Skip to content

The winds of change (part 3): Newfoundland and Labrador releases wind energy guidelines

By: John Samms, Matthew Craig, Dave Randell,  and Jayna Green

On July 26, 2022 the Province of Newfoundland and Labrador (the “Province”) released “Guidelines: Nominating Crown Lands for Wind Energy Projects” (the “Guidelines”). Described as “the first step of certainty,” by Minister Andrew Parsons, this announcement and release of the Guidelines marks a substantial development in renewable energy in the Province. This article provides a brief overview of the Guidelines and details the future path ahead for entities looking to invest in wind farm projects in the Province.

Stated Purposes of the Guidelines

The Guidelines explain the evolution of the Province’s wind power policies, mentioning the establishment of the 2007 wind moratorium and the subsequent changes announced on April 5, 2022. For a more detailed description of those rules please see here.

The Guidelines suggest that renewable energy in the Province is abundant, with opportunities to develop green hydrogen and ammonia resources in addition to wind generation. The Guidelines are cited as an initiative to move the Province’s 2021 “Renewable Energy Plan” forward while ensuring long-term benefit to the people of the Province.

While the underlying goals of the Guidelines are important, the Province’s announcement is clear: the time for change has come and those looking to capitalize on the Province’s abundance of renewable resources must act quickly and effectively.

The Nomination and Bid Process Starts Now

Proponents intending to capitalize on wind generation opportunities must hit the ground running. The Province has introduced a two-phased approach to wind generation on Crown Lands and the clock has started ticking.

Phase 1, Calls for Land Nominations, begins immediately and will run until October 1, 2022. Government is asking that interested parties provide nominations for areas within which they wish to develop wind energy projects. At this stage, all Crown lands are available for submission subject to specific exemptions. While respondents are encouraged to be strategic with their nominations, it is evident that the Province is seeking to incentivize proponents and gauge the competition for particular parcels of land. The Government has not limited the amount of land a proponent may show interest in nor are proponents limited to one specific geographic location.

Once Land Nominations are received, they will inform the subsequent decisions made by the Department of Industry, Energy and Technology (“IET”) in selecting land area(s) to be included in future bidding processes. While the Call for Nominations is a non-competitive process, Phase 2, Call for Land Bids, is a competitive process. Details on the evaluation process will be announced in mid-December.

Newfoundland and Labrador Hydro Interfacing

Newfoundland and Labrador Hydro (“NL Hydro”) will be involved in the review of Land Nomination and bid submissions. NL Hydro will be responsible for reviewing the technical viability, and potential rate impacts of assessments. In doing this, NL Hydro may provide insights into the cost of interconnection and supply of energy to respondents where applicable, and will be responsible for providing technical parameters to support respondents as they develop land nominations. In a press conference, the Minister of IET explained that technical viability will be assessed prior to the commencement of the Phase 2 competitive process.

Currently, NL Hydro is conducting wind integration studies to assess the amount of wind generation that can be supported by the grid. The results will be made public, with the goal of ensuring transparency regarding project viability.

NL Hydro will also support project proposals throughout the bidding process by providing reasonable preliminary consultation to proponents and relevant information regarding systems. NL Hydro will not be performing individual system studies for proponents, rather it will initiate detailed system studies for successful bidders through it’s Interconnection Process.[1]

NL Hydro’s involvement will not stop here, as it’s currently involved in a “Reliability and Resource Adequacy Review” to “ensure sufficient and reliable long-term supply of energy and capacity for customers.” The results of the review will influence the number and location of new wind resources, with the final report submitted to the Public Utilities Board on September 30, 2022.

Conclusion

The Province is no stranger to natural resource development. A recent feasibility study of hydrogen production, storage, distribution, and use in the Province estimated that development of hydrogen production in the Province and attraction in new industry could result in new green jobs and a hydrogen sector valued at more than $11 billion per year by 2050. That same study found that if Atlantic Canada captured 5% of the European market for hydrogen, the export opportunity could be $9 billion annually in the Province. While questions remain, a new industry is upon us.

Now publicly described as being a global “best in class resource,” with respect to wind energy, the Province’s opportunity to demonstrate leadership in the global transition to green energy is upon us and navigating a new industry means having the knowledge and support to foster success. Lawyers within Stewart McKelvey’s Energy Group have the expertise to provide this support, and to help clients navigate this novel process, as well as the policy changes to come.


This update is intended for general information only. If you have any questions on the above we would invite you to contact the authors or any other member of our Energy Group.

Click here to subscribe to Stewart McKelvey Thought Leadership.


[1] The policy states that the Interconnection Process will begin by proponents submitting a formal interconnection request. Hydro will conduct system impact and facilities studies to confirm costs for proponents and previous preliminary system upgrade requirements. NL Hydro’s interconnection process will be executed in an effort to provide proponents with accurate cost estimates and schedules sufficient to support interconnection and power purchase agreement negotiation and regulatory approval.

SHARE

Archive

Search Archive


Search
Generic filters

 
 

Changes to job classifications and immigration impacts

November 23, 2022

By Brittany Trafford and Michiko Gartshore On November 16th, 2022 the Federal Government switched to the 2021 National Occupational Classification (NOC) structure from the prior 2016 version. The NOC is Canada’s national system used to…

Read More

Nova Scotia: Canada’s emerging immigration hub

November 17, 2022

As part our presenting sponsorship of the Halifax Chamber of Commerce’s Annual Fall Dinner, we are pleased to present a series of thought leadership articles highlighting the dinner’s themes of immigration, recruitment, and labour market…

Read More

Bill C-27 – Canada’s proposed Artificial Intelligence and Data Act

November 16, 2022

Kevin Landry, Charlotte Henderson, and James Pinchak The governance of Artificial Intelligence (AI) is entering a new era since the Canadian Government first announced a digital charter in 2019 as part of a larger-scale overhaul…

Read More

Discovery: Atlantic Education & the Law – Issue 11

November 14, 2022

We are pleased to present the eleventh issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. With a new academic year well underway, the Atlantic Region is finally seeing…

Read More

The Winds of Change (Part 5): Atlantic Canada poised to benefit from clean energy tax credits

November 10, 2022

By Jim Cruikshank, Graham Haynes, and Dave Randell On November 3, 2022, the Honourable Chrystia Freeland delivered the Federal Government’s Fall Economic Statement (“FES”).  The FES included a number of tax related announcements, including further…

Read More

“Constructive Taking”: Consequences for municipalities from the Supreme Court of Canada decision in Annapolis Group Inc. v. Halifax Regional Municipality

November 10, 2022

By Stephen Penney, Joe Thorne, and Giles Ayers A new decision from the Supreme Court of Canada, Annapolis Group Inc. v. Halifax Regional Municipality, 2022 SCC 36 (“Annapolis”), has changed the law of constructive expropriation across the…

Read More

Attract & Retain: Nova Scotia taps foreign healthcare workers to fill labour shortages

November 10, 2022

As part our presenting sponsorship of the Halifax Chamber of Commerce’s Annual Fall Dinner, we are pleased to present a series of thought leadership articles highlighting the dinner’s themes of immigration, recruitment, and labour market…

Read More

The rise of remote work and Canadian immigration considerations

November 3, 2022

As part our presenting sponsorship of the Halifax Chamber of Commerce’s Annual Fall Dinner, we are pleased to present a series of thought leadership articles highlighting the dinner’s themes of immigration, recruitment, and labour market…

Read More

The future of express entry: Targeted draws to meet Canada’s economic needs

November 2, 2022

By Sara Espinal Henao Since its initial launch in January 2015, Express Entry has been a pillar of Canada’s immigration system. Recently passed amendments to the Immigration and Refugee Protection Act (IRPA) promise to drive…

Read More

Filling labour gaps with foreign workers: What Canadian employers need to know

October 28, 2022

By Brittany Trafford It is no secret that employers in Atlantic Canada are struggling to fill labour gaps. In June 2019 the Atlantic Canada Opportunities Agency (ACOA) published a report[1] indicating that the overall labour…

Read More

Search Archive


Search
Generic filters

Scroll To Top