A CALL FOR CLEANER ENERGY AS B.C. SNOWPACKS DWINDLE

We must balance affordability, resilience and emissions cuts, writes Barry Penner.

B.C. Hydro's official request for proposals early this month for 3,000 gigawatts of non-emitting electricity is an important and overdue step forward in our province's clean-energy journey.

For more than five years, B.C.'s progress in diversifying our electricity sources has been at a standstill, particularly since the government suspended the “standing offer” program that successfully spurred a number of clean-energy projects. These included our first grid-connected solar project near Kimberly, and what is arguably the most visible wind power project in the province, just north of the Coquihalla Highway between Merritt and West Kelowna, known as the Pennask Wind Power Project.

This hiatus in diversifying our energy sources will come to an end, now that B.C. Hydro has issued the first “open call” for power in 15 years, signalling the B.C. government's desire for more private-sector investment in our electricity supply.

B.C. Hydro's long-awaited Site C dam, slated for full operation next year, represents an important expansion of our energy infrastructure. It will provide an eight per cent increase to B.C. Hydro's domestic capacity.

However, even that $16-billion project (first announced in 2010) wouldn't have sufficed in achieving electricity self-sufficiency for the province last year, when B.C. Hydro imported about 20 per cent of our power needs. This made B.C. Canada's largest importer of electricity in 2023, accounting for 77 per cent of the country's total power imports.

Our reliance on hydroelectric power, which accounts for more than 90 per cent of B.C. Hydro's generation, has left us vulnerable with lower-than-average precipitation in recent years.

This year isn't looking much better, with news this month that B.C. snowpacks are 37 per cent below average compared to just 12 per cent below average at this time last year. What makes this so concerning is that the majority of inflows into B.C. Hydro's largest reservoirs typically come from mountain snowmelt.

Based on numbers calculated by the Energy Futures Institute, B.C. Hydro has already imported 50 per cent more electricity (4,650 gigawatt hours) this year than the 3,000 gigawatt hours of electricity it hopes the call for power will generate annually when those projects are complete in the early 2030s.

Diversification is key, as any investment adviser will tell you.

Many people are surprised to learn our neighbours in Alberta have embraced solar and wind power to a much greater extent than B.C., boasting six times our installed wind power capacity (4,400 megawatts versus 747 megawatts).

Alberta is also developing gas-fired generation coupled with carbon capture and storage, recognizing that successful diversification requires an “all of the above” mindset.

In contrast, the current government's Clean B.C. climate plan calls for shutting down our remaining natural gas-fired electrical generation in the next few years. This is one reason B.C.'s electrical system has been identified as being “at risk” in the future by the North American Electric Reliability Corporation, an independent organization.

Even more pressure on our electrical system is on the horizon.

It's now the law in B.C. that electric vehicles must comprise 90 per cent of all new vehicle sales starting in 2030. At the same time, natural gas is effectively being banned for new homes and commercial buildings as a result of the B.C. government's “zero carbon step code.” This all means more demand for electricity, but how much more is not clear.

Meanwhile, permitting delays in B.C. are a big hurdle for important projects and have only been intensifying over time. These delays will be a crucial factor in determining when new electricity projects can start reducing our reliance on imported power.

As for B.C. Hydro's new request for proposals itself, it comes with a requirement for at least a 25 per cent equity stake by First Nations.

While this has generally been well received, it could also be perceived as an overly prescriptive approach that may not work best for everyone. In the past, many successful projects involved a royalty scheme providing a steady stream of revenue for First Nations.

Even more pressure on our electrical system is on the horizon.

Regional Chief Terry Teegee of the B.C. Assembly of First Nations commented that it is “imperative to find inventive ways to include First Nations as equity owners.” The federal government's Canada Infrastructure Bank has recently expressed interest in supporting First Nations seeking capital to fund their equity ownership. Let's hope this proves to be a successful way to facilitate projects that are both economically and environmentally sound.

As we navigate these complexities, it's essential to add a dose of realism to electrification targets.

The challenges we face can be described as a trilemma: needing to maintain affordability while pursuing fewer emissions and increasing our energy independence and resilience at the same time.

With proactive planning, collaboration and some thoughtful pragmatism, we can rise to the occasion and secure a bright future for British Columbia.