Regulation of Alternative Energy Projects in Atlantic Canada

IntroductionI. Renewable energy projects in Atlantic Canada1. Wind powera. Nova Scotiab. New Brunswickc. Newfoundland and Labradord. Prince Edward Island2. Tidal power3. Biomass energya. Nova Scotiab. New Brunswickc. Prince Edward Islandd. Newfoundland and LabradorII. The regulatory regime1. Federal2. Nova Scotiaa. Tidalb. Windc. Electrical grid connection3. New Brunswicka. Tidalb. Wind4. Prince Edward Island5. Newfoundland and LabradorIII. The future of alternative energy regulationIntroductionAlternative energy sources present both opportunities and challenges for the future of energy development across the country. Developers face many challenges attempting to navigate the labyrinth of regulatory requirements. This paper will address regulatory issues associated with development of alternative energy projects in Atlantic Canada. As is hardly surprising, the regulatory regime for alternative energy sources is not homogeneous. While the federal regulation is clearly the same, each of the provinces has approached alternative or renewable energy in different manners and to differing degrees. This has resulted in a regulatory framework that is complex and involves extensive oversight, primarily at the federal and provincial level, though municipalities are entering the fray.Due to the fact that environmental regulation impacts a wide array of stakeholders, a patchwork regulatory framework has been developed to allow stakeholders a voice in the development of alternative energy projects. Renewable energy regulations, many of which are still in their formative stages, do not consolidate all the different processes a developer must follow in order to have the project approved. In order to facilitate a smooth and robust transition to the use of alternative energy, private industry stakeholders may wish to advocate for the creation of a streamlined regulatory process. Simplified procedures would provide certainty and expedite the process, providing an atmosphere far more inviting to investors and developers. First, we comment briefly on the extent of current renewable energy projects in the Atlantic Provinces, including tidal power, biomass energy generation, and wind power developments. While there are other sources of renewable energy, for brevity only these sources are considered in this paper. Second, an overview of the regulatory landscape will be provided. Finally, for each of the Atlantic provinces, this paper outlines the policies and regulatory regime for alternative energy projects.I. Renewable energy projects in Atlantic CanadaWithin the last decade the governments of New Brunswick, Nova Scotia and Prince Edward Island have committed themselves to reducing reliance on fossil fuels by increasing the production of renewable energy.1 This commitment to alternative energy sources has been entrenched in legislation in each province.Newfoundland and Labrador already relies extensively upon renewable energy sources-the vast majority (approximately eighty per cent) of the electricity consumed in Newfoundland and Labrador originates from renewable sources, most notably hydroelectric generation. In terms of major energy project developments, Newfoundland and Labrador has been predominantly focused on developing its offshore oil and gas resources, as well as its substantial hydroelectric resources. As a result, that province has placed less emphasis upon the development of alternative energy sources.Nova Scotia's Renewable Electricity Regulations,2 3 created under the authority of the Electricity Act3 set renewable energy targets for 2011, 2013, 2015 and 2020.4 Section 4 of the Regulations obligated public utilities to ensure that at least five per cent of annual energy sales derived from renewable energy sources for 2011 and 2012. …