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BC Hydro Unveils $36 Billion 10-Year Capital Plan to Increase Electrification and Emissions-Reduction Infrastructure Projects
Tuesday, January 23, 2024Company Profile | Careers | Follow Company
Premier announces new actions to build electricity system, create jobs
Vancouver, BC, January 22, 2024--(T-Net)--BC Hydro says it will embark on an unprecedented level of construction over the next 10 years, building out British Columbia's electricity system to power a growing clean economy and communities, and create new jobs.
David Eby, Premier, British Columbia
"We must expand our electrical system like never before, to power industrial development, to power our homes and businesses, to power our future," said Premier David Eby. "Clean, affordable energy will help us meet that opportunity, while reducing pollution, securing good-paying jobs and creating new opportunities for our growing economy."
At the B.C. Natural Resources Forum last week in Prince George, Premier Eby announced a $36-billion investment for community and regional infrastructure projects that will deliver clean, affordable electricity to people and businesses in the future.
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BC Hydro's updated 10-year capital plan, Power Pathway: Building BC's energy future, includes almost $36 billion in community and regional infrastructure investments throughout the province between 2024-25 and 2033-34.
This represents an increase of 50% over BC Hydro's previous capital plan ($24 billion), and includes a significant increase in electrification and emissions-reduction infrastructure projects (nearly $10 billion, up from $1 billion).
These new construction projects are projected to support 10,500 to 12,500 jobs on average annually, and will increase and maintain BC Hydro's capital investments as major projects like Site C are completed.
The plan reflects growing demand for electricity across sectors due to population growth and housing construction, increased industrial development, and people and businesses switching from fossil fuels to clean electricity, among other factors.
It includes:
"We're taking action to build a clean energy future and create thousands of construction jobs for skilled workers as major infrastructure projects like Site C reach completion," said Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation. "Together with our first call for power in over 15 years, BC Hydro's new capital plan - with almost $4 billion in spending every year for the next decade - will drive economic growth for communities all over the province and ensure households and businesses can power up with clean, reliable and affordable electricity."
BC Hydro says its goal is to acquire new sources of clean, renewable electricity, including wind and solar. B.C. is well positioned to add additional intermittent renewables to the grid as its integrated, flexible system of hydro-electric dams act as batteries. The reservoirs store water and allow BC Hydro to ramp production up or down almost instantly, providing a reliable back up for when the sun isn't shining or the wind isn't blowing.
Chris O'Riley, President and CEO of BC Hydro, BC Hydro
"Our electricity grid is already one of the cleanest in the world, and to meet the scale and pace of what's required, we need to invest in our system and build for the future," said Chris O'Riley, president and CEO of BC Hydro. "We have already taken significant steps toward sourcing the clean electricity needed to meet the future demand, and we are now embarking on the next step, our $36 billion 10-year capital plan, which includes everything from investing in our generation assets and large transmission infrastructure to the substations and local wires that deliver power to homes and businesses across the province."
In addition to the 10-year capital plan, Premier Eby announced that the Province and BC Hydro are implementing a new streamlined, one-window approval process to speed up approvals to get electricty to in-demand industries faster, and to support jobs.
"Industrial greenhouse gas emissions make up about 40% of B.C.'s total, so we need to work closely with the private sector to electrify rapidly to meet our CleanBC climate goals by 2030 and keep B.C. industries strong and competitive," said George Heyman, Minister of Environment and Climate Change Strategy. "This new, one-window approach will help companies reach final investment decisions sooner so they can move to a decarbonized future that will benefit our province for generations to come and meet the growing global demand and opportunities for low carbon commodities."
The process will result in the Climate Action Secretariat and BC Hydro managing streamlined approvals for industrial electrification projects between the CleanBC Industry Fund and BC Hydro's Large Customer Low Carbon Electrification programs. Transitioning to a one-window process will speed up approvals, increase efficiency, and deliver more funding certainty for proponents.
Quick Fact:
Learn More:
To view BC Hydro's updated 10-year capital plan, Power Pathway: Building BC's energy future, visit: https://news.gov.bc.ca/files/CS-4307-CapitalPlan_LTR.pdf
To view a graph of BC Hydro's planned capital spending, visit: https://news.gov.bc.ca/files/CS-4307-CapitalExpenditures_Chart.pdf
For details on BC Hydro's call for power, visit: https://news.gov.bc.ca/releases/2023EMLI0036-000941
For information on the new collaboration between the CIF and LCE programs, visit: https://www2.gov.bc.ca/gov/content?id=6995A2FA9E2B4C13AAD45AD323CAC770
To learn about other CleanBC programs and funds for cleaner industry, visit: https://www2.gov.bc.ca/gov/content/environment/climate-change/industry
A backgrounder follow.
Advancing low-carbon electrification
British Columbia is a leader in clean energy, with about 98% of its power generation coming from clean or renewable resources. This clean energy advantage is recognized in the CleanBC Roadmap to 2030, which identifies low carbon electrification - transitioning from fossil fuels to using clean electricity across the transportation, built and industrial sectors - as one of the key pathways to reducing greenhouse gas (GHG) emissions and achieving B.C.'s climate targets.
Increased infrastructure to support growing demand for power:
Every year BC Hydro creates a capital plan that looks ahead 10 years. The plan quantifies the new and improved infrastructure required to safely operate its system and meet the electricity demands of its customers. It helps BC Hydro assess the resources it will need in the near to medium term, supports rate planning, and plan engagement with First Nations, local governments and regulators.
The 10-Year capital plan for 2024-25 to 2033-34, Power Pathway: Building BC's energy future, responds to a significant increase in demand for power to support accelerated electrification and population growth as identified in BC Hydro's updated integrated resource plan (currently under review by the B.C. Utilities Commission).
The 10-Year capital plan includes investing in BC Hydro's generation assets, large transmission infrastructure and community substations, and local wires that deliver power to homes and businesses across the province with three main objectives:
The plan includes nearly $10 billion for infrastructure to support electrification and GHG reduction, more than $5 billion to address load growth and increased customer connections, and $21 billion to sustain existing capital assets, dam safety and reliability, for a total of $36 billion over 10 years (net of contributions in aid of construction, such as customer payments under tariffs). This is an increase of about 50% from last year's capital plan that included $24.1 billion in investments.
While taking action to grow the electrical system is important, ensuring rates remain affordable is equally important. B.C. currently has the second lowest residential electricity rates in North America, and the third lowest commercial and industrial rates.
BC Hydro rates are currently 15.6% lower than the cumulative rate of inflation over the past seven years (starting 2017-18). In addition, rates are currently 12.4% lower than the previous government's long-term rates plan, saving residential customers approximately $250 million, commercial customers approximately $223 million, and industrial customers approximately $95 million, compared to the previous government's long-term rates plan.
For the sixth year in a row, BC Hydro has applied to the BC Utilities Commission (BCUC) for a rate increase below the rate of inflation. Rate changes are determined by the BCUC following a transparent regulatory process. As an outcome of Phase 1 of the BC Hydro review in 2019, government returned oversight to the BCUC on a number of matters the previous government took away, including rate changes, use of regulatory accounts and BC Hydro's long-term Integrated Resource Plan.
Streamlining funding approvals for industrial electrification:
Both the Clean Industry Fund (CIF) administered by the Climate Action Secretariat and BC Hydro's Large Customer Low Carbon Electrification (LCE) programs support the development, trial and deployment of projects that reduce greenhouse gas emissions from large industrial operations.
Proponents are often looking to leverage both CIF and LCE funding to move these projects forward. However, currently it is complicated to apply for both programs, resulting in delayed project investments and timelines.
Now, proponents will be able to apply for both programs through a new single process that includes:
The new, faster application process will reduce the administration burden for industry, government, and BC Hydro, allowing projects to be approved and implemented more quickly, and emissions reductions to be achieved sooner.
Since 2019, the CIF has provided more than $215 million in support of large industrial operators reducing greenhouse gas emissions, undertaking pilot projects or support studies that test new emission reducing technologies.
To date, total funded CIF projects are expected to reduce more than approximately 8.7 million tonnes of carbon dioxide equivalent emissions over a 10-year period.
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