The West Pubnico Point wind farm in Nova Scotia, in August, 2021.Andrew Vaughan/The Canadian Press
Nova Scotians will soon have the option of bypassing the province’s monopoly utility for electricity, with the development of an onshore wind farm expected to start operations late this year.
The Mersey River Wind project, which launched formally on Thursday, will comprise 33 onshore turbines located about 150 kilometres southwest of Halifax, generating 150 megawatts. That’s enough to power 50,000 homes.
It also represents the transformation of the market.
Customers have the opportunity to buy contracts from Nova Scotia-based Renewall Energy Inc., which first applied for its retail licence more than four years ago. Currently, Nova Scotia residents, and commercial and industrial customers get their electricity from Nova Scotia Power, the regulated utility that supplies virtually the whole province. It is a unit of Emera Inc.
The Canada Infrastructure Bank (CIB) said it is providing a $206-million loan for the wind project.
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“This is the start of a new market – not only options for customers but for other projects to come ahead,” Renewall president Dan Roscoe said at a ceremony for the launch attended by federal Natural Resources Minister Tim Hodgson and Nova Scotia Premier Tim Houston, among other officials.
“So we a see a long runway of projects, not just the Mersey wind farm, but other wind farms in Nova Scotia and other renewable energy types to be able to come forward to continue to provide more choice and more options for customers, especially as the demand for electricity will be growing.”
More than half of Nova Scotia’s electricity generation is coal-fired, with the remainder powered by natural gas, wind, hydro, biomass and oil, according to the Canada Energy Regulator.
The new venture represents the first renewable-to-retail licence in the province. Mr. Roscoe said rates would be “competitive” with those offered by Nova Scotia Power.
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Customers will be able to purchase the electricity, beginning with the first turbines that go into operation, as early the end of this year, he said. About 200 workers will be on-site during peak construction.
Slate Asset Management and Hamilton Lane secured the loan from CIB and are equity partners in the wind farm.
The project is eligible for Ottawa’s Clean Technology Investment Tax Credit for up to 30 per cent of the capital costs. Another government program, known as Smart Renewables and Electrification Pathways, is shelling out $25-million, the CIB said in a statement.
This is not the only wind project planned in the Maritime province.
As he touts the new wind project, Mr. Houston is promoting the massive Wind West offshore wind development that could eventually cost as much as $40-billion, plus another $20-billion for new transmission lines. That proposal was referred to the government’s Major Projects Office last year, though it still requires a private-sector proponent.
At the event, Mr. Hodgson said the government will provide $5-million for a feasibility study for Wind West.
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He said the federal and provincial governments have been in talks with several potential backers. “We’re working with a number of those groups that are looking at different technologies and different strategies on how they will bring that resource to market, looking at how it ties into bigger regional plays,” Mr. Hodgson said.
Under current estimates, construction and commissioning is envisaged between 2031 and 2033 for the first 5 gigawatts of generation. Another 15 GW would be put into service between 2033 and 2040.
“The main constraint on that is not the wind. The wind is there. It blows a lot,” Mr. Houston said. “But the constraint would be: Where is the power going to go and how are we going to move it? So, that’s what this is about today.”
He said the project would generate thousands of jobs in construction of the generation and transmission, and would create more employment as industries are attracted by the clean electricity availability.