Right on the heels of the Pope’s climate change encyclical “Laudato Si”, Obama’s Climate Change Action Plan, and Bill Gates announcement that he is investing $1 billion into clean energy technology, Nova Scotia has cancelled its progressive COMFIT (Community Feed-in Tariff) program. While the program review has not been made public, the August 6th press release from the Department of Energy stated that that program has “achieved its objectives”. The step backward was significant enough to catch the attention of The Guardian, with an international online readership of more than 120 million views per month. The article turned the eyes of the world to Nova Scotia for all the wrong reasons.

what was comfit?

COMFIT is an acronym for Community Feed-In Tariff. It was an impressively progressive policy, particularly when it was implemented in conjunction with another progressive Nova Scotian policy called CEDIF, or Community Economic Development Fund. COMFIT provided the foundation for independent, community owned renewable energy production in Nova Scotia.

The program was created out of Nova Scotia’s 2010 Renewable Energy Plan. When COMFIT was announced in 2011, 90% of Nova Scotia’s energy was generated using fossil fuels (most of which was coal). The program was created to support a transition to 25% of renewable energy by 2015 and 40% by 2020. The shift would minimize the Province’s dependency on imports of fossil fuels which:

a)    experience unpredictable fluctuations in cost which are generally unfavourable
b)    undermines our provincial energy independence
c)     negatively impacts the health of our environment and our people

But according to the Department of Energy, the program’s true value ran much deeper (check out the COMFIT fact sheet). Truth be told, it was a serious economic driver, community catalyst and environmental liberator.

how did it work?

The Nova Scotia Utility Review Board set purchase rates per technology - large wind, small wind, tidal, hydroelectricity and biomass. (Of note, solar was not included although an independent review conducted on behalf of NBSI in 2014 indicated that it was viable.)

After a tendering and review process, independent power producers entered into power purchase agreements to generate and then sell clean, renewable energy to the utility to be distributed across the grid. The power purchase agreements laid the foundation for CEDIF raises. (Not only was there a guaranteed buyer, but the rates were predetermined to provide a reasonably predictable return). Nova Scotian investors received provincial tax credits, and in some cases, additional rates of return on their investments. Often, funds were diverted from out of province RRSP funds directly back into the provincial economy. Those investments supported development of community owned renewable energy production sites across the province. And yes, the program was very successful.

mission accomplished!?

As a province, we should be celebrating. Government, our utility, businesses, investors and our communities have transitioned our province to a 25% renewable energy mix, right on schedule. Nova Scotians directly invested $35 million into clean energy projects. But by 2020, we have as a province committed to a 40% renewable mix. So why stop now?

Power purchase rates are set for 20 years. According to Energy Minister Michel Samson, our success could lead to an actual increase in power rates. Someone, or a lot of someones, are doing the math.  But is cancelling COMFIT a short term gain, long term loss?

the bigger economic picture

Aside from power rates and the economic impact of job creation and investment into Nova Scotian companies, it’s really complicated, particularly when factoring in externalities. Sustainability is more than feel-good sentiment or an environmental imperative; it has become an economic necessity. As more world leaders take action on climate change, reliance on fossils fuels has become exponentially expensive when factoring in the value of exports.

Internationally and domestically, governments, corporations and consumers are evaluating the environmental (and human) impact of the services and products they buy. Energy usage, including the type of energy, is an emerging factor. The B Corp assessment requires aspiring businesses to disclose the percentage of energy used in production that was generated using fossil fuels. Export Development Canada has recently released a video on how they use Corporate Social Responsibility, including sustainability, to assess the businesses they support. Whether a business provides a service or manufactures a product, energy forms an integral part of its supply chain, and it matters to a growing number of customers and partners.

Clean energy also attracts investment. It attracts companies that are good for Nova Scotia – those that will respect our natural resources and create good paying jobs that people want. 

If Nova Scotia is going to compete in an export market, retain its people, and grow its economy, it needs policies that, at a minimum, keep pace with the rest of Canada and the world.

what next?

A fifteen percent reduction in fossil fuel consumption is a victory, but it’s not the endgame. In the immediate, there seem to be more questions than answers. How will Nova Scotia achieve its 40% renewable target by 2020? As global economies place greater emphasis on sustainability, will Nova Scotia be left behind? Our province is small enough to make bold moves with big impact. COMFIT was bold. So, what's the plan?