Leading Economic Change: A Discussion Paper Series from NSARDA

Why Worry About Energy?

Political leaders around the world are worried about energy for economic, political, and environmental reasons.

We know that the global economy is intricately tied to the price of oil. Our economies are incredibly sensitive to fluctuations in oil supply and demand. And we may be quickly approaching peak oil production.

Meanwhile, much of the world’s oil production takes place in politically unstable regions. This has raised significant concerns about energy security and energy dependence.

And let’s not forget about what some have called “the greatest political challenge of our time”: scientists have presented irrefutable evidence that fossil fuel emissions have been changing our climate.

In Nova Scotia, we have been addicted to a particularly “dirty” fuel for generations. Currently, nearly all our energy (80%) is produced by burning coal. This dependence is remnant of the days when we produced all the coal we needed. But we now import about 87% of our coal. And in the past six years, global coal prices have risen 75%. Whatever cost advantage we once

enjoyed has now become a significant challenge for electricity consumers (and for large industrial users in particular). Importing coal is one of the biggest leaks of wealth from our economy.

The economic, political and environmental realities are pushing all developed economies to find new energy solutions. And the most progressive jurisdictions are converting these challenges into opportunities for economic development.

Today, we are finally getting off the roller-coaster of fossil fuel prices that drive the cost of electricity, with clean energy becoming the linchpin for a new era of regional progress.

- Premier Darrell Dexter State of the Province, Dec. 7, 2011

Energy & Sustainability Leading Economic Change Number 2, December 2011

NSARDA is the link between the Nova Scotia RDAs, providing support and collective strength. Since 1999, the Association has helped the Nova Scotia RDAs in improving the economy of communities across Nova Scotia. For more information about NSARDA and the Nova Scotia RDAs please visit www.nsarda.ca.

Hubbert’s Peak

In 1956, geophysicist M. King Hubbert successfully predicted that the continental US would reach peak oil production in the early 1970s.His models also predict that global oil production could peak by 2016, and then enter a terminal decline.

Leading Economic Change: A Discussion Paper Series from NSARDA

What are the Economic Opportunities?

Nova Scotia already understands the economic opportunities of energy production. The Sable Offshore Energy Project has yielded billions in tax royalties. With Deep Panuke now under development, geologists believe we still have significant untapped reserves. But to-date, low market prices have been restraining off-shore development, and Nova Scotia is now one of many jurisdictions examining the prospect of hydraulic fracturing for on-shore shale gases.

Like many developed economies, Nova Scotia is getting serious about renewable energy. We already have experience with wind development, and have been exporting our related expertise in “community economic development investment funds.”

We are also preparing to tap into marine energy sources. Four large-scale tidal power devices will be tested near Parrsboro, and the potential for smaller scale development is being explored in Digby County.

Meanwhile, some Nova Scotia companies have been exploring a new financing option for sustainability projects. Environment Canada can issue a “carbon offset credit” to organizations that reduce or remove the equivalent of one tonne of CO2 emissions. These credits can be sold to other organizations that are looking to reduce their carbon footprints. In 2008, the global carbon market was estimated at $139 billion.

What Role Can Community Economic Developers Play?

Researchers at Acadia University have begun looking at how to create a thriving renewable energy industry in Nova Scotia. Such an industry would not only meet our Province’s goal of 40% renewable energy by 2020, it would also provide world-class exportable expertise.

To achieve our renewable energy goals, we will require: significant capital investment, local suppliers, an engaged research community, skilled tradespeople, and a diversity of knowledge workers.

According to Dr. Mark Jacobson (Stanford) and Dr. Mark Delluchi (U.C. Davis), the barriers to renewable energy development are not technological or economic - they are social and political.

This is why community engagement will be critical. Community Economic Developers can lead the creation of these new industries by facilitating local collaboration. We can help our businesses and communities identify their energy opportunities, and then transition from the high costs of imported coal to the sustainability of renewables.

Ryan MacNeil, EcD, is Principal of Ryan MacNeil & Co., a company that helps development leaders & organizations become focused and effective. Reach him at ryan@ryanmacneil.com.

Thank you to Dr. Shelley MacDougall (of Acadia University and the Fundy Energy Research Network) for background material.

Who is working on it?

Nova Scotia’s Regional Development Authorities (RDAs) have been engaged in energy and sustainability projects for over a decade. The Guysborough County Regional Development Authority was instrumental in supporting both the Sable and Deep Panuke Projects. They are currently facilitating local wind develop-

-ment through the provincial “Community-Based Feed-in Tarriff” (COMFIT) program.

The Department of Energy is leading the development of the province's energy resources. In 2009, the Department published Nova Scotia’s Energy Strategy. This was followed by a Renewable Electricity Plan in 2010.

In 2009, the Atlantic Canada Opportunities Agency published an overview of the region’s energy sector. The Agency’s Atlantic Energy Gateway initiative is now helping to facilitate development of the renewable energy sector, and is led by the ACOA Energy Team/Atlantic Canada Energy Office.