The Brookfield Plan - An Independent Electricity Procurement Entity
As part of the BCUC's hearing on BC Hydro's 2008 LTAP, Brookfield Renewable Power Inc. submitted a Letter of Comment to the BCUC regarding British Columbia's current electricity procurement process. The commentary is drafted in the context of the Clean Power Call and ultimately calls for an independent electricity procurment entity. For any proponent of renewable energy in the Province, the letter is definitely worth a read.
Brookfield has vast experience in developing renewable projects in North and South America so it speaks from a position of authority when it criticizes the apparent conflict of interest which exists in British Columbia with BC Hydro acting as buyer, developer and producer of energy and capacity.
The letter specifically identifies four areas of conflict of interest in the Clean Power Call's RFP document which could help shape BC Hydro's development efforts and make BC Hydro's project's appear better. These four areas are:
- Knowledge of IPP pricing in context of possible Site C development;
- Length of bid process resulting in higher bid prices;
- Non-standard risks: non-firm energy pricing and shortfall liquidated damages; and
- Subjective evaluation of proposals.
I believe that it is extremely beneficial to the Province's power industry when the experiences in other jurisdictions are brought to the attention of Government, BC Hydro, the BCUC and the public at large. So I commend Brookfield for filing the Letter of Comment with the BCUC. What will come of it, who knows? But it is better than not to have at least considered the issues.
March 20 Update: Here is a link to today's story in the Vancouver Sun on the Brookfield Plan, which includes some comments from Government.
March 24 Update: The Vancouver Sun's Energy Hotlines Blog, written by its energy reporter, Scott Simpson, has provided some further update on the March 20 news story. Here is the link to the blog post.
