Power Purchase Agreement Nova Scotia

A Power Purchase Agreement (PPA) in Nova Scotia: How it Works and its Benefits

Nova Scotia`s energy sector has seen a significant shift in recent years as the province continues to embrace renewable energy. With a goal of achieving 80% renewable energy by 2030, the province is increasingly turning to Power Purchase Agreements (PPAs) to procure clean energy from independent power producers. In this article, we`ll explain what a PPA is, how it works in Nova Scotia, and the benefits that come with it.

What is a Power Purchase Agreement (PPA)?

A Power Purchase Agreement (PPA) is a legal contract between a buyer (usually a utility or government entity) and a seller (usually an independent power producer) to purchase electricity over a long-term period. PPAs are typically used for renewable energy projects as they provide a stable revenue stream for the power producer, which is often necessary to secure financing and make the project economically viable.

How does a PPA work in Nova Scotia?

In Nova Scotia, PPAs are typically signed between Nova Scotia Power (NSP) and independent power producers. NSP is the province`s primary electricity provider, and it is required by law to source a portion of its energy from renewable sources. PPAs help NSP meet this requirement while also supporting the growth of renewable energy in the province.

Under a PPA, the independent power producer agrees to sell NSP a set amount of electricity at a fixed price over a long-term period, usually between 15-20 years. The price is typically negotiated between the two parties and is based on factors such as the cost of building and operating the renewable energy project, the cost of financing, and the expected price of electricity in the future.

Benefits of PPAs in Nova Scotia

PPAs offer several benefits to both NSP and independent power producers. For NSP, PPAs help the utility meet its renewable energy targets while also providing a stable supply of electricity at a predictable cost. PPAs also help NSP diversify its energy portfolio, reducing its reliance on fossil fuels and increasing the province`s energy security.

For independent power producers, PPAs provide a stable revenue stream that helps secure financing for renewable energy projects. PPAs also provide a predictable income, which can be crucial for smaller developers who may not have the financial resources to weather volatility in the energy market.

PPAs also help support the growth of the renewable energy industry in Nova Scotia. By providing a predictable revenue stream, PPAs encourage investment in renewable energy projects and help create jobs in the province`s growing green economy.


Power Purchase Agreements are an important tool for Nova Scotia as it seeks to meet its renewable energy targets and grow its green economy. By providing a stable revenue stream for independent power producers, PPAs help ensure the long-term viability of renewable energy projects while also providing a stable supply of electricity for NSP. As the province continues to develop its renewable energy sector, PPAs will play an increasingly important role in its future.