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Your B.C. Government

Electricity and IPPs

British Columbia Needs More Electricity

BC Hydro has been a net importer of electricity for seven of the past 10 years.  That means we have relied on ‘dirty’ electricity generated in the United States or Alberta to keep our lights on.

  • BC Hydro’s electricity demand is forecasted to grow between 20-35 per cent over the next 20 years.
  • We expect the industrial load to increase significantly as BC’s economy continues to grow.
  • The potential expansion of electric cars in the future could increase the current load forecast.

How B.C. Is Meeting This Need

The BC Energy Plan calls for BC Hydro to take a multi-faceted approach to ensuring B.C. once again becomes electricity self-sufficient.

  • Conservation - The B.C. Government has set an aggressive target to obtain 50 per cent of the new incremental demand for electricity through conservation and efficiency by 2020.
  • Expanding BC Hydro – After a decade of limited investment in the 1990s, BC Hydro is now investing billions to expand capacity – $3.6 billion over the next two years alone compared to just $400 million in 2000.  For example, BC Hydro is investing $500 million in the Revelstoke Dam to increase capacity by 500 megawatts and plans to add two new turbines to the Mica Dam for an additional 1,000 megawatts.  BC Hydro is also exploring the feasibility of constructing a new 900 megawatt Site C Dam. 
  • Contracting with IPP’s - BC Hydro is contracting with Independent Power Producers (IPPs) to provide power through competitive procurement processes to keep prices low for ratepayers.

The Facts on Independent Power Producers (IPPs)

BC Hydro contracts with IPPs through a competitive procurement process to allow for private sector innovation to develop wind, solar, bioenergy and other innovative renewable energy projects at the lowest possible cost to ratepayers.

  • IPPs are not new to B.C.  BC Hydro has been contracting with IPPs since the late 1980s over three different governments.
  • IPPs are responsible for all project development costs, reducing financial risk for BC Hydro ratepayers.
  • All BC Hydro contracts with IPP’s must be approved by the independent BC Utilities Commission to ensure they are cost-effective and consistent with the public interest.
  • Since 2001, BC Hydro has signed 63 new contracts with IPPs to produce clean power in every region of the province.
  • According to industry, IPPs have already invested $2.5 billion in B.C. with an additional $6.8 billion in investment expected in the future; current investment potential in B.C. from IPPs is estimated at $9.2 billion.
  • IPPs apply private sector ingenuity to develop innovative clean energy projects that create jobs in rural communities.
  • Today there are 1,100 construction workers building IPPs in rural B.C., and an additional 140 workers operating completed projects.

The Facts About Run-of-River Projects

Run-of-river projects are just one kind of clean energy project being developed by independent power producers.

  • B.C.’s geography makes run-of-river power production an ideal source of clean energy; the projects require a water license from the province and at all times the province continues to own the river.
  • Run-of-River power projects produce clean emissions-free energy without blocking rivers or impeding fish.
  • There were 17 run-of-river projects in operation prior to 2001.  An additional 15 have come on-line since 2001.
  • In addition to these 32 run-of-river power projects currently operating in B.C., there are another 32 under development.
  • These projects are creating hundreds of jobs in rural communities and billions in private sector investment.
  • In total, run-of-river projects impact less than 0.03% of B.C.’s rivers that are of sufficient size to support hydro development (there are over 290,000 such rivers in B.C.)

 Keeping Our Assets in Public Hands

The B.C. Government has created new laws to ensure that BC Hydro and our rivers and streams remain solely under public ownership at all times.

  • Your B.C. Government passed legislation to ensure BC Hydro remained publicly owned.
  • Since 2001 Your B.C. Government has dramatically increased investment in public Hydro assets by 173% to $1.1B in 2008 – compared to just $400M in the year 2000.
  • For the first time in decades these investments allow BC Hydro to expand capacity - 500 megawatts of capacity at Revelstoke Dam and 1000 megawatts at the Mica Dam.  BC Hydro is also exploring the feasibility of building the new 900 megawatt Site C Dam.
  • This government implemented term limits (40 year maximum) on water power rental licenses for IPPs operating run of river power projects.  At all the times the river remains publicly owned.
  • Now, when those licenses expire the license and any improvements made by the IPP on the land revert back to the government.

IPPs and Our Environment

The B.C. Government has set the highest clean energy standards in North America, requiring that 90 per cent of all new electricity supply comes from clean sources. Since setting the target, innovative clean IPP projects have allowed BC Hydro to exceed the target, acquiring 100 per cent of all new supply from clean sources.

  • IPPs are developing innovative clean energy projects in every coroner of our province including wind, tidal, solar, geothermal, run of river, and biomass.
  • The B.C. Government has required that all new electricity generation projects in the province have zero net greenhouse gas emissions.
  • Any power project over 50 MW is automatically entered into the provincial and federal Environmental Assessment Act process.
  • Considering the size and scope of a project, there could be no fewer than 11 provincial approvals that must be attended to when considering an IPP permit.  There may also be an additional six federal departments that would have to approve an IPP if federal approval is needed.