Future Planning Needs in B.C. & the Potential for Green Energy

Future Planning Needs in B.C. &
the Potential for Green Energy
Presentation for SFU Conference – Day 1
Building a Vision for Green Energy in B.C.
Cam Matheson, Director of Energy Planning, BC Hydro
November 3, 2009
Hyatt Hotel, Vancouver, B.C.
BC Hydro & Long-Term Electricity Planning
Maintain the low cost and reliability of the system
Meet customer long-term needs
Implement government policy
Sets a course for activities that follow
–  Demand-Side Management (DSM), Independent Power Producers (IPP)
Supply, Capacity Additions
Provides an open and transparent process
–  Input from customer groups, stakeholders, and First Nations
Engenders long-term public understanding and support
The Electricity Gap
Firm Energy Capability
Capacity Supply
Provincial Energy Policy
• Achieve electricity self-sufficiency by
• Set an ambitious target, to acquire 50%
of BC Hydro’s incremental resource
needs through conservation by 2020
• Clean or renewable generation continues
to account for 90% of total generation
• Zero GHG emissions from coal
• New electricity generation to have zero
net GHG emissions
• Existing electricity generation to have
zero net GHG emissions by 2016
Legislative Context
B.C. Government is implementing the 2007 Energy Plan through
legislation and regulations
Special Direction No.10
–  Achieve electricity self-sufficiency by 2016 and each year thereafter
–  Sufficient energy and capacity solely from electricity generating facilities
within B.C.
–  Adverse critical water conditions, meaning BC Hydro’s fleet of hydroelectric
generating facilities will contribute, for planning purposes, about 42,600
UCA Amendment Act, 2008
Regulatory Context – UCA Amendments
Test for long-term resource plan acceptance is now “public interest” as
opposed to “in the interests of persons in British Columbia who receive,
or who may receive, service”
In reviewing long-term resource plans under section 44.1, BCUC must
–  The “government’s energy objectives”
–  Encourage Public Utilities to:
reduce greenhouse gas emissions
take demand-side measures (DSM)
produce, generate and acquire electricity from clean or renewable sources
develop adequate energy transmission infrastructure and capacity in the time required to serve
persons who receive or who may receive service
use innovative energy technologies
–  How the utility intends to reduce the demand for electricity by pursuing costeffective [DSM] measures
Implementing the Energy Plan:
Longer Term Considerations
Planning Assumptions
Special Direction 10 means self-sufficiency by 2016
Mid-load forecast
Critical water is the base (42, 600 GWh)
90% of new supply is clean and renewable
50% DSM by 2020
Impacts on System
No market reliance in our plans
Large hydro storage increasingly used to integrate renewables
Potential for more spilling
Large to enormous surpluses (depending on water supply year)
Need for more transmission to move this surplus
Increased risks: DSM, IPP attrition, responsiveness to rate increases
Implementing the Energy Plan:
Longer Term Considerations
New transmission infrastructure
–  Congestion relief
–  Strengthening interties
Call terms and conditions
–  Limiting exposure to freshet energy
–  Limiting exposure to high cost non-firm energy
–  Valuing ability to integrate and shape
New capacity additions
–  Revelstoke/Mica additions
–  Site C ?
Contingency resource plans
–  Manage key uncertainties
Environment & Long-Term Electricity Planning
Energy Plan provides policy guidance on many environmental issues
–  LTAP incorporates many policies either through analysis or as constraints
Consistent with BCUC Resource Planning Guidelines, the LTAP includes
an assessment of expected future environmental regulatory costs
–  GHG offsets
–  BC Carbon Tax
2006 IEP/LTAP also included high level air, land and water impacts
–  BC Hydro is assessing if there is time to revisit for next LTAP
Please visit our website for more information,
on BC Hydro and Electricity Planning: