New Development

BC Hydro issues first call for new clean electricity in 15 years

BC Hydro issues first call for new clean electricity in 15 years

BC Hydro in Canada has launched a call for power to ensure access to the clean, affordable electricity needed to power British Columbia’s growing economy and create jobs throughout the province.

“British Columbians are on the front lines of the fight against climate change and seeing the devastating impact it is having on our communities. The switch from fossil fuels to clean power has never felt more urgent,” said Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation. “That’s why we are working in collaboration with BC Hydro, First Nations and the independent power industry to generate more of the electricity that B.C. needs to build a clean economy and power our future.”      

After months of engagement with the independent power industry, First Nations and stakeholders, BC Hydro has issued a request for proposals (RFP) to acquire about 3,000 GWh/y of electricity. This is BC Hydro’s first competitive call for power in 15 years and will add 5% to its supply. The development and construction of new clean-energy projects in response to the call for power will generate an estimated $2.3 billion to $3.6 billion in private capital spending throughout the province and create about 800 to 1,500 jobs on average annually.

Electricity demand is expected to increase by 15% between now and 2030. This is due to population growth and housing construction, increased industrial development including in the mining sector, and more homes and businesses switching from fossil fuels to clean electricity, among other factors.

“We’re taking action to create thousands of construction jobs for skilled workers as major infrastructure projects like Site C reach completion,” Osborne said. “Together with BC Hydro’s 10-year capital plan, today’s call for power … will drive sustainable growth for communities all over the province and ensure households and businesses can power up with clean, reliable and affordable electricity.”

British Columbia is well-positioned to add intermittent renewables, such as wind and solar, to the electricity grid as its integrated, flexible system of hydroelectric facilities act as batteries. About 98% of the power generated for British Columbia’ integrated grid comes from clean or renewable resources, primarily hydropower. 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. The cost of wind and solar, and the time needed to construct new facilities, has dropped in recent years, the ministry said.  

“I’m proud and excited to work alongside First Nations, independent power producers and stakeholders, and government to design and launch BC Hydro’s first call for power in 15 years,” said Chris O’Riley, president and chief executive officer of BC Hydro. “Our hydroelectric system of big dams and reservoirs provides a reliable and flexible power base over which we can layer new sources of renewable generation like wind and solar, expanding and diversifying our electricity system to meet growing demand while creating First Nations and business opportunities in the clean energy sector.”

BC Hydro engaged extensively with First Nations on the design of the call, including collaboration with the First Nations Energy and Mining Council. Projects must have a minimum percentage of equity ownership held by First Nations. The Canada Infrastructure Bank will make loans available as an option for First Nations to help finance as much as 90% of their equity position in a project that is awarded an electricity purchase agreement under the call for power.

This will be the first in a series of calls for power, as BC Hydro requires more power to electrify the province’s growing economy and meet climate targets. BC Hydro expects its next call to be issued in 2026, with successive calls to be issued about every two years. The volume and timing of future calls will be determined through BC Hydro’s long-term resource-planning process and subject to review by the BC Utilities Commission.

To participate in the RFP, proposed projects must: 

  • Have a plant capacity (maximum output) greater than or equal to 40 MW and less than or equal to 200 MW;
  • Have a minimum 25% equity ownership held by one or more First Nations, whose territory includes the location of the project;
  • Qualify as a clean or renewable resource as defined in the Clean Energy Act (including wind, solar, hydro, biomass, biogas and geothermal heat);
  • Be located in British Columbia, excluding Fort Nelson, non-integrated areas, and other areas from which BC Hydro would be required to transmit energy through another out-of-province jurisdiction to the Lower Mainland;
  • Reasonably be expected to be able to achieve a commercial operation date between Oct. 1, 2028, and Oct. 1, 2031;
  • Be a newly constructed facility, which could include new units that will generate energy in addition to any existing on-site generation units;
  • Use proven generation technologies – i.e., readily available in commercial markets and in commercial use, as evidenced by at least three plants generating electrical energy for three years to a standard of reliability generally required by good utility practice; and
  • Have an executed interconnections request filed with BC Hydro.

Additional credits will be awarded in the bid evaluation process for projects with First Nations equity ownership that is higher than the 25% minimum requirement (rising from 26% to 51%) and projects that provide other forms of benefits flowing to non-equity-holding First Nations on whose territory the project is located. The RFP also includes incentives for successfully bid projects that are able to go into operation between Oct. 1, 2028, and Oct. 1, 2030.

The closing date for submissions to the call for power RFP is Sept. 16, 2024. BC Hydro expects to award electricity purchase agreements to successful proponents in December 2024.