BC Government Direction on Burrard Thermal & Clean Power Call Update

Yesterday, the British Columbia government clarified to the BC Utilities Commission its intention to end BC Hydro's reliance on the Burrard Thermal Generating Facility for its energy needs. See the attached press release.

Here is the Order-in-Council (Special Direction No. 2).

Oct 30 Update: Here is the Vancouver Sun's story on the matter.

The announcement states that effective immediately Burrard Thermal will no longer be used for planning purposes for firm energy. It will only be used for up to 900 megawatts of emergency capacity.
 
The Minister of Energy, Mines and Petroleum Resources Minister also stated that “in providing this direction, BC Hydro will replace the firm energy supply from Burrard Thermal with clean, renewable and cost-effective energy”. [Read: Clean Power Call and future power calls]
 
The government also re-affirmed its commitment to clean and renewable energy as a cornerstone to the Province's climate action plan that will propel the green economy. Electricity self-sufficiency and clean and renewable power generation are integral components to the Province's effort to reduce its carbon footprint and fight global warming.
 
Key in all of this to the renewable energy industry is that the government's decision on Burrard Thermal will allow BC Hydro to acquire 6,000 GWh of cost-effective, clean and renewable power. This will include up to 5,000 GWh from the Clean Power Call and up to 1,000 GWh from the Phase 2 Bioenergy Call for Power.
 
This is some much needed clarity and good news from the BC government to the clean energy sector.  And just in time for next week's annual IPPBC Conference where the Premier and Minister Lekstrom are both scheduled to speak.  Based on this annoucement, there should be plenty to talk about.  I'll be there and will provide my report on Megawtt.
 
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Wait a minute....is Burrard Thermal back in play?

That is a big question coming out the cross-examination of BC Hydro at the BCUC hearings into BC Hydro's 2008 LTAP. 

If you followed the hearings, by attending or, like me, you read the daily transcripts (see bottom of the BCUC webpage), you would have enjoyed a unique look inside some of the complex decision making that goes into planning BC's future electricity requirements.  And you would have also learned of a somewhat curious, but often-visited topic of discussion, one which could have a dramatic impact on the future of power generation in the Province and the air-quality in the Lower Mainland - Burrard Thermal.

Burrard Thermal, the outdated, inefficient and costly natural gas generation facility located in Port Moody, BC, was a popular topic for BC Hydro's panellists during the cross-examination. Some of the intervenors appeared to want the BCUC to consider whether BC Hydro should fire up Old Wheezy to its full generating capacity of 6,000 GW/h per year or more.  BC Hydro responded generally on maintaining the status quo, the significant costs to upgrade, and the possible loss of its social license to operate the facility.

The upgrade controversy lies in the facility itself. Burrard Thermal, has, for the past few years, been maintained by BC Hydro to operate as an "insurance policy", to be used only in peak demand periods, such as the recent cold snap in Vancouver in December 2008.  While capable of generating 950 MW of power, Burrard Thermal, when operating, produces significant greenhouse gas emissions (although not as much as it once did).  These pollutants, because of its urban location, are then spread throughout the Lower Mainland. It would cost hundreds of millions to upgrade the aging facility to full generating capacity. The good news is that BC Hydro has scheduled Burrard Thermal for retirement as a firm energy supplier by 2014. This is supported by the Government's BC Energy Plan.  Fine. She was a good facility, reliable in her day, provided lots of jobs over the years, but soon it will be time for BC Hydro to her to go, to be replaced by some young upstart, modern, efficient and clean renewable power generating facility.  That's called modernization of your grid and, given the availability of green power alternatives today, it just makes sense.

So, Burrard Thermal generating at full capacity? Like Bobby Orr in a Blackhawk uniform, or Michael Jordan on the White Sox, some things just should not happen.