A
California heat wave is exposing flaws in the BC government’s plan to import
more American solar power, says Laureen Whyte of Clean Energy BC (CEBC).
In a
media story published in June, BC Energy & Mines Minister, Bruce
Ralston said California produces a lot of solar power during the day. And
since it is often surplus to what is needed, it can be purchased at much lower
rates than what BC Hydro is obliged to pay B.C. producers under electricity
purchase agreements.
“It’s
very, very cheap because they produce so much of it,” Ralston said. “It’s clean
energy.”
“The
California power grid is on the verge of collapse,” said Whyte. “There have
been rolling blackouts since Friday and this week has been even worse.
California has also relied on access to import electricity from neighbouring
states if needed, but they are now in a shortage too. Is this the market
BC is supposed to rely upon for an ever-growing percentage of its electrical
supply?”
The
high temperatures have Californians cranking up their conditioners. Lightning
strikes have started wildfires that damage the state’s electrical
infrastructure. Experts agree that climate change is a significant cause of the
extreme weather and they expect climate-related disasters to become more severe
and more frequent over the near-term.
“If
US West Coast climate events get worse, that only increases the risk to British
Columbia that American electricity won’t be available when we need it,” said
Whyte.
Under
current legislation, BC Hydro is required to have enough power generation of
its own, or contracted, to meet provincial needs. The BC government introduced
a bill to end “self-sufficiency” in June, but withdrew it after
losing support of the opposition parties amidst protests from First
Nations, who are active investors and operators of independent power
production, and municipalities that benefit from IPPs. Bill 17 could, however,
be reintroduced in the future, a move Whyte says is not in the best interests
of ratepayers.
“Energy
security is just as important as buying at rock bottom prices,” she said.
“Cheap California solar is great until it’s not available because of a heatwave
or wildfires or transmission congestion. Then what do British Columbians do?”
The
government thinks Powerex, BC Hydro’s energy trading subsidiary, can buy excess
California solar for $25 to $40 a megawatt-hour. BC private power producers are
likely in the $50 range for new projects, with costs dropping rapidly.
“Not
only is BC-generated electricity secure and reliable, but British Columbians
have benefitted from almost $10 billion of IPP investment and many jobs in
communities where unemployment is high,” said Whyte. “As CleanBC is implemented,
that could mean tens of billions of investment and thousands of jobs building
and operating BC renewable energy projects.”
When
calculating the benefit of American solar imports, there is more to consider
than just the cost. Comparing slightly lower prices to energy security combined
with the economic benefits of BC power production, BC wins every time.
Regards,
Kamran
Shaikh
778-846-5406