BC's emerging electricity gap

By Bob Elton
Vancouver Sun
10-Apr-2007

It's when the lights go out, the television and computer screens go black and the stove goes cold that we realize how dependent we all are on that invisible stream of energy running through our homes and businesses.

The shock of that dependency -- and the realization of how much we take electricity for granted -- was never more apparent than during the storms that ravaged parts of British Columbia this winter.

I wish to thank all BC Hydro customers for your patience and perseverance during the power failures that affected many of you, and also to express my appreciation for the hard work done by Hydro crews and contractors to restore power, often under trying and dangerous conditions.

But now we have an equally challenging task, and one that involves all of us.

At the end of February, the government released the B.C. Energy Plan. Its subtitle, A Vision for Clean Energy Leadership, is a challenge to us to secure the energy needs of British Columbians now and well into the future, including the goal of becoming electricity self-sufficient by 2016.

Today, clean hydroelectricity meets 90 per cent of our province's electricity needs and provides low, stable rates for customers. It is a key driver of our economy and has played a pivotal role in our province's economic success. The energy plan commits to maintaining this high standard of clean energy, which places us among the top jurisdictions in the world.

But many of you may be surprised to learn that B.C. is now a net importer of electricity; Hydro has had to import electricity from neighbouring jurisdictions in each of the past five years just to meet our needs. Compounding this shortfall in supply, our forecasts indicate that B.C.'s demand for electricity will grow by up to 45 per cent over the next 20 years.

How can we secure our electricity needs by closing this emerging electricity gap?

BC Hydro has identified three ways to lead the province toward greater electricity security and self-sufficiency: By conserving more, by buying more from clean power producers and by building more.

Conservation is the first and best choice for us to manage the supply gap that has been identified. And energy conservation starts at home.

Current electricity consumption per household is 10,750 kWh per year; that is projected to increase to about 11,450 kWh per household per year by 2020 under current trends. The government has set a goal of acquiring half of our incremental energy needs through conservation by 2020.

It will take leadership from BC Hydro and personal leadership from individual British Columbians to accomplish this. If we are to meet these targets, households will not only have to curb the growth in electricity use, they will have to consume 10 per cent less electricity than they do today.

New rate structures, residential use of energy-efficient light bulbs, commercial building upgrades and other energy-efficient products and technologies will complement our Power Smart program to meet these conservation targets.

But conservation is just one part of the solution. Our growing economy and population mean additional resources will be required from independent power producers.

For example, as part of BC Hydro's bioenergy strategy, we are seeking to identify projects that will generate electricity from fuel sources such as pine beetle-killed timber, sawmill residue and logging debris.

Other potential small- to large-scale projects include clean energy alternatives such as run-of-the-river hydro, waste heat and wind power.

In time, the combination of these renewable energy sources, and changing our habits toward greater conservation, will allow us to become a net exporter, not importer, of clean energy to our Pacific neighbours.

Finally, we need to build more capacity if we are to meet our electricity needs beyond the next decade. The types of projects that typically offer energy and capacity are large hydroelectric dams.

One example is the possibility of building a new, third dam on the Peace River, known as Site C. A project of this scale would provide enough energy to power about 460,000 homes.

Like all our other "heritage" assets, a project like Site C would provide a secure supply of electricity at stable rates for generations. It would take about a decade to build and come online, but it would also have a lifespan of up to 100 years.

Each of these options comes with its own economic and social benefits and costs. Each comes with its own environmental advantages and risks.

But the biggest risk is to do nothing. The status quo is not an option.

Leadership is sometimes defined as encouraging others to do what they otherwise wouldn't. At BC Hydro, we plan to encourage all British Columbians to conserve more, to be clean energy advocates and to help us secure reliable power at low cost for generations.

Bob Elton is president and chief executive officer of BC Hydro.