British Columbia to Call for New Power Projects as Electrification Strains Grid

WINNIPEG, Manitoba, June 15 (Reuters) – British Columbia (B.C.) will issue its first call in 15 years for large new electricity-generating projects, as motorists switch to electric vehicles and industry adopts low-emissions power.

The government-owned BC Hydro utility said on Thursday it will formally launch a competitive process for utility-scale projects next spring and aim to have new sources of electricity by 2028. It is seeking renewable projects only, such as wind and solar.

The move illustrates the expected strains on the power grid due to the electrification of cars and buildings as Canada strives to reduce greenhouse gas emissions from burning fossil fuels. Prime Minister Justin Trudeau’s Canadian government is drafting regulations to make the national grid net-zero of emissions by 2035, while expanding capacity.

Electricity demand in B.C. looks to increase by 15% by 2030, BC Hydro said in a statement, citing economic and population growth and a rapid increase in the number of electric vehicles on the road. BC Hydro did not say how much power capacity it wanted to add.

The province already generates much of its electricity from renewable sources such as hydro-electric power.

The decision to seek new power projects comes after B.C. in March toughened emissions standards for new liquefied natural gas (LNG) export terminals, which typically burn natural gas to power turbines.

LNG Canada, which will be Canada’s first LNG export terminal when it opens in the mid-2020s and is not affected by those standards, is considering sanctioning a second phase, but B.C.’s electricity constraints mean it would continue to burn gas, instead of clean power.