BC Hydro Eyes 3300 GWh of Green Power

VANCOUVER, BC -- BC Hydro has pre-qualified 30 of the original 70 proposals received from Independent Power Producers (IPPs) as the next step in securing additional new green electricity through its 2002/03 Green Power Generation (GPG) procurement process. BC Hydro’s target for the 2002/03 GPG is to bring up to 800 gigawatt-hours per year (GWh/year) on line, although Hydro reserves the right to increase this cap.

"We were extremely pleased with the strong response received from the private sector and have a good variety of pre-qualified project types," said BC Hydro’s Senior Vice President of Distribution, Bev Van Ruyven. "BC Hydro is relying on the private sector to meet the future energy needs of our customers, and this response confirms they can do that. Green power generation projects will also help BC Hydro meet its clean energy commitments and stimulate economic growth and development."

Pre-qualified projects are predominately small hydroelectric, but woodwaste, biogas and a wind proposal were also pre-qualified. BC Hydro will now issue a Call for Tenders document to the pre-qualified bidders, who must submit their bid by August 29, 2003. To assist in this process, a bidders’ meeting will be held for proponents with pre-qualified projects on April 30, 2003.

Proponents will also be responsible for submitting an interconnection application to BC Hydro outlining their requirements for grid connection. The award of electricity purchase agreements to successful bidders will be made in late 2003. Projects are required to meet a commercial operation date of September 30, 2006.

"The competitive Call for Tenders process used in BC Hydro’s acquisition programs allows us to acquire electricity from the private sector on a least-cost basis and in accordance with our 5.5 cents per kWh long run marginal cost for electricity," concludes Van Ruyven. "Only the most competitive pre-qualified projects will be offered an electricity purchase agreement."

Bid prices from proponents will be adjusted, for comparison purposes, for several factors - including location, firmness of energy and transmission impacts - that represent the proposed project’s costs and benefits to Hydro. Adjusted bid prices will then be compared against the ceiling price of 5.5 cents per kWh (Hydro’s long run marginal cost). BC Hydro will then award electricity purchase agreements based on the ranked adjusted bid prices below the ceiling price, starting with the project with the lowest adjusted bid price until the 800 GWh/year energy cap for the 2002/03 GPG procurement process is reached.