Recent legislative, procurement and governmental updates, including BC Hydro’s upcoming Call for Power and updates to the BC Clean Energy Act will create increased opportunities for renewable energy development in the province.

Updates to Energy Objectives under the BC Clean Energy Act

On February 15, 2024, the Government of British Columbia announced updates to the energy objectives in the Clean Energy Act (British Columbia), with the intent of maximizing affordability and reducing carbon pollution in the province. These changes signal a current focus of the Government of British Columbia to spur renewable energy development within the province and align with other recent renewable energy initiatives that have been announced by provincial governments across the country.

The changes to the energy objectives include:

• the addition of a new objective to ensure that BC Hydro is ready to acquire enough electricity to meet B.C.’s long-term climate targets under the Climate Change Accountability Act;
• replacing the existing target that requires 93% of electricity generated in British Columbia to come from clean or renewable electricity generation with a new target of 100% by 2030 for the integrated grid (noting that this will not affect remote communities, the use of gas-fired electricity generation as emergency back-up, or the use of natural gas for other needs, such as home heating);
• the addition of a new objective to ensure that BC Hydro rate changes do not exceed cumulative inflation; and
• the addition of a new objective to ensure that BC Hydro rate changes are predictable and stable from year to year.

The British Columbia Utilities Commission (“BCUC”) is not required to undertake specific actions or guarantee certain decisions based on these energy objectives; however, these objectives are factors that the BCUC is required to take into consideration while making decisions. The updated energy objectives do signal the province’s goals for the BCUC and will influence future outcomes and inform future interactions between utility operators and BCUC moving forward.

The new objectives regarding British Columbia’s long-term climate targets and the 100% clean/renewable electricity generation target underscore the province’s commitment to providing its population and resident businesses with clean power to support its growing economy. Exemptions for remote communities and natural gas also demonstrate that the province considers the transition an iterative process with nuanced considerations. For utilities operators in the province, the updates represent an increased demand for clean and renewable electricity generation until at least 2030. We also note that the addition of the objectives restricting rate changes may signal pricing pressure on proponents in upcoming renewable energy procurement processes, including the BC Hydro Call for Power that is summarized below.

BC Hydro’s Call for Power^[1]

One of the key initiatives that will support the pursuit of the energy objectives is BC Hydro’s upcoming Call for Power. In April of 2024, BC Hydro will launch its first competitive Call for Power in more than 15 years to acquire new sources of clean, renewable electricity, representing an opportunity for developers to work with BC Hydro to create new clean-power projects. This Call for Power comes off the heels of an engagement process that ran from June 2023 to January 2024 whereby BC Hydro gathered input from First Nations, Independent Power Producers and stakeholders regarding their planned approach to acquire approximately 3,000 gigawatt-hours (GWh) per year.^[2]

The objectives of the call to power are to acquire energy from:

• clean or renewable resources that are cost-effective for BC Hydro’s ratepayers;
• projects that can come online as early as fall 2028; and
• projects that have a meaningful First Nations partnership component.

BC Hydro has now started to communicate with potential developers about how to participate in the call, and has listed important dates on its website for developers who are interested in participating. BC Hydro has also released draft RFP documents with the expectation of providing finalized RFP documents in early April 2024. Our team is happy to provide more details on the draft RFP documents to any interested participants.

The upcoming launch is likely just the beginning of a long-term trend as this Call for Power is expected to be only the first in a series of calls as BC Hydro continues to provide power to electrify British Columbia’s growing economy and meet the province’s climate goals.^[3]

British Columbia’s Updated 10-Year Capital Plan^[4]

British Columbia’s commitment to clean energy was also evidenced by the province’s recent announcement of an update to BC Hydro’s 10-year capital plan. The update involves an unprecedented level of construction represented by an increased commitment to almost $36 billion in community and regional infrastructure investments throughout the province.

The plan reflects a growing demand for electricity across the province and includes:

• new high-voltage transmission lines and supporting infrastructure from Prince George to Terrace to meet industrial customer demand;
• expanded substations and new equipment to support residential housing growth and transit electrification in high growth areas across the Lower Mainland and Vancouver Island; and
• upgrading British Columbia’s dams and generating facilities for safety and efficiency.

The bulk of this update is attributed to an increase in electrification and emissions-reduction infrastructure projects, which now totals nearly $10 billion.

Key Takeaways

The updates to the energy objectives under the Clean Energy Act, and BC Hydro’s upcoming Call for Power demonstrate that the province is committed to partnering with the private sector to meet its clean energy goals. British Columbia’s multi-pronged approach to meeting its clean energy goals will provide opportunities for companies that operate in the province to develop upcoming projects, work with First Nation partners, and to help the province meet its energy needs.

Stikeman Elliott’s Energy Group will continue to provide further updates on BC Hydro’s Call for Power, and has significant expertise and experience in assisting developers, investors, lenders and Indigenous communities in navigating provincial procurements processes and developing energy projects in British Columbia.

[1] Notice re Call for Power - 2024 Call for Power (bchydro.com).

[2] Notice re Call for Power - 2024 Call for Power (bchydro.com).

[3] News Release - Province updates act to prioritize affordability, clean energy | BC Gov News.

[4] News Release - Premier announces new actions to build electricity system, create jobs | BC Gov News.