Nova Scotia Electrical Grid Infrastructure in support of Reliability and Renewable Energy

Company Overview

The Nova Scotia Independent Energy System Operator ("IESO Nova Scotia") was created by provincial government legislation in 2024 with a mandate to deliver a secure supply of electricity and enable the renewable energy transition at the best possible cost. We are a not-for-profit organization, meaning our decisions are driven by Nova Scotians' needs, not by profits.

Our work increases transparency and competition in the province's electricity system, allowing us to keep the power supply reliable as demand on the grid grows, accelerate the transition to renewable energy, and secure the most cost-effective electricity possible for Nova Scotians. By operating independently, we foster a more competitive energy market that supports innovation while delivering reliable power to homes and businesses. Through collaboration with industry partners, communities, and government, we are building a resilient, low-carbon energy future that keeps the lights on today and strengthens our energy system for tomorrow.

IESO Nova Scotia is responsible for implementing the province's 2030 Clean Power Plan, which sets ambitious targets to phase out coal-fired generation, reach 80% renewable electricity, and cut greenhouse gas emissions from the electricity sector by 90% from 2005 levels. We are also responsible for planning the province's future energy needs, procuring new electricity generation sources and services, and purchasing and dispatching power from producers.
 

Project Overview

IESO Nova Scotia identified the need to procure both battery energy storage and fast-acting generation capacity to reliably manage the province's transition to a grid increasingly reliant on wind and solar. As renewable penetration grows, the generation mix will increasingly consist of inverter-based resources with highly variable output, requiring generation that can ramp up and down quickly — a capability Nova Scotia's aging, slow-responding coal fleet cannot provide.

The fast-acting facilities, using combustion turbine or reciprocating engine technology, are designed to serve as a peaking resource for energy production, dispatched only when wind and solar output cannot meet demand — an estimated 15% of hours annually. In their early years, the facilities will run primarily on natural gas, yet will have defined pathways to transition toward non-emitting fuels such as hydrogen or renewable natural gas as supply chains mature.

The facilities are expected to operate in synchronous condensing mode 70% of the time, providing essential grid stability services such as voltage support and inertia without burning any fuel — a critical function for a grid with high renewable penetration.

IESO Nova Scotia has de-risked two proposed 300 MW projects in Pictou County by advancing project development work and securing conditional provincial environmental approval, with no additional federal environmental assessment required.
 

Investment Highlights

Power and Utilities:

• Two, 300MW projects
• Combustion Turbines or Reciprocating Engines, with synchronous condensing operational mode.
• Greenfield
• 25-year term with IESO Nova Scotia as off-taker

Clean Energy:

• Facilities will have capability to use 100% non-emitting fuels as supply chains mature. Facilities are required so that Nova Scotia’s electricity grid can transition to 80% renewable and phase out existing coal
• GW of extra wind, enabled by these projects
• Permitting expected complete by mid 2027; commercial operations required as soon as possible to maintain cost-effective and reliable electricity supply, enable Nova Scotia’s rapid decarbonization and position Nova Scotia for enhanced economic development agenda

Investor Snapshot

Sector: Grid strengthening, new generation capacity that supports coal phase-out and extensive deployment of wind energy to reduce electricity system greenhouse gas emissions.

Current Stage: Advanced Development (site control secured, Provincial conditional environmental approval secured, IAAC early decision confirming no Federal IA required). Municipal and Provincial Industrial Approval permits outstanding. Grid interconnection asset agreements executed. RFP opened July 10, 2026.

Estimated Capital Cost: US $1.2 billion.

Investment Opportunity: IESO Nova Scotia is seeking, via its competitive procurement process, an experienced and capable private entity to finish development then finance, construct, own and operate the two 300MW fast-acting generation facilities. IESO Nova Scotia will be the off-taker of the capacity and energy, in a 25-year bankable tolling agreement awarded via RFP.

Internal Rate of Return: At market rates, set through IESO Nova Scotia’s competitive procurement (https://www.ieso-ns.ca/procurement/). RFP forecasted closing October 9, 2026.