BC Hydro buying Campbell River natural gas plant to prevent province-wide power shortfalls
The Crown corporation will acquire the 275-megawatt Island Generation facility to ensure electricity reliability as demand from population growth and electrification surges.
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BC Hydro is purchasing the Island Generation natural gas-fired power plant in Campbell River to provide backup electricity during periods of high demand, the Crown corporation announced Wednesday.
The 275-megawatt facility—equivalent to 25 per cent of the recently completed John Horgan Dam and Generation Station—has supplied electricity to BC Hydro under a long-term purchase agreement since 2002. The acquisition will give BC Hydro permanent control of capacity it has relied on intermittently to maintain grid reliability.
Electricity demand is climbing across B.C. due to population growth, new housing, economic expansion, and accelerating adoption of electric building systems and battery-electric vehicles replacing fossil-fuel technologies. The province's electrical grid is facing increasing pressure from these combined trends.
Island Generation is not normally operated year-round. Over the past five years, it has generated electricity for an average of approximately 15 days annually, activated primarily when additional power was required during peak demand periods such as the coldest days of winter. Although located on the east side of Vancouver Island, BC Hydro says it can support the wider provincial grid when electricity demand reaches its highest.
Charlotte Mitha, president and CEO of BC Hydro, said the acquisition ensures the utility can meet its core mandate. "Our job is to ensure British Columbians have reliable, affordable electricity every day of the year, including during periods of exceptionally high demand," Mitha said in a statement. "Island Generation provides capacity that complements our hydroelectric system and the significant investments we are making in energy efficiency, renewable generation, battery storage and transmission infrastructure."
The purchase price was not disclosed. As HighOnCity reported in June, BC Hydro had extended gas plant operations to meet a power gap that has been widening for months. This acquisition represents a longer-term commitment to managing reliability during the transition to renewable energy sources.
When is the purchase expected to be finalized, and when will BC Hydro take full control?
What is the purchase price of the Island Generation facility?
We'll update this story as answers emerge.
The facts
What is BC Hydro buying and where is it located?
BC Hydro is acquiring the Island Generation natural gas-fired power plant, a 275-megawatt facility located in Campbell River on the east side of Vancouver Island.
How often has Island Generation operated over the past five years?
Island Generation has generated electricity for an average of approximately 15 days annually over the past five years, activated primarily during peak demand periods such as the coldest days of winter.
Why is BC Hydro making this purchase?
BC Hydro is acquiring Island Generation to provide permanent backup capacity and ensure grid reliability as electricity demand climbs due to population growth, new housing, economic expansion, and accelerating adoption of electric building systems and battery-electric vehicles.
