ENERGY SECURITY FOR VANCOUVER ISLAND (2007) The economy and population of the British Columbia are growing rapidly. The provincial government, in its 2007 budget presentations, showed their projection of continued economic growth in the range of 3% per year for the next five years. The 2006 Census showed the population of Vancouver Island has increased in most every community with growth ranging from 4.1% in Campbell River to 9.2% in Parksville. Greater Victoria grew by 5.8%. This, combined with the increase in individual rates of energy usage, has required an increase in both the supply of energy to British Columbia as well as urgent attention to upgrading our province’s transmission infrastructure.
Vancouver Island is in a particularly precarious position as regards a reliable supply of energy to meet the Island’s demands. According to BC Hydro, the Island consumes 2,100 megawatts of power at any given time but has the capacity to produce only 690 megawatts. On-Island generation makes up only 30% of the peak load demand and need is projected to increase by close to 50% by 2025.
The majority of the Island’s energy is transmitted from the Mainland with undersea cables. It has been know for a number of years that the High Voltage Direct Current (HVDC) transmission lines linking the south part of the Island to the Mainland are reaching the end of their useful life, raising the threat of brownouts on the Island during peak demand periods. This situation, combined with significant residential development occurring on the central and southern Island means that BC Hydro must identify new dependable capacity to meet power demands. Illustrating the fact, BC Hydro has specifically stated in its Integrated Electricity Plans that “from now until the transmission solution is in service, Vancouver Island does not meet the planning reliability criterion.” In other words, energy security on Vancouver Island is in jeopardy.
The impact of such a statement on Vancouver Island is significant. It is of particular concern to the business community that the situation on the Island could dissuade business projects from locating on Vancouver Island, hamper the growth of present on-Island business, or lead to business relocation. While it is not possible to know all the potential business and residential demands that the Island may or may not attract on the point of energy reliability, it is important to note a number of items that are currently under discussion with a probability of coming to fruition. These projects will put increased pressure on energy supply.
• The large residential development at Bamberton in the Cowichan Valley, introducing 5,000 new residential properties, approximately 12,000 people;
• The continued growth of the high tech sector on the Island at approximately 20% per year;
• Introduction of light rapid transit in Greater Victoria; and
• Introduction of a sewage treatment facility in the Capital Regional District.
Each of these major projects, along with continued residential growth, will widen the resource gap on the Island.
BC Hydro and the British Columbia Transmission Corporation have a plan in place, approved by the BC Utilities Commission, to ensure adequate energy is transmitted from the Mainland to Vancouver Island. Yet, the decision regarding power to the Island via overhead lines was challenged in a court process instigated by concerned resident groups. Though that particular challenge was not approved by the Court, the risk of similar challenges with other proposed energy solutions is a distinct possibility.
In addition to increased energy transmission to the Island, The Chamber supports increasing the capacity to generate energy from on-Island sources. The Island has potential for clean energy sources from wind and tidal generation, and some potential for run of river sources. Cleaner energy sources, however, tend to be generated in locations geographically removed from the existing grid and tend to be intermittent in nature. Increasing our percentage of on-Island energy self-sufficiency will require further expansion to the grid system to transmit the energy to high demand locations and re-enforcement of the transmission lines to the western and northern portions of the Island.
At current rates, on-Island demand will continue to outstrip growth of on-Island generation capacity to the point where generation levels, including the future supply of the recently awarded biomass plant in Gold River, will decrease our on-Island production from 30% to approximately 25% of demand by 2025. Given the aforementioned projected growth demands, it is imperative that Vancouver Island increase its on-Island generation capacity.
Until increased energy generation and secured transmission capacity have been accomplished, the reliability of power on Vancouver Island is not confirmed. Establishing new sources of energy production, building transmission lines, and redirecting energy flow may be a contentious issue in any number of communities. However, it is unavoidable that power lines of one sort or another need to go somewhere. The economic stability and quality of life of Island residents relies upon a smooth and immediate build out process and uninterrupted power supply.
THE CHAMBER RECOMMENDS
That the provincial government:
1. ensure contingency plans are in place in the event that proposed planned upgrades are delayed or cancelled;
2. develop excess transmission capacity to ensure that, in the event of failure of one transmission route, Island power is maintained; and
3. maintain Island power generation at a minimum of 30% of peak demand.
