B.C. Hydro looks to dial back private power
The COVID-19 pandemic has created more problems for B.C. Hydro in managing the many private power producers now feeding electricity into its system.
The list of independent power producers, or IPPs, has ballooned to more than 120.
At this time of year they typically deliver almost 30 per cent of B.C. Hydro’s power generation.
Now, the utility is looking to dial back some of those purchases to help it deal with the drop in demand during the pandemic and uncertainty around how B.C.’s economy will recover.
“We are in the midst of an unprecedented situation that has had an unprecedented impact on electricity demand,” said Hydro spokeswoman Mora Scott in an emailed response to questions.
Hydro has turned off three of its own smaller generating stations, Scott said, and has warned independents that it might invoke force majeure, a declaration that forces beyond its control prevent it from meeting purchase obligations in their contracts.
It’s another occasion in which B.C. Hydro has looked for cost reductions from its IPP program, which was controversially expanded under former premier Gordon
Campbell’s policies aimed at energy self-sufficiency.
B.C. Hydro purchased 4,188 gigawatt hours of electricity for $325 million in the months of April through June in 2019, almost one-third of its domestic production. By comparison, IPPs accounted for 20 per cent of Hydro’s supply, 2,560 gigawatt-hours, in the same three months of 2011.
“To date, we have not issued any force majeure notices to IPPs to suspend purchases,” Scott said, but “have advised some IPPs that we may find it necessary to invoke notices in the future.”
Independent producers want more input into the process and are disappointed
Hydro hasn’t talked with them about the demand challenge, said Laureen Whyte, executive director for Clean Energy B.C.
“The challenge for us right now is that there was no consultation with our industry,” Whyte said.
Part of the problem is most of the independent plants produce run-of-river hydro electricity, facilities that don’t use reservoirs to store water. They generate most of their power during the spring snow melt, exactly the same time Hydro needs to accommodate inflows to its own reservoirs.
This year, that challenge is compounded by demand that fell about 20 per cent among commercial customers, Scott said. Overall, Scott said Hydro estimates a 10 per cent total drop in demand.
“B.C. Hydro must adapt its plans.”
Whyte said her members understand Hydro’s problem, but would like a chance to co-operate on the resolution.