Q: What is LORESS?
A: LORESS stands for Locally Owned Renewable Energy Projects that are Small Scale Program and includes three components as follows:
- Component 1 – Procurement set-aside for Aboriginal businesses
- Component 2 – Procurement set-aside for local entities
- Component 3 – Procurement of electricity from renewable resources through distributed generation
Q: How much new renewable electricity will result from the LORESS Program?
A: The LORESS program directs NB Power to issue two requests for Expressions of Interest. The first will be released by January 31st 2016 that may obtain up to a maximum 40MW from Aboriginal Businesses, and by January 31st 2017 a second will be released that may obtain up to a maximum 40MW from Local entities. Projects cannot be larger than a maximum of 20 MW. In certain instances, two projects can co-locate to a maximum of 40 MWs.
Q: What is an Aboriginal Business?
A: An “Aboriginal business” may be any of the following:
- a band as defined in the Indian Act (Canada) that is located in the Province or a partnership or limited partnership between two or more bands that are located in the Province
- a corporation in which a majority of the voting shares is beneficially owned or controlled, directly or indirectly, by one or more Aboriginal persons
- a not-for-profit company in which a majority of the voting shares is beneficially owned or controlled, directly or indirectly, by one or more Aboriginal persons
- an association in which the majority of the members who are entitled to vote are Aboriginal persons
- a sole proprietorship, the proprietor of which is an Aboriginal person
- a partnership or limited partnership between any of the businesses listed above
- a partnership between any of the businesses listed above and a local entity, the majority interest in which is owned by the business and in which the majority of benefits, under the partnership agreement, accrues to the business, or
- a partnership or limited partnership between any of the businesses listed above and a person who is a resident of the Province, the majority interest in which is owned by the business and in which the majority of benefits, under the partnership agreement, accrues to the business.
Q: What is a Local Entity?
A: A “Local Entity” may be any of the following:
- a municipal distribution utility
- a municipality, rural community or local service district
- a band as defined in the Indian Act (Canada) that is located in the Province or a partnership or limited partnership between two or more bands that are located in the Province
- a not-for-profit company in which a majority of the voting shares is beneficially owned or controlled, directly or indirectly, by one or more residents of the Province
- an association in which the majority of members who are entitled to vote are residents of the Province
- a degree-granting educational institution
- a regional service commission, or
- a partnership or limited partnership between any of the entities listed above and a person who is a resident of the Province, the majority interest in which is owned by the entity and in which the majority of benefits, under the partnership agreement, accrues to the entity.
Q: Can a New Brunswick company or a company from outside NB enter into partnerships to submit a project under Aboriginal Business Component?
A: Yes. The majority of ownership and benefits must reside with the Aboriginal businesses.
Q: Can a New Brunswick company or a company from outside NB enter into partnerships to submit a project under the Local Entity component?
A: Yes. The majority of ownership and benefits must reside with the Local Entities.
Q: Do all projects have to be physically located in the province?
A: Yes.
Q: Can a project be located on the transmission system?
A: All projects in Components 1 and 2 will be on the transmission system. Component 3 projects will be on the distribution system.
Q: Will my electricity rates go up as a result of the LORESS program?
A: NB Power included the equivalent of a LORESS program in its long term plan, the 2014 Integrated Resource plan, in order to meet New Brunswick’s target of 40% of electricity from renewable sources by 2020. As such, the additional costs of the LORESS program is not anticipated to put upward pressure on rates.
Q: How will the procurement processes be structured for each component?
A: NB Power will issue a Request for Expressions of Interest for projects under the Aboriginal Business and local entity components by January 31st, 2016, and January 31st, 2017 respectively. Information on the procurement processes will be part of the Request for Expressions of Interest.
NB Power expects to release eligibility criteria for distributed generation projects (including embedded generation and net-metering programs) in early January of 2016.
Q: Will there be a potential stakeholder engagement session?
A: Yes.
Q: Why aren’t you offering a Feed-in-Tariff for these projects?
A: LORESS was developed to minimize the rate impact to New Brunswick rate payers, and provide economic and environmental benefits to the province. While Feed-in-Tariffs can be quite effective in developing new renewable generation assets, the cost can be significant which results in upwards rate pressure for in-province rate payers.
Q: Where can I find more information on the LORESS regulations and program details?
A: The Electricity from Renewable Resources regulation is available here: http://laws.gnb.ca/en/showfulldoc/cr/2015-60//20151124 and the Electricity Act is available here: http://laws.gnb.ca/en/ShowPdf/cs/2013-c.7.pdf.
For any questions please email [email protected].
