HALIFAX, NS — The province’s new, not-for-profit independent energy system operator is expanding the scope and accelerating the launch of its second energy procurement process. Initially planned to launch at the end of 2026 with a focus on procuring energy storage, this procurement process will now launch with a Request for Qualifications (RFQ) in October, and will be expanded to include energy storage and other on-demand electricity generation technologies.
This technology-neutral RFQ will run in parallel with the ongoing procurement for fast-acting natural gas-fired generation. Together, the two processes will provide IESO Nova Scotia with current market information to support system planning and procurement decisions about the most cost-effective way to meet the province’s urgent reliability needs.
IESO Nova Scotia was created by the provincial government’s More Access to Energy Act to ensure the province’s power system has enough electricity to meet demand in the most affordable way possible for Nova Scotians, even as the grid quickly transitions to coal-free and predominantly renewable energy.
As electricity demand continues to grow and coal-fired generation is phased out to significantly reduce Nova Scotia’s emissions, the province will need new sources of on-demand electricity production to prevent rotating power outages during low-wind periods when turbines are not producing enough energy, which can last for days at a time.
“Nova Scotia has ambitious clean energy goals, and this is a transformational time for our system. Meeting these goals is important,” said Johnny Johnston, President and CEO of IESO Nova Scotia. “But not having enough electricity to power Nova Scotians’ businesses, homes, schools, and healthcare is not an option. The coordinated procurement approach we are announcing today strikes the right balance between addressing Nova Scotia’s critical electricity reliability needs and ensuring we make the most cost-effective decisions on behalf of Nova Scotians.”
IESO Nova Scotia’s electricity system planners have rigorously assessed, with significant input from third-party energy experts, power producers, advocates, and community representatives, an extensive range of resources and technologies to determine the most affordable way to keep the electricity supply reliable for Nova Scotians through and beyond the renewable energy transition.
This work, along with the Government of Nova Scotia’s Clean Power Plan, has identified that a combination of both energy storage and fast-acting generation is the most cost-effective way to address the urgent reliability risks on the province’s grid.
IESO Nova Scotia has received feedback from a number of stakeholders that competing technologies should be more fully considered before procurement decisions for the province are made.
As an organization focused on competition to the province’s energy system to secure the lowest-cost solutions for electricity customers, IESO Nova Scotia is responding to this feedback with the updates announced today:
- The previously announced procurement process for energy storage is being accelerated and expanded to be technology-neutral. The first stage of the process, an RFQ, will now launch in October with a submission deadline planned for January 2027, and will seek details on proponents’ proposed technologies, locations, performance, project readiness, and pricing. It will be open to any storage or on-demand generation technologies that could help meet Nova Scotia’s growing peak electricity demand and back up renewables.
- The timeline for submissions in the ongoing procurement process for fast-acting generation in Pictou County is being extended, with proposals now due by January 21, 2027. This is responsive to proponents’ request for additional time to develop their most competitive proposals possible, and aligns its submission deadline more closely with that of the technology-neutral RFQ. These changes preserve the integrity of the existing fast-acting generation procurement process to ensure Nova Scotia continues to be able to attract competitive bids — and the best possible pricing for customers — when the province needs to build critical infrastructure.
“Making the most cost-effective choices for our province means assessing more than just cost — it is critical that we look how each technology specifically contributes to system reliability,” continued Johnston. “This process, using technology, performance, and pricing data from real projects being developed by proponents, will allow us to demonstrate we have identified the lowest-cost approach to meet Nova Scotia’s reliability need.”
This coordinated approach will enable IESO Nova Scotia to evaluate the proposals submitted through both respective processes, ensuring each technology is assessed on the basis of how much reliability value it adds to the system for its cost. This enhanced assessment will re-confirm the most cost-effective mix of resources for Nova Scotia’s system, and inform the selection of the best projects to keep electricity reliable in the most affordable possible way for customers.
Quick Facts
- In its 2026 State of Reliability report, the North American Electric Reliability Corporation (NERC), the international regulatory authority responsible for overseeing electricity system reliability across North America, identified Canada’s Maritime region, including Nova Scotia, as the only region on the continent with elevated reliability risks.
- By 2030, under provincial legislation, 80% of Nova Scotia’s electricity generation must come from renewable sources like wind, which are not constant or not available on demand.
- Provincial policy also requires coal-fired generation, which is currently the province’s primary on-demand resource as it still provides 40% of the system’s electricity today, to be eliminated by 2030.
- The need for between 300 and 600 megawatts of fast-acting natural gas-fired generation has been identified in the Government of Nova Scotia’s Clean Power Plan and the last two Integrated Resource Plans completed for the province’s electricity system.
- Guided by both past and current Integrated Resource Plans and the Clean Power Plan, IESO Nova Scotia has taken the first steps to address the province’s significant and growing reliability risks by launching a procurement process for fast-acting generation — which, of the identified resources the province needs, takes the longest lead-time to build — and initiating planning for a similar procurement process for energy storage.
- On July 10, 2026, IESO Nova Scotia issued a Request for Proposals for the construction and operation of one or two 300 megawatt fast-acting natural gas-fired facilities in Pictou County, at sites located at Salt Springs and Marshdale, respectively.
- To ensure data-informed and transparent decision-making, the procurement process for fast-acting natural gas-fired generation was designed from the start to compare proposals received with alternative technologies to confirm it is still the lowest-cost solution before any contracts would be awarded.
- The ongoing fast-acting generation procurement will continue to be conducted in accordance with its published procurement documents, including any formal addenda.
About IESO Nova Scotia
IESO Nova Scotia is a not-for-profit created by provincial law to take on electricity system planning and real-time grid operations on behalf of Nova Scotians. IESO Nova Scotia will be responsible for planning for the province’s future energy needs, procuring new electricity generation capacity, and purchasing and dispatching power from producers, including Nova Scotia Power. IESO Nova Scotia is independent of governments, utilities, and power producers, meaning decisions will be driven only by Nova Scotians’ needs. With a mandate to bring transparency and competition to the province’s electricity market, IESO Nova Scotia’s singular focus is to improve reliability, accelerate the transition to renewable energy, and secure the most cost-effective electricity possible for Nova Scotians. IESO Nova Scotia began operations in 2025.
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Media Contact
Olivia McMackin
902-830-4982
communications@ieso-ns.ca