Nova Scotia Sets $7,000/MW Offshore Wind Levy to Attract Developers
Nova Scotia Premier Tim Houston introduced legislation requiring offshore wind developers to pay $7,000 per megawatt annually for the first ten years. The province aims to generate $35 million yearly from a projected 5,000 MW capacity in the initial phase. After ten years, the fee may switch to a percentage of gross revenue, potentially set at four percent. All electricity produced will initially be exported, with no immediate plans for local consumption. The legislation is part of a broader energy strategy, including a transition of power grid management and regulatory updates for other energy sectors.
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Nova Scotia's Premier Tim Houston proposed the Offshore Renewable Energy Act, mandating offshore wind developers to pay $7,000 per megawatt annually for the first decade of operation. This is projected to generate $35 million yearly, reflecting the province's goal of reaching 5,000 MW in the initial phase.
After ten years, the fee may either remain or shift to a four percent gross revenue royalty, with potential annual earnings of $100 million at current rates. The first generation of offshore energy will be exported. This legislation is part of a wider energy strategy, which includes adjusting the management of the power grid and regulatory changes for geothermal, hydrogen, helium, and carbon storage sectors.
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