Customer-Based Generators Announced in Canada

BC Hydro has announced the successful bidders and their projects for its 2002 Customer-Based Generation (CBG) procurement program.

Vancouver, British Columbia – April 22, 2003 [] When these projects achieve commercial operation – by September 30, 2006 – they will provide a total of approximately 500 GWh per year of new electricity to the company’s system. “Once again, the private sector has shown that it will be able to help meet our customers’ growing needs through competitively priced electricity,” said Bev Van Ruyven, BC Hydro’s senior vice-president, Distribution. “Through the CBG program, customers with successful projects will acquire an incremental revenue stream while making use of existing infrastructure to generate electricity. Hydro benefits by acquiring that electricity on a least-cost basis and in accordance with our 5.5 cents per kWh long-run marginal cost for electricity.” The 2002 CBG program was launched with a Request for Qualifications on May 31, 2002. Project submissions were evaluated against publicly disclosed mandatory requirements, and pre-qualified projects were then invited to tender bids in a competitive Call for Tenders process. Bids were adjusted, for comparison purposes, to reflect several factors, including location, emissions and transmission impacts. The adjusted bids for the successful projects did not exceed 5.5 cents per kWh – Hydro’s long-run marginal cost for electricity. All 22 of the projects that were originally chosen for review as part of the CBG program were invited to submit final bids. Of that total, seven chose to do so, with the others deciding on their own not to participate further. Of the seven that did submit bids, five were successful. Van Ruyven added that while the original target for the CBG program was 800 GWh per year, the overwhelming response to the current Green Power Generation (GPG) call means that the CBG shortfall can be more than made up for by energy acquired from independent power producers (IPPs) participating in the GPG call. “Our private sector resource acquisition process is designed to provide flexibility when it comes to how we meet our targets,” she said. “It allows us to increase the 800 GWh “cap” from the Green IPP call to accommodate even more of those projects. Together, CBG and Green IPPs will provide the 1600 GWh year we are targeting from the private sector, and perhaps even more. We may increase the cap further depending on the final number of approved projects and our customers’ energy needs.” The successful projects represent three energy resources: wood residue, hydropower and municipal solid waste. The projects will be developed by the bidders – either industrial customers or independent power producers associated with customers – on or near the customers’ sites. The projects are: the wood residue Armstrong Wood Waste Cogeneration Plant by RFP Power Ltd., which will produce 122.6 GWh per year; Eurocan Power Project by West Fraser Mills Ltd., also wood residue, expected to provide 160 GWh per year; Powell River Energy’s Lois Unit 1 Upgrade hydropower facility, with an output of 10.4 GWh per year; Long Lake Project by Premier Power Corp., also hydropower with 83.2 GWh of power and Montenay’s SEEGEN Municipal Solid Waste Project, expected to provide 125 GWh.
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