OES Annual Report 2012 - Ocean Energy Systems

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04 / COUNTRY REPORTS
co-operatives, universities, local economic development corporations and non-profit groups. Under the
COMFIT program, Nova Scotia allows local community groups to connect small-scale in-stream tidal devices,
under 500 kW, to the electrical grid at the distribution level at a feed-in tariff price of 65.2 cents/kWh
over a 20-year contract. Under the Nova Scotia Electricity Act, the Government of Nova Scotia established
the authority to create a FIT for Developmental Tidal Arrays program - to in-stream tidal current projects,
arrays or single devices greater than 500 kW, that are transmission connected. The Nova Scotia Department
of Energy is currently seeking FIT pricing rates from the provincial Utility and Review Board. The Board’s
decision on this FIT program is expected in 2013 and will be applicable for developers answering Nova
Scotia’s Request for Proposals for the fourth berth at the Fundy Ocean Research Centre for Energy
(FORCE), Canada’s tidal-energy demonstrating facility. The winning bid for the fourth berth is expected to
be announced after the FIT program is established in 2013.
Main Public Funding Mechanisms
To date, Canada’s main public funding programs supporting national research, development, and
demonstrations are from federal programs administered through the Office of Energy Research and
Development, such as the Clean Energy Fund (CEF), the Program for Energy Research and Development
(PERD) and the ecoENERGY Innovation Initiative (ecoEII). Through these programs Canada has committed
approximately $37 million to marine renewable energy RD&D since 2010. In addition, Sustainable
Development Technology Canada (SDTC), an arm’s length foundation created by the Government of
Canada, has committed approximately $13 million to develop and demonstrate projects that include instream
tidal, river-current and wave energy technologies.
The National Research Council Industrial Research Assistance Programme has supported many early
technology assessment and physical and numerical modelling trials. Most projects have benefitted from
the refundable tax credit for Scientific Research and Experimental Development. Many projects have also
received support from provincial economic development agencies.
Nova Scotia has directly invested in the FORCE development initiative and, through the Offshore Energy
Research Association of Nova Scotia (OERA), supported a number of strategic research projects in marine
energy, estimated to be approximately $8 million. In addition, provincial economic development agencies
and funds, in Nova Scotia, Quebec, Ontario and British Columbia, have provided at least $10 million to
support projects.
Relevant Legislation and Regulation
Nova Scotia’s 2012 Marine Renewable Energy Strategy, establishes a Regulatory Plan emphasizing
environmental protection, stakeholder engagement and a licensing system for demonstration and
commercial projects. Environmental protection elements of the Regulatory Plan call for a staged, adaptive
management approach to permitting that reflects incremental deployment of tidal devices and monitoring
for environmental impacts. Stakeholder engagement is expected to be formalized through a Tidal Energy
Stakeholder Forum that will act as an advisory council to reflect various stakeholders’ interests and inform
the public of project activities, scientific data analysis and socio-economic opportunities related to tidal
energy. Licensing processes for rights in the provincial offshore will complement the incremental nature of
tidal energy development with a licensing process for the testing and demonstration stage, up to 15 MW,
and a separate licensing process for large-scale commercial grid-connected projects up to 300 MW.
Regardless of where a marine renewable energy project is planned for development in Canada, a number
of federal regulatory approvals are likely to be required. This stems from the federal government’s
responsibility over a number of issues in all areas of Canada, including fisheries, navigation, and certain
environmental issues. Canada has robust laws governing the oceans, but like many countries around the
world there is no specific legal framework designed for the governance of renewable energy activity in
the federal offshore. Under the Marine Renewable Energy Enabling Measures program, Natural Resources
Canada is taking a lead role towards the development of a policy framework for administrating renewable
energy, including wind, wave and tidal, in the federal offshore on behalf of the Government of Canada.