
plansforaccesstocapitalforinvestmentandfor
educationandtrainingsotheMi’kmaqmayparticipate
fullyinthedevelopmentoftheMREsector.
•WorkwiththeMi’kmaqtodeterminepotential
opportunitiesforMi’kmaqinvolvementin
commercial-scaledevelopment
•DeveloplinkagesbetweentheMi’kmaq’s
renewableenergystrategyand,onanegotiated
basis,theirparticipationinMREprojects
•Encourageindustryproponentstoengage
withtheMi’kmaqduringprojectconceptand
developmentphasesthroughspecificguidelines
establishedduringconsultations,buildingupon
The Proponent’s Guide: Engagement with the
Mi’kmaq of Nova Scotia
•Emphasizetheimportanceandroleoftraditional
knowledge(e.g.,Mi’kmaqEcologicalKnowledge
Studies)inallMREdevelopment
NS Commitment to Mi’kmaq
10TheFournierReportadvisescontinuedengagementwiththe Mi’kmaqontheMREsector(Recommendation7:NeedforcontinuedconsultationwithFirstNations).
15Nova Scotia Marine Renewable Energy Strategy
How Will We Get There? Our Strategic Plans
T hisstrategyisorganizedintothreedistinctbut
connectedplans:
1)ResearchPlan
2)DevelopmentPlan
3)RegulatoryPlan
1) Research Plan: Building the Science11
Howdotidalpowerdevicesandthesupporting
infrastructureinteractwiththeenvironment?
Howdoestheenvironmentaffectthedevicesand
infrastructure?Abroadrangeofongoingresearchis
necessarytoanswertheseandmanyotherquestions.
Researcherswillinvestigatethesocioeconomicimpacts,
healthandsafetystandards,andotherconcerns,
anddiscovertechnologythatmakesdevelopment
commerciallyviable.
Theplantobuildunderstandingofboth
technologicalandenvironmentalaspectsandtomitigate
adverseimpactswillenhancepublictrust,particularly
whenkeyelementsofthesciencearepubliclyfunded
andsubjecttopeerreview.Researchiscrucialtocreating
commerciallyviable,sustainabletechnologiesthatwill
fosteracompetitiveindustryinNovaScotia.
Collaborative relationships—mission critical:Theprovince’sroleistofosterpartnershipsandmulti-
disciplinaryresearchprojectsthataddressknowledge
gaps,andtheprovinceisdevelopinganintegrated,long-
termresearchplanthatbringskeyplayerstogether.
TheNovaScotiasectorhasbeensupportedbythe
federalgovernmentthroughSustainableDevelopment
TechnologiesCanada,whichcontributed$4.6million
toNovaScotiaPower’sOpenHydrodeviceintheBay
ofFundyand$1.5milliontoCleanCurrentforits
technology.ThefederalCleanEnergyFundcontributed
$20milliontoFORCE.ThenewnationalecoEnergy
InnovationInitiative(ecoEII)isexpectedtocontinue
federalsupportandisnowconsideringapplicationsfor
importantresearchanddemonstrationefforts.
Significanttechnicalexpertiseandcapacitywillbe
requiredtoadvancetheMREagenda.TheDepartment
ofEnergyisworkingwithacademicinstitutionsand
industrytobuildengineeringcapacityandtofocus
effortsoncommonissues,includingfoundationaland
structuralengineeringandstructuralenvironment
monitoring.Benefitstotheindustryandtheprovinceare
evidentalready—thebasefortheOpenHydrodevicewas
constructedcompletelyinNovaScotia—andwillgrow
asmoreengineeringeffortsarebroughttobearonthe
uniqueBayofFundychallenges.
TheprovinceissupportingtheFundyEnergy
ResearchNetworkinastudytodefinethescopeandscale
ofsocio-economicissuesandopportunitiesinvolvedin
thedevelopmentofin-streamtidalpower.Thestudywill
identifypriorities,gaps,andfundingopportunitiesas
wellasassesssupplychainrequirementsandbenefitsto
municipalitiesandruralcommunities.
5
11TheFournierReportemphasizesthenecessityforresearchsupport togrowtheMREsector.Recommendationsinclude(12)Workwithcommunitiestounderstandtheneedsofsmallscaletidaldevelopment; (14)Createalong-termresearchplan;(15)ContinuesupportfromDepartmentofEnergyforOEER,OETRandFORCE;(16)Enactlegislationtodefinetheongoingroleofresearchandfundingsupportavailable;(17)Circulateresearchandmonitoringresultstothepublic.
How Will We Get There? Our Strategic Plans
16 Nova Scotia Marine Renewable Energy Strategy
Tosupportacoordinatedapproach—especially
whenitcomestonon-commerciallysensitiveresearch—
discussionsarecurrentlyunderwaybetweentheNova
ScotiaDepartmentofEnergyandFORCEtoconvenea
TidalEnergyResearchForumthatwouldbeledbythe
DepartmentofEnergyandwouldcontributetosharing
informationoncurrentresearchprojectsunderway.It
wouldalsocontributetoestablishingresearchpriorities
andbringingtogetherkeyorganizationsengagedintidal
researchanddevelopmentintheprovinceincluding
theOffshoreEnergyResearchAssociationofNova
Scotia(OERANS),OceanRenewableEnergyGroup,
FORCE,Innovacorp,FundyEnergyResearchNetwork
(establishedtocoordinateandfosterresearchcapacityin
environmental,engineering,andsocioeconomicfactors
associatedwithtidalenergyintheBayofFundy),the
AcadiaTidalEnergyInstitute,CapeBretonUniversity,
SaintMary’sUniversity,DalhousieUniversity,Nova
ScotiaPowerInc/Emera,12andtidaldevelopers.
FORCEOneofthekeydriversofbothresearchanddevelopment
inNovaScotiaisFORCE,Canada’sleadingtestcentre
fortidalenergytechnology.FORCEcollaborateswith
developers,regulators,andresearcherstostudythe
interactionbetweentidalturbinesandtheBayofFundy
environment.Itcurrentlysupportstestingtoprovethe
viabilityofsingle-unitin-streamtidalenergydevices,and
willsoonprogresstotestingarraysofdeviceswiththe
intentionofdevelopingcommerciallyviabletechnology.
FORCEcollaborateswithotherresearchinstitutions
thatarestudyingpotentialimpactsonfish,onbenthic
habitat,andonissueslikesubmarinecabledeployment,
devicemaintenance,retrievalandredeployment,and
submarinepowerconnections.Thisworkisessential
inunderstandingenvironmentalinteractions,andwill
providethefoundationforfutureprojects.
ThisstrategyproposesthatFORCE’smandatebe
enhancedtohaveitactasthehubofknowledgefora
broaderrangeofinterestsincludingappliedresearch,
technologytestingandoperationforbothsmallandlarge
scaletechnologies,andenvironmentalmonitoringunder
demonstrationortestingregimes.
AsFORCEnearsthecompletionofitsfacilities,it
isabletoconcentratemoreofitseffortsonbothitsown
researchandresearchcarriedoutincollaborationwith
others.FORCEhasafocusedinterestintidalenergy
research,demonstration,andoperationalstandards
development.ItisthroughFORCEthatmuchof
Canada’spublicinvestmentinresearchiscoordinated
anddisseminated.FORCEwillworkwithOERANSto
collaborate,coordinate,andleveragetidalresearch.
12NovaScotia’selectricitymarketconsistsofaverticallyintegratedutility—NSPI(parentcompany,Emera)—andsixsmallermunicipalelectricutilities.Asanintegratedutility,NSPIhasresponsibilityforelectricityprocurement,systemoperation,gridaccess,maintenanceofthetransmissionanddistributionsystems,andmeetingitsrenewableenergytargets.
How Will We Get There? Our Strategic Plans
17Nova Scotia Marine Renewable Energy Strategy
TheprovinceiscommittedtoFORCEasamodel
fordemonstratingandtestingpre-commercialtidal
technologiesforthepurposesofmakingimprovements
toenvironmentalmonitoring,technologydemonstration,
andreducingelectricityproductioncosts.The
infrastructureatFORCE’sMinasChannelsiteallowsfor
thepotentialfuturedemonstrationoffourarraysat16
MWeach.Smallerscaletestordemonstrationprojects
thatfalloutsideofthecurrentFORCEleasesitecould
belinkedtoFORCEundertermsandconditionsto
benegotiatedamongthepartiesandtheDepartment
ofEnergy.ItisenvisionedthatFORCEcouldoffer
theirservicestosmall-scaleCommunityFeed-inTariff
(COMFIT)tidaldevelopersonacontractualbasis,
includingenvironmentalassessmentandmonitoringand
consultingservicesonregulatoryissues.Tidalprojects
proposedinNovaScotiawouldhavetheoptionofusing
theservicesofFORCEonacontractualbasistoassistin
theirdevelopmentactivities.
TheprovincemayalsoauthorizeFORCEtoengage
inresearchordemonstrationprojectsatothersitesto
characterizelowerflowenvironmentsandthetesting
ofmonitoringequipment.Iftherewereacommercial
developmentproject,suchactivitiescouldtakeplace
attheFORCEsiteorelsewhere.Regardlessofwhere
commercialdevelopmentstakeplace,theprovince
willensurethatthereisacollaborativeapproachand
sharedknowledgeonpublicinterestactivitiesincluding
environmentalimpacts.
Canada’sTechnologyRoadmapforMarine
RenewableEnergyidentifiedtechnologyincubatorslike
FORCEandtheneedtoaccelerateinnovationthrough
R&DaskeytothesuccessofMREingeneralandtidal
powerinparticular.NovaScotiahasthescientific,
engineering,social,andeconomicresearchcapacity
inouruniversitiesandgovernmentorganizationsto
accelerateR&Dincollaborationwithprivatecompanies
workinginoceantechnologies.Therearemorethan
300oceantechnologyfirmsintheprovince—thelargest
concentrationinNorthAmerica.
FORCE.
18
How Will We Get There? Our Strategic Plans
Nova Scotia Marine Renewable Energy Strategy
Strategic Environmental Assessment (SEA)—the big pictureAStrategicEnvironmentalAssessmentisan
environmentalassessmentprocesscarriedoutbefore
decisionsaremadeaboutspecificprojects.Bypolicy,
theprovincehasmadeSEAsaprerequisitetothe
developmentofMREprojectsinNovaScotia.They
providetheframeworkfromwhichfutureprojectscan
beinitiatedbyidentifyingthecurrentstateofknowledge
oneffectsofthetechnologyontheenvironmentand
theenvironmentonthetechnology.SEAsinvolvethe
participationofawiderangeofstakeholdersandthe
generalpublicandcanresultinrecommendationstothe
provincialgovernmentonwhether,where,andhowto
developMREprojects.
Projectdevelopers,government,industry
representatives,communitiesofinterest,andother
stakeholderscanusetheinformationcollectedfroma
SEAtoguidefutureactivities.Theprovincewillrequire
aSEAbeforeanylicensesareissuedinanareaandwill
includethisrequirementinfuturelegislation.
Theprovince’sfirstmarinerenewableenergy
SEAwascompletedin2008fortheBayofFundy.The
objectiveofthisSEAwastoassesssocial,economic,and
environmentaleffectsandfactorsassociatedwiththe
potentialdevelopmentofMREresourcesintheBayof
Fundy,withanemphasisonin-streamtidal.The2008
SEAwasledbyanOERANSTechnicalAdvisoryGroup
inwhichOERANSreceivedinputthroughcommunity
forums,workshops,andwrittensubmissionsfrompeople
aroundtheprovince.
SincetheoriginalSEAwasconducted,anumber
ofadvancementshavebeenmadeintheMREindustry,
onebeingtheestablishmentoftheFundyOcean
ResearchCentreforEnergy(FORCE),whichhashadone
successfuldevicedeploymentandretrievalattheMinas
Passagelocation.Anumberofenvironmentalresearch
projectshavebeencommissionedandmonitoringdatais
beingcollectedintheBayofFundy.
Theprovince’sMarineRenewableEnergyStrategy’s
targetof300MWofcommercialtidaldevelopment
meansitistimetorevisitthe2008SEAtoupdatethe
stateofknowledgeoftheindustrytodateandre-engage
withstakeholderstodiscussplanstobuildtheindustry
carefullyinstagesasweclosetheremainingknowledge
gaps.OERANSisintheprocessofconductingtheSEA
update.
Theprovinceiscurrentlysupportingthe
developmentofsmall-scaletidalpowergrowththrough
anassessmentofthein-streamtidalpowerresource
opportunitiesinSouthwestNovaScotiaandintheBras
d’OrlakesregionofCapeBreton.Asmoreinformation
isobtainedaboutthesmall-scaletidalresourcearound
NovaScotia,theremaybeadditionalSEAsconducted
forotherareasoftheprovince,particularlySouthwest
NovaScotia.In2012-2013,OERANSwillmanagethe
developmentofanSEAfortheCapeBretonCoastal
RegionincludingtheBrasd’OrLakes.
19
How Will We Get There? Our Strategic Plans
Nova Scotia Marine Renewable Energy Strategy
2) Development Plan: A New Industry
E ffortscontinueallovertheworldtodeveloptidal,
wave,andwindtechnologiesthatcansuccessfully
operateintheharshconditionsofthemarineenvironment.
Whilethereisameasureofconsensusarounddesign
elementsofin-streamtidalenergydevices,thereisnoone
proventechnology.Developingnewtechnology,creating
amarket,andbuildingasupplychainareessentialto
thegrowthofatidalpowerindustryinNovaScotia.The
province’sdevelopmentplanunderthestrategyconsistsofa
technologydevelopmentplan,amarketplacedevelopment
plan,andanindustryandsupplierdevelopmentplan.
Ensuringthatthedesign,installation,andoperation
ofin-streamtidalenergyareenvironmentallysustainable,
ensuringthattheydrivedowncostsandarecompetitive
withotherrenewableenergy,andensuringthatNovaScotia
takesmaximumeconomicadvantageofthisopportunity
willallhelptoencouragetidaldevelopmentintheprovince.
DevelopingthetechnologyinNovaScotiaand
ensuringthatexperienceandexpertiseresideherearecritical
todevelopingacompetitive,sustainableMREindustry.
Technology Development Bothresearchanddevelopmentareessentialtothe
commercialsuccessofnewtechnologies.NovaScotiais
movingbeyondafocusonthedesignofturbinesalone
tofocusonthedesignofcompletetidalpowersystems.
Powerproductionfrommarinerenewable
resources—includingin-streamtidal—iscurrently
threetosixtimesmoreexpensivethanpowerfrom
competingresources.Butthecostofaturbineisonly
25to30percentofthetotalprojectcost.Inorderto
createcompetitiverenewableenergy,thecostsforthe
overallprojectneedtobereduced.Workinthisarea
isnotfaradvanced,butourexperience—combined
withcooperationinternationally—willcontributeto
significanttransferrablebreakthroughsinknowledge.
TheinfrastructureatFORCEhelpssupportthe
growingneedsofthetidalindustry.FORCEhasa
substationthatcanbeoperatedupto5MWandis
capableofbeingupgraded.Atransmissionlineisalso
beingconstructedtomeetimmediateneedsbutthatcan
alsobeupgraded.FORCEwillalsoinstallfoursubsea
cablesattheMinasPassagetestsite.Thesecableswill
giveCanadathelargestoffshoretransmissioncapacity
ofanyin-streamtidalenergysiteintheworldwitha
totalcapacityof64MW.Technologiesevolvingasrapidly
asin-streamtidalrequireaversatiledemonstration
facilitycapableofrespondingtofutureoptions.FORCE
providesthatfacility.
Innovationwilltakeseveralpathstobuildthe
foundationforthenextgenerationoftechnologyand
tosupportcommercializationoftidalenergy.InNova
Scotia,thiswillincludecontinuedtestingofsingledevices
andsmallarraysthroughFORCEatMinasPassage,
At FORCE visitor centre. Premier Darrell Dexter and the Honourable Charlie Parker, Minister, Nova Scotia Department of Energy.
20 Nova Scotia Marine Renewable Energy Strategy
How Will We Get There? Our Strategic Plans
multipledeploymentsofsmallerdevicesincommunity
projectsintheBayofFundyandelsewhere,andthe
beginningofaprogressivecommerciallicensingprocess.
Eachpathhaslengthytimelines,soitwillbenecessary
toruntheminparallel.
Incubation Sites
Akeyareaoffocusfortheprovince’sMarineRenewable
EnergyStrategyandCanada’sMarineRenewableEnergy
TechnologyRoadmapisontechnologyincubation.
Technologyincubationisamechanismthatcanspeed
developmentandfosterentrepreneurship.Aggregating
andacceleratingearlyindustrial-scaleproject
demonstrationsandtechnologyinnovationwillfoster
entrepreneurshipanddevelopmentthroughtheuseof
sharedresources,expertise,andintellectualcapital.There
areotherlocationsintheBayofFundythatmaybe
moresuitableforincubationsitesfortechnologytesting
thathavelowercostassociatedwithdeployment(e.g.,
closertoshore,lowertidalvelocities).Optionsarebeing
exploredtocreateanincubationfacilitytotestMRE
turbinesandassociatedtechnologies.
TheUnitedKingdomhasbeenconsideredaleader
inMREwaveandtidaltechnologyandhadthefirst
multi-berthtidalandwavetestingcentreattheEuropean
MarineEnergyCentreoffOrkneyinnorthernScotland.
NovaScotiawillbuildupontheirexperience.Currently,
FORCEhasaplantotestindividualturbinesandison
tracktobethefirsttestcentreintheworldtotestarrays
ofdevices.
Small-scale, community power
Therearedifferencesindesignandcostbetweensmall-
scaleandlarge-scaletidalpowerdevices.Small-scale
devicesarenotnormallydesignedtooperateinstrong
andfast-movingcurrentsliketheMinasBasin.While
highercurrentspeedsareexpectedtoproducemore
cost-effectiveelectricity,theremaybemoreopportunities
globallyforlowercurrentspeeds,thuscreatingthe
marketforbothscalesoftechnologyisneeded.
Thedevelopmentofsmall-scaletidalenergy
projectsatthecommunitylevelcanbringneweconomic
opportunitiestoruralNovaScotiaandhelptodevelop
theknowledge-baseforlarge-scale,commercialtidal
developmentandviceversa.Learningandknowledgecan
besharedandtransferredbetweenthesetwosectors.
Theprovincesupportssmall-scaledevelopment
throughtheCOMFITprogram.TheDepartmentof
EnergyisworkingwithInnovacorpandcommercial
intereststoexploreinvestmenttoolsthatsupportsmaller
scaleMREtechnologycompaniesandprovideeconomic
benefitstocommunitieswhilegrowingthesmall-scale
tidalpowerindustry.
Earlysmall-scaleindustrialprojectsshouldbe
encouragedtoshareresources,expertise,andintellectual
capital.Forexample,theDepartmentofEnergyis
facilitatingdiscussionsbetweenFundyTidalInc.(FTI),
ACOA,andInnovacorptopartnerinthedevelopment
ofaSmall-ScaleEcosystemTidalTestingCentre.The
centrewouldencompassFTI`sthreeCOMFIT-eligible
tidalresourcesites(DigbyGut,GrandPassage,andPetit
Passage)andtestdemonstrationandcommercialscalein-
streamtidaldevices.Themultiplesitesoffertheadditional
advantageoftestingvariousspeedsofoceancurrents.
21Nova Scotia Marine Renewable Energy Strategy
Integratedgridmanagementisatooltobalance
powerproductionandloadrequirements.Distribution-
levelenergydevelopmentsthatcomeundertheNova
ScotiaCOMFITprogramareconstrainedbythecapacity
ofdistributionsystem.Theirmaximumpowercapacity
maynotexceedtheminimumannualloadonthe
substation.
Theprovincewillcontinuetosupporteffortsto
understandhowtocombinetidalarrays,powerstorage,
andsmartgridcontrolandhowtodemonstratethat
minimumloadcanbemetmoreregularlythrougha
combinationoftidalenergy,storage,andintegrationof
othervariableenergysources,suchaswindandsolar.
TheprovinceandFundyTidalInc.willcontinueto
exploreinnovativeresearchopportunitiestoexaminethe
integrationofpowerdistributionandcommunity-scale
renewableenergysystems.
Partners in large-scale innovation
Partnershipsbetweentechnologydevelopers,power
companies,andinvestorswillbeastrongfactorin
makingcommercialtidalpowerareality.Thegoalis
todevelopthetechnologyandretaintheintellectual
propertyinNovaScotia,whiledeployingthattechnology
locallyandexportingitworldwide.
Theincremental,scaleddevelopmentandproject
managementapproachispreferred,becauseitwillallow
paralleltechnicalandoverallprojectinnovationandwill
allowanyemergingissuesorproblemstobeaddressed
andresolvedastheyemerge.
Workingwithindustry,theprovincewillassess
interestinaformalcommercialpartnershiptoaccelerate
large-scaletidalenergydevelopmenttimelines.Inthe
eventthataviablecommercialprojectispresentedtothe
province,theprovincemaypartnerwithindustryonthe
project.Thiscouldreducetheriskfortheprojectandmay
acceleratethedevelopmentofefficienttechnologiesand
thecreationofanin-streamtidalindustryinNovaScotia.
Marketplace Development Plan13
SuccessofatidalenergyindustryinNovaScotiadepends
onbuildingamarketfortheelectricity,whichwill
becomecommerciallyviableovertime.
NovaScotia’sopportunitiestoexportpowerare
limitedbythe350MWofnon-firmcapacity,345
KilovoltpowerlineconnectionwithNewBrunswick.
Thislinedoesnothavefirmcapacityatpresentandis
thereforeoflimiteduseinaccessingexportmarkets.
Itistheonlypowerconnectionoutoftheprovince.
CollaborativeCooperativeventuresliketheAtlantic
EnergyGateway(AEG)—anundertakingofallfour
Atlanticjurisdictions—andtheMuskratFalls/Maritime
Linkprojectwilllikelyresultinnewtransmission
infrastructure,increasedtransmissioncapacity,
opportunitiestouseorexportsurplushydropower,and
flexibilitytoincorporatemoreintermittent,renewable
electricity.Thedevelopmentofenhancedtransmission
infrastructurewillenable,inthelongerterm,theuse
and,potentially,exportoftidalpoweroncethecostof
productionbecomescostcompetitive.
TheAEGprocessislookingatfuturedemandand
supplyissuesaswellaswhatinfrastructureisrequiredto
movesupplytothemarkets.Theresultsofthisworkare
expectedtobereportedlaterthisyear.
How Will We Get There? Our Strategic Plans
13TheFournierReportdiscussesissuesrelatedtothemarketplace, includingtheexportmarket,incentives,subsidies,royalties,andelectricity infrastructure(Recommendation13:Developabusinessplanforthenext6-12monthsfortheMREsectorbasedontheavailabilityof socioeconomicdata).
22
How Will We Get There? Our Strategic Plans
Nova Scotia Marine Renewable Energy Strategy
ThecostofMREiscurrentlysomedistancefrom
commercialviability.EconomicmodelingintheUnited
Kingdom14showsthatenergygeneratedfromthefirst
waveandtidalprojectswouldcost$0.61to$0.77per
kWhforwaveand$0.46to$0.53perkWhforin-stream
tidal.Inasupportivepolicyclimate,andwithsuccessin
technologyinnovation,thecostofthisenergyshould
comedowntoaround$0.51perkWhforwaveand$0.42
perkWhforin-streamtidalpowerby2020.Atthatpoint,
itispredictedthatthein-streamtidalenergywillbeginto
becostcompetitivewithoffshorewind.
Recentresultsfromthefirstin-streamtidal
demonstrationintheMinasPassage,combinedwith
revisedresourceassessmentnumbersforthesite,are
providingindustrywithoptimismthattheeconomics
ofin-streamtidalinNovaScotiamaybemuchbetter
thanoriginallyestimatedandthetidalenergyindustry
inNovaScotiawillbecomecostcompetitivewithother
renewablesourcesofelectricity.
Thetablebelowillustratesthismodel:
Source of Energy Generation Baseline Cost for Energy Production
FirstWaveProjects 38-48p/kWh($0.61to$0.77/kWhCanadian)
FirstIn-Stream 29-33p/kWh($0.46to$0.53/kWhCanadian)
TidalProjects
InnovativeWave 32p/kWh($0.51/kWhCanadian)
TechnologyProjects
InnovativeTidalIn-Stream 26p/kWh($0.42/kWhCanadian)
TechnologyProjects
UK Baseline Cost of Energy Generation from Wave and Tidal
14 Accelerating marine energy, the potential for cost reduction—insights from the Carbon Trust Marine Energy Accelerator,July2011.
23
How Will We Get There? Our Strategic Plans
Nova Scotia Marine Renewable Energy Strategy
Determinedeffortsbyexperiencedpowerproducers
andadvancesindevicedeploymentandretrieval
methodsareexpectedtoachievesignificanteconomiesof
scale.Technologyinnovationcanexpeditecostreduction,
buttidalpowerwill,initiallyatleast,requiremarket
supports.NewandexistingtoolswillsupportMRE
projectsthroughthetechnologydevelopmentstage.
TheprovincehadtheNSUtilityandReviewBoard
(UARB)setafixedpricefortidalenergythroughthe
CommunityFeed-inTariffprogram(COMFIT)for
smaller,communitylevelprojects,andwillhavetheUARB
setalimiteddevelopmentaltidalFeed-inTariff(FIT).
Theratepaidandtheamountproducedforin-
streamtidalelectricityunderthelarge-scaleFeed-inTariff
willneedtobebalancedbetweentwoobjectives:
• theneedtosupporttechnologicalandenvironmental
knowledgethatwillleadtocommercialscale
competitiveprojects
• theneedtomanageatransitiontoamorediversified
cleanerenergymarketinamannerthatdoesnot
placeanundueburdenonratepayers
Inordertobalancetheseobjectivestheprovincewill
• continuetoseeknationalR&Dfundingtosupport
Canada’sleadershiproleinmarineenergy
• limittherateimpacttoamaximumtotalincreaseof
1-2percentonratesduetotheFIT—theprovincewill
dothisbysettingalimitontheenergytobelicensed
oncetheUARBsetstherate
Alstom Beluga.
24
How Will We Get There? Our Strategic Plans
Nova Scotia Marine Renewable Energy Strategy
ThisdirectionisconsistentwiththeInternational
EnergyAgency’srecommendation15thatjurisdictions
develop“phased”tariffs,whereinitialprototype/pilot
projectscanbeimplementedandindustrycanlearn
fromthem.Laterprojects,presumably,willreceivelower
ornotariffs,reflectingimprovementsintechnology
andlowercostsofproducingpower.Thephasedpricing
mechanismfollows:
Project Scope and Scale Market Mechanism Description
Small-scaleDevelopmental COMFITTestingPhase1 Firstrateat65.2centssetbyUARB
COMFITDemonstration Secondratetobesignificantlylower
Phase2 baseduponexperienceandtechnology
development—WillbesetbyUARB
infuture
Medium-scaleDevelopmental FITTestingPhase1 Firstratesetattherateestablished
byUARBinnearfutureforpermitted
facilitiesatFORCE,Technology
DevelopmentTestingLicenses
(permittedcapacityof5MW)
FITDemonstration Secondrate(s)setataratetobe
Phase2 establishedbyUARBforDemonstration
arrays
Commercial Marketforcommercially Allprojectsapplyingforcommercial
competitiverenewable licensesmustsubmitaplantodevelop
electricityproduction anddeployMREataratecomparable
toothersourcesofrenewableenergy
Phased Pricing Mechanism
15 Clean Energy Progress Report,IEAinputtotheCleanEnergy Ministerial,InternationalEnergyAgency2011.
25
How Will We Get There? Our Strategic Plans
Nova Scotia Marine Renewable Energy Strategy
Feed-in Tariffs (FIT)
Theprovince’sRenewableElectricityPlanestablished
Feed-inTariffstosupportthedevelopmentof
renewableelectricityprojects,includingsmall-scale
anddevelopmentaltidalenergy.TheCOMFITand
DevelopmentalFITfortidalenergyprojectsprovidean
opportunityfordeveloperstoreceiveanestablishedprice
perkilowatthour(kWh)fortheproductionofrenewable
electricity.
TheFITssupporttechnologiesinthedesignand
testingstage.Theyarenotintendedtobepermanent,but
areinplacelongenoughtoallowthetechnologytoevolve
tothepointwhereitproducescommerciallycompetitive
electricity.WhenLEDlightbulbsarrivedonthemarket,
forexample,theycostupto$22each.Today,consumers
pay$2.Thepricereductionintechnologyasitmoves
fromearlydesignthroughtodevelopmentandmaturity
iswellestablished.
InNovaScotia,thetoolisbeingappliedtoin-
stream-tidalfortworeasons:
• Theadditionalcostsassociatedwithearlyadoptionand
supportwillbeappliedtoarelativelysmallamountof
electricitysothecosttoratepayerswillbeminimal.
• BecauseNovaScotia’scompetitiveadvantagesare
significant,theopportunitytocreateaglobally
competitiveenergysectorwithsignificanteconomic
benefitstoNovaScotiansisreal.
FITsareamodelusedsuccessfullyinEuropeand
otherjurisdictions.Byprovidingearlysupportinthe
developmentofanewindustryandtakinglessons
learnedfromjurisdictionsthathavehadsuccessinnot
onlythedevelopmentofintellectualproperty,butalso
inthedevelopmentofdomesticandexportmarketsfor
renewabletechnologies,suchasDenmarkinwindand
GermanyinSolarPV,NovaScotiaispositioningitselfto
createsufficientmomentumtoadvancetheMREsector.
Market Support
Bothsmall-andmedium-scaledevelopmentalprojects
willhaveaccesstomarketsupports.Theamountof
supportwillchangeastechnologyandexperiencegrows.
Allprojectsarecurrentlyatthetestingstage(phase1).
COMFITsmall-scaledevelopmentalprojectshavearate
of$0.652perkWhfortheirdevices(eachdevicewitha
capacityof500kWorless).Thisratewassetin2011
bytheUARB.Theratesforprojectsoriginatingin2014
andbeyondareexpectedtobelowerafterbeingreviewed
in2014.
Medium-scaledevelopmentalprojectswillhavea
TestingStageratesetfortheirexistingcapacity(each
devicewithacapacitygreaterthan500kWandatotal
capacityof5MWatFORCE)laterin2012.ThisFITrate
willreflectdirectcostsrelatedtothedeploymentofsingle
devicesandtakeintoaccountpublicinvestmentsalready
made.Testingwillnormallytakeplaceforlimitedperiods
(1-2years)butthedevicesthemselveswillbeconsidered
tobeamortizedoveraperiodof20-25years,sotherate
willbesetaccordingly.Theactualtestingschedulewill
bedrivenbyindustry,butafterthreeormoreyears,
technologyprovidersaregenerallyexpectedtomoveto
thenextstage—demonstration.
26
How Will We Get There? Our Strategic Plans
Nova Scotia Marine Renewable Energy Strategy
Thegovernmentwillconsultwithindustryandother
stakeholderstodeterminethetimingandparametersfora
UARBdecisiononaMedium-ScaleDevelopmentalTidal
FIT.Considerationwillbegiventosettingoneratefor
thefirst5MWthatwouldbechangedasthenumberof
devicesgrowsandefficienciesaregained,ortwoseparate
ratesoracombinationofsimilarapproaches.Fordetails
onthelicensingsystem,refertoAppendixA.
Supplier Development Plan
TheMREStrategyisdesignedtodevelopenergyina
mannerthatensuresNovaScotiansaretheprimary
beneficiariesintermsofemployment,industrialand
businessactivity,researchanddevelopment,and
technologycommercialization.
Whendevelopmentofoffshorepetroleumbegan,
NovaScotiasoughtexpertiseandassistance(transfer
oftechnology)fromotherjurisdictions.Overtime,this
enabledthedevelopmentofaworld-classsupplyand
servicecommunitythatnowservesnotonlyAtlantic
Canadabuttheglobalenergysectoraswell.Muchofthis
knowledgebaseistransferabletothedemandsofMRE
development.
NovaScotia’sexistingoceanstechnologycompanies
competeinvariousmarketcategories.Companieswithin
theNovaScotiaoceanstechnologysectortypicallyservice
broadmarketcategories.Althoughanumberofcore
companiesspecializewithintheirnichemarket,many
offerproductsandservicesthatareusedacrossa
rangeofmarketsegments.NovaScotiahasroomtobuild
onitsexistingstrengthstomeetanticipateddemands
fromMREdevelopment;thiswouldincludemarket
segmentssuchasaerospaceanddefence,shipbuilding
andmarinetransportation,oceanscienceand
observation,offshoreoilandgas,subseacablework,and
aquacultureandfisheries.16
Theprovincehasawealthofknowledgetoinforma
capacitybuildingstrategy,nottheleastofwhichisdirect
advicefromthosewhoworkinthesector.Developers,for
example,notethatthefabricationandassemblysitefor
deploymentoflargetidalpowerdevicesmustbecloseto
theMREinstallationsite.NovaScotiasuppliersarethe
naturalandmosteconomicchoiceforprojectslocatedin
nearbywaters.
TheDepartmentofEnergycommissionedaMarine
RenewableEnergyInfrastructureAssessmenttoinventory
port-relatedinfrastructureneedsassociatedwith
developmentoftheindustry.Thereportnotesthatwhile
infrastructureworkisnotrequiredintheshortterm,
majorportinfrastructureimprovementswillberequired
ontheBayofFundytosupportthetidalindustrybeyond
64megawatts,whichisthecapacityatFORCE.
Theprovinceispreparingtotakefulladvantage
oftheeconomicbenefitsthatwillaccruefromMRE
development.Theindustryhasidentifiedneeds,
includingthoserelatedtoitsworkforce.Educational
institutionsandtrainingprovidersareconfidenttheycan
meetthedemand.
OnemessageemergedfromarecentNova
ScotiaTidalSymposiumandothernetworkingand
consultation:TheNovaScotiasupplychainisdiverse
andhasacompleteunderstandingofquality,competitive
requirements,andtheimportanceofmeetingschedule
requirements.Manyofourcompanieshavebeen,and
stillare,involvedinjointventuresandpartnershipswith
internationalfirms.
16 Defined by the sea: Nova Scotia’s Oceans Technology Sector Present and Future,GovernmentofNS,aninitiativeofjobsHere.
27
How Will We Get There? Our Strategic Plans
Nova Scotia Marine Renewable Energy Strategy
17TheFournierReportemphasizestheneedforaproperregulatoryframework.Recommendations:(3)Developalicensingsystem;(11)AdvanceconceptandpracticeofMarineSpatialPlanning;(18)Developaregulatoryplanthatintegratesregulatoryissuesintothebroaderfabricofsectoraldevelopment;(19)Createafederal/provincialworkinggroupofregulators;(20)Createlegislationthatremovesredundanciesandincreasesefficienciesbetweenfederalandprovincialprocesses; (21)Identifyanindividualtoactasfirstpointofcontacttodevelopersseekinginformation;(22)Createapositionorofficewithadministrative,decision-makingresponsibilities;(24)Enhancelegislationrequiringalltechnologicalorscientificdatacollectedandusedbyalldevelopers; (25)EngagediscussionbetweentheDepartmentofEnergyandCanadianEnvironmentalAssessmentAgency(CEAA)regardingtheoperativethresholdsthatwillbeusedtotriggertheenvironmentalassessmentprocess;(26)Enactlegislationtorequiredevelopersengagedintidal in-streamenergyextractionintheBayofFundytoconductaudits oftheiroperationsandsubmitresultsregardinghealthandsafety standardsforreviewatregularintervalstotheDepartmentofEnergy;(27)Consideradaptationofrelevantoccupational,operational, andsafetystandardsusedbytheCanada-NovaScotiaOffshore PetroleumBoard.
Businessopportunitieswillobviouslyemergefrom
MREdevelopments.Evaluationofcommercialproposals
willincludeanassessmentofbestoverallvaluefor
NovaScotiaincludingemploymentandfiscaland
industrialbenefits.Onceactivityisunderway,
performancewillbereportedtotheprovince,which
willtrackeconomicimpacts.
ThedepartmentsofEnergyandEconomicand
RuralDevelopmentandTourismareleadingworkon
tidalenergysupplychaindevelopment.ASupplyChain
Committeeisreviewingservices,products,andfunctions
thatwouldbeneededtosupporttidalenergyandwill
inventorywhichofthoseareavailableprovincially,
regionally,andnationally.
3) Regulatory Plan17
A snoted,themarineenvironmentsupports
manyusersanduses.Multiplepublicinterests
inashared,publicresourcemeanstheinvolvementof
multiplefederalandprovincialregulatoryauthorities.A
legislativeframeworkandregulatorysystemisrequired
toensurethatprojectsanddevelopmentproceed
withappropriatelicensing,environmentalprotection,
communitybenefits,andprovincialrevenue.Itis
importanttoensurethatthepublic,stakeholders,and
theMi’kmaqarefullyapprisedandengagedinissues
relatedtoplanning,development,environmentaleffects,
economicopportunities,andregulatoryoversight.The
regulatoryplanincludesarobustandeffectiveregulatory
andenvironmentalprotectionsystemandapublicand
stakeholderengagementplanfoundedonaccountability
andtransparency.
Astrongintegratedregulatorysystemprovidesa
soundbasisforpublicassurancethattheirinterestsare
beingprotected.Accountabilityandtransparencyare
keyelementsinbuildingandmaintainingpublictrust.
AcommitmenttoongoingengagementthroughaTidal
EnergyStakeholderForum,havingfullpublicaccess
toenvironmentaldataandStrategicEnvironmental
Assessments(SEA),andthecommitmenttowork
withstakeholdersthroughtheCoastalStrategyareall
importantinenhancingpublicunderstandingand
buildingtrust.Thelicensingsystemandrequirements
areimportanttoolsinencouraginginnovationand
technologydevelopmentandinbuildingindustrial
capacityinNovaScotia.
28 Nova Scotia Marine Renewable Energy Strategy
A robust and effective regulatory and environmental protection system
Oneofin-streamtidalenergy’skeycharacteristicsis
incrementaldeployment,whichallowspotentialadverse
environmentalimpactstoberecognizedandreversed
throughtheremovalofdevices.Theprovincewill
enactanintegratedregulatoryandlicensingsystem
thatmirrorstheincrementalapproachforeffective
environmentalassessmentandenhancedindustrial
benefits.
Todate,tidalenergyactivitieshavebeencoordinated
throughaninformalOneWindowStandingCommittee
offederalandprovincialdepartmentsinterestedin,or
withauthorityfor,marineprojects.Thisprocesshas
workedwellforearlyprojectdevelopmentatFORCE
forthesingledevicedemonstrationprojectapprovedin
2009;however,astechnologiesevolveandindustrygrows,
amorecustomizedandimprovedintegratedregulatory
systemmayberequired.Thisviewwasreinforced
throughthepublicconsultationconductedbyDr.
FournierwhereThroughpublicconsultationconducted
byDr.Fournier,itbecameclearthatthecurrentOne
WindowCommitteeprocessworksreasonablywell;
however,stakeholdersexpressedthedesiretoseeamore
robustregulatoryapproachdevelopedasthisindustry
matures.
Theimmediateopportunityisforin-streamtidal,
butothermarinerenewableresourcesincludingoffshore
wind,waves,andtidalrangewillbeaccountedforin
theregulatoryandlicensingsystem.Theprovincewill
developMRElegislationthatprotectsthepublicinterest
aswellasintegratesfederalresponsibilityforprotection
ofaswellashabitatsandspecies.
Thelegislationwouldincludethefollowing
keyelements:
A Progressive Environmental Protection System
Aprogressiveenvironmentalprotectionsystemstarts
withaSEApolicyaspartofoverallstrategicplanning
providingabroadunderstandingoftheecosystemand
socioeconomicissues.(FormoredetailsaboutSEA,see
Section5)
NovaScotia’splanforaregulatoryand
environmentalprotectionsystemisfoundedonastaged,
progressive,andadaptiveapproachtodevelopmentand
deploymentofin-streamtidaldevices.Theprocessesfor
developingin-streamtidaltechnologyandunderstanding
environmentaleffectsaresimilarinthattheyboth
featureincrementaldeployments,monitoringforeffects/
impactsandbuildingonpreviousexperiencetomake
improvements.
Developmentandimplementationofthisregulatory
regimeisacollaborativeeffortwithinputfrom
governments,scientists,stakeholders,andindustry.An
outcomeofthissystemwillbeaclearsetofrequirements
forindustryalongwithaneffectivefeedbackloopon
environmentalimpacts,leadingtoearlywarningsand
earlyactionifissuesarise.
How Will We Get There? Our Strategic Plans
TheNovaScotiaDepartmentofEnergyisworking
withotherprovincialdepartmentsandgovernments,
thefederalDepartmentofFisheriesandOceans(DFO),
researchorganizations,andindustrytodevelopa
StatementofBestPracticesthatencompassestheadaptive
approachtothegrowthoftheindustry.Thestatement
willembedstandardrequirementsformodeling
andmonitoringenergyproduction,deploymentof
devices,theenvironment,stakeholderengagement,
andtransparencyindatacollectionanddissemination.
Consultationwithstakeholdersonthedevelopment
oftheStatementofBestPracticewilltakeplacein
spring2012.
CreationofaStatementofBestPracticeisan
opportunitytodevelopaninnovativetooltoharmonize
developmentandenvironmentalinterests.In-stream
tidalisanevolvingtechnologywhereindustryand
environmentalinterestsarealignedintermsofa
progressive,adaptive,andreversibleapproach.Thegoal
oftheStatement,andtherequirementthatitbeadhered
tobylicense-holders,istocontributetoimproved
regulatoryreviewandenvironmentalassessment
processes.
Alicensingprocessforlandandresourcerightswill
bedevelopedtocomplementtheincrementalnatureof
MREdevelopment.Thepurpose,rightsexpectations,
andtheofferofmarketsupportssuchasFeed-inTariffs
(FITs)willbedefinedbylicensetype.(Fordetailsonhow
theLicensesystemwouldoperate,seeAppendixA).
29Nova Scotia Marine Renewable Energy Strategy
How Will We Get There? Our Strategic Plans
Two Classes of License Proposed
Technology Development License
TestingDemonstration
Power Development License
InvestigationDemonstration
Commercial
Deployment
30 Nova Scotia Marine Renewable Energy Strategy
Types of License
Technology Development License
ATechnologyDevelopmentLicensehastwostages:
TestingStageandDemonstrationStage.TheTestingStage
involvesthedeploymentofasinglelargedeviceoran
arrayofsmalldevices.However,ifatechnologyprovider
ordeveloperwishestodeploylargernumbersofdevices
(upto15MW),thatmaytriggermovementtothe
DemonstrationStageofthelicense.TheDemonstration
Stagewillrequireaplanshowinghowthedeployment
ofarrayswillleadtotechnologicalinnovationandlower
electricitycosts.
TheTechnologyDevelopmentLicensewouldbe
foractivitiesmainlyfocusedontechnology-specific
improvementstodrivereductionsinelectricity
productioncosts.Amedium-scaletidalTechnology
DevelopmentLicensewillapplytocompaniesthat
havedevelopedprototypesandwanttoimprovethe
technology.Thislicensecouldalsobeofinteresttosmall-
scaletechnologyandcommunitydevelopmententities.
Power Development License
APowerDevelopmentLicenseisforprojectsintended
toresultinalarge-scalecommercial,grid-connected
powerdevelopment.Atthisstage,thefocusisonbroad
commercialdeploymentandcommitmentsratherthan
ontechnicalimprovements.
ThePowerDevelopmentLicensewillbeawarded
tolarge-scaleprojectdevelopers,likelypartnershipsof
technologyandutilityorpowergenerationcompanies.
Theprovincewouldawardthistypeoflicenseto
supportdevelopmentofaprojectofupto300MWof
commerciallyviablerenewableelectricity.Thislicense
willincludethreestages:investigation,demonstration,
andcommercialdeployment.Aproponent’swillingness
tocommittolong-termplansandtheultimate
developmentofacommerciallyviabletidalpowerproject
isakeyfactorinawardingthelicense.
Industryinterestindevelopingalarge-scale,300
MWcommercialprojecthasgrown.Whentheprovince
hasdeterminedthatatleastonecredible
How Will We Get There? Our Strategic Plans
Minas Basin Pulp and Power/Marine Current Turbines.
31Nova Scotia Marine Renewable Energy Strategy
How Will We Get There? Our Strategic Plans
projectdeveloperispreparedtocommittoalong-term
commercialdevelopmentprojectanddemonstratesplans
forimprovingtechnologyandpracticestobecompetitive
andmarket-ready,aCallforBidswouldbeissued.
Uponcompletionofasuccessfulbidprocess,the
proponentwouldbegrantedexclusiverightstoalicense
andCrownlandleasetoproduceupto300MWoftidal
power.Rightsforfulldeploymentwouldbegrantedat
theoutsettoensurethedeveloperhastheabilitytoraise
projectfinancing.Considerationwouldbegiventothe
proponent’splanstoconductresearchinNovaScotia
andplanstoenhanceindustrialcapacityintheprovince,
includingparticipationinthetidalpowersupplychain.
Power Development License for Tidal Range Projects
Fornon-incrementalorirreversibletechnologiessuch
asbarragesandlagoons,thereisarequirementto
clearlydemonstratethattheprojecthasnoimpacton
in-streamtidalenergydevelopmentandhasnoexpected
significantadverseenvironmentalorsocioeconomic
effectsorimpacts.Theseprojectscouldmeetthefirst
testthroughrobustandcrediblenumericalandphysical
modeling.Theycouldmeetthesecondtestthrougha
robustindependentenvironmentalassessmentsuchas
apanelreview.Iftheoutcomesofbothprocessesare
positive,theycouldthenbeeligibleforanawardofa
PowerDevelopmentLicense(formoredetails,referto
AppendixA).
License Fees and Royalties
MRElegislationwillprovidefortherecoveryof
regulatorycosts,sofeeswillbeassociatedwithlicensing.
ForprojectseligibleforCOMFITorFITrates,thecost
oflicensesandregulationswillbetakenintoaccount
insettingthoserates.TheDepartmentofEnergywill
consultwidelywithindustryonanappropriatecost
recoveryschedulebeforeimplementingtheregulations.
Withrespecttoroyaltiesorfiscalregimesthatsharein
profits,theprovincialpoliciesestablishedinthe2009
EnergyStrategyremainunchanged:
“…conditionsmayexistinthefuturewhere
marketsoutsideNovaScotiavaluerenewableenergy
suppliesatalevelthatissignificantlyabovethecost
ofproductioninNovaScotiaandifso,theProvince
willconsiderafiscalregimesimilartothatforoffshore
petroleumwherethereisasharingofsuchexcess
profits.However,thoseconditionsdonotexisttoday
andthecostoftransmissionbuiltandoperated
specificallyfornon-continuouspowersourcessuch
aswindandtidalisveryhighsosuchamarketmay
notemergeforsometime.”
32 Nova Scotia Marine Renewable Energy Strategy
How Will We Get There? Our Strategic Plans
An Independent Effective Regulator
Theprovincebelievesthatintegrationoffederaland
provincialregulatoryresponsibilitiesisaneffectivemodel
forMRE.Thismaytakedifferentformsastheindustry
gainsmomentumandactivitiesincrease.
Constructingandoperatingrenewableenergy
devicesinamarineenvironmentrequiresthe
coordinationandintegrationofmultiplefederaland
provincialinterests.Oncetheindustrybeginstogrowto
large-scalecommercialdevelopment,theremaybegaps
incurrentlegislationandpotentialforduplicationthat
couldincreasetheriskofinefficientregulatoryoversight
andimportantissuesbeingmissedduetoconfusionover
rolesandresponsibilities.
Anidealoptionforimprovingthesegapsisthe
establishmentofanauthoritytocreateordelegate
toanindependentregulatordesignedtooverseethe
industry.Oversightwouldincludetheresponsibility
forcoordinatingtheworkofotherregulatoryinterests,
delegationofauthoritiesandresponsibilitiestoor
fromotherregulators,andmanagingsector-specific
requirements.Untiltheindustryhasreachedcommercial
scaledevelopment,thisindependentregulatormaynotbe
required.Itisanticipatedthatthescaleoftheregulatory
officewoulddependonthesizeoftheindustry,withboth
startingsmallandgrowing.
TheCanadaLabourCoderequiresthatthe
OccupationalHealthandSafetyStandardsaremetin
thedeploymentandmanagementofmarinedevicesand
permanentinstallations.Theprovincewilldetermine
ifthereareanygapsinthecurrentlegislationthatmay
applytothisindustry,andtheDepartmentofEnergyis
workingwiththeDepartmentofLabourandAdvanced
EducationtoexaminetheTechnologySafetyActtosee
howitmaybeamendedtobettersuitthissector.Inthe
meantime,theDepartmentofEnergyisalsoworking
withFORCEasFORCEdevelopsinternationally
consistentindustry-recommendedHealthandSafety
standardsspecifictotheMREsector.
Public and Stakeholder Engagement Plan18
Transparentopendevelopmentofresourcesbegins
withplanningandconsultationprocessesthatengage
andinformthepublicandstakeholders.Publicand
stakeholderengagementhasbeenpromotedthrough
activitiessuchasthe2008BayofFundySEA,FORCE’s
establishmentofaCommunityLiaisonCommittee
(CLC),andtheMarineRenewableEnergylegislation
consultationprocess.
ThePublicandStakeholderEngagementPlanwill
providecontinuedopportunitiestoshareinformation
andreceiveimportantinputandensuretransparencyin
decisionmakingthroughthefollowingmechanisms:
18TheFournierReportprovidesadviceforcontinuedpublic engagement,accountability,andtransparency.Recommendations:(4)ProduceaclearstatementofitsintentionsregardingthedegreeoftransparencyandpublicinvolvementwithrespecttotheMREsector;(5)Developacommunication/outreachstrategy;(6)ProvincialandFederalgovernmentdepartments’collaborationinthemodificationofexistingenvironmentalassessmentregulations;(8)Province’sCoastalStrategyshouldaddresstheMREsector;(9)TheDepartmentofEnergyshouldseizetheopportunitytoplaytheroleof“champion”withintheProvincialOceansNetwork(PON)tointegratetheimmediateissuesrelatedtotheMREDevelopmentFramework;(17)Circulateresearchandmonitoringresultstothepublic;(23)ConductaStrategicEnvironmentalAssessmentintheBayofFundywhenindustryisoperatingand expandingandatregularintervalsaswellasreviewthe2008SEA.
33Nova Scotia Marine Renewable Energy Strategy
How Will We Get There? Our Strategic Plans
Strategic Environmental Assessments (SEA)
Asexplainedabove,SEAsallowforbroadstakeholder
engagementandidentificationofissuesthatwould
needtobeaddressedinproject-specificEnvironmental
Assessments.SEAsareconductedbytheprovince,but
federalagenciesanddepartmentsareinvolvedand
consulted.ASEAisalsoawayfortheprovincetoidentify
areaswhereresourcepotentialisstrongandwhereother
marineinterestsareactive.
Tidal Energy Stakeholder Forum
TheTidalEnergyStakeholderForumisanewbodythat
willserveasanadvisorycouncilduringtheformative
stagesoftheindustry.Itwillprovidepublicaccessto
informationontidalenergyactivities,education,and
scientificanalysisoftidaldevelopment.Representatives
fromindustry,academia,government,Mi’kmaq,and
communitieswillparticipate.TheForumwillreceive
allscienceandenvironmental/resourcemonitoring
informationandwillfosterrelationshipsamong
stakeholders.
Communication, Education, and Outreach
MREdevicesmayaffecttourism,landscapes,seascapes,
habitats,andecosystems.Thedevelopmentandoperation
ofMREprojectswillrequireanintegratedmanagement
approachandcoordinatedeffortsofgovernments,
andmanydepartmentsandagencieswithinthose
governments.
Tofacilitatethegovernment’snewapproachto
coastalmanagement,aProvincialOceansNetwork
(PON)hasbeenestablished,whichiscomposedof
representativesfromprovincialdepartmentsandagencies
withresponsibilitiesandinterestsincoastalandocean
management.ChairedbytheNovaScotiaDepartment
ofFisheriesandAquaculture,theProvincialOceans
Networkservestwocorefunctions:toprovideadviceand
expertiseinimplementationoftheCoastalManagement
Framework,andtofacilitatecoordinationoncoastal
andoceanmanagementissuesandinitiativeswithinthe
provincialgovernment.
AsrecommendedinDr.Fournier’s2011report,
theDepartmentofEnergywillcontinuetoparticipate
inPONtoensurethatMREactivitiesandtheCoastal
Strategyarealignedandmeetingtheexpectationsand
needsofNovaScotians.
34 Nova Scotia Marine Renewable Energy Strategy
The Future of Tidal Energy in Nova Scotia
Thisstrategyfocusesonaphasedandprogressive
MREdevelopmentoverthenext5-10yearswitha
goalofproducing300MWofpowerfromin-streamtidal
energyprojectsinthelongerterm.Duringthattimethe
provincewillbeabletoexaminekeyissuesaffectingthe
futuredevelopmentoftidalenergy,suchas
• Whatisthefullresourcepotential?
• Hastestingledtoviabletechnologyandcommercially
competitiveelectricity?
• Hasamarketbeencreatedforin-streamtidal?
• HasthedevelopmentoftheresourcebenefitedNova
Scotians?
• Hastheregionalsupplychainrealizednew
opportunitiesinthissector?
• Whataretheinteractionswiththeenvironmentand
howaretheyaddressed?
AnsweringthesequestionswillhelpNovaScotiato
developabetterunderstandingoftheultimatepotential
oftheBayofFundytidalresource.Thisiscrucialto
ensuringthatafuturebeyond300MWissustainableand
inthebestinterestsofNovaScotians.
Theprovincewillreviewthisstrategytodetermineif
theobjectivesarebeingmet,makecorrectionsasneeded,
andbuildourknowledgeandfindingsforthefuture
developmentoftheindustry.
What We Will Do:Implementation 6
Boar’s Head, Nova Scotia.
35Nova Scotia Marine Renewable Energy Strategy
What We Will Do: Implementation
Regulatory System Development Research Development
2012-2013
2013-2014
2014-2020
Post-2020
Work Plan Timelines
• StatementofBest
Practice—ongoing
• MarineRenewable
EnergyLegislation
• ResourceAssessment
SouthWestNovaScotia
• UpdatedSEAfor
BayofFundy
• SEAforCapeBreton
• Environmental
Assessmentbegins
forsmalltidaldevices
inDigbyarea
• TidalEnergyStakeholder
Forumestablished
• TidalRegulatory
Authorityestablishedor
delegatedtomanagesmall
numberofdeployments
• Environmental
Assessmentfor
FORCEexpansion
• Potentialfor
Environmental
Assessmenttobeginon
CommercialProject
• Continuedworkwiththe
federalgovernmenton
theregulatorysystemand
tidalregulatoryauthority
includingdelegation
whenindustrygrowth
warrants
• Commerciallycompetitivein-streamtidaltechnology
• Ecosystembaseline—
ongoing
• Environmentaleffects
pathways—ongoing
• TidalResearchForum
established
• NovaScotiaR&DForum
May2012
• Identifymethodsto
maximizeNovaScotian
participationinthetidal
energysupplychain
• Ongoingtechnicaland
environmentalresearch
• Ongoingtechnicaland
environmentalresearch
• FORCEinfrastructure
upgraded(cablesinplace)
• Workbeginsonsmall
demonstrationsites
andrenewableelectricity
integrationstudies—
ongoing
• COMFITand
DevelopmentalFeed-
inTariffRatesand
generationcapsset
• Deploymentoflarge-
scalesingledevices
atFORCE
• Deploymentofsmall-
scaletestdevicesin
Digbyarea
• Deploymentoftidal
devicearraysatFORCE
• Deploymentoftidal
devicesarraysonastaged
basisatcommercialsite
36 Nova Scotia Marine Renewable Energy Strategy
What Licensing Will Look Like
General License Purpose and ApproachCurrently,inorderforprojectdeveloperstoproceed
withdevelopingtheirprojectsonsubmergedprovincial
CrownlandintheBayofFundy,aLetterofAuthority
orCrownLandleaseisissuedbytheprovince,which
wouldbeawardedundercertaintermsandconditions.
However,oncemarinerenewableenergylegislationis
inplace,aMarineRenewableEnergyLicensewillbethe
primarytoolfordefiningproject-orcompany-specific
opportunitiesandobligations.
Thelicencewilldefinetheterritorytobecovered
andinmostcaseswillcomeinadvanceofanyspecific
Crownlandlease.WorkingcollaborativelywiththeNova
ScotiaDepartmentofNaturalResources,theintention
istomaketheawardoflandleasesoroptionstoleasean
integratedpartofthedetailedlicenseprocess.
Alllicenseswillhavespecificdatacollectionand
disclosurerequirementswithageneralrequirement
inlegislationforreleaseofalldatawithrespectto
environmentalmonitoringandresearch.Releaseof
resourceinformationwillberequiredatalevelthat
balancespublicinterestinunderstandingthevalue
oftheresourceandlocationoffutureopportunities
withthecommercialinterestsofthosewhoinvested
inthecreationofdetaileddatasets.Recentworkin
thepetroleumsectorfortheNovaScotiaPlayFairway
Analysisshowshowresourcedatacanbesharedwithout
compromisingcommercialinterests.
Types of LicenseTheMREStrategyproposestwotypesofMarine
RenewableEnergyLicenses:TechnologyDevelopment
andPowerDevelopment:
Technology Development License
ATechnologyDevelopmentLicensewouldbefor
activitieswherethefocusismainlyontechnologyspecific
improvementswithanaimtocreatereductionsin
electricityproductioncosts.ATechnologyDevelopment
Licensecouldalsoadvancecommunityeconomic
development.Projectseligibleforthistypeoflicense
wouldhaveaccesstotheapplicableFIT/COMFITrates.
TheseFeed-inTariffregimessupportthepathwayto
technologyinnovationandimprovement.
Note:Allstagesmaybesubjecttoanenvironmental
assessmentateitherthefederalorprovinciallevelin
keepingwiththeproject’slevelofrisk.Duetothenature
ofmarineprojectsandtheassociatedfederalregulatory
authorities,therearefederalregulatorytriggersthat
resultintherequirementforafederalenvironmental
assessmentforalltidalprojects.Projectsfirstrequirea
positiveconclusionfromtheassessment,andalllicense
awardsaresubjecttotheconditionsestablishedduring
suchanassessment.
7Appendix A:Proposed Licensing System
37Nova Scotia Marine Renewable Energy Strategy
Appendix A: Proposed Licensing System
ATechnologyDevelopmentLicensehastwo
stages:testinganddemonstration.
TestingStageencompassesthefollowing:
• Thedeploymentofasingledeviceoraseriesofsmall
devices(deviceswithproductioncapacitygreater
than500kWandsmall-scaledeviceswithproduction
capacityequalorlessthan500kW).
• Thedeploymentofdevicesthatmeasureresourcesto
ensurethedataonresourcesandenvironmentaleffects
isavailabletothegovernmentandthepublicwithin
thedatacollectionanddisclosureprinciplesoutlined
abovewhereinformationfromsuchadeviceistobe
relieduponinfutureregulatoryfilings.
• Marketsupportintheformof
– ACOMFITTestingRateforeligibleentitiesfor
electricityconnectedtothedistributionsystemwith
devices≤500kW.TheCOMFITTestingRateis
currently$0.652perkWhandwillbereviewedby
theUARBin2014.
– FITTestingRatesfortransmissionconnectdevices
>500kWupto5MW.TheFITTestingRatefor
largerscaledeviceswillbesetbytheUARBin2012
followingconsultationsbytheDepartmentof
Energywithindustryandstakeholders.
TheDemonstrationStageencompassesthe
following:
• Acknowledgementofthegrowthofactivityand
experiencebeyondthecurrentpermittedlevelsunder
theCOMFITprogram(~3MW)ordeploymentat
FORCE(5MW).Thiswillincludefuturepermitsfor
arraysofdevicesunderCOMFITinexcessof500kW
totalcapacity.
• Consultationwithindustryonthetimelinefor
technologyimprovementsandthenumberof
devicesneededtobedemonstratedbeforesignificant
cost-reductionsmayoccur,andtheprospectsfor
suchdevelopmentinNovaScotiaandopportunity
toadvancethisstrategy.
• ThelegislationwillprovidetheMinisterwith
authoritytosettargetsfortheamountofelectricity
tobepurchased.
• Marketsupportintheformof
– AnewCOMFITDemonstrationRateforeligible
entitiesforelectricityconnectedtothedistribution
systemwithdevices≤500kW.TheCOMFIT
DemonstrationRatewillbeestablishedbytheUARB
aftertheDepartmentconsultswithsmall-scale
developersandreceivesplanstoimprovetechnology
andreducecosts.Itmaybesetseparatelyorsetas
partoftheUARBreviewin2014.
– AnewFITDemonstrationRatefortransmission
connectdevices>500kWuptoasetamount.The
DemonstrationFITRateformedium-scaleprojects
willbesetbytheUARB.TheDepartmentofEnergy
isworkingwithindustrytodeterminetheamount
ofelectricityrequiredtoadvanceindustry
developmentunderaDemonstrationFIT.Various
optionsforatariffarebeingexamined.
– Theprovincewillgiveregulatoryandlicensing
directiontoensurethereisaproperbalance
betweentheeconomicopportunitiesassociated
withthedevelopmentoftidalenergyandthe
interestsofratepayers.
38 Nova Scotia Marine Renewable Energy Strategy
Appendix A: Proposed Licensing System
• Plans,commitments,andrequirementsthatencompass
thefollowing:thequantumofenergytobeextracted
andsoldintotheNovaScotiaelectricitymarket;
thepathproposedforR&Dthatisexpectedtolead
tolower-costfuturegeneration;andtheexpected
contributiontothedevelopmentoftheNovaScotia
MarineRenewableEnergySector,includingthe
achievementofMRESgoalsandobjectivesfora
globallycompetitiveNSMREsector.Theprovincemay
assistinthedevelopmentoftechnologycompaniesin
NovaScotiathroughinvestmentsbyInnovacorp.
Power Development License
APowerDevelopmentLicenseisforprojectsthataim
toresultinpracticesandtechnologythatproduce
renewableelectricityatapricecompetitivewithother
renewableelectricitysources.APowerDevelopment
Licensewillnormallybeawardedonacompetitive
bidbasistodeveloperspreparedtoembarkupona
clearplantodevelopcompetitiverenewableelectricity
supplytechnologyinNovaScotia.Proponents,uponthe
completionofasuccessfulbidprocess,wouldbegranted
theexclusiverighttoalicensetoproduceupto300MW
oftidalpower.Rightsforfulldeploymentwouldbe
subjecttocommunityandMi’kmaqconsultationand
technicalsafety.Thelicensewillcontainstagesandthe
license-holdermustremainincompliancewiththeplan
subjecttoanymodificationsrequiredbytheMinisterdue
tolessonslearned.
APowerDevelopmentLicensehasthreestages:
(1)investigation,(2)demonstration,and(3)commercial
deployment.
(1)TheInvestigationStageofaPowerDevelopment
Licenseencompassesthefollowing:
• ThefilingofaPowerDevelopmentProjectPlanthat
outlinesinapreliminaryandhigh-levelfashionthe
followingmatters:
a. plannedlevelofinvestmentatallstages
b. plansandcommitmentstoincorporateexisting
best-in-classtechnologyandimprovetechnology
andbusinessmethods,practices,andprocessesin
NovaScotiaanddeploythatknowledgetoother
marketsfromNovaScotia
c. plansandcommitmentstodevelopNovaScotia
andregionalcapacitiesandcapabilitiesfor
researchanddevelopment,engineering,design,
andmanufacturing
d.plansandcommitmentstomonitorfor,andavoid,
significantadverseenvironmentalimpacts
e. plansandcommitmentsforsafeoperationand
adherencetostandardsandbestpracticesdeveloped
fortheoffshoreMREsector
f. plansandcommitmentstocollectandreporton
resourceandenvironmentaleffectsdata
g. plansforprogressfromaninvestigationstage
throughtoaspecificsitewheredemonstration
and/oracompetitivemarket-readyprojectwilltake
place,includingplanneddeploymentofdevicesand
quantitiestobeextractedatvariousstagesthatline
upwithenvironmentalconsiderations(i.e.,
deploymentatthefollowingthresholds:below
potentiallocalimpacts;belownear-fieldeffects;
belowfarfieldeffects)
39Nova Scotia Marine Renewable Energy Strategy
Appendix A: Proposed Licensing System
h.identificationofmarketforenergysuppliesoncethe
projectproducescompetitivemarket-readysupplies
i. plansforMi’kmaqandcommunityengagement.
• Theanalysisofresourcesandgeotechnicalfeatures
todeterminethesuitabilityofapreciselocationfora
large-scalecommercialprojectinanareathathasbeen
thesubjectofanSEA.
• Thedeploymentofdevicesthatmeasureresourcesto
ensurethedataonresourcesandenvironmentaleffects
isavailabletothegovernmentandthepublic.
(2)TheDemonstrationStageofaPowerDevelopment
Licenseencompassesthefollowing:
• Thedeploymentofanarrayofdevicesforthe
productionofasetcapacityatasiteidentifiedatthe
InvestigationStage
• Thesamemarketsupportmechanisms(Feed-inTariff)
availableundertheTechnologyDevelopmentLicense
willbeavailableattheDemonstrationStageofaPower
DevelopmentLicenseintheformofanewFITRate
perkW/h.Theratemaybesimilartotheonesetfor
TechnologyDevelopmentLicenses,butsetseparately
inordertotakeintoaccountanyuniquecharacteristics
associatedwithapermanentpre-commercial
demonstrationproject)
• Confirmationoftheplansandcommitmentsmade
attheInvestigationStagesubjecttoanyamendments
permittedbytheMinisterduetoachangeinmarket,
environmentalortechnicalconditionsthattakeplace
intheInvestigationStage.
(3)TheCommercialDeploymentStageofaPower
DevelopmentLicenseencompassesthefollowing:
• Thedeploymentofarraysatasiteidentifiedatthe
InvestigationStageorasmayhavebeenmodifiedasa
resultofexperienceduringaDemonstrationStage
• Confirmationoftheplansandcommitmentsmade
attheInvestigationStagewithfurtherdetailonthose
plansandcommitmentsbaseduponlessonslearned
atanypreviousDemonstrationStage—subjectto
anyamendmentspermittedbytheMinisterdue
toachangeinmarket,environmentalortechnical
conditionsthattakeplaceintheDemonstrationStage
• Arateforelectricitysimilartocompetingrenewable
electricitysourcesavailabletotheNSmarket.
Benchmarkssuchastheaveragecostofrenewable
electricityintheprevious12monthswillbeconsidered
afterconsultationwithindustry.
Thecommitmentsandplansoutlinedabovewill
bemeasuredagainstregulatorybenchmarksincluding
specificprovisionsinlegislationorregulationorwhere
suchbenchmarksareabsent,throughMinisterial
Guidance.
40 Nova Scotia Marine Renewable Energy Strategy
Appendix A: Proposed Licensing System
Transitional Matters, Leases, and Options to LeaseAsnotedabove,authorizationfromtheDepartment
ofNaturalResourcesisrequiredtousesubmerged
Crownland.Intheplannedlegislation,thelicenseprocess
willensurethroughacollaborativeprocessthatallof
therequirementsrelatedtotheprotectionanduseof
Crownlandwillbecompleted,includingMi’kmaq
consultationandintegratedresourcemanagementreview.
TheDepartmentsofEnergyandNaturalResources
willworkcloselytointegrateCrownleasingandenergy
licensingrequirementsunderthenewlegislation.
Asaninterimmeasure,whilethelicensingsystem
isnotyetestablished,LettersofAuthority(FORCE
operatedunderaLetterofAuthorityforseveralyears
beforeitwasgrantedaleasein2012)maybeawarded
undertermsandconditionssimilartothoseoutlined
hereforalicense.Inaddition,COMFITandFIT
projectswithapprovalsinplacepriortotheproclamation
ofthelegislationshallautomaticallyreceivelicenses
undertheact.
Inaddition,theremaybetechnologiesthatdo
notlendthemselvestothefundamentalconditions
ofincrementallyandreversibledevelopmentsuchas
barragesortidallagoons.Accordingly,theseprojects
willneedtoclearlydemonstratethattheirproject
planspresentnoexpectedharmtoothermarine
renewableresourceopportunitiesandnoexpected
significantadverseenvironmentalorsocioeconomic
effectsorimpacts.
Thesenon-incrementalprojectsmaymeetthefirst
testthroughrobustandcrediblenumericalandphysical
modeling.Theymaymeetthesecondtestthrougha
robustindependentenvironmentalpanelreview.Ifthe
outcomesofbothprocessesarepositive,thelegislation
wouldanticipatetheywouldthenbeeligibleforanaward
ofaPowerDevelopmentLicense.Toallowaproponent
tobegintobuildacaseandfileaprojectdescription
foranEAprocess,MarineRenewableEnergyStrategy
policywillallowtheProvincetoissueanoptiontolease
orLetterofAuthorityafteranappropriateperiodand
processforpublicconsultation.
41Nova Scotia Marine Renewable Energy Strategy
8Fundy Ocean Research Centre for Energy
www.fundyforce.ca
FORCEisCanada’sleadingtestcentreforin-stream
tidalenergytechnology.FORCEworkswithdevelopers,
regulators,andresearcherstostudythepotentialfor
tidalturbinestooperatewithintheBayofFundy
environment.FORCEprovidesasharedobservation
facility,submarinecables,gridconnection,and
environmentalmonitoringatitspre-approvedtestsite.
FORCEreceivesfundingsupportfromtheGovernment
ofCanada,theProvinceofNovaScotia,Encana
Corporation,andparticipatingdevelopers.
Offshore Energy Research Association of Nova Scotiawww.offshoreenergyresearch.ca
TheOffshoreEnergyResearchAssociationofNovaScotia
(OERANS)isanamalgamationofOEERAssociationand
OETRAssociation.OEERandOETRAssociationwere
establishedinMarch2006asindependent,not-for-profit
corporationswhosemissionistoleadenvironmental,
renewableandgeoscienceenergyresearchthatenables
thesustainabledevelopmentofNovaScotiaenergy
resourcesthroughstrategicpartnershipswithacademia,
governmentandindustry.
Fundy Energy Research Network
fern.acadiau.ca
TheFundyEnergyResearchNetwork(FERN)isan
independent,impartialorganizationinitiatedby
academicandgovernmentresearchersasaforum
forcoordinatingandfosteringresearchcapacity,
collaborations,andinformationexchangeon
environmental,engineeringandsocioeconomicfactors
associatedwithtidalenergyintheBayofFundy.The
FERNwebsiteprovidesup-to-dateinformationof
interesttotheBayofFundytidalenergyresearch
community,includingnewsandevents,publications,
links,researchprojects,turbinetestingactivitiesand
FERNandsubcommitteeinitiatives.Newonlineservices
include:asearchablepublicationscatalogueandNotice
Boardsthatprovideavenueforresearcherstopost
research,job&collaborationopportunitiesandideas,
dataandshiptimerequestsandinquiries,and
deployedequipmentlocationnotices(FERNnewsletter,
Spring2011,p.3)
Appendix B:Who Is Involved?
42 Nova Scotia Marine Renewable Energy Strategy
Appendix B: Who Is Involved?
Acadia Tidal Energy Institutewww2.acadiau.ca/acadia-news-reader/items/
acadia-university-launches-acadia-tidal-energy-
institute.html
InSeptember2011,AcadiaUniversityannouncedthe
formationoftheAcadiaTidalEnergyInstitute.This
InstituteistheonlyresearchinstituteinNorthAmerica
focusedsolelyonassessingtidalenergyresourcesandthe
associatedenvironmentalchallengesandsocio-economic
opportunities.StrategicallylocatedontheBayofFundy’s
MinasBasin,theAcadiaTidalEnergyInstitutewill
developpartnershipsandleadmulti-disciplinaryresearch
projectsandotherinitiativesthataddressknowledge
gapsassociatedwiththedevelopingtidalenergy
industry.TheInstitutewillfocusontidalenergyresource
assessment,environmentalmonitoringandimpacts,
socio-economicgrowth,sustainablecommunities,and
thedevelopmentanddeliveryoftidalenergyeducational
programsandothersupportmaterials.
Fundy Tidal Inc.www.fundytidal.com
FundyTidalInc.(FTI)wasestablishedin2006totake
advantageoflocalinterestinopportunitiestogenerate
renewableenergyfromthetidalcurrentsofthe
GrandandPetitPassagesandDigbyCountyofthe
BayofFundy.FTI’svisionistoproactivelycreate
opportunitiesintheemergingmarineenergysector
withafocusonlocally-ownedandoperatedventuresto
insureeconomicdevelopmentopportunities,wherever
possible,benefitlocalcommunitiesandbusinesses.
FTI’smissionisto:serveasavehicleforcommunity-
ledin-streamtidalenergyprojectsthroughoutNova
Scotia(andbeyond),establishGrandandPetitPassage
andDigbyCountyasfocalpointofmarineindustry
developmentforcommercialandR&Dactivities,
maximizeprofitsandeconomicopportunitiesfor
shareholders,partnersandcommunity.