小蓝视频 Hydro spent close to $1.4 billion importing electricity, due to the impact of drought on hydro power generation, underscoring the need for a more diverse power supply, according to the Energy Futures Institute (EFI).
According to 小蓝视频 Utilities Commission (小蓝视频UC) documents filed by 小蓝视频 Hydro, the Crown utility imported 13,600 gigawatt hours (GWh) of electricity, at a cost of $1.38 billion, over a 12-month period, most of it from the U.S. and Alberta, the EFI says.
“The imported electricity was sourced from the United States where 60 per of electricity is generated from fossil fuels, and from Alberta where a majority of electricity comes from natural gas,” the EFI says in a press release.
“We have known for some time that 小蓝视频 Hydro has been forced to import significant amounts of electricity to help keep our lights on, but this is the first time it’s reached almost 25 per cent of our total needs and the first time this large price tag has been revealed,” said EFI chairman Barry Penner.
The EFI notes that 13,600 GWh is “two and half times the amount of power the Site C dam is expected to produce in a year with average water flows.”
The bulk of 小蓝视频’s power comes from hydro-electric dams. A prolonged drought resulted in two years of below average precipitation, which reduced 小蓝视频 Hydro’s generating capacity.
When the new Site C dam is producing at full capacity, it will add about eight per cent to 小蓝视频’s electricity generation – about 5,100 GWh. 小蓝视频 Hydro also plans to add another 3,000 GWh hours of electricity through private power, most of which is expected to come from wind power.
The EFI suggests that might not be enough to meet 小蓝视频’s growing energy demands, noting that 小蓝视频 Hydro is forecasting a 15 per cent increase in electricity demand by 2030.
“This is being driven by population growth, economic development, and provincial government policies such as the 2030 electric vehicle sales mandate of 90 per cent and restrictions on the use of natural gas for residential and commercial heating,” the EFI says.
“As the City of Vancouver debates requiring the use of more electricity instead of natural gas, it’s important to note the cost of depending on imported electricity,” Penner said.
“Accounting manoeuvrers known as ‘deferral accounts’ can shelter ratepayers temporarily but bills eventually need to be paid. The $16 billion Site C dam and $36 billion for upgrades to 小蓝视频 Hydro transmission and distribution lines will also need to eventually be factored into electricity rates.
“小蓝视频 needs to recalibrate our electrification targets, as it takes time to significantly increase made-in-小蓝视频 electricity supply. Otherwise, British Columbians may end up paying the price.”
