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VANCOUVER, British Columbia, CA, August 9, 2006
(Refocus Weekly)
Three windfarms will generate 979 GWh a year from
325 MW of capacity, under long-term purchase contracts with BC Hydro
on Canada’s west coast.
The government utility says its 2006 open call for power received
53 separate project bids when it was initiated last December, and
contracts have been signed with 38 independent power producers to
add 7,000 GWh a year to the provincial grid, enough power to feed
700,000 homes.
This is the utility’s sixth request to IPPs in the last six years;
currently there are 57 contracts in place, of which 38 are online.
Of the total power, 73% is ‘clean energy’ as defined in the BC Clean
Electricity Guidelines.
“Secure, reliable electricity has been key to British Columbia's
economic prosperity and our quality of life for generations but, as
our province continues to grow, the gap between electricity supply
and demand is expected to increase,” says energy minister Richard
Neufeld. “The contracts awarded today will help to close that gap by
bringing new supply online by 2010 and also help us achieve our goal
of leading the world in sustainable environmental management.”
In addition to the 180 MW Dokie windfarm near Chetwynd, the 120 MW
Bear Mountain facility near Dawson Creek and the 25 MW Mount Hays
windfarm near Prince Rupert, the contracts include 29 hydro, two
biomass, two waste heat and two coal/biomass projects, ranging in
size from 1 MW to 200 MW in capacity. Of the successful bidders, 23
are already developing projects for BC Hydro resulting from previous
calls, and three include First Nations as developers or partners.
Of the 38 projects, 16 are included in the ‘large project’ stream
with an estimated annual output of 5,700 GWh of firm and 750 GWh of
non-firm energy, with an average firm energy bid price of Cdn$74 per
MWh. The 22 ‘small stream projects’ will generate 650 GWh a year at
an approximate average price of $70 per MWh.
The average term of the purchase agreement is 30 years and the
projects will produce $3.6 billion in private investment. BC Hydro
has been a net importer of electricity for the last five years, and
demand will grow significantly over the next 20 years, resulting in
a supply-demand gap of 25% to 45%.
“Purchases from independent power producers represent one of the
ways that we are working to secure our long term electricity needs,”
says Bob Elton of BC Hydro. “The diversity of energy resources
awarded today will help meet demand growth and clean energy target
while keeping BC's electricity rates amongst the lowest in North
America.”
The objective of the latest call for power was to acquire at least
2,500 GWh per year of firm energy to be online by 2010. To offset
the supply-demand gap, the utility awarded contracts exceeding its
original target which will allow for attrition of some projects.
This is BC Hydro's sixth request to independent power producers for
power project proposals in the last six years. There are currently
57 contracts in place, of which 38 are now online delivering 7,000
gigawatt hours per year.
The projects are consistent with the prices tendered and awarded in
other provinces in Canada, and are consistent with the expected cost
ranges in the utility’s Integrated Electricity Plan. The cost ranges
are higher than in previous calls due to construction inflation that
is not expected to abate in the next few years, and the contracts
are for a fixed price to provide long-term stability.
Once BC Hydro and bidders have signed purchase agreements, the
agreements must be filed with the BC Utilities Commission.
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