bc hydro power smart presentation standing senate committee on energy, the environment and natural...
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BC Hydro Power Smart PresentationBC Hydro Power Smart Presentation
Standing Senate Committee on Energy, the Environment and
Natural Resources“Kyoto Implementation”
Ted FergusonBC Hydro
June 14th, 2003
BC Hydro ProfileBC 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
0
1
2
3
4
5
6
7
8
9
1019
90
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Emissions if no actiontaken
Actual emissions
Forecast
Mt
0
100
200
300
400
500
600
700
800
900
1000
BC Hydro Canada USA Alberta
T/GWh
Greenhouse Gas Intensity
2002 2010
Climate Change InitiativesClimate 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
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: Customers: Power SmartPower 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
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
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
Power Smart - Industrial Incentive Power Smart - Industrial Incentive ExamplesExamples
Power Smart - Industrial CustomersPower 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 - CustomersPower 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 Province-wide are scheduled for replacement
City of Vancouver savings: 7 GWh per year $250k electricity costs $110k maintenance costs
Power Smart - ResidentialPower Smart - Residential
Vancouver Island Compact Fluorescent Light (CFL) program
In the Greater Victoria area, 55% (over 60,000) of residential households participated in the CFL program over a 2 month period
results: over 126,000 CFLs distributed
Power Smart ExamplesPower Smart Examples
e.Points earned by customers
improving their energy efficiency by 5% or more
can be redeemed for further Power Smart improvements, thereby generating additional savings
Suppliers: Suppliers: Current Energy CallsCurrent Energy Calls
We expect to meet the voluntary 50% clean energy target
Demand growth net of Power Smart is estimated at 6500 GWh per year by 2012
Clean energy target is 3250 GWh per year by 2012
We expect to meet the target through a combination of:
980 GWh/year from 2001 Green call to Independent Power Producers
800 GWh/year from 2002 Customer Based Generation call
800 GWh/year from 2002 Green call to Independent Power Producers
1200 GWh/year through Resource Smart efficiency improvements at existing BC Hydro facilities
Adjustments to Bid Prices for Adjustments to Bid Prices for Green Power: Green Power: for ranking purposes onlyfor ranking purposes only
BidPrice
($ / MWh)
Adjusted
BidPrice
($ / MWh)
(for bid comparison
only)
Premium paid to reflect positive environmental and social attributes of project.
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).
Green
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).
NaturalResourceVariability
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.
GHGOffsets
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, and3. Impact of interconnection costs borne by BC Hydro.
Location
Emissions TradingEmissions 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 Tradeable Energy Efficiency and Green CertificatesGreen 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
