The fork in the road to renewables
- In Canada, only Alberta relies more heavily on coal to generate its electricity than Nova Scotia.
Coal is the dirtiest fossil fuel. This reliance makes Nova Scotians particularly vulnerable to price hikes, as carbon pollution becomes more stringently regulated.
Fortunately, Nova Scotia has started its transition to a cleaner energy future by planning to generate at least 25 per cent of electricity from renewable resources by 2015. How can Nova Scotians ensure that they see the benefits of the renewable energy transition now and beyond 2015?
Renewable resources, such as wind and solar, are already found in our communities. This creates an opportunity for regular citizens to be players in renewable energy generation. Local control over resources enables communities to realize the renewable energy transition in a way that meets their values and objectives, while putting money back into the community.
The opportunity for economic benefit is significant. Renewable technologies have no fuel costs, so their rates are more stable than coal power. WhatÂ’s more, in 2008, the UN reported for the first time that more money was invested in developing renewable electricity than in coal, nuclear, and natural gas electricity combined. PictouÂ’s forthcoming wind turbine manufacturing plant demonstrates local green energy jobs.
The newly formed Nova Scotia Sustainable Electricity Alliance novaSEA: www.novasea.ca is a growing coalition including First Nations, unions, farmers, developers, and environmental protection groups. NovaSEA has come together to ensure that forthcoming policies pave the way to renewables that will benefit Nova Scotians as much as possible.
NovaSEA encourages a policy in which local communities and individuals are part of renewable power development. Such a policy will ensure communities have at least equal access to the grid and market as independent developers.
This path will retain energy, investment, and tax dollars in the province while moving Nova Scotia towards energy independence. Our current electricity system ships approximately $150 million per year out of the country to import coal. At the same time 98 per cent of Nova ScotiansÂ’ savings are invested outside the province. By creating communityowned renewable energy projects, Nova Scotians will have an opportunity to invest in the province and reduce the coal pricetag. Every county has a renewable resource, thus this plan would result in rural investment.
Experience internationally has shown that the most efficient way to encourage communitypower projects is a longterm policy that pays the investor a fixed rate or tariff per unit of energy that is fed into the grid, known as a feedin tariff, or FIT. FITs have been the major policy used to develop renewable power in countries that lead the transition, including Germany, Spain, Denmark, and even China. A longterm, stable price helps create market stability and has been shown to be the least expensive way of attracting renewable energy investments.
There are examples closer to home. Quebec, New Brunswick, and Ontario have all recently announced policies for community and First Nations renewable energy. OntarioÂ’s Green Energy Act is widely seen as CanadaÂ’s most progressive. It is uncapped and is part of their plan to phase out all coal power by 2014. OntarioÂ’s FIT is open to private developers, but has special premiums to encourage coops, First Nations, or community projects, as well as anyone with a roof for solar power. Ontario is opening the door to any of its citizens who want to be a part of the clean power shift.
Nova Scotia can learn from othersÂ’ experiences. There are clearly numerous benefits for not only allowing, but encouraging, community renewable power. However, these projects can be more difficult and timeconsuming to develop due to the fact that communities and coops are not accustomed to being electricity developers.
Having a longterm and uncapped FIT for community projects in Nova Scotia will ensure that communities can progress at their own pace without missing opportunities.
Furthermore, it will signal the governmentÂ’s commitment, which is crucial to unlocking project financing. An uncapped FIT will help to create a longerterm, steady, local market for manufacturers such as the plant in Pictou. It will ensure our clean energy transition continues to have momentum well beyond the governmentÂ’s laudable goals for 2015.
We are standing at a fork in the road for our energy future. We have the opportunity to unleash the creativity and the investment power of our citizens and our communities to be a part the clean energy future right here at home.
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