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BC Hydro > Peace River Site C Hydro Project, Stage 1 Summary Report PEACE RIVER SITE C HYDRO PROJECT AN OPTION TO HELP CLOSE B.C.’S GROWING ELECTRICITY GAP SUMMARY: STAGE 1 REVIEW OF PROJECT FEASIBILITY DECEMBER 2007 Peace River Site C Hydro Project An option to help close B.C.’s growing electricity gap Stage 1 Summary This document provides an overview and summary of the Stage 1 review of the proposed Site C project. This Stage 1 review of project feasibility was a review of existing studies and historical information about the Site C project, with a view to determining if there is enough potential to address key impacts to move to the next stage of project planning and development. This information was reviewed in the context of projected energy demand now and into the future, and an analysis of the expected supply to meet that demand. S ITE C A growing province with growing electricity needs 1 STAGE A heritage built for generations six years, BC Hydro has been a net importer of electricity. We now depend on other Clean, abundant electricity has been the key jurisdictions to supply between 10 and 15 to our province’s economic prosperity and our per cent of our electricity needs. Review of Project Feasibility quality of life. By planning ahead, we can ensure that future generations of British Columbians are able to enjoy the same benefits of low-cost, A growing electricity gap reliable power that we enjoy today. In 2006, BC Hydro produced its Integrated Hydroelectricity and our province’s economic Electricity Plan, which forecasted our province’s development are inextricably linked. In the two long-range electricity needs and examined decades that followed the creation of BC Hydro existing and potential resources to meet in 1961, our province undertook some of the those demands. This plan notes that electricity most ambitious hydroelectric construction consumption in B.C. is expected to increase projects in the world. Large-scale projects, such by as much as 45 per cent over the next two as those on the Peace and Columbia rivers, decades – creating a significant gap between played an essential role in providing our province supply and demand. with secure access to reliable, renewable, low- B.C. is now cost power. Known today as BC Hydro’s heritage By planning now, BC Hydro is working to consuming more assets, these dams help provide an electricity close this gap so that British Columbians will continue to enjoy the benefits of a secure, electricity than we supply to British Columbians that is 90 per cent clean – an achievement that few jurisdictions in reliable and affordable electricity supply. generate the world can claim. There are three ways this will be done – by As our province and our economy continue to conserving more electricity, by buying more grow, so does our demand for electricity. And as electricity from independent power producers impressive as our hydroelectric heritage is, it will and by investing in our existing assets and new not be enough to provide future generations resource options. of British Columbians with the energy security they will require. We are now consuming more electricity than we generate. In fact, for the past 1 S ITE C 1 STAGE BC Hydro’s Electricity Gap 85,000 B.C.’s electricity demands are forecast Significant new electricity 85,000 to grow between 25 and 45 per cent resources will be needed over the next 20 years. to close the gap. Review of Project Feasibility 80,000 80,000 75,000 Forecasted Customer Demand 75,000 Existing BC Hydro Supply 70,000 70,000 Forecasted Gap ) ) h Mid-range Demand Forecast h W 65,000 65,000 W (G (G y Historical Customer Demand y g g er er n 60,000 60,000 n E E 55,000 55,000 drop reects planned phase-out of Burrard 50,000 50,000 45,000 45,000 Historical Data Forecasted Data 40,000 40,000 1990 1995 2000 2005 2010 2015 2020 2025 Fiscal Year (year ending March 31) Based on data available July 2007 Leadership for a secure New Power Smart initiatives are encouraging electricity future people, businesses and communities throughout B.C. to make a difference by Conservation and energy efficiency taking leadership in conservation and energy efficiency. These include: new energy efficient The first and best way to help close B.C.’s products and buildings, smart metering electricity gap is through conservation and infrastructure, electricity audits, incentives, and energy efficiency. Through its Power Smart programs for schools and local governments. program, BC Hydro is a global leader in conservation, providing an ever-expanding BC Hydro also continues to explore innovations range of programs and incentives to help its in conservation through the Conservation customers conserve, be more efficient, use Research Initiative. Nearly 2,000 residential power wisely, and ultimately use less. British customers have volunteered to conserve energy by using smart meters to track electricity Columbians are now saving enough electricity consumption. The information gathered equivalent to meeting the annual needs of will allow consumers to better track their more than 440,000 homes. consumption patterns, and adjust their habits The provincial government’s BC Energy Plan accordingly. It will also help inform decisions recognizes the conservation leadership that about how new residential rate structures can BC Hydro has helped to foster, and challenges encourage energy efficiency and conservation. all of us to do even more. The plan sets an While BC Hydro will continue to play a ambitious target for British Columbians to leadership role in conservation, it will take realize 50 per cent of our new energy needs personal leadership in households across the through conservation and energy efficiency by province to achieve this conservation target. 2020. BC Hydro is committed to meeting this Households will not only have to curb the challenge. growth in electricity use, but also consume 10 per cent less electricity than they do today to achieve the residential conservation goal. Together, we can make a big difference. 2 S ITE Innovative power projects Reinvesting in our existing assets C 1 STAGE BC Hydro is also looking to innovative power With its ongoing Resource Smart initiatives, projects, such as small hydro, wind power and BC Hydro continues to make important biomass projects developed by independent investments to modernize, expand the capacity, power producers, to help meet future demand. and extend the life of its existing hydro assets. BC Hydro has contracted for the purchase of By modifying, updating and retrofitting our Review of Project Feasibility approximately 15,000 GWh/year of electricity existing generation facilities, such as adding a from independent power producers to date, of fifth unit to the Revelstoke generating station, which 8,000 GWh/year is now online – enough BC Hydro is increasing efficiency and electricity energy to power approximately 800,000 production with little or no environmental homes. The majority of power acquired from impact. Extending the capacity of these facilities independent power producers since 2002 has will add enough electricity to power some been clean, renewable energy. 130,000 homes each year. These investments BC Hydro also has three new competitive in our existing assets will continue in the years procurement processes underway to acquire ahead to ensure that the backbone of our additional power to close the electricity gap. system remains strong and reliable. These include: • a standing offer for clean electricity projects Even with conservation, of less than 10 megawatts; purchases from independent • a Clean Power Call, targeting 5,000 GWh/ power producers, and year of energy; and, • a call for bioenergy projects that generate reinvestment in existing electricity from under-utilized wood assets, we will still need residues, including wood affected by the The BC Energy mountain pine beetle. to pursue additional sources of Plan aims to make electricity in British Columbia if B.C. energy self- demand continues to sufficient while grow as projected charting a path for conservation, energy efficiency and clean energy Conservation is our first and best option to close B.C.’s electricity gap. 3 S ITE C Large power projects, such as hydro with 1 STAGE Closing the remaining electricity gap reservoirs, carbon-sequestered coal and gas- fired generation, have unique challenges. In Investigating new resource options addition to various social, environmental and financial costs and benefits, they typically With the help of all British Columbians, BC require long lead times for substantial Review of Project Feasibility Hydro is undertaking aggressive conservation stakeholder and First Nations consultation, efforts to meet the BC Energy Plan’s 50 per cent regulatory review, engineering, design and conservation target by 2020. But even with construction. At the same time, these types of conservation, purchases from independent projects have an advantage over most other power producers and reinvestment in existing resources because they supply a significant assets, we will still need to pursue additional amount of dependable electricity, which is sources of electricity in British Columbia if especially valuable to our province in times of demand continues to grow as projected. peak use, such as during the coldest evenings BC Hydro’s 2006 Integrated Electricity Plan of winter. As sources of firm power, they stand notes this need will be particularly acute in the in contrast to intermittent resources (such as second decade of BC Hydro’s 20-year planning wind power or small hydro), whose capacity horizon. That is why BC Hydro must begin to produce electricity can vary depending investigating options for adding new projects on conditions such as weather. In fact, large that could provide a large, dependable supply power projects are required to support the of electricity in the longer term.
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