Nova Scotia Marine Renewable Energy Strategyenergy.novascotia.ca/sites/default/files/Nova... · 4...

Marine Renewable Energy Strategy

Nova Scotia

May 2012

© 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.


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.


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


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).


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.


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


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



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



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


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.


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).


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.



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.



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



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



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.



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.


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.


13TheFournierReportdiscussesissuesrelatedtothemarketplace, includingtheexportmarket,incentives,subsidies,royalties,andelectricity infrastructure(Recommendation13:Developabusinessplanforthenext6-12monthsfortheMREsectorbasedontheavailabilityof socioeconomicdata).

22



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



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



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



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



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



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.


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.


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).



Two Classes of License Proposed

Technology Development License

TestingDemonstration

Power Development License

InvestigationDemonstration

Commercial

Deployment


Types of 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.


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


Minas Basin Pulp and Power/Marine Current Turbines.



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.”



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.



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.


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.


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


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:


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


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.



• Plans,commitments,andrequirementsthatencompass

thefollowing:thequantumofenergytobeextracted

andsoldintotheNovaScotiaelectricitymarket;

thepathproposedforR&Dthatisexpectedtolead

tolower-costfuturegeneration;andtheexpected

contributiontothedevelopmentoftheNovaScotia

MarineRenewableEnergySector,includingthe

achievementofMRESgoalsandobjectivesfora

globallycompetitiveNSMREsector.Theprovincemay

assistinthedevelopmentoftechnologycompaniesin

NovaScotiathroughinvestmentsbyInnovacorp.


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)



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.



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.


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?


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.

Nova Scotia Department of Energy

400-5151 George Street PO Box 2664

Halifax, Nova Scotia B3J 3P7 Tel: (902) 424-4575

Marine Renewable

Energy Strategy

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