Canadian utility devoting $36 billion to ‘unprecedented’ grid plan

The British Columbia Hydro and Power Authority (BC Hydro) has released its 10-year capital plan, which it says will lead to an “unprecedented” level of construction to build new transmission, build or upgrade substations, and add renewable generation.

BC Hydro’s updated 10-year capital plan includes almost $36 billion in community and regional infrastructure investments throughout the province between 2024-25 and 2033-34.

This represents an increase of 50% over BC Hydro’s previous capital plan ($24 billion), and includes an increase in electrification and emissions-reduction infrastructure projects (nearly $10 billion, up from $1 billion).

The 10-Year capital plan for 2024-25 to 2033-34, Power Pathway: Building BC’s energy future, includes nearly $10 billion for infrastructure to support electrification and greenhouse gas reduction, more than $5 billion to address load growth and increased customer connections, and $21 billion to sustain existing capital assets, dam safety, and reliability, for a total of $36 billion over 10 years (net of contributions in aid of construction, such as customer payments under tariffs). This is an increase of about 50% from last year’s capital plan that included $24.1 billion in investments.

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The plan responds to an increase in demand for power to support accelerated electrification and population growth as identified in BC Hydro’s updated integrated resource plan, which is currently under review by the B.C. Utilities Commission.

BC Hydro said it expects electricity demand to increase by 15% or more by 2030, caused by growing demand for electricity across sectors due to population growth and housing construction, increased industrial development, and people and businesses switching from fossil fuels to clean electricity, among other factors.

Actions in the plan include building new high-voltage transmission lines and supporting infrastructure from Prince George to Terrace to meet industrial customer demand in the north coast area, including in the mining sector; building or expanding substations and installing new equipment to support residential housing growth and transit electrification in high-growth areas across the Lower Mainland and Vancouver Island; and upgrading B.C.’s dams and generating facilities.

With a goal of acquiring new clean electricity generation like wind and solar, B.C. Hydro said it is well positioned to add additional intermittent renewables to the grid as its integrated system of hydro-electric dams acts as batteries. The reservoirs store water and allow BC Hydro to ramp production up or down quickly, providing a backup for when the sun isn’t shining or the wind isn’t blowing.

In addition to the 10-year capital plan, B.C. Premier David Eby announced that the Province and BC Hydro are implementing a new streamlined approval process to speed up approvals to get electricity to in-demand industries faster.

The process will result in the Climate Action Secretariat and BC Hydro managing streamlined approvals for industrial electrification projects between the CleanBC Industry Fund and BC Hydro’s Large Customer Low Carbon Electrification programs. Transitioning to a one-window process is meant to speed up approvals, increase efficiency, and deliver more funding certainty for proponents.

Both the Clean Industry Fund (CIF) administered by the Climate Action Secretariat and BC Hydro’s Large Customer Low Carbon Electrification (LCE) programs support the development, trial, and deployment of projects that reduce greenhouse gas emissions from large industrial operations.

Proponents are often looking to leverage both CIF and LCE funding to move these projects forward. However, B.C. Hydro said currently it is complicated to apply for both programs, resulting in delayed project investments and timelines.

Now, proponents will be able to apply for both programs through a new single process that includes:

• Streamlined, one-window project application into CIF and LCE, including funding for implementation projects, as well as BC Hydro interconnection studies;
• Joint project evaluation process and development of a joint project review committee meant to move approvals forward more quickly;
• Integrated project timelines and payment schedules, including joint funding agreements;
• Integrated reporting, measurement, and verification requirements and processes; and
• CIF alignment with BC Hydro’s continuous project intake cycle.

Originally published on power-grid.com