On September 13, 2023, BC Hydro released the Phase 1 Engagement Summary Report ("Phase 1 Report") in the lead-up to its 2024 Call for Power ("Call"). As demand for clean energy continues to increase, BC Hydro anticipates that British Columbia will require additional renewable energy resources as early as 2028. For an overview of the Call, please read our prior bulletin "What to expect from BC Hydro's New Clean Power Call".

The first phase of the Call process ("Phase 1") entailed engagement with First Nations, industry, and stakeholders. Phase 1 occurred between June and August of 2023, and culminated in the release of the Phase 1 Report. This bulletin explores the highlights of that report.

What was the Phase 1 engagement process?

All of the First Nations in the province, independent power producers ("IPPs"), and stakeholders were invited to participate in a variety of engagement activities to learn about the Call and share feedback. There were information sessions, an input survey, focus groups, and First Nation meetings held between June and August of 2023.

What did BC Hydro say about the Call?

During the informational sessions, BC Hydro answered numerous questions regarding the Call. Select responses are summarized below.

  • Size of projects: BC Hydro is looking for about 3,000 GWh per year of energy. It is likely interested in a small number of larger projects, in part to maximize economies of scale.
  • Kinds of projects: BC Hydro is not seeking particular project technologies, as long as they are clean or renewable energy technologies such as geothermal heat, hydro, solar, or wind. BC Hydro predicts it will see wind and solar projects in the bid due to technology advancements and cost reductions.
  • Transmission upgrades: BC Hydro is seeking projects that require "no to modest" system upgrades.
  • Length of contract: BC Hydro is considering awarding contracts with terms of 20 to 25 years, but is open to potentially modifying that to longer terms.
  • Permitting: The BC Hydro Task Force is prioritizing looking into the speed of permitting in the next 12 months in order to have projects in service by Fall 2028.
  • Subsequent calls: BC Hydro anticipates there may be subsequent calls when it identifies electricity supply gaps.

What was the feedback?

First Nations

The topics that generated the most discussion and interest from First Nations included First Nations partnerships in projects, participation, and collaboration with BC Hydro; capacity and resource constraints; project development; and call parameters and process. A few highlights are explored below.

  • First Nations partnerships: Several First Nations supported a mandatory minimum ownership participation model, and a non-equity benefit option if a First Nation did not want equity ownership but still wished to participate. They also wanted to be advised as early as possible as to the minimum project size, so they can start to establish partnership arrangements.
  • Project size: First Nations were concerned that BC Hydro is only contemplating large projects. BC Hydro previously stated it was looking for projects up to 200 MW, and is considering a minimum project size between 30 and 50 MW. A suggestion was to allot a percentage of the 3,000 GWh/year for First Nations projects with a different minimum size.
  • Call timeline: First Nations raised concerns that the engagement process is too short, in part due to the tight permitting timeline. Like the minimum project size suggestion, a suggestion was to reserve a percentage of the 3,000 GWh/year for First Nations projects with a different timeline.

IPPs and Stakeholders

The topics that generated the most discussion and interest from IPPs and stakeholders were First Nations participation and engagement, project development, call process, bid pricing, and subsequent calls. Select topics are outlined below.

  • First Nations participation and engagement: IPPs and stakeholders emphasized that a streamlined project selection process is necessary to identify suitable partnership structures, and raised questions regarding First Nations' interest in shared First Nation territory.
  • Project size: Like First Nations, IPPs and stakeholders asked for the early clarification of project size, and expressed concern that smaller projects would not be accepted.
  • Call timeline: Many participants were concerned with the tight timeline for the Call. For example, some participants were worried by the length of time it takes to complete interconnections, transmission upgrades, and permitting.

What's next?

Phase 2 of engagement was to begin in September 2023, and will include a more in depth exploration of the call design. A variety of workshops are being held from September to November, and a brief written comment period will commence in early 2024 for the drafts of the key terms from the Request for Proposals and a draft term sheet. More information regarding next steps, including how to register for the workshops, can be found on the 2024 Call for Power website.

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