Independent power projects
Renewing agreements for independent power projects
We have a history of purchasing power from independent power producers (IPPs). IPPs develop and operate projects such as wind, water and biomass and can include power production companies, municipalities, and Indigenous Nations.
As proposed in our 2021 Integrated Resource Plan (IRP), we're developing an electricity purchase agreement (EPA) renewal program for IPPs who have EPAs for clean or renewable projects set to expire before April 1, 2026. These projects will be offered EPA renewals at market-based prices.
Electricity purchase agreement renewals
Since February 2022, we have been engaging with IPPs and Indigenous Nations regarding the development of an EPA renewal program which was identified in the IRP. The relevant engagement information for the renewal program is contained in the documents listed below.
- Information session #1 presentation – February 16, 2022 [PDF, 358 KB]
- Draft term sheet – February 16, 2022 [PDF, 198 KB]
- Information session #2 presentation – July 19, 2022 [PDF, 280 KB]
- Final draft term sheet – July 2022 [PDF, 180 KB]
If you have questions regarding the EPA renewal program, you can email us.
Frequently asked questions: EPA renewals
While BC Hydro expects to have sufficient energy and capacity until the early 2030s, there is a potential benefit to BC Hydro if these facilities continue to be available for a situation in which their generation is required to meet domestic need.
Renewing these agreements now, even for shorter-term periods, provides us with greater certainty that these IPP facilities will continue to be available when needed to displace new greenfield supply.
In order to maintain flexibility for the future and to limit cost-risk to ratepayers we have chosen to offer market-based pricing agreements to the IPP holders of all 19 clean or renewable electricity purchase agreements expiring in the next five years.
There are 19 EPAs for clean or renewable projects that are set to expire before April 2026.
The 19 clean/renewable projects range in size from 0.2 MW to 50 MW in nameplate capacity, and total over 200 MW in nameplate capacity and over 900 GWh annual generation. The projects are comprised of 16 run-of-river projects, one storage hydro and two biogas.
The Island Generation and SEEGEN EPAs are also expiring. As these projects are not from 100% clean or renewable resources, the potential renewal of their EPAs will be managed through separate processes.
Renewing EPAs expiring in the next five-years is a Near-Term Action in the 2021 IRP. Near-Term Actions are those actions BC Hydro is taking over the next five years to the implement the Base Resource Plan as set out in the IRP.