(photo Pok Rie, Pexels.com)
By Henry Sielmann, First Things First Okanagan
You may have read recent news about BC Hydro buying 25% of its electricity over the last 12 months at a cost of nearly $1.4 billion. This story was published by the Energy Futures Institute and its governing body Resource Works which promotes natural resources development.
What Energy Futures did not share with its followers is that from 2018-2022, BC Hydro has been a net exporter of electric energy every year. In 2023/24 the utility exported a significant amount of electric power but imports did exceeded exports due to unusually dry weather conditions. By totally ignoring BC Hydro’s exports, Energy Futures told you only half the story.
Let’s considering some other important facts:
BC Hydro benefits from actively trading energy through its subsidiary Powerex. It imports and export power to utilities in western US states and Alberta.
The prime reason BC Hydro imports electric energy is not a lack of production capacity at its dams (except during periods of prolonged and severe drought), but because of their ability to preserve water in the reservoirs when it is cheaper to buy from their trading partners.
Installed hydro power generation capacity of all dams combined is over 40% higher than the highest peak demand on record (11,300 MW during the cold spell early in 2024 that damaged many fruit trees and grape vines in our region).
Powerex procures energy in the US primarily from clean energy producers such as surplus solar energy generated in California, often at steep discounts.
Powerex exports on the average 6 times more energy to Alberta than it imports. Most of the energy produced in Alberta is fossil-fuel based.
Imports are constantly adjusted to take advantage of cheap clean energy at a time of strong solar and wind production; this allows BC Hydro to throttle the use of hydro power and keep water in its reservoirs.
Exports to Alberta and the US combined usually exceed imports on an annual basis and peak during the night and during periods of extreme cold when solar and wind production do not satisfy Powerex’s out-of-province clients’ needs.
In April 2024, BC Hydro launched a call for power to acquire approximately 3,000 gigawatt hours per year (GWh/y) of clean electricity. In response, BC Hydro received proposals for three times more energy than it was targeting. Of the proposals received, approximately 70% are wind projects, 20% are solar and 10% include biomass and hydro.
B.C. is well positioned to add more intermittent renewables, such as wind and solar, to the electricity grid as its system of hydroelectric dams act as batteries. The reservoirs store water and allow BC Hydro to ramp production up or down almost instantly, providing a reliable backup when the sun isn’t shining or the wind isn’t blowing.
The new hydro generating dam at Site C on the Peace River will have a total capacity of 1,100 MW, a 6% increase of currently installed capacity. See latest updates.
In summary, BC Hydro is well positioned to provide electric energy to its customers, actively exchanging power with a network of partners in response to market and weather conditons.
In summary, BC Hydro is well positioned to provide electric energy to its customers, actively exchanging power with a network of partners in response to market and weather conditions.
See https://www.bchydro.com/energy-in-bc/operations/power-trading-and-its-benefits-to-b-c--.html to understand how BC Hydro performs energy trading.
Comments