Megawatt: British Columbia Renewable Energy Law Blog

British Columbia's New Energy Plan

Warren Brazier — Fri, 03 Feb 2012 09:12:06 -0800

Today, the BC Government announced another in a series of many energy plans and strategies. The 2012 Natural Gas Strategy actually puts energy front and centre for economic development in the Province. The policy is big on ideas, but short on details.

According to the Government, liquefied natural gas (LNG) is to be the key driver for the provincial economy for decades to come. The global demand for liquefied natural gas is strong and BC's estimated natural gas reserves are substantial. Local First Nations have expressed support for LNG facilities and the pipelines that will bring the natural gas from the North. Nominating LNG as a pillar of the BC economy makes good sense. How the new energy plan is implemented is of course, critical.

For the BC renewable energy industry, growing the demand for electricity in the Province is a good thing. The important decision is how much of the new LNG development will be powered by renewable energy and how much will be from natural gas. The Gas Strategy seems to state that the first two LNG facilities in Kitimat, BC will be required to be fueled by renewable energy. The problem right now is the Province is short on renewable energy generation and even shorter on transmission. Much needs to happen on both fronts before the Government's LNG objectives can be met.

Not to be forgotten are the Province's climate change goals. Extracting and exporting more natural gas will put increased pressure on the Province's greenhouse gas emission objectives.

British Columbia is at a cross-road with respect to climate change policy and economic growth. The Province is blessed with an abundance of natural gas and buyers in Asia are willing to pay for it. At the same time, to its credit, the Province has laws which restrict GHG emissions. A clear and obvious hedge against GHG emissions is renewable energy. The challenge for the Province is to balance economic growth with a GHG intensive industry with its climate change laws.

Renewable energy will play an important role in the development of the Provincial economy. New electricity infrastructure, both generation and transmission, is critical to meet the opportunity presented to the Province. Both mining for minerals and turning natural gas into liquefied form (LNG) for export, require massive amounts of energy. Meeting this new demand with renewable electricity with natural gas as a possible backup is smart fiscal and environmental policy. GHG emissions are lower when electricity from renewable resources is used rather than natural gas to power the Province.

In the coming days or months, we expect to see further details on the following issues:

The Province's definition of "clean". Does this mean renewables only?
The BC Hydro grid. Is there sufficient electricity on the existing transmission grid for Apache Phase 1, Apache Phase 2 and Douglas Channel LNG facilities?
Carbon capture and storage. Really? Where?
Infrastructure Royalty Program Credits. Will this be available for electricity infrastructure (ie, new or upgraded transmission lines) ?
Self-sufficiency changes. Drought insurance is gone. What now? Increase in imports?

Provided development of the natural gas fields and the mines in the North are in compliance with world class environmental practices, in cooperation and participation with First Nations and local communities, British Columbia is well positioned to be a major player in the new world economy. Some new thinking on old ideas is needed. But let's get it done while the opportunity is there.

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Updated BC IPP Supply Map

Warren Brazier — Thu, 06 Oct 2011 09:52:11 -0800

Further to our April blog post, today, BC Hydro released some updated information regarding the supply of electricity from BC independent power producers (BC IPPs).

Included in the release is the following:

1. A map of current and future BC IPP projects;

2. A list of current BC IPPs supplying BC Hydro; and

3. A list of IPP projects currently under development in British Columbia,

(each current to October 1, 2011).

This excellent information shows the broad range of the existing BC IPPs facilities and the significant number of projects still in development in the Province.

According to the BC Hydro information, 70 BC IPPs (non-BC Hydro) are currently operating and supplying BC Hydro with 12,599 GWh of annual supply and 3,209 MW of capacity, from a wide variety of power facilities. The first BC IPP listed is from 1985 - Coats IPP, a small run-of-river hydro project on Gabriola Island.

Projects under development by BC IPPs in the Province (each with a power purchase agreement from BC Hydro) comprise of 7,697 GWh of annual supply and 2,132 MW of capacity. The 39 development projects are derived from the 2003 Green Power Generation Call (1), the 2006 Open Power Call (13), the 2008 Bioenergy Call (1), the 2008 Standing Offer Program (2) and the 2008 Clean Power Call (22).

BC Government Report on its BC Hydro Review

Warren Brazier — Thu, 11 Aug 2011 15:53:25 -0800

Today, the British Columbia government released its report on its review of BC Hydro [pdf]. The comprehensive Report is written by a government appointed review panel which was devised in response to BC Hydro's proposed 32% electricity rate increase over three years.

The Report provides 56 recommendations to BC Hydro and mostly addresses the internal operations of BC Hydro, but also touches on current and past BC energy policy and the impact on BC Hydro operations.

The Report does not directly address the future of the BC clean energy industry, but if you read between the lines, the Report does offer some nuggets of information that could impact independent power producers and clean energy enthusiasts. For instance, there is a recommendation that government and BC Hydro review the Clean Energy Act's self-sufficiency requirement considering the current market price of electricity (see pages 92-93). This would certainly be a worthwhile exercise, but there are no easy answers as to how to best address this issue.

There is also some discussion about the Report which states (on page 107) that "IPPs in F2010 provided 16% of the total domestic electricity requirements, while representing 49% of the domestic energy cost." This may or may not be true, but it is a misleading statement if taken out of context. The majority of British Columbia's generating facilities (large-scale dams) were built in the 1960s, 70s and 80s, so naturally, the cost of power from these facilities is substantially lower than from facilities built more recently. As the BC economy has grown, new generation facilities (some by IPPs, some by BC Hydro) were built at market rates. The cost of old power and new power are blended together to form today's rates. Therefore, it categorically misleading (though perhaps self-serving) to characterize IPPs built today as expensive compared to inexpensive power coming from the dams built decades ago. I am not always certain people are aware of this basic difference. Power from facilities built more recently is of course more expensive than power from dams built years ago. BC Hydro, or anyone for that matter, can build power facilities today, at 1960s rates. But in growing economies, new electricity generation is needed to support the demand, and in BC, we are blessed with the legacy of cheap power from dams, so when it is mixed with new generation, BC is able to enjoy some of the lowest electricity rates in the world. But for how long? That still remains to be seen.

If we have learned anything over the past few years, is that a fluid energy policy is crucial for British Columbia - an energy policy which can adapt to market forces, provide optimal balance between private, public and first nations enterprise, and protect the environment for future generations of British Columbians.

As the Province moves forward in the 21st century, partnerships among power purchasers, producers, first nations and other key stakeholders are critical. The government Report on BC Hydro adds valuable insight to the ongoing discussion and debate on how British Columbia can best meet the economic, environmental and community goals in building a clean energy future in the Province of British Columbia.

Here are media reports from the Globe and Mail; Vancouver Sun; and Vancouver Sun editorial board.

Proposed New BCUC Rules for Electricity Supply Contracts

Warren Brazier — Thu, 21 Jul 2011 12:15:21 -0800

Today, the British Columbia Utilities Commission (BCUC) released proposed new Rules for Electricity Energy Supply Contracts, which will affect all future electricity supply contracts (or electricity purchase agreements) to a public utility in British Columbia, unless otherwise exempted by law, regulation or order.

These new Rules will update the 1993 Rules on account of changes to the BC Utilities Commission Act and the Clean Energy Act.

The BCUC is seeking public comments on the new Rules, up to August 26, 2011.

British Columbia's IPP Supply (with updated map)

Warren Brazier — Mon, 11 Apr 2011 13:40:13 -0800

According to information released today from BC Hydro, as of April 1, 2011, BC Hydro has 68 electricity purchase agreements (EPAs) with independent power producers (IPPs) [ie, non-BC Hydro] whose projects are delivering power to BC Hydro.

The projects are located all over British Columbia and generate 12,524 GWh annually of mostly clean electrictiy. This represents 3,183 MWs of capacity and comes from the following fuel sources:

non-storage hydro (run-of-river)
gas-fired thermal
biomass
storage hydro (dams)
biogas
municipal solid waste
energy recovery generation
wind

Here is the IPP Supply Map (current to April 1, 2011) for project locations.

For more information on each of the projects, check out the IPP Supplier List (current to April 1, 2011).

By way of background, BC Hydro supplies British Columbia with anywhere between 42,000 and 52,000 GWh of electricity annually and has a generating capacity of approximately 11,345 MWs from its various hydroelectric, gas-fired thermal and diesel generating facilities.

By these numbers, IPPs provide approximately a quarter of British Columbia's electricity and add an additional five clean fuel technologies to the system. But it's important to keep in mind that the IPP supply list includes such generating facilities as the Rio Tinto Alcan dam in Kitimat (896 MW), the Brilliant dams (120MW), the Arrow Lakes dam (185MW) and the Vancouver Island gas generation facility (275 MW), and not all IPPs on the list would properly be considered clean and renewable.

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BC Hydro Revises Standing Offer Program

Warren Brazier — Tue, 25 Jan 2011 15:25:45 -0800

BC Hydro provided a welcomed boost to the British Columbia clean energy industry by announcing today that it has now completed its two year review and implemented a new standing offer program for clean, renewable energy projects in British Columbia.

Similar to a feed-in-tariff, eligible clean energy projects, 15 MW or under, can prescribe to a set price for delivered electricity and other key project terms. Specific eligibility requirements and the program rules for BC Hydro's Standing Offer Program can be found here (pdf).

This is a good start to the year for BC Hydro and the clean energy industry in British Columbia.

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Update: BC's Cap and Trade Regulations - Consultation Papers Released

Warren Brazier — Fri, 22 Oct 2010 09:39:27 -0800

Just a quick update on our blog post last week. Today, the Ministry of Environment released two consultation papers in connection with BC's proposed cap and trade legislation under the Greenhouse Gas Reduction (Cap and Trade) Act:

The consultation paper for Cap and Trade Offsets Regulation can be found here (pdf); and

The consultation paper for Emissions Trading Regulation can be found here (pdf).

The backgrounder for Carbon Pricing policy in British Columbia is here (pdf).

The Ministry has a given the public 45 days (to December 6, 2010) to provide comments on the two papers. To do that please go here.

The Ministry is also conducting a webinar on the consultation papers on Monday, October 25 at 11am (we understand that there may be others). Here are the dial-in instructions.

These regulations are especially important to the Province as it continues in it efforts to fight climate change by reducing BC's greenhouse gas emissions by at least 33% below 2007 levels by 2020.

Coming Soon: BC's Cap and Trade Regulations

Jenny Kirkpatrick — Wed, 13 Oct 2010 14:18:18 -0800

British Columbians are eagerly awaiting the release of the Ministry of Environment’s consultation papers on the proposed Cap and Trade Emissions Trading Regulation and the Cap and Trade Offsets Regulation, which were set to be posted on the Ministry’s website in September 2010. Once the consultation papers are posted a 45 day consultation period will follow where the Ministry will be seeking comments from stakeholders, First Nations and the general public on the proposed regulations.

The proposed regulations will be introduced under the authority of the Greenhouse Gas Reduction (Cap and Trade) Act (the “Cap and Trade Act”) which enables the Province to put into place a cap and trade system, the details of which will be worked out in co-operation with the provincial and state Partners of the Western Climate Initiative (“WCI”). The WCI recently released its report on the “Design for the WCI Regional Program”, which serves as a guidance document for WCI Partner jurisdictions as they implement cap and trade systems on January 1, 2012. The WCI Partners have committed to reduce regional greenhouse gas (“GHG”) emissions to 15% below 2005 levels by 2020. To achieve this goal, the WCI’s approach involves the use of a flexible, market-based, regional cap and trade program that caps GHG emissions and uses tradable permits. The program is designed to act as an incentive for WCI Partners, companies and inventors to develop renewable and clean energy technologies, as well as reduce dependence on fossil fuels, which will further allow the Province to meet its objectives set out in the Clean Energy Act.

Each WCI Partner jurisdiction will issue emission allowances to GHG emitters that add up to the total allowable emissions for the Partner jurisdiction. Pursuant to BC’s Greenhouse Gas Reductions Target Act, the Provincial Government made a legally binding commitment to reduce GHG emissions by at least 33 per cent by 2020 and 80 per cent by 2050 below the 2007 level. In 2008, BC’s total GHG emissions amounted to 68.7 megatonnes, one per cent above 2007 levels. Once BC’s cap and trade system comes into effect, a limited number of emission allowances will be issued to designated large GHG emitters. A regional cap and trade market is formed whereby allowances are recognized as tradable within the Partner jurisdictions at a price determined by market forces. As a result, Partner jurisdictions are able to meet their GHG emission reduction targets in an affordable and cost-effective manner. Emission allowances can be bought and sold in the regional market by not only the designated large GHG emitting entities that are allocated allowances but also third parties.

Those designated large GHG emitters that reduce their GHG emissions below the emission allowances they’ve been allocated can sell their surplus allowances in the regional market. The allocated emission allowances are tradable for fixed three year compliance periods. Accordingly, each designated large GHG emitter subject to the regulations will be required to surrender the number of emission allowances equal to the cap established for that emitter during each compliance period. The number of emission allowances allocated will be reduced over time for each compliance period. Compliance units are equal to one tonne of CO2 or its equivalent. The GHG emission reduction target can also be met by retiring “emissions offsets” in a limited quantity. Those designated large GHG emitters that do not surrender the requisite number of compliance units will be subject to administrative penalties imposed by regulation.

According to the Ministry, the proposed Cap and Trade Emissions Trading Regulation will include clear rules on “how allowances are created, distributed for free or auctioned, traded, tracked and retired for compliance,” while the proposed Cap and Trade Offsets Regulation will govern the development and recognition of emissions offsets, consistent with the offset design recommendations of the WCI. For more information on cap and trade go to the Ministry of Environment’s website.

Update: Bioenergy Phase 2 Call

Warren Brazier — Thu, 22 Jul 2010 11:59:27 -0800

Just a quick update on our previous post. BC Hydro announced today that it received registrations from 14 proponents for 19 bioenergy projects in response to the May 31 Bioenergy Phase 2 Call request for proposals. Names of the proponents or descriptions of the projects have not been released.

According to the release, BC Hydro estimates that the 19 projects represent approximately 500-650 MW of capacity or 3,500-5,000 GWh/year of energy. BC Hydro is targeting 1,000 GWh/year of energy from the Call. Proposals must be submitted by October 28, 2010.

BC Hydro's Bioenergy Phase 2 Call

Warren Brazier — Tue, 13 Jul 2010 12:36:08 -0800

From my new colleague, Jenny Kirkpatrick:

On May 31, 2010, BC Hydro issued a Request for Proposals in relation to the long term supply of clean or renewable biomass energy generated by new projects in British Columbia (the “Bioenergy Phase 2 Call”). Those intending to submit a Proposal must first register with BC Hydro and the registration deadline is fast approaching - July 15, 2010 at 4pm.

With the recent announcement of the Clean Energy Act coming into force, it is worth noting that there is a direct effect on the Bioenergy Phase 2 Call insofar as the Utilities Commission Act ("UCA") is concerned. It is anticipated that BC Hydro will post an Addendum and/or Notice(s) to the RFP website to address modifications to the RFP process required to accommodate all impacts of the Clean Energy Act, including exemptions from certain procedural requirements to which energy supply contracts in British Columbia are normally subject.

Specifically, section 7(1)(e) of the Clean Energy Act exempts, “a bio-energy phase 2 call to acquire up to 1,000 gigawatt hours per year of electricity” from sections 45 to 47 and 71 of the UCA. Those provisions essentially relate to the British Columbia Utilities Commission’s (“BCUC”) approval process for public utility plants or systems, or Section 71 Hearings (as they are known). Pursuant to section 71 of the UCA, all energy supply contracts are subject to the scrutiny of the BCUC, which determines whether the subject energy supply contract is in the public interest. By being exempt from BCUC’s regulatory process, those intending to submit a proposal in response to the Bioenergy Phase 2 Call will not be burdened with having to file an energy supply contract, in this case the electricity purchase agreement, with the BCUC, nor required to participate in a public hearing convened by the BCUC. In addition, the Bioenergy Phase 2 Call is exempt from the requirement to obtain a “certificate of public convenience and necessity” prior to the construction, operation or extension of a public utility plant or system, as provided for in s. 45 of the UCA. Lastly, the procedural requirements set out in s. 46 and the provisions relating to cease work orders set out in s. 47 of the UCA, do not apply to the Bioenergy Phase 2 Call. As a result, proponents will not have to incur the (often significant) costs associated with meeting these procedural requirements. Regulatory barriers aside, all of the proponents will have to comply with the RFP's procedural requirements.

Exempting the Bioenergy Phase 2 Call from sections 45 to 47 and 71 of the UCA will likely result in the development of clean energy projects in a more expeditious manner, which in turn will help the B.C. Government meet its objectives as set out in the Clean Energy Act.

BC Clean Energy Act Becomes Law

Warren Brazier — Fri, 04 Jun 2010 15:42:39 -0800

On June 3, 2010, the Clean Energy Act (the “CEA”) received Royal Assent in the BC Legislature. The Province of British Columbia now has a dedicated piece of renewable energy legislation, rather than a set of well intentioned plans and policies.

The CEA is a progressive law and the product of the government's long standing commitment to clean energy and reducing greenhouse gases. In essence, the CEA puts into law, key objectives of the government's two Energy Plans (from 2002 and 2007) and its 2008 Climate Action Plan. The CEA lays the foundation for the renewable energy industry to be the economic driver in the Province for years to come.

The CEA also came to be, in part through the efforts of the Green Energy Advisory Task Force, of which I was privileged to be a member. The comprehensive Task Force report can be found here. It's a must read for any one interested in British Columbia energy policy.

The CEA is truly a made in BC piece of legislation, touching on many of the fundamental socio-economic and environmental issues in British Columbia today, like job creation, economic development in first nations and rural communities, greenhouse gas reduction, energy efficiency and clean energy project development. While the CEA codifies existing policy and introduces some new concepts into law, much of it at this stage is enabling legislation. The nuts and bolts of the CEA will be filled in by regulation over time.

Below is a summary of what we think are the key parts of the CEA:

The Province is to achieve electricity self-sufficiency by 2016, plus 3,000 GWh of insurance by 2020
The demand-side management target is raised to an aggressive 66%
It sets a clean and renewable energy target (an RPS if you will) of 93% (the highest standard anywhere in North America)
The Province is to become a net exporter of electricity from clean and renewable resources, with BC Hydro being the aggregator and with matters regarding exports being exempt from BCUC regulation (this is a particularly notable and significant part of the law)
Certain major electricity projects are also exempted from BCUC regulation
BC Hydro is to deliver comprehensive Integrated Resource Plans (replacing the LTAP's) to Cabinet, every 5 years
BC Hydro is made stronger by its merger and re-integration with BC Transmission Corp.
No clean energy projects are permitted in parks or conservancies
Environmental cumulative impacts of clean energy projects are to be taken into consideration in the Environmental Assessment Act
There is a feed-in-tariff, but only for emerging technologies (ie, ocean and others to be prescribed)
Smart meters are to be added by 2012
Creates a First Nations Clean Energy Business Fund (with details to be prescribed by regulation)
Mandates reductions of BC's greenhouse gases for prescribed periods to 2050
Standing Offer Program to be revamped (ie, prices, size and included technologies)

As you can see, the CEA is a complex piece of legislation, one which endeavours to shape the future of British Columbia. We applaud the government for passing this forward-looking and game changing law. Over the coming weeks, our goal with this blog is to provide some deeper insight into what the CEA means to the various stakeholders in the Province. So please continue reading our blog.

In the meantime, here is the link to the Government's website on the CEA which contains some good information in the backgrounders. In addition, there is a new website dedicated to BC's clean energy, called Power of BC. It's also a good resource. As you can see, the government seems to be more committed than ever to clean energy, which, in our view is a great step forward.

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Clean Power Call Yields Two Additional Project EPA's

Warren Brazier — Thu, 06 May 2010 14:40:35 -0800

BC Hydro announced today that it will award electricity purchase agreements to two additional projects under its Clean Power Call. Here is the press release. Two hydro projects are still under consideration (Box Canyon and Castle Mountain).

These projects are:

Long Lake Joint Venture (a JV between Regional Power Inc. and Summit Power Group) - a 31 MW storage hydro project in Stewart, BC. Here is the Terrace Standard's story on the project.

Pacific Greengen Power - a 45 MW run-of-river hydro project in Harrison Hot Springs, BC

These projects bring the total amount of electricity awarded under the Clean Power Call to 3,188 GWh/year of firm energy, considerably less than the 5,000 GWh/year BC Hydro had requested from developers under the 2008 Clean Power Call.

Remember, the amount of electricity awarded to date is pre-attrition and BC Hydro is using a 30 percent attrition factor for the Clean Power Call. Under past calls for power, BC Hydro has seen attrition rates anywhere from 0 to 100%. So it remains to be seen which projects and how many ultimately will be built.

Out of general interest, here is a map of the current electricity supply to BC Hydro from independent power projects (as of April 1, 2010). The map does not include the projects awarded EPA's under the Clean Power Call.

British Columbia Introduces Clean Energy Act

Warren Brazier — Wed, 28 Apr 2010 15:40:48 -0800

Today, the British Columbia government introduced the much anticipated Clean Energy Act into the BC Legislature.

Here is a copy of the first reading of the Act (Bill 17) and here is the government's press release on the annoucement.

Finally, it is worth to check out the government's website for the Clean Energy Act which contains some good background information on the Province's new clean energy plan.

More analysis to come....still need to digest all of this.

It was also great to see the government release a report on the Green Energy Advisory Task Force. It was a pleasure to be a part of this group and happy to see many of the Task Force recommendations now forming part of the new Clean Energy Act. Here is a copy of the full Green Energy Advisory Task Force report.

Site C - Adding Capacity to BC's Storage Advantage

Warren Brazier — Mon, 19 Apr 2010 15:29:15 -0800

Today, the Province of BC announced plans to build a 900 MW hydro-electric dam on the Peace River in northern BC, the project known as Site C. It will be a public project and its development is subject to permitting, and first nations and community consultation. Here is a link to the Vancouver Sun's story.

This is a bold but necessary move by a government looking to build more clean renewable power in the Province. Hydro-electric power is a reliable and preferred form of electricity generation in British Columbia with a great history. Premier W.A.C Bennett's hydro-electric vision in the 1960's helped the Province develop to what it is today. The incredible legacy dam system he provided now allows British Columbians to enjoy the fruits - inexpensive, domestically generated, clean electricity.

There are many reasons to build Site C but for the renewable energy industry in British Columbia, one of the most important aspects is the Province moving to increase its electricity storage capacity.

The backbone of any electricity system is the ability to generate electricity at will, from its reserves. Electricity in its basic form (electrons) does not keep for very long. Fortunately, it can be stored in other forms. Commonly, it is coal or natural gas, but each of those has its own set of undesirable CO2 emission attributes. Due to some fortunate topography and the vision of Premier Bennett, British Columbia has considerable clean storage capacity located in its heritage dams.

In addition to providing enough electricity to power approximately 410,000 homes, Site C and its potential 900 MW of capacity will also be used for its storage capacity to support the massive development of new renewable power, such as wind, run-of-river hydro and solar . These renewable power sources are intermittent in nature and require additional resources to shape and make the power generated from those fuel sources more firm and acceptable to transmission grid operators.

Using BC Hydro's network of dams to firm or shape intermittent renewable power generated in British Columbia is smart policy. If the goal is to sell into the export market, it then makes economic sense to ensure that the BC electrons are firm and nicely shaped, and would command premium prices. In addition, BC firmed and shaped electrons become that much more valuable and have significant advantage over jurisdictions which use coal or natural gas to shape power from intermittent sources. Bottom line - you simply cannot expect to have strong domestic wind, run-of-river or solar energy industries in British Columbia without the complementary storage capacity.

So, after years of speculation, we now know that Site C will finally proceed to the permitting stage. There is much work yet to be done, but if successful, the massive storage capacity of Site C and BC's heritage dam system will provide valuable battery-like capability to the great benefit of the Province's renewable energy industry and to the Province as a whole. With the existing heritage dams and eventually Site C, BC is well positioned to harness the power and maximize economic value from its clean energy natural resources.

BC Hydro Makes Additional Awards Under Clean Power Call

Warren Brazier — Wed, 31 Mar 2010 14:31:10 -0800

Today, BC Hydro added an additional 451 GWh/year of firm energy from four new renewable energy projects awarded EPA's under BC Hydro's Clean Power Call. Here is the press release.

The selected projects are:

AltaGas - an 11 MW waste heat project in Sparwood, BC
ENMAX/Syntaris joint bid - a 15 MW run-of-river project on Culliton Creek near Squamish, BC
Run of River Power - a 25 MW run-of-river project on Mamquam River near Squamish, BC
Sea Breeze Energy - a 99 MW wind project (Knob Hill) near Port Hardy, BC.

These projects bring the amount of energy awarded under the Clean Power Call to 2,901 GWh/year.

BC Hydro advises that 8 projects remain under consideration. Of note, the Minister of Energy, Mines and Petroleum Resources hinted at upcoming future power calls in his statement in the BC Hydro press release.

Prices under the electricity purchase agreements have not been disclosed. However, a range of prices will be made available in BC Hydro's filings with the British Columbia Utilities Commission under Section 71 of the Utilities Commission Act.

Congratulations to all of the successful companies.

BC Hydro Selects 19 Projects in First Stage of Clean Power Call

Warren Brazier — Thu, 11 Mar 2010 15:35:48 -0800

470 days after it received proposals from 43 proponents for 68 clean energy projects, BC Hydro announced today the results of its 2008 Clean Power Call.

In the first stage of awards, BC Hydro selected 19 projects for electricity purchase agreements (EPA's) comprising 2,450 GWh/year being less than half of the 5,000 GWh/year acquisition target it had requested from developers in the 2008 Clean Power Call. Length of the contracts and financial terms were not disclosed.

Of the 19 projects selected for EPA today, run-of-river and wind projects almost evenly split the generation capacity awarded. This is noteworthy because currently in BC there is only one operating wind park, while there are over 35 run-of-river projects generating to the BC grid. Perhaps BC Hydro may be seeking more wind energy as quality run-of-river projects become more difficult to find.

Here are more details from today's announcement:

14 hydro-electric (run-of-river) projects were selected and will provide BC Hydro with 1,203 GWh of firm electricity per year. The successful run-of-river developers, projects and respective project capacity are as follows:

C-Free Power Corp., a 19 MW's in Gold Bridge, BC
Cloudworks Energy Inc., 3 projects (37, 18 and 21MWs) in Harrison Hot Springs and Mission, BC
Creek Power Inc. (Innergex and Ledcor owned), 3 projects (74, 23 and 16MWs) in Pemberton, BC
Kwagis Power LP (Brookfield Renewable Power), one 45MW project in Port McNeill, BC
NI Hydro Holding Corp. (Stlixwim First Project Corp. and Stlixwim Partnership), 3 projects (45MW) in Sechelt, BC
Plutonic Power Corporation and GE Energy, one 124 MW project in Powell River, BC
Selkirk Power Company Ltd., one 44MW project in Golden, BC
Swift Power Corp., one 20 MW project in Terrace, BC.

Five wind energy projects were selected and will provide BC Hydro with 1,247 GWh of firm electricity per year. The successful wind developers, projects and respective project capacity are as follows:

Finavera Renewables Inc., 4 projects (117, 45, 71 and 60MWs) in Tumbler Ridge and Chetwynd, BC
CP Renewable Energy Limited (Capital Power, formerly EPCOR), one 142 MW project in Tumbler Ridge, BC

Congratulations to all the developers, whose patience has finally been rewarded.

The bulk of the work has only now begun. Immediate next steps for the above developers are hearings before the British Columbia Utilities Commission pursuant to Section 71 of the Utlities Commission Act and raising capital to help finance construction of these projects.

Those developers with projects still remaining in the Clean Power Call who were not awarded EPA's today (there are 28) will take comfort in BC Hydro's statement that it expects to select additional projects for EPA awards in late March.

Given that only half of the expected capacity of the Clean Power Call has been filled by today's 19 EPA awards, there is certainly more to come on this good news story for the BC renewable energy sector.

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Breaking News: Clean Power Call Awards

Warren Brazier — Thu, 11 Mar 2010 13:43:12 -0800

Just announced by BC Hydro, 19 projects have been selected for an award of an electricity purchase agreement under BC Hydro's Clean Power Call.

More to come.

BC's 2010 Throne Speech - Untapping BC's Clean Energy Potential

Warren Brazier — Tue, 09 Feb 2010 16:47:48 -0800

Today, the Lieutenant-Governor of British Columbia delivered the Speech from the Throne (click to read), which opened the Second Session of the 39th Parliament of British Columbia.

The 2010 Olympics and the economy were principal topics of course, but the BC government's commitment to revamping the Province's clean energy industry also featured prominently. Below are some of the highlights from the Speech relevant to the clean energy sector:

The BC government will take a fresh look at B.C.'s regulatory regimes, including the BC Utilities Commission.
BC can harness [BC's untapped energy] potential to generate new wealth and new jobs in its communities while it lower greenhouse gas emissions within and beyond our borders.
Clean energy is a cornerstone of BC's Climate Action Plan to reduce greenhouse gas emissions by one‑third by 2020.
Building on the contributions of the Green Energy Advisory Task Force, the BC government will launch a comprehensive strategy to put BC at the forefront of clean energy development.
BC has enormous potential in bioenergy, run‑of‑river, wind, geothermal, tidal, wave and solar energy. We will put it to work for our economy.
The BC government will introduce a new Clean Energy Act to encourage new investments in independent power production while also strengthening BC Hydro.
- It will provide for fair, predictable, clean power calls.
- It will feature simplified procurement protocols and new measures to encourage investment and the jobs that flow with it.
New investment partnerships in infrastructure that encourage and enable clean modes of transportation, such as electric vehicles, hydrogen‑powered vehicles and vehicles powered by compressed natural gas and liquid natural gas, will be pursued.
The BC government will support new jobs and private sector investment in wood pellet plants, cellulosic ethanol production, biomass gasification technologies and fuel cell technologies.
Bioenergy creates new uses for waste wood and beetle‑killed forests and new jobs for forest workers.
A new receiving license will give bioenergy producers new certainty of fiber supply, while a new stand‑as‑a‑whole pricing system will encourage utilization of logging residues and low‑grade material that was previously burned or left on the forest floor.
The BC government will optimize existing generation facilities and report on the Site C review this spring.
- It will develop and capture B.C.'s unique capability to firm and shape the intermittent power supply that characterizes new sources of clean energy to deliver reliable, competitively‑priced, clean power — where and when it is needed most.
New conservation measures, smart meters and in‑home displays will help maximize energy savings. New smart grid investments and net metering will provide more choices and opportunities for reduced energy costs and more productive use of electricity.
New transmission investments will open up the Highway 37 corridor to new mines and clean power.
New transmission infrastructure will link Northeastern B.C. to our integrated grid, provide clean power to the energy industry and open up new capacity for clean power exports to Alberta, Saskatchewan and south of the border.
We will seek major transmission upgrades with utilities in California and elsewhere.
If the Province act with clear vision and concerted effort now, in 2030, people will look back to this decade as we look to the 1960s today.

With significant investment in green energy being made elsewhere, both in Canada and the US, we hope that today's Speech from the Throne demonstrates the BC government's commitment to building the Provincial economy in part with the support of the clean energy sector.

BCUC Approves BC Hydro's $825M Purchase of 1/3 of Waneta Dam

Warren Brazier — Wed, 03 Feb 2010 17:35:11 -0800

Following up on an earlier blog post, today, the British Columbia Utilities Commission approved BC Hydro's request to purchase a 1/3 interest of the Waneta Dam from Teck Metals Ltd., calling it "in the public interest". See the attached order from the BCUC.

The BCUC also determined that BC Hydro's consultations with First Nations with respect to the Waneta Transaction were adequate and upheld the honour of the Crown. The BCUC's reasons for the decision will be released at a later date.

When the transaction closes, the Waneta Dam, located in Trail, BC, will provide BC Hydro with access to 167MW of firm capacity and 890 GWh/year of energy. Adding the interest in the Waneta Dam will also help the Province meet its electricity self-sufficiency objectives.

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Vancouver's Green Olympics

Warren Brazier — Mon, 01 Feb 2010 07:49:14 -0800

With the 2010 Winter Olympic Games set to leap out of the starting gate on February 12, we thought it would appropriate to highlight some of the initiatives that are helping make the 2010 Vancouver Games the "greenest" and most sustainable Olympic games ever.

As the Globe and Mail reported last week, in Whistler, BC, the sight of the alpine skiing and sliding events for the 2010 Winter Olympics, Innergex Renewable Energy Inc., is days away generating electricity from its $33 million 7.9 megawatt small-scale hydroelectric facility on Fitzsimmons Creek. Innergex signed a 40 year electricity purchase agreement with BC Hydro and the Fitzsimmons Creek Hydro Electric Project will generate an estimated 33,000 MWh annually of green electrons, enough to supply the two ski resorts at Whistler and Blackcomb.

BC Hydro, which produces 80% of the Province's electricity from major hydro-electric generating stations located on the Columbia and Peace Rivers, and BCTC will be providing most of the electricity for the Olympic venues, but some venues will have IOC mandated diesel power generators as added redundancy for broadcasting and scorekeeping purposes. As the Vancouver Sun reported, this has been no small task, especially with respect to the International Broadcast Centre.

Other notable "green" initiatives involving the 2010 Olympic Games include:

To help offset an individual's carbon footprint while attending the Games, official Olympic supplier Offsetters is offering an official Olympic pin in return for your purchase of one tonne of carbon offsets ($25). Offsetter's has set up a booth at the Vancouver International Airport where the carbon offsets may be purchased.

As we previously blogged about, Canada Hockey Place and the other skating venues will feature electric ice-resurfacer's (zamboni's), which will no doubt be very busy during the Games.

The City of Vancouver recently revealed North America's first neighbourhood energy centre which uses sewage to create enough heat and hot water for the Olympic Village site and thousands of residences and businesses in the southeast False Creek area of Vancouver. The $30 million facility will use heat recovered from untreated waste water to heat the neighbourhood in lieu of traditional gas or electric heat. Here is the Vancouver Sun's recent article profiling the facility.

The Resort Municipality of Whistler recently upgraded its waste water treatment plant which will be used to heat and cool the athlete's village in Whistler.

Even Olympic sponsor Coca-Cola will use the Games to demonstrate new non-hydro fluorocarbon using vending machines at 1,400 locations.

Vancouver's own Pulse Energy, an energy management software company, has set up a fascinating website that provides real-time energy consumption at selected Olympic venues.

Finally, while not an Olympic venue, but certainly a landmark nobody will miss overlooking the City of Vancouver, Grouse Mountain's 1.5 MW wind turbine is expected to operational in time for the start of the Games. Be sure to check out the turbine's unique viewing deck located 57m above the ground.

The 2010 Games are turning out to be an excellent showcase for BC's low-carbon business innovation and the Province's natural endowment of green energy resources. Kudos to those who have made this possible.

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February 3, 2010 Update. The David Suzuki Foundation awarded the Vancouver Olympics with bronze medal in a "climate scorecard". As the Vancouver Sun reported today, the Vancouver-based foundation gave the Olympic organizers credit for innovative and energy-efficient venues, and for mainly using clean hydroelectric energy but also alternatives such as waste heat from refrigeration systems, landfill methane, and ground-source heat pumps.

February 10 Update: Here is VANOC's press release on its sustainability report.