Nova Scotia Power and EverWind Sign Grid Connection Agreements for $8B Data Centre
Nova Scotia Power and EverWind Fuels have signed two documents outlining conditions to connect EverWind's proposed $8-billion data centre in Point Tupper to the provincial grid. The agreements require EverWind to accept interruptible power service and cover all new system costs, estimated at $74 million or more, to shield other ratepayers from increases.
Nova Scotia Power and EverWind Fuels have signed two documents laying out the conditions for connecting the first phase of EverWind’s proposed $8-billion data centre campus in Point Tupper, N.S., to the provincial grid.
Under the contract, electric service for the data centre would be classified as an interruptible load. This allows the utility or grid operator to direct EverWind to shut off its demand with 10 minutes' notice to protect residential customers during periods of grid strain. To manage this arrangement, EverWind has proposed installing batteries and a diesel generator on site as backups.
An additional letter agreement ties all new system costs related to the data centre directly to EverWind. The company will be responsible for incremental costs reasonably attributable to its new load, a measure intended to insulate other Nova Scotian ratepayers from resulting rate increases. Early estimates peg the necessary system upgrades for the project at $74 million or more. The manner in which these costs are tracked, determined, and paid remains subject to approval by the Nova Scotia Energy Board.
Nova Scotia Power spokesperson Jacqueline Foster stated that the interim tariff used was not designed for a customer of EverWind's scale and that a new one will need to be developed. During a quarterly earnings call last week, Emera CEO Scott Balfour said EverWind’s data centre could deliver meaningful benefits to customers depending on how the board structures the tariff.
Despite the signed assurances, public skepticism persists regarding existing grid reliability issues and high power rates. Last weekend, hundreds gathered outside Province House in Halifax to protest the proposed data centre.