N.S. grid operator to open new, broad search for energy technology, including batteries

Nova Scotia’s grid operator is broadening its search for new energy technology.

It’s a welcome change for some who have been protesting a proposal to build natural gas power plants in Pictou County, although it remains to be seen what type of technology will ultimately be chosen.

The Independent Energy System Operator (IESO) is still moving ahead with a procurement process initiated last year for gas peaker plants, but it will now happen in tandem with another procurement — one that will be open to a variety of technologies, including batteries.

“We want to find the right mix of technologies that come at the lowest possible cost because Nova Scotians can’t afford to pay a cent more on their energy than they absolutely need to, and that’s where we’re focused,” said IESO president and CEO Johnny Johnston, in an interview Friday.

Mark Brennan, who lives near one of the proposed sites for a gas plant, said the pivot is overdue.

“It’s good to see this process finally opened up to other technologies like battery storage,” said Brennan in an email.

“But it should not have taken so much effort by the public to make IESO aware that the costs both environmentally and financially to Nova Scotians must be a major consideration for expanding the power grid.”

Jason Hurst, another Pictou County resident, said the IESO’s announcement sparked some optimism and relief, but it isn’t exactly what he was hoping for. He wanted the gas-plant procurement to be scrapped and redone with a broader scope to allow for direct competition between technologies.

“Once you get into the details, there’s not much that’s binding and it doesn’t seem like much of a departure from their original plans of buying gas first and then following up with batteries,” he said.

New bids will inform choice on gas plants

The IESO extended the deadline for bids to build the gas plants into January, which Johnston said allows for the first round of information on alternative technologies to come in and inform the process, including whether or not any gas plants are built.

Johnston said it was important to keep the original request for proposals going to show that Nova Scotia is “open for business, and it’s worth coming to take the time and invest here.”

The changes were announced Friday, which was the last day to make amendments to the gas-plant procurement. Johnston said that deadline was the reason for the timing; he would not tie the IESO decision to a recent ask by Premier Tim Houston.

Houston had previously said he was confident in the IESO’s choice to exclusively pursue natural gas peaker plants, but then last week he expressed a change of heart. Swayed by critics of the plan, Houston said he asked the grid operator to broaden its search.

“We always have a mandate to align with government policy,” said Johnston. “But really today’s announcement comes from months of engagement and feedback with the local community.”

Houston said it’s a good outcome.

“I just want the process to be complete, where it’s technology agnostic, they actually get different proposals across technologies, assess them as the experts that they are … and then make the best decision for Nova Scotians,” he told reporters Friday at Province House.

“We’ll respect that process,” he added.

Questions about IESO’s independence

Opposition leaders agreed the change is a good one, but they said it calls into question whether the grid operator is independent in anything but name.

“Obviously they didn’t make that decision until the premier was confident that his word was going to change their mind,” said Interim Liberal Leader Iain Rankin.

He said the IESO only has a “veneer of independence.”

NDP Leader Claudia Chender called for clarity over how much influence the government has over the grid operator.

“In the name of transparency it would be great to understand the communication channels between the premier’s office and the IESO,” she said.

Johnston said the independence in his organization’s title refers both to independence from government and independence from energy producers, which includes Nova Scotia Power. He said the latter is “really important for customers.”

“There’s no vested interest for us, other than finding the best solution for customers.”

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