Embedded Generation (New Brunswick, Canada)
Last modified on February 12, 2015.
NB Power has seen an increase in the amount of companies and individuals who are interested in generating electricity using an environmentally sustainable energy source. As a result, NB Power has implemented an Embedded Generation program which complements their existing net metering program.
With the embedded generation program, potential developers, or Independent Power Producers (IPP), can connect their environmentally sustainable generation unit to NB Power's 12 kV distribution system. Typical embedded generators may include a landfill or a sawmill.
The embedded generation unit may range in size from 100 kW to 3,000 kW. However, certain areas of the distribution system are more limited than others therefore generation output may be limited or restricted in certain areas of the province. Size limitations are determined as part of the application process.
Unlike net metering, the embedded generator's energy output is not used to offset the customer's existing electricity consumption. Rather, NB Power would purchase the renewable energy and environmental attributes at a set price called a Feed-in tariff.
The Feed-in tariff is designed to make it easier for IPP's to sell their electricity to NB Power's distribution system at a fixed, stable price and under a long-term contract.
The Feed-in tariff effective June 1, 2010 is 9.728 cents per kWh. This is based on the cost of electricity supplied from the distribution system and will be reviewed periodically and may be modified according to changing technological, market conditions and annual rate increases. Modifications will apply only to future contracts, not to existing contracts already executed.
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