How Power is Acquired

aerial view of forest

About independent power projects

A major policy of the 2007 BC Energy Plan is to ensure self-sufficiency to meet electricity needs by 2016. Power provided by B.C. located projects developed by Independent Power Producers (IPPs) is a key part of that plan.

IPPs provide an efficient source of electricity through the development of power projects using fuel sources such as wind, water, geothermal, biomass and waste heat, among others, to produce electricity. IPPs include private companies that specialize in power production, municipalities, First Nations and customers, working alone or in partnership.

Why does BC Hydro purchase electricity from IPPs?
BC Hydro faces a gap between the amount of electricity that we can supply from existing resources, and the future demand from our growing population and economy. A variety of measures are required to ensure we have sufficient, reliable power for generations. This includes implementing aggressive conservation and efficiency initiatives, maintaining and expanding our Heritage Assets, investing in our distribution and transmission systems, and adding more supply to our system through long-term electricity purchase agreements with IPPs.

How does BC Hydro benefit?
IPPs can help us to meet our future energy challenges by developing innovative, sustainable solutions that will help B.C. maintain its natural, competitive advantage of  having a clean and renewable energy supply. The value to ratepayers is that BC Hydro gains long-term price certainty while shifting project development responsibilities and costs to the IPPs.

How does BC Hydro acquire electricity from IPPs?
BC Hydro acquires power from IPPs primarily through a competitive process. The amount of power acquired is based on the system need. The volume of power purchased from IPPs and the associated contracts are subject to regulatory review by the BC Utilities Commission.

BC Hydro’s initiatives for purchasing electricity from projects developed by independent power producers include:

  • contracting for the purchase of approximately 15,000 GWh/year of electricity from independent power producers to date,
  • a Clean Power Call with a target of 5,000 GWh/year of firm energy,
  • a two-phase Bioenergy Call (each phase being 1,000 GWh/year) for projects that generate electricity from under-utilized wood residues (such as wood infected by mountain pine beetle), and
  • a Standing Offer Program for projects sized at 10 MW or less.

For further information on the 2007 B.C. Energy Plan and independent power producers, see:

2007 BC Energy Plan: A choice of electricity options
2007 BC Energy Plan highlights
Independent Power Producers Association of BC (IPPBC)

In the Spotlight

IPP Supply Map (as of October 2008) [PDF, 2.1 Mb]

Last Modified: Dec 23, 2008