Transcript No Slide Title

BC Hydro Power Smart Presentation
Standing Senate Committee on Energy,
the Environment and Natural
Resources
“Kyoto Implementation”
Ted Ferguson
BC Hydro
June 14th, 2003
BC Hydro Profile
 3rd largest electric
utility in Canada
 1.6 million
customers
 52,000 GWh in
2002
 94% hydro
 5% natural gas
 ~20% growth in
demand expected
over next 10 years
 Annual emissions
1~3 Mt (potential
for 5Mt/yr during
Kyoto)
 Significant trade
with US
Our Long Term Goal
To be the leading sustainable
energy company in North America
sustainability
We manage three bottom lines:
economic, social and environmental
Greenhouse Gas Emissions:
1990-2010
10
9
Forecast
8
Emissions
if no action
taken
7
6
5
4
3
Actual
emissions
2
1
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
0
1990
Mt
Greenhouse Gas Intensity
1000
900
800
700
600
500
400
300
200
100
0
BC Hydro
2002
2010
Canada
USA
Alberta
Climate Change Initiatives
 Power Smart: helping our customers save
 Resource Smart: getting more energy out
of existing facilities
 Cleaner energy: acquiring GHG-free or low
GHG-intensity energy from private
producers
 All 3 initiatives defer the need for new
thermal generation in BC and avoid
GHG and local air emissions
Emission Reduction: Power Smart
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Initiated in 1989
Targeted all customers with info and incentives
Spent $350 million over 10 years
Energy savings to date worth ~$1 billion
Current savings = 2,600 GWh per year
 5% reduction in domestic consumption
GHG reductions = 1.2 million tonnes per year
Renewed in 2001
Plan to spend $600 million over next 10 years
By 2010, targeting additional:
 3,500 GWh per year of energy savings
 5% reduction in domestic consumption
 1.3 million tonnes per year of GHG reductions
Most aggressive program in Canada
Customers: Power Smart
 Power Smart renewed in 2001
 The business climate today supports doing more
rather than less Demand Side Management programs.
 It is an important piece of the resource acquisition
strategy for BC Hydro
 We have set aggressive targets
 3,500 GWh per year of energy savings
 35% of energy required to meet load growth in next 10
years
 applications for incentives representing 500 GWh
made by customers in response to competitive calls
 Plan to invest $600 million over 10 years
 It makes business sense
 It delivers value to our customers
Power Smart - Industrial Incentive
Examples
Norske - Debarker
Incentive Request
 Amount Approved: $500,000
 Estimated Energy Savings:
10 GWh
 Estimated Install Cost: $1.3M
Project Details
 Woodroom mechanical barker
installation
Levelized Cost
 0.72 cents per kWh
Highland Valley Copper
Incentive Request
 Amount Approved:
$882,000
 Estimated Energy Savings:
20 GWh
 Estimated Install Cost: $2.9M
Project Details
 Extend 42 inch reclaim water
pipeline
Levelized Cost
 0.65 cents per kWh
Power Smart - Industrial Customers
 Load Displacement Example
Weyerhaeuser
Incentive Request
 Amount Approved: $18M
 Estimated Energy Savings:
155 GWh
 Estimated Install Cost: $28M
Project Details
 hog fueled turbogenerator
Levelized Cost
 1.5 cents per kWh
Power Smart - Customers
 LED traffic lights
 90% energy savings
 41 GWh per year from 3,500 traffic
lights
 BC Hydro pays 100% of
replacement cost, with
municipality repaying 50% over 5
years from savings
 95% of intersections Provincewide are scheduled for
replacement
 City of Vancouver savings:
 7 GWh per year
 $250k electricity costs
 $110k maintenance costs
Power Smart - Residential
 Vancouver Island Compact Fluorescent Light
(CFL) program
 In the Greater Victoria area, 55% (over
60,000) of residential households
participated in the CFL program over a 2
month period
 results: over 126,000 CFLs distributed
Power Smart Examples
e.Points
 earned by customers
improving their energy
efficiency by 5% or
more
 can be redeemed for
further Power Smart
improvements, thereby
generating additional
savings
Suppliers: Current Energy Calls
 We expect to meet the voluntary 50% clean energy target
 Demand growth net of Power Smart is estimated at
6500 GWh per year by 2012
 Clean energy target is 3250 GWh per year by 2012
 We expect to meet the target through a combination of:
 980 GWh/year from 2001 Green call to Independent
Power Producers
 800 GWh/year from 2002 Customer Based Generation
call
 800 GWh/year from 2002 Green call to Independent
Power Producers
 1200 GWh/year through Resource Smart efficiency
improvements at existing BC Hydro facilities
Adjustments to Bid Prices for
Green Power: for ranking purposes only
Premium paid to reflect positive environmental and social attributes
of project.
Green
Bid
Price
($ / MWh)
Natural
Resource
Variability
GHG
Offsets
Location
Also reflects BC Hydro’s commitment to satisfy 50% of load growth
with Clean Energy with any surpluses being available to sell as a
premium product in the domestic or export markets (Green Power
Certificates).
Adjustment to reflect differing values of acquired energy to BC
Hydro from a planning perspective: dispatchable, firm or non-firm
At IPP’s option, provides relief from liquidated damages associated
with non-delivery due to natural resource variability (e.g. hydrology,
wind).
Premium paid to reflect the net reduction in GHG emissions per
unit of energy produced and sold to BC Hydro - an effective means
of mitigating BC Hydro’s future GHG liabilities.
Three separate adjustments provided in the ‘Generator
Interconnection Preliminary Study’ to reflect the point of delivery of
the contracted energy relative to the load centres, and the
associated:
1. Transmission capacity impacts / constraints,
2. Line losses, and
3. Impact of interconnection costs borne by BC Hydro.
Adjusted
Bid
Price
($ / MWh)
(for bid
comparison
only)
Emissions Trading
 BC Hydro expects to be a buyer in a
Kyoto framework
 Trading system needs to be liquid, and
targets need to be set equitably
 Efforts on conservation and green need
to be incorporated in either the targets or
emission credits.
 Issues around double-counting in the
electricity sector need to be resolved so
as to provide the proper signal for more
renewable energy and energy efficiency
Tradeable Energy Efficiency and
Green Certificates
 BC Hydro already selling Green Power
Certificates
 a national system of tradeable
renewable energy certificates could be
beneficial
 Energy efficiency certificates representing I MWh of energy savings,
could be traded to encourage efficiency.
 already used in UK and Italy
For Further Information:
[email protected]
604-528-3116
www.bchydro.com