By: Kelsey Sonntag, Chad Eggerman, Janelle Anderson, Glenn Wright, Avneet Nehel

This is the second article in an 8-article series, Renewable Energy in Canada 2024, which covers each provincial jurisdiction and the territories in Canada, released by the Energy Group at Procido LLP. The Renewable Energy in Canada 2024 series aims to provide an overview of the current state of renewable energy across the country. The first article, Renewable energy in Alberta: When will we put the dumpster fire out?, reported on Alberta. This article provides an update on British Columbia, including its recent provincial election.

Section 92A (1)(c) of the Constitution Act, 1867 of Canada grants exclusive powers to the provinces to enact laws related to the “development, conservation and management of sites and facilities in the province for the generation and production of electrical energy”.

British Columbia (BC) is known for its stunning natural landscapes and abundant natural resources—but it is much more than just a popular vacation spot for Canadians and a pretty view: it is also a leader in Canadian renewable energy. In fact, BC is a leader in North American renewable energy as 98% of the electricity generated within the province comes from clean or renewable resources. The province has achieved this feat by committing to sustainability and the development of a green economy. BC’s renewable energy framework is crucial not only for reducing greenhouse gas emissions but also for promoting economic growth, ensuring energy security, and setting an example for the other provinces and territories in Canada.

Legislative Framework

The provincial government has laid a solid foundation for renewable energy through various legislative measures and policies. The Clean Energy Act of 2010 is a pivotal piece of BC legislation that aims to enhance the development of clean energy resources. This act encourages the use of renewable energy, outlines conservation goals, and mandates that new energy projects meet stringent environmental standards. In addition to the Clean Energy Act, the British Columbia Energy Plan outlines a vision for energy independence, reliability, and sustainability. It also shares the province’s vision statement for a clean, competitive, and inclusive province that is powered by made-in-BC clean energy to achieve net zero emissions by 2050. The province’s commitment to reducing carbon emissions is reinforced through initiatives like the Climate Change Accountability Act, which sets ambitious greenhouse gas reduction targets for the province.

Energy Sources

BC’s renewable energy landscape is diverse, encompassing hydroelectric power, wind energy, solar energy, biomass, and geothermal resources. Hydroelectric power has long been the backbone of the province’s energy supply, generating around 90% of its electricity. However, the provincial government is actively working to diversify its energy portfolio by investing in other renewable sources to meet increasing energy demands and address climate change. During this time, hydroelectric power remains the cornerstone of BC’s energy framework. The province is home to numerous large-scale hydro projects, such as the Site C Dam, which aims to provide 1100 MW of clean energy capacity. The Site C project faced some controversy due to environmental concerns and the impact on local communities and Indigenous groups. Hydro power used to be considered a reliable baseload energy source, but it is becoming more variable due to the impacts of climate change causing an increasingly drier climate. This highlights the need for a balanced approach to energy development.

In recent years, BC has made significant strides in developing wind and solar energy. The province boasts some of the best wind resources in North America, particularly in regions like the Peace River region and Vancouver Island. Wind energy projects, such as the Kent Hills Wind Farm, have contributed to the increasing share of renewables in the overall energy mix. Solar energy is also gaining traction, with the number of solar installations increasing dramatically in both urban and rural areas. The government’s support for solar power, combined with decreasing costs for solar technology, makes it a promising component of BC’s renewable energy strategy. Biomass energy is another area of focus. BC’s forestry industry provides a substantial supply of biomass, which can be used for electricity generation and heating, aligning with the province’s goals of reducing waste and promoting sustainable forestry practices.

Despite its robust framework, BC faces challenges in fully realizing its renewable energy potential. The integration of variable renewable sources like wind and solar into the existing grid poses technical and regulatory hurdles. Balancing environmental concerns with energy development is crucial for gaining public support and ensuring sustainable practices. Looking forward, BC is focusing on the continuous development and further implementation of innovative solutions. Such initiatives have included energy storage technologies, smart grid developments, and community-based renewable energy projects.

The province is also exploring partnerships with Indigenous communities to promote renewable energy initiatives, ensuring that these projects benefit local populations and respect traditional territories. Thirty-five First Nations throughout BC are receiving $9.8 million CAD in federal and provincial funding to develop clean energy projects that will help them meet their energy needs efficiently and sustainably. The projects are receiving funding through the BC Indigenous Clean Energy Initiative, a partnership between the Government of Canada, Province of British Columbia, and New Relationship Trust. The funding will help First Nations develop and implement clean energy generation, energy efficiency, and energy storage projects, creating employment and business opportunities in their communities.

The 2024 Call for Power and the Indigenous Equity Requirement

BC recently launched a Call for Power, or Request for Proposals (RFP), which opened in April 2024, and closed September 16, 2024. This Call for Power followed months of engagement with industry, First Nations, and other stakeholders. BC Hydro engaged extensively with First Nations on the design of the call, including close collaboration with the First Nations Energy and Mining Council. Similar to recent competitive public procurement processes by other jurisdictions, projects proponents must have a minimum percentage of equity ownership held by First Nations. In BC the number is slightly lower than other jurisdictions, with a minimum of 25% equity ownership by one or more First Nations. However, BC Hydro incentivized those submitting proposals to exceed the required percentage. A proposal with the potential of being awarded a power purchase agreement under this RFP may receive additional credit for proposal evaluation purposes if their First Nations equity ownership surpasses 25%.

This was BC Hydro’s first competitive Call for Power in 15 years, and they ended up receiving proposals for three times more energy than they were targeting. Successful proponents should be announced by the end 2024.

Not every project proposal will advance to receive a positive final investment decision. Winning an RFP is about much more than merely providing a service, pricing and deliverables. To win an RFP, a deep assessment of all the buyer’s requirements is needed, and a proponent must respond in a way that conveys their understanding and professionalism in an easy-to-follow format. Procido LLP has experienced lawyers that are knowledgeable of the RFP process and can advise developers on the legal requirements and terms of a power purchase agreement. BC Hydro expects its next call to be issued in 2026, with successive calls approximately every two years.

British Columbia’s renewable energy framework represents a comprehensive and forward-thinking approach to sustainable energy production. With strong legislative support, diverse energy sources, and a commitment to reducing carbon emissions, BC is not only paving the way for a greener future but also positioning itself as a leader in the energy transition. As the province continues to innovate and expand its renewable energy initiatives, it sets a powerful example for others to follow in the pursuit of sustainability and environmental stewardship. However, energy policy is often influenced by politicians and their intentions. The recent BC election may impact the development of renewable energy going forward.

2024 BC Election

BC held an election on October 19, 2024, and as of the date of this article, no party had yet formed government. The BC NDP are leading with 46 seats, followed very closely by the Conservative Party with 45 seats. The 2 seats which the BC Green Party have won may well prove to be decisive, as they could potentially hold the balance of power in the legislature (more on that below).

The NDP platform relied heavily on their CleanBC strategy that was implemented in 2018 which focuses on reducing carbon emissions and the development of renewable energy sources such as wind and solar to provide affordable energy to their communities. The party promises to expand the electricity grid and have shared their intention to double the generation of electricity by 2050 through increasing the use of renewable sources such as wind and solar to generate energy and to continue to engage in a meaningful way with First Nations.

The position of the BC conservatives going into the election was that BC cannot rely on renewable energy alone, and based on this view, the Conservative party intends to amend BC’s Clean Energy Act to remove the ban on nuclear energy and explore the feasibility of bringing nuclear energy into BC. The Conservative party is specifically looking at the possibility of establishing small modular reactors (SMRs). The Conservative party plans to use nuclear energy to supplement the power generated from renewable energy sources. Possibilities for expanding hydro capacity or developing new natural gas facilities, as well as developing solar, wind and geothermal energy sources are also being considered.

Given that the BC Green Party may end up holding the balance of power in the legislature, their views on renewable energy are important. The position of the BC Green Party is that major investments are needed to expand BC’s electricity capacity. To do so, the BC Green Party is proposing to invest in wind, solar, and geothermal, improve energy storage, and ensure a significant portion of electricity is generated through Indigenous and community-led projects. Specifically, the BC Green Party proposes to:

• establish a renewable procurement timetable for renewable energy projects with defined annual procurement targets and parameters;
• not pursue nuclear projects;
• invest in research and development of geothermal energy production and investigate a technology transfer from oil and gas drilling to geothermal energy production;
• invest $20 million CAD annually for education and training programs to address the skills shortage in the renewable energy sector and to retrain oil and gas workers;
• invest $20 million CAD annually in small-scale distributed solar projects, with a goal of having solar account for 15% of electricity generation by 2035;
• invest in expanding energy storage capacity;
• increase the industrial carbon tax and redirect revenue from industrial carbon pricing to fund climate action in communities;
• create a carbon offset policy based on the principles of the Science Based Targets Initiative (SBTi);
• expand the Community Net Metering program;
• expand funding for the Community Energy Diesel Reduction program;
• mandate a minimum of 50% equity ownership for First Nations in large renewable energy projects; and
• simplify and expedite the project permitting process by appointing a single regulatory authority within the BC Ministry of Energy.

The week ahead in BC will be an eventful one, which we look forward to following with great interest. Procido LLP’s Energy Group can advise developers, Indigenous groups, suppliers, and landowners on renewable energy projects in British Columbia.

The next article in the Renewable Energy in Canada 2024 series will cover Manitoba.

Disclaimer

This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice. Contact Procido LLP (www.procido.com) if you require legal advice on the topics discussed in this article.