Generation Opportunities, Results and Challenges

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Generation Opportunities, Results and Challenges
Al Boldt Manager, Energy Acquisition April 25,
2003
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BC Hydro Profile

• 3rd Largest Electrical Utility in Canada
• 2002 48,000 GWh
• 90 of generation from 30 hydro installations
• 10 from non hydro resources
• 2012 58,000 GWh

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BC Hydro Energy Acquisition 2002 - 2012
Meets 50 clean target as indicated by the
Energy Policy
Power Smart 3,500 GWh
Vancouver Island Generating Plant 2,100 GWh
IPP Opportunities 3,300 GWh
Resource Smart 1,100 GWh
Totaling 10,000 GWh to meet load growth over 10
years
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BC Hydro Energy Acquisition 2002 - 2012
IPP Opportunities 3,300 GWh

• Customer Based Generation 800 GWh
• Green and Alternate Energy 1,500 GWh
• Future Calls 1,000 GWh

Totaling 10,000 GWh to meet load growth over 10
years
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IPP Energy Call Process

• Scheduled calls for energy - next call spring
  2004
• Open and transparent process
• Request for Qualifications (RFQ)
• Call for Tender (CFT)
• Standard market-based contract terms
• Ceiling price reflects forecast long-term prices

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2002 Customer Based Generation Call (CBG)

• Target of 800 GWh per year
• 37 projects representing 6,800 GWh per year
• 10-20 year purchase agreements
• Ceiling price of 55/MWh
• Short list of 22 representing 3,100 GWh per year
• Tenders received March 14, 2003

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2002 Customer Based Generation Call Results
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2002 Customer Based Generation Call Results
Armstrong Wood Waste Wood Residue Eurocan Power
Project Wood Residue Lois Unit 1
Upgrade Hydro Long Lake Project Hydro SEEGEN
Project Municipal Solid Waste
A total of 500 GWh per year of energy
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2001 Green Energy Call Results

• First Green Energy Call in 2001 Results
• 22 Energy Purchase Agreements signed
• 930 GWh/year
• Average Price 52/MWh
• Expected In-service by 2004/2005

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Hystad - Small Hydro IPP

• Hystad-run-of-river small hydro IPP
• Located near Valemont
• 4 MW installed capacity, GWh/year
• In-service Spring 2002

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2002 Green Energy Call Status

• Second Green Energy - now in progress
• 800 GWh/year target
• Price and terms consistent with previous call
• 70 projects submitted
• 30 Projects short-listed
• 3,300 GWh/year represented on the short list

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2002 Green Energy Call Schedule

• Bidders Workshop April 30th
• Bids due August 29th
• Contract signing Fall 2003
• In-service date September 2006

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Green Power Generation Call Shortlist Summary
Total of 30 projects short-listed
Hydro (24)
Biomass (4)
Biogas (1)
Wind (1)
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Green Power Generation Call Shortlist Summary
Ainsworth Lumber Co. Ltd. Biomass Princeton
Energy Hydro Ledcor Power Inc. Hydro Global
Cognix Ind Hydro Regional Power
Inc. Hydro Cogenix Power Corp Hydro Greenbelt
Renewable Energy Inc. Biomass Cloudworks Energy
LP Hydro Princeton Energy Hydro Lytton Lumber
Ltd Biomass Boston Bar Limited Partnership Hydro M
axim Power (BC) Inc. Biogas Brilliant Expansion
Power Corp Hydro Plenk and Associates Hydro Hupaca
sath First Nation Hydro Greater Nanaimo
Water Hydro Synex Energy Resources Limited Hydro
District Enterprise Creek Power
Partnership Hydro Stothert Power Corp Wind Coast
Mountain Hydro Corp Hydro Larson Farms Inc. Hydro
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Shortlist Summary (Continued)
Northland Power Inc. Biomass Ryan River Joint
Venture Hydro South East Kelowna Irrigation
Hydro District Advanced Energy
Systems Hydro Interpac Resouces Hydro Ucona
River Joint Venture Hydro Pacific Power Rim
Corp Hydro
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IPP Opportunities

• Majority of new generation to be developed by
  IPPs
• Large Number of energy producing alternatives
  available
• Small Hydro Wind
• Wave/Tidal Solar
• Biomass Photovoltaic
• Geothermal

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Challenges

• Consistent determination and application of
  contract terms
• Expedited review process
• Streamlined Energy Purchase Agreement
• Streamlined costs and time for interconnections
• Conduct an all source or vanilla call for energy