The Strathcona Standard

By Grant Warkentin

Provincial energy Minister Adrian Dix was in Campbell River today to formally announce the purchase of the natural gas power plant north of town.

“We felt this was a good time and an important time to maintain this for BC Hydro,” he said. “It allows us to build more renewable resources, to maintain it because it gives more security to Vancouver Island, to maintain it because it strengthens BC Hydro, and it strengthens British Columbia.

“It’s better to build out clean electricity and to ensure that resources like Island Generation stay in BC and support the system in BC.”

Dix, along with Ajay Kumar, BC Hydro’s senior vice-president of integrated planning, and Campbell River Mayor Kermit Dahl, made the announcement this morning (August 5) in front of the John Hart substation. The Strathcona Standard reported this spring that BC Hydro was seeking to purchase the plant, owned by Capital Power, in order to meet expected demands this coming winter. Today’s announcement formalized what’s been expected since late May.

“BC Hydro continues to explore viable new capacity resources that are capable of reliably providing capacity during two-week cold spells in the winter when we encounter our peak demand,” says the utility’s May 28 filing with the BC Utilities Commission. “The resources we are exploring include large storage hydro (including long duration pump storage), geothermal, and natural gas peaking plants that would operate only for capacity as a cost-effective means of backing up the clean energy from intermittent resources such as wind while limiting greenhouse gas emissions.”

Campbell River’s facility is one of those “peaking” plants. The cost for BC Hydro to buy the plant from Edmonton-based Capital Power remains confidential, and will be made public in fall sometime after the Legislature resumes.

Minister promises buildout ‘like the 1960s’

Dix said BC Hydro’s electricity grid is already 98% based on “ clean” energy – sourced from hydro dams, solar, and wind power – and the remaining 2%, including Campbell River’s natural gas power plant, will help maintain the grid while it expands to meet the needs of BC’s growing population.

“Having those continue to support the system allows us to spend our resources on what we need to do, which is more clean electricity across our province to build our province,” he said.

Dix pointed to 1962, when BC Hydro was created by the provincial government to manage BC’s electricity grid. Creating the Crown corporation made it easier to build large power projects which provided abundant energy for decades, but demand in BC has once again outpaced supply.

“Over 60 years later, a lot of that infrastructure needs to be renewed,” he said. “We have to build because BC is growing.

“We can’t be resting on our laurels, and that’s why we’re going to see a period in the next 10 years like the 1960s, where we use BC Hydro to build the economy of the province.”

Plant will help prepare for future needs

The province says recent load forecasts show British Columbia will require additional capacity sooner than previously anticipated, driven by population growth, electrification, and expanding industrial development.

“Island Generation will provide BC Hydro with a dependable and cost-effective source of capacity that can support the grid when demand is highest, like the coldest days of the year, while helping ensure reliability for homes, businesses and communities throughout the province,” says a statement announcing the purchase of the Campbell River power plant.

The plant is capable of generating up to 275 megawatts of power on demand, and supports 15 local full-time jobs.

Mayor Kermit Dahl said the investment will generate long-term benefits for Campbell River.

“The Island Generation facility plays a critical role in supporting energy reliability during peak demand and emergencies, while helping create the certainty needed for future industrial investment,” he said. “We support the continued expansion of clean and renewable energy alongside practical, dependable capacity that helps keep communities, businesses and critical services safe and supported as Vancouver Island’s energy system evolves.”

Dix pointed out there are 14 new clean energy projects in the pipeline, mostly wind and solar, and a 100 megawatt battery project being built near Duncan will help meet BC’s power needs while the new projects come online.

Featured image: Energy Minister Adrian Dix (left) shakes Campbell River Mayor Kermit Dahl’s hand while BC Hydro VP Ajay Kumar looks on. The trio formally announced on August 5 that BC Hydro will purchase the Island Generation natural gas power plant in Campbell River. Photo by Grant Warkentin