The federal government expresses continued interest in Nova Scotia Premier Tim Houston’s ambitious offshore wind energy initiative, known as Wind West, but requires commitments from private sector partners before designating it a project of national interest.
Federal Conditions for Support
Federal Energy and Natural Resources Minister Tim Hodgson states that the Major Projects Office must confirm industry readiness before advancing the plan from strategy to a specific project. “And that’s when their decision would be to move it from a strategy to an individual project,” Hodgson remarked during questions following an announcement on a Canada Infrastructure Bank loan for an onshore wind project in Nova Scotia.
Project Scope and Funding Needs
Premier Houston envisions a large-scale expansion of offshore wind farms, targeting 60 gigawatts of capacity at an estimated cost of $40 billion, plus $20 billion for transmission lines to enable exports to other parts of Canada and the United States. He seeks federal tax credits, low-interest loans, and direct investments to support the effort.
Prime Minister Mark Carney signaled last fall that Wind West could join the major projects list, though it requires further development for approval.
Challenges in Securing Commitments
The project faces a coordination challenge, as various partners await commitments from one another. The Canada-Nova Scotia Offshore Energy Regulator initiated pre-qualification for developers last year and plans a call for bids this year, though it has not disclosed the number of pre-qualified companies.
French company Q Energy confirms its application and recent visits to the province to discuss building wind farms in Nova Scotia waters. However, CEO Junu Lee indicates the firm needs visible progress on transmission infrastructure before major investments.
Recent Advancements
Natural Resources Canada contributes nearly $5 million to a Wind West feasibility study led by Net Zero Atlantic, matched by $700,000 in provincial funding and in-kind support. Houston describes this funding as “a really big moment.”
“The main constraint on [Wind West] is not the wind, the wind is there and it blows a lot. The constraint would be where is the power going to go and how are we going to move it, so that’s what this is about today,” Houston explained.
Earlier this week, Houston introduced legislation outlining revenue mechanisms for offshore wind projects, proposing a 4% royalty on gross revenue after the first decade of operations. Operators would pay a reduced fee based on turbine capacity during the initial 10 years to avoid deterring developers.
