HALIFAX -- The Nova Scotia government has ended a program that guaranteed small-scale energy producers a sustainable fee for their electricity, saying to continue the program would result in rising electricity prices.
Energy Minister Michel Samson says the COMFIT program has served its purpose by encouraging renewable energy projects capable of producing 125 megawatts of electricity by the end of this year.
He said to continue the feed-in tariff program further would cause Nova Scotia Power (TSX:EMA) to raise the rates for electricity consumers in a province that already has some of the highest energy costs in the country.
Samson said a review by his department found no new generation is needed and that Nova Scotians pay more for energy with small-scale, community-based projects than from other sources.
He said effective immediately, no new applications will be considered, while unapproved extensions and lapsed permit renewals will be considered on a case-by-case basis and processed within 60 days.
He said more details on renewable energy and its role in the province's energy future will be released this fall in the government's electricity plan.
Once the 125 megawatts of the small-scale power is operating by the end of 2015, the projects will represent about two per cent of the province's overall energy mix during times of peak demand. During times of low demand, the projects provide about 5.5 per cent of the province's electricity.
The department says if all approved projects go forward, the program will provide almost 200 megawatts of power.
"It's important to note that the intent of the program was never about getting the lowest cost electricity. It was about building community energy and creating investment opportunities for Nova Scotians in community renewable energy. Those objectives have been not only achieved, but exceeded," said department spokeswoman Sarah Levy-MacLeod.
