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Tc Case Study

Decent Essays

Site C Backgrounder

In conjunction with the Site C decision, the BC Government issued a background (see Appendix 1) related to private power producers and renewable energy. Much of the information in the backgrounder is misleading and/or incorrect. This note provides a number of responses to the backgrounder.

“These decisions significantly increased the province’s intermittent electricity energy supply…”

• IPP generation currently represents about 25% of the province’s electricity supply. This includes a range of generation projects, including heritage privately owned hydro, co-generation and more recent IPP supply.
• IPP generation, added since 2006 as a result of policy decisions in the mid 2000’s, currently represent only about …show more content…

• BC Hydro heritage hydro has been operating over many decades and the price for that power reflects that the assets in most cases have been paid off. These prices cannot be compared to the cost of building new generation. o The cost to build new generation today by IPPs is less than that from BC Hydro, as shown in the BCUC Review of the Site C Project. o Like BC Hydro heritage assets, IPP projects represent an investment in reliable supply that extends beyond the term of the contract – many of these projects could provide power to the province for up to 100 years.
“The board of BC Hydro committed to more than 135 contracts with an average term of 28 years. And while power generated by BC Hydro’s heritage assets cost $32 per MWh, power from IPPs cost $100 per MWh. Today these contracts represent future financial commitments of over $50 billion.”
• Renewable power from IPPs have allowed BC to achieve its goal to become electricity self-sufficient. Without renewable power from IPPs, BC Hydro would have been forced to import power from other jurisdictions (predominantly fossil fuel generated power) to meet growing provincial demand for electricity.
• BC large hydro storage capacity in its system has allowed BC Hydro to integrate variable renewable power into the system while maintaining one of the most reliable systems in North America.
• Other jurisdictions have shown that with new ways of thinking and managing the system,

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