‘Competitive rate’: BC Hydro to start first hunt for new electricity sources in 15 years

The Crown utility that generates and delivers electricity in the province says it will need enough new power to run 270,000 homes as early as 2028.

The forecast from BC Hydro comes as the company plans to launch its first call in 15 years to find new, large sources of electricity next spring.

The call for an additional 3,000 gigawatt hours per year of renewable energy comes three years earlier than previously estimated, according to Premier David Eby.

The hunt for independent power producers to sell electricity to BC Hydro will be a competitive process and less expensive than previous programs, he added.

“They will be able to select proposals that provide the electricity when and where the province needs it, not at other times when it’s not needed,” Eby told reporters on Thursday.

“And it’s a competitive rate — it’s not a standing offer of fixed rate that electricity will be provided at above the market level. People will essentially be bidding to provide electricity to be competitive with other projects.”

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The province is also promising $140 million to support Indigenous-led power projects. Energy Minister Josie Osborne said the B.C. Indigenous Clean Energy Initiative will support smaller projects that may otherwise not be competitive due to their size.

Susan Miller, a board member of the New Relationship Trust, a non-profit corporation that helps secure and mobilize capital for First Nations initiatives in the province, said demand for support from the B.C. Indigenous Clean Energy Initiative has been high since its launch as a pilot project eight years ago. In that time, more than $21 million in provincial and federal funds have been provided to 63 First Nations across B.C.

The former Katzie First Nation chief called Thursday’s investment a “game-changer.”

“The need for electricity continues to grow, even as we seek to decarbonize our energy system. Thanks to this initiative, Indigenous communities are now poised to play a pivotal role in advancing B.C.’s clean energy economy,” Miller said.

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The Tsleil-Waututh Nation, on whose territory the announcement was made, is currently renovating its homes to make them more energy efficient. Chief Jen Thomas said the nation has already received $65,000 in rebates through that initiative and has other projects underway to make its buildings greener.

“Climate change is happening so I’m very grateful for this announcement,” she said.

Electricity demand is expected to increase in B.C. by 15 per cent between now and 2040, as more homes, vehicles and businesses go green, the province said.

BC Hydro is promising to acquire only 100-per-cent clean, renewable electricity, including wind and solar. Its call for power process will also involve First Nations, industry and stakeholders.

In a news release, the First Nations Power Authority lauded commitments from the utility and B.C. government to work with First Nations on creating a more sustainable future for all.

“The First Nations Power Authority is ready to work closely with BC Hydro and the provincial government to ensure First Nations communities are
full participants in producing clean, renewable power to help grow BC’s economy, creating good jobs, and advancing climate action goals,” said CEO Guy Lonechild in the release.

— with files from The Canadian Press