Premier wants grid operator to consider other technology for new power plants

Premier wants grid operator to consider other technology for new power plants

No indication so far that a change could happen

Nova Scotia Premier Tim Houston wants the province’s Independent Energy System Operator to broaden the request for proposals to build new power plants to include “a proper and more fulsome assessment of different technologies.”

So far, however, there’s no indication a change will happen.

Speaking to reporters in Halifax after a cabinet meeting Thursday, Houston said he thinks IESO officials have been “too prescriptive” about the technology that would be used for one or two plants to be constructed in Pictou County as a backup power source and part of the province’s effort to close coal-fired power plants.

“They’ve been too focused on [natural] gas,” said Houston.

“I think it should be open to different technologies like batteries and others. So that’s an active discussion on the RFP process. I personally believe it should be broadened.”

The IESO launched a call for proposals in July.

A spokesperson said in a statement Thursday that the organization’s mandate and “singular focus is to deliver reliable electricity" in the most cost-effective way possible and in alignment with the province's Clean Power Plan to end coal-fired generation by 2030.

“Our current procurement process is well underway, and supports the Clean Power Plan's renewable energy goals,” Olivia McMackin said in the statement.

“To ensure we secure the lowest cost option for electricity customers, it is important to maintain confidentiality around the procurement process beyond what has been publicly posted on IESO Nova Scotia's website.”

What’s posted on the IESO website focuses on using natural gas as a primary fuel source for the plants.

The proposal has generated controversy, particularly among people in Pictou County. A key sticking point for community members is that the plants would be fuelled with natural gas and use diesel as a backup.

Community feedback had impact — Houston

On his way into a speech in New Glasgow earlier this summer, Houston stopped to talk with demonstrators worried that the plan could lock the province — and ratepayers — into a long-term obligation for technology that could quickly become obsolete.

Critics of the plan have argued that using large-scale batteries would make more sense for the long term and be better for the environment.

On Thursday, Houston said the conversations he’s had with people from the community helped inform his thinking.

“Those discussions had much more impact on me than sitting on the top of my car trying to smash the windows,” he said, referring to an earlier stop on his summer speaking tour when protesters in Wolfville surrounded his vehicle as he tried to leave.

“Those are actual discussions that made an impact on me.”

Affordability concerns of limiting bidders

Meanwhile, despite the ongoing trade war with the United States, Houston said he does not think this project is a case where American companies should be prevented from bidding on the work.

While that might make sense for shorter-term projects, the premier said long-term cost obligations must be considered for a project expected to come with a 25-year contract to recover construction costs from ratepayers.

“We’re talking about affordability issues, so we need to be careful to not take a bad situation for Nova Scotia ratepayers and make it worse just on a politics-of-the-day stand.”

Opposition leaders welcomed the idea of considering other forms of technology for the plants.

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Michael Gorman covers the Nova Scotia legislature for CBC, with additional focuses on health care and rural communities. Contact him with story ideas at michael.gorman@cbc.ca