British Columbia gov't unveils energy plan, seeks more exports

New Orleans (Platts)--29Apr2010/629 pm EDT/2229 GMT



British Columbia, through crown corporation BC Hydro, expects to acquire renewable power supplies from independent power producers, fill in gaps in the intermittent power flows with output from existing hydro plants, and then export the electricity to the US, according to a Clean Energy Act introduced Wednesday to the province's legislature by Energy Minister Blair Lekstrom.

Developing and then exporting the province's renewable power is one of 16 initiatives in Bill 17, many of which were proposed by a green energy task force established in 2009 by Premier Gordon Campbell.

The bill is expected to be approved by the legislature in early June.

The bill excludes the British Columbia Utilities Commission from many BC Hydro actions, including future renewable requests for proposal, decisions surrounding Site C, a proposed 900-MW dam on the Peace River, and a feed-in tariff that the Clean Power Act orders BC Hydro to establish.

Campbell's government calls the move a modernization of the regulator. The BCUC will still regulate rates and system reliability.

Additionally, the new policy will fold the British Columbia Transmission Corp. into BC Hydro to increase alignment and save ratepayers money, according to the government.

Under current policy, BC Hydro does not contract for long-term export power sales. Under the new Clean Energy Act, BC Hydro will be able to secure long-term export power agreements.

To secure more renewable power, BC Hydro will issue additional requests for proposals, or clean power calls, for renewable power, according to information provided by Campbell's office.

The new policy also calls on the province to reduce its expected demand for electricity by at least 66% by the year 2020 through conservation and energy efficiency -- an increase from the current target of 50%.

The province will also be required to reduce its greenhouse gas emissions by 33% compared with the level of 2007 emissions by 2020.

The plan directs BC Hydro to prepare an integrated resource plan, to address how it will meet the province's goals and the prospects of developing resources to export.

--Pam Radtke Russell, newsdesk@platts.com