BC Hydro asks for help to achieve province’s clean energy goals

BC Hydro is seeking assistance to power the province’s future as it weans itself off of fossil fuels.

The provincial power authority put out a request for project proposals on Wednesday, with the goal of acquiring 3,000 gigawatt hours per year of electricity to add five per cent to BC Hydro’s current supply.

It’s the authority’s first competitive call for power in 15 years and, if successful, it should generate enough electricity to power 270,000 homes or about one million electric vehicles per year.

“By moving forward with our competitive call we can ensure we are getting the best price for our customers in order to keep rates low for people and businesses,” said BC Hydro President Chris O’Reilly.

“We know that the renewable power industry in B.C. is up for the challenge.”

Demand for electricity is expected to increase in B.C. by 15 per cent over the next six years. The province says this is due to an increase in population, housing construction, industrial development, and more homes and businesses making the transition away from fossil fuels.

By 2030, the provincial government is aiming to have its greenhouse gas emissions lowered by 40 per cent. In 2050, the province wants to have net-zero emissions.

To do this, targets have been set for 2030 to increase zero emission vehicle sales by 90 per cent and increase the number of public EV charging stations to 10,000 across the province — all of which will require more electricity from the province’s power provider.

The recent call for proposals is targeting projects with certain specifications, including a maximum output greater or equal to 40 megawatts, a minimum 25 per cent equity ownership held by First Nations, clean or renewable energy qualifications, a location within B.C., and a commercial operation date between 2028 and 2031 — among others.

It comes after what BC Hydro says have been months of engagement with the independent power industry, First Nations and stakeholders.

According to the province, the development of these clean energy projects will generate up to $3.6 billion in private capital spending and create between 800 to 1,500 jobs annually.

“B.C. is well positioned to add intermittent renewables, such as wind and solar, to the electricity grid as its integrated, flexible system of hydroelectric dams act as batteries,” the province said in a statement.

“The reservoirs store water and allow BC Hydro to ramp production up or down almost instantly, providing a reliable backup when the sun isn’t shining or the wind isn’t blowing. “

It adds the time needed to construct new solar and wind power-generating facilities has dropped in recent years.

Work with local First Nations is being emphasized as part of this call for power. The province says the Canada Infrastructure Bank will help finance up to 90 per cent of a First Nations’ equity position through loans if they’re awarded a purchase agreement.

“A key focus of the call is to support meaningful economic reconciliation with First Nations that are eager to participate in the clean energy opportunities,” O’Reilly said.

This is the first of several asks to be made by BC Hydro for more power. The next is anticipated for 2026, with calls expected to be made every two years after that.

The closing date for submissions to this latest request for proposals is Sept. 16, 2024, with the successful applicants being awarded electricity purchase agreements in December 2024.