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The province has announced that B.C. Hydro is buying a gas-fired power generation facility near Campbell River on Vancouver Island.
The province says the purchase of the Island Generation facility will ensure the long-term reliability of power on the Island.
B.C. Energy Minister Adrian Dix said the facility is currently used for about 15 days during peak energy use, usually in winter, and the province intends to keep it that way.
“British Columbia’s economy is growing,” said Dix. “Securing Island Generation will help ensure we have capacity to support that growth.”
B.C. Energy Minister Adrian Dix said that buying the facility would help secure long-term power generation on Vancouver Island. (Ben Nelms/CBC)
The facility uses natural gas to produce power, but Dix said that doesn’t mean the province is steering away from its clean energy goals.
He emphasized that 98 per cent of B.C.’s energy comes from renewable sources, which the province continues to invest in, and facilities like these are only used as backup when absolutely needed.
Dix says rising demand due to economic growth means that B.C. will need 20 per cent more power by 2030, and 50 per cent more power by 2050.
‘The alternative was not to continue’
According to Capital Power’s website, the company that currently owns the Island Generation facility, the power plant is already contracted to supply power to B.C. Hydro. Dix said concerns about its long-term viability led to the purchase.
“We felt this was a good time, an important time, to maintain this [facility] for B.C. Hydro,” Dix said. “The alternative was not to continue.”
Ajay Kumar, B.C. Hydro’s Senior vice-president of integrated planning, said the Crown corporation had been looking at purchasing the facility since 2002.
The website says Island Generation is the largest power generator on Vancouver Island.
Campbell River Mayor Kermit Dahl said the announcement was good news for his city.
“Throughout discussions and uncertainty about the future of this facility, the City of Campbell River has been clear and consistent: this asset matters,” Dahl said.
“It matters for reliability. It matters for emergency preparedness. It matters for local jobs, and our municipal tax base. And it matters for our ability to attract future industrial investment to our community.”
‘Unfortunate necessity’: Clean Energy B.C.
Evan Pivnick, associate director of public affairs at the Clean Energy B.C. think-tank, told CBC News the announcement didn’t come as a huge surprise given that the province had said earlier this year that it was extending its contracts with two natural gas plants in B.C.
Pivnick said the purchase is an “unfortunate necessity” given expectations for a large increase in demand.
“We really need to make sure that we learn the lessons from this,” he said.
“A system that leverages natural gas as a long-term solution isn’t as secure and sustainable as one that can leverage the abundant clean opportunities we have.”
Pivnick commended the province for moving in the right direction in terms of investment in clean energy, like a recently announced battery energy-storage project on Vancouver Island, but said more needs to be done to meet a sharp rise in energy demand.
