A request for proposals (RfP) has been issued seeking to build an understanding of what economic and policy stimuli could be used to attract investment in offshore wind developments in the province of Nova Scotia, Canada
The RfP was issued by Offshore Energy Research Association (OERA) in Halifax, Canada, which focuses on energy research and sustainable resource and economic development.
It was issued by OERA in the context of a collaborative programme funded by the Nova Scotia Department of Energy and Mines. The work supports the Province’s broad energy policy objectives related to climate change, inclusive economic development, and the sustainable development of Nova Scotia’s energy resources.
“The US is forecast to add a significant amount of offshore wind capacity in the next decade. If Nova Scotia developed offshore wind in its coastal waters, it would compete for investment against these jurisdictions,” said OERA.
“Naturally, investors often select locations with minimised investment risks. It is important for the Province to understand what economic and policy conditions could minimise investor risk and be used to attract investment in Nova Scotian developments.”
OERA proposes a report that summarises policy and economic conditions in competing jurisdictions that have experienced offshore wind investment; describes the economic and policy conditions required to attract investment to Nova Scotia; and identifies a feasible timeline for investment in Nova Scotia.
Nova Scotia has set a target to become a net-zero greenhouse gas (GHG) emission economy by 2050. The pathway to reaching this important milestone will include a portfolio of decarbonisation strategies, one of which is the electricity generation system decarbonisation and subsequent electrification of end-uses. Electrification will increase the total and peak electricity demand in coming decades.
Satisfying additional electricity demand may not be possible with the existing electricity system infrastructure and investment in the electricity generation system will be necessary. “It is therefore important to understand which options to produce low- and no-carbon electricity are technically and economically viable in Nova Scotia,” OREA said.
“One of the options for Nova Scotia is tapping into its wind resources. With more than 500 MW of onshore wind in operation, Nova Scotia has one of the highest penetrations of wind energy into the electricity grid of any jurisdiction in North America. However, although onshore wind development is well-established in Nova Scotia, there is currently no offshore wind development in the Province.
“To attract offshore wind to Nova Scotia, it is important to understand the development in other jurisdictions.”
The call was released on 16 December 2020. Applications are due by 15 January 2021. The RfP can be found here. Project kick-off would be 25 January 2021, with a final report due 31 March 2021 at the latest.