The Nova Scotia government introduced legislation on Tuesday it says will ensure the province reaps financial benefits from Canada’s first offshore wind projects.
Under the proposed Offshore Renewable Energy Act, project developers will be required to pay an annual levy of $7,000 per megawatt produced for each of the first 10 years of commercial operations.
The province, which has yet to issue a call for bids, has set a goal for the industry to produce as much as 5,000 megawatts during a first phase, which means the province would earn about $35 million annually from the levy.
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After the first 10 years, the province would have the option of continuing the $7,000 levy, or choose instead to make more money by applying a levy based on a percentage of each project’s gross revenue.
Provincial officials say the government is currently considering a four per cent levy, which at current electricity prices would translate into about $100 million annually for the provincial coffers.
As well, they confirmed that all electricity produced by the first offshore turbines would be exported to other markets rather than sold to the Nova Scotia market.
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