sust-mar: Commentary on EMGC 2nd interim Report

From: "resl" <resl@ns.sympatico.ca>
To: "Sustainable Maritimes" <sust-mar@chebucto.ns.ca>
Date: Wed, 21 May 2003 11:40:47 -0300
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To: Sustainable Maritimes (sust-mar)     From: "resl" <resl@ns.sympatico.ca>
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____________________________________________________________________________
"A Changing Environment for Renewable Energy in Nova Scotia," reports on the
2nd Interim Report of the Electricity Marketplace Governance Committee. This
commentary was originally released April 14,2003 by the Renewable Energy
Industry Association of Nova Scotia (REIANS)

For more information please contact:
Erik Twohig, Past Chair, REIANS	902-798-5085     et.resl@ns.sympatico.ca


A Changing Environment for Renewable Energy in Nova Scotia
By Erik Twohig, Past Chairman, Renewable Energy Industries Association of
Nova Scotia
Wednesday, April 16, 2003


The Nova Scotia Energy Strategy, Seizing The Opportunity, was released in
December of 2001.  Since that time some large steps towards increasing
market access for renewable energy producers have been taken.  With the
release of the 2nd Interim Report of the Electricity Marketplace Governance
Committee in mid-April, the Renewable Energy Industries Association of Nova
Scotia (REIANS) believes that it is time to update the citizens of Nova
Scotia on changes that are coming – and how these changes can benefit an
independent renewable energy sector in Nova Scotia.

Background

The Nova Scotia Energy Strategy process of 2001 allowed Nova Scotians,
through a variety of mechanisms, to put forward their views on the evolution
of energy policy.  REIANS was formed to respond to this initiative, and was
only one of many, many individuals and groups that spoke to the Government
about the need for tangible policies. Policies to encourage environmental
stewardship in the energy sector; policies to provide access to electricity
markets for independent renewable energy producers.

>From this public consultation process, the Province of Nova Scotia published
its policy document, Seizing the Opportunity, and subsequently established
the Electricity Marketplace Governance Committee (EMGC) to determine how to
put these policy initiatives into practice.  In May of 2002 the EMGC met for
the first time.

The EMGC is comprised of seven member organizations and two observer
organizations representing a variety of stakeholders, or customer interests,
relating to electricity.  Each of the organizations asked to participate in
this venture does so bearing the costs of participation on its own, and with
the commitment to stay the course.  As of the time of this writing, we are
preparing for meeting #24, each of which has been a full-day meeting.

 None of the parties on the EMGC (with the possible exception of Nova Scotia
Power Inc.) had a real understanding of the complexity of the issues with
which they would be dealing, or the extent of the time and commitment
involved in order to be able to participate usefully in the process.

The Committee agreed that issues relating to transmission were fundamental
to all future deliberations, and the learning and deliberations surrounding
this issue took the EMGC right up to December 2002, at which time the 1st
Interim Report was issued.



Today – The 2nd Interim Report

As many people are aware, there have been a variety of initiatives in
jurisdictions around the world relating both to the opening up
(restructuring or deregulating) of electricity markets, and to providing
“fair and equitable” access to those markets for renewable energy producers.
Almost as many people are aware of the catastrophic failures, or the
perception of failure, that have occurred in some of these jurisdictions.
One of the main difficulties in media discussions about these events has
been the inability on everyone’s part to understand the complex
interrelationships that cause electricity marketplaces to function.

The 2nd Interim Report deals with the issues that REIANS had been most eager
to treat.  Specifically, those issues revolve around the Energy Strategy
Objectives of promoting renewables and the related topics of Market Scope
and Market Model.  Market Scope deals with the question of “to whom may
renewable generators sell?” and Market Model deals with the question of “how
do renewable generators contract for such a sale?”

Below are listed, in point form, some of the highlights from the 2nd Interim
Report recommendations relating to renewable energy producers.  These points
are not the complete recommendations, nor the complete list of
recommendations, and should be taken in the context of the Report:

.	Nova Scotia adopt the EcoLogo® definition of renewable low-impact
electricity;
.	Nova Scotia adopt a mandatory Renewables Portfolio Standard to take effect
in 2006;
.	Sellers offering electricity from renewable generators constructed after
2001 be able to sell directly to electricity customers;
.	Sellers offering electricity from renewable generators constructed after
2001 be able to sell to electricity customers on the basis of financial
contracts;
.	Qualifying generators with installed capacity of 100kw or less be eligible
for net metering.

Tomorrow – what happens next?

The EMGC process provides specific recommendations to the Government of Nova
Scotia.  Once those recommendations are delivered to the Government, they
will be considered, and if acceptable, are anticipated to be incorporated
into the upcoming Energy Act.  The new Energy Act is anticipated to be
tabled in the Legislature for the Fall 2003 or Spring 2004 sitting for
debate, and ultimately, passage and proclamation.

Many people have commented on the slow pace of change, and the perception
that “nothing is happening”.  As participants in the EMGC, REIANS has
experienced the challenge, difficulty, and complexity surrounding policy
change.  REIANS has also experienced the give and take that is required to
take disparate views and reach beneficial outcomes.

Project development takes time.

Policy change takes time.

Both have their risks.

REIANS hopes and believes that the recommendations relating to renewable
energy will meet with broad-based political support and that they will make
their way through the legislative process in a timely fashion.  Several
REIANS members are proceeding on project development work on that basis.

The recommendations will provide an opportunity for Nova Scotians.

Both the citizens of Nova Scotia and the renewable developers in Nova Scotia
now must prepare to step up to the plate.  We have asked for it – will we
support it?

The full EMGC 2nd Interim Report is available on-line at:
www.gov.ns.ca/petro/energystrategy/emgc

____________________________________________________________________________
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