HALIFAX: IESO Nova Scotia has launched its first competitive procurement for new electricity resources, today issuing a Request for Proposals (RFP) for up to 600 megawatts of fast-acting generation capacity through one or two 300-megawatt natural gas generation facilities.
The firm, on-demand generation capacity these facilities will provide is urgently needed to maintain a secure supply of electricity to meet Nova Scotia’s growing demand in the most cost-effective way possible for power customers and phase out coal-fired generation, which currently still accounts for approximately 40 per cent of the province’s energy mix.
“Nova Scotians depend on — and deserve — a reliable supply of electricity to power nearly every element of their daily lives,” said Johnny Johnston, President and CEO of IESO Nova Scotia. “It runs our hospitals, businesses, schools, and homes.
“It is IESO Nova Scotia’s job to ensure there is enough electricity available for Nova Scotians when they need it, and to do so in a way that doesn’t add unnecessary costs to their electricity bills.
“These facilities, which will be competitively procured, are the way to provide that supply reliability to our system at the best cost possible for customers.”
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The need for 300 to 600 megawatts of fast-acting natural gas-fired electricity generation was identified in the province’s most recent Integrated Resource Plan (IRP) — the long-term plan for the electricity system, developed through both advanced modelling and analysis by technical experts and a robust stakeholder collaboration process — as well as in the Government of Nova Scotia’s Clean Power Plan, which lays out the path to achieving 80 per cent renewable electricity sales and the phase out of coal by 2030.
“These fast-acting generation facilities, unlike Nova Scotia’s existing coal-fired generators, are able to quickly ramp up only when they are needed, and power down when they are not — meaning they will not only provide a backup source of generation capacity when renewables aren’t able to meet the system’s full demand, but they’ll also enable us to maximize the safe and reliable delivery of our world-class wind energy, helping prevent the need to curtail wind generation by stabilizing the grid so it can handle high outputs on very windy days,” continued Johnston.
“Fast-acting generation is an integral part of the portfolio of resources needed to deliver a reliable and cost-effective supply of electricity to Nova Scotians.
“Energy storage is another essential piece of that portfolio, which is why we will be launching a competitive procurement process before the end of this year to continue to build out the province’s energy storage fleet.”
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IESO Nova Scotia has set numerous mandatory requirements in the fast-acting generation RFP that proponents must meet. Only proposals that meet all of these requirements will be considered, then being evaluated on cost-effectiveness and value to the system.
The RFP requires proponents to:
Comply with all applicable federal and provincial legislation and regulations to protect people and the environment, including meeting all permitting requirements and Environmental Assessment conditions.
Design proposed facilities to be capable of transitioning to non-fossil fuels when they become economically available.
Build support for the local economy and community into their proposals, including through the payment of municipal property taxes and required spends of $500,000 per year on local construction contracting, $300,000 per year on local operations jobs and contracts, $100,000 per year on community initiatives, and $100,000 per year to local fire departments.
Build Mi’kmaw economic and community benefits into their proposals, including providing an option for equity partnership and adopting the Mi’kmaq First Program to support Mi’kmaw business development, increase procurement from Mi’kmaw-owned businesses, and build long-term Mi’kmaw workforce capacity through training and experience.
Design proposed facilities to operate without using high volumes of water, to preserve groundwater, while maintaining emissions levels below permitting requirements and government regulated limits.
Proponents must submit project proposals for evaluation by October 10, 2026, with IESO Nova Scotia anticipating contract award to take place in early 2027.
Once contracted, IESO Nova Scotia will submit an application under Section 30 of the More Access to Energy Act to the Nova Scotia Energy Board for the recovery of costs for these projects, which, like all electricity infrastructure in the province, are passed to electricity customers through their energy bills.
All procurement documents can be found at ieso-ns.ca/procurement.
