Nova Scotia has initiated a significant push into offshore wind energy, designating four key development areas off its coast with an ambitious target of 5 GW by 2030. This capacity, which would double Nova Scotia’s current peak energy consumption, represents Canada’s inaugural step into large-scale offshore wind development. The province’s Premier, Tim Houston, also unveiled plans for the more extensive “Wind West” megaproject, aiming for an astounding 40 GW of offshore wind power, primarily for export across Canada and to the United States.

This provincial initiative aligns with a broader national strategy championed by Canadian Prime Minister Mark Carney, who assumed office earlier this year. Carney’s vision for Canada's “energy dominance” seeks to reduce reliance on energy imports and establish the nation as a global energy superpower, encompassing both conventional and clean energy sources. His background as chairman of Brookfield Asset Management’s transition investing and UN special envoy for climate action underscores a strong commitment to sustainable energy development.

Nova Scotia plans to issue a call for bids for select parcels within the designated areas before year-end, with the Canada-Nova Scotia Offshore Energy Regulator managing the licensing process. Both floating and fixed-bottom wind technologies will be considered. Premier Houston emphasized Nova Scotia’s world-class wind speeds, asserting the province’s potential to become a clean energy powerhouse. The “Wind West” project, estimated to cost between $5 billion and $10 billion, would necessitate substantial investment in new transmission infrastructure to deliver power westward, requiring a blend of provincial, private, and federal funding.

Further east, Newfoundland and Labrador passed legislation in June to enable its own offshore wind development, signaling a broader regional commitment. Beyond grid supply, offshore wind is poised to support Canada’s burgeoning green hydrogen industry, with a $4.45 billion Nova Scotia plant having received environmental approvals last year, following a 2022 supply agreement with Germany.

Federal legislation, effective June 26, is set to fast-track “nation-building” projects, including renewable energy infrastructure. A new Major Federal Projects Office, opening in September, aims to streamline project approvals within two years. This policy shift is particularly timely as New England states, facing a projected deficit in domestic offshore wind production due to recent U.S. policy changes, are exploring Canadian supply options. Massachusetts and Maine, in particular, are actively considering procuring electricity from planned Canadian offshore wind farms to meet their clean energy mandates.

A recent study by Clean Energy Canada indicates that two-thirds of Canadians prioritize clean energy development. While the previous Liberal government introduced clean-economy tax credits, their implementation has been slow. Finance Canada reports that clean electricity and EV supply chain tax credits are currently being finalized. Globally, a non-binding but significant opinion from the International Court of Justice on July 23, stating nations’ duty to mitigate climate change, could further bolster legal arguments for aggressive climate action and large-scale renewable energy projects.