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Globe and Mail
3 days ago
- Business
- Globe and Mail
New power line holds key to B.C.'s ambitions for critical minerals
The B.C. government has committed to building a new transmission line to bring electricity to power-hungry projects, including a string of proposed critical-mineral mines in the province's northwest. There is no budget, no timeline, and the precise route has yet to be confirmed. First Nations along the proposed line have not yet agreed to the project. And, there are no confirmed customers for the North Coast transmission line. The line is key to delivering on Premier David Eby's promise that British Columbia can become the economic engine of Canada. Prime Minister Mark Carney and premiers across Canada have pledged a flurry of infrastructure projects to diversify markets away from the United States. But British Columbia faces hurdles, from First Nations' reluctance to embrace fast-tracking projects, to BC Hydro's spotty record of completing such projects on time and on budget. Energy Minister Adrian Dix says shovels will be in the ground the summer of 2026. 'There's no question it can be built and that it will be built,' he said in an interview this week. 'It's a critical aspect of all that work we're doing.' To clear the path, the province passed legislation on Thursday that will exempt the project from the environmental assessment review. B.C. bill fast-tracking infrastructure projects passes as Speaker Raj Chouhan casts deciding vote The new 500 kV transmission line and associated infrastructure will run from Prince George to Terrace, with possible extensions in three directions: to Kitimat, Aiyansh and Prince Rupert. The line is needed, Mr. Dix said, to supply power to proposed critical-mineral mines, liquefied natural gas projects, and an expanded Port of Prince Rupert, which features heavily in the province's ambitions for a Western transportation network that will open up more Canadian trade with Asia. Currently, BC Hydro is negotiating with 14 First Nations to determine the route. The Crown corporation is proposing Indigenous co-ownership and joint environmental studies, in lieu of a full, formal environmental assessment process that can delay construction. 'The intent is to shave off years,' Mr. Dix said. Bill 14, the Renewable Energy Projects (Streamlined Permitting) Act, and Bill 15, the Infrastructure Projects Act, were the key features of the provincial legislative session that wrapped up on Thursday. Both laws are designed to speed development of infrastructure and resource projects, including mines and energy projects ranging from wind farms to liquefied natural gas. Both bills received intense criticism from First Nations leaders, local governments and business and environmental organizations over concerns that fast-tracking approvals will mean insufficient scrutiny, and could ultimately lead to greater uncertainty and delays. Some First Nations leaders have warned that projects will face lawsuits if their rights and title are undermined. The BC Chamber of Commerce this week decried the province's failure to consult with First Nations before introducing the legislation. 'The consequence is that projects designated as 'provincially significant' now face a heightened risk of legal challenges,' Fiona Famulak, the chamber's president and CEO, wrote to Mr. Eby. Environmentalists, meanwhile, worry that the exceptional powers granted to cabinet to speed up project approvals will expose the province to greater risk of ecological disasters. Opinion: Ottawa should look to B.C.'s fast-track blueprint for big projects 'There are real threats to our ecosystems and communities if mines are listed as 'provincially significant' and bypass environmental assessments. The current regulatory regime in B.C. doesn't do enough to protect our water and lands today,' said Nikki Skuce, co-chair of the BC Mining Law Reform network. Ontario Premier Doug Ford is pushing through similar legislation in the face of opposition from First Nations. Like B.C., the Ontario government wants to fast-track critical-mineral development by creating 'special economic zones' where mines or other projects could be exempt from provincial laws. Mr. Ford said this week he will amend his proposed law to reaffirm Ontario's pre-existing constitutional obligations to consult First Nations. Even before shovels are in the ground, the potential demand for the North Coast transmission line could be under pressure, based on the projects that the B.C. government hopes to secure. Michael Goehring, president and chief executive of the Mining Association of BC, said the 18 proposed critical-mineral mines that are in advanced development in B.C. need access to significant power, or they won't move forward. The province estimates the mines projects in the Northwest alone are worth $30-billion in economic activity – but to land those investments, the province needs to provide somewhere between 400 MW to 700 MW by 2035. That could use up more than half of the power available from the new transmission line, leaving little for developing LNG, port expansion or anything else. B.C. looking to private sector for new clean power projects Mr. Dix said that's something his government is going to have to figure out. 'One of the issues that we're also going to be addressing in the coming months is questions around electricity allocation.' He is looking at the Quebec model, which prioritizes projects of provincial interest. Mr. Goehring argues that mining – especially the critical minerals that Canada has identified as a priority – should come first. 'The North Coast Transmission Line is critical to our province's mining sector and the economy of Northwest B.C.,' he said. 'There are a number of critical-mineral projects in this region like the Turnagain nickel project and Galore Creek, a world class copper-gold project, that could increase Canada's copper production by 35 per cent. Cost-effective transmission and clean electricity are essential to their development.' Before B.C. passed its streamlining law, BC Hydro estimated it will take eight to 10 years to build the North Coast line. But the Crown corporation hasn't had a track record for building major projects on time and on budget. The Site C dam, with a $8.8-billion budget, was completed for $16-billion. The Northwest Transmission Line was completed in 2014. Originally launched with a budget of $404-million, it came in at $736-million, an overrun blamed on challenging terrain and higher-than-expected costs for materials and labour. The Interior to Lower Mainland Transmission Line came into service in 2015, a year behind schedule. The delays were triggered in part because the contractor brought in faulty steel towers from India that twisted, bent and collapsed. BC Hydro said that project came in on budget – but then it ended up paying a $100-million settlement to its contractor after a protracted dispute. At the time that the details of those challenges were coming to light, Mr. Dix was serving on the opposition benches as the NDP's energy critic: 'The tendering process is a fiasco; the project is a disaster,' he said at the time. Mr. Dix insists that BC Hydro will do better this time. 'I think they they've learned from those experiences,' he said, 'and I'm confident BC Hydro will be able to build it.'
CBC
4 days ago
- Climate
- CBC
Wildfire in Peace River, B.C., quadruples in size after evacuation order
A wildfire in northeastern British Columbia that prompted an evacuation order for roughly 70 people on Thursday has quadrupled in size. The B.C. Wildfire Service reported Friday morning that the Kiskatinaw River wildfire in the Peace River Regional District near the community of Kelly Lake was about 46 square kilometres in size, up from 11 square kilometres Thursday afternoon. The fire is among about 60 burning in the province, and one of 34 that are classified as out of control. The service said it expects increased fire behaviour in the northeast because of long-term drought, Wednesday's hot spell and wind. Additional resources have been deployed to the region as a proactive measure. Highway closed The out-of-control fire is burning close to the Pembina Steeprock gas processing facility and Highway 52 E, which has been partially closed as a result. The Peace River Regional District issued the evacuation order Thursday for homes around Kelly Lake — about 80 kilometers south of Dawson Creek and immediately adjacent to the B.C.-Alberta border — as well as areas north of Campbell Lake — west of Tent Lake, south of Twin Lakes, and east to the Alberta border. The Kelly Lake Cree Nation says about 70 people live in their community, most of them elders. About 10 residents have chosen to stay behind, a spokesperson said. The online dashboard of the B.C. Wildfire Service says the Kiskatinaw River fire was discovered on Wednesday and is believed to be human caused, which is the definition given to any fire not caused by lightning. Of the active wildfires in B.C., the service says 18 per cent were human caused, 77 per cent were started by lightning, while five per cent have unknown causes.
Global News
22-05-2025
- Business
- Global News
Could the massive Site C work camp be repurposed as supportive housing in Surrey?
Jack O'Halloran has an idea to keep the Site C dam's massive worker camp out of the landfill: bring them to Surrey. 'It's absolutely gorgeous. Ten years ago, it was state of the art for a worker,' O'Halloran, the CEO of the Surrey Urban Mission, told Global News. When O'Halloran learned that the camp, which housed nearly 2,000 workers building the $16 billion hydroelectric dam, would be vacated by end of summer and could end up in the scrap heap, a lightbulb went on over his head. 'If we were to get half of that, we would absolutely wipe out homelessness in Surrey,' he said. 'In 2023, our count was about 1,100 homeless.' BC Hydro is currently looking for a home for the facility, which includes dorms, kitchens and dining buildings, along with a fitness centre, gym and theatre, accounts for nearly 62,000 square metres of buildings — about 1.5 times the size of the Vancouver Convention Centre. Story continues below advertisement Earlier this spring, the Crown corporation alarmed directors with the Peace River Regional District when it began inquiring about sorting requirements and capacity at the North Peace Regional Landfill. 2:03 Global exclusive: Behind-the-scenes at the Site C workers camp A spokesperson told Global News earlier this week that the priority is to find an organization or a company to take ownership and reuse the structures. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy But they warned they weren't well suited for housing because they lack individual kitchens, and the rooms have windows that don't open. That's no problem for a supportive housing facility, O'Halloran said. The organization already operates one 60-room project called Safe Sleep which uses a commercial kitchen to serve three meals a day to residents in a common dining area — much like the worker setup at Site C. Story continues below advertisement 'We have 60 rooms here, nobody has a kitchen. They have their own washroom, they have a bed, and they have a desk, but it's their own space,' he said. 'They've got one window that doesn't open … That's not a big deal.' Surrey City Councillor Linda Annis said there are big questions about the idea, but that it's certainly one worth exploring. 'What we need to do is look at what the financial cost is of moving it down to Surrey to make sure it makes sense financially, but we have been struggling with housing for people who are homeless, and we need to get it fixed, and we need to get it fixed now, and I think we should certainly look at this,' she said. 'One of the things I do like about it is that it could be done quite quickly.' O'Halloran said he hasn't yet spoken to BC Hydro, but intends to make contact this week to 'throw our hat in the ring.' He acknowledged that bringing the project from idea to reality will require some serious work — including transporting the structures, funding the transformation, and finding property to reassemble it on. But he believes the project is transformational enough it could bring both the federal and provincial governments to the table, and has already been in contact with several Surrey MLAs to press the concept. Story continues below advertisement BC Hydro says about 90 organizations have asked about the buildings, and that there are several it is speaking with in more detail. The Crown corporation expects the facility to be occupied until the end of the summer, when the dam comes fully online.
CBC
20-05-2025
- Business
- CBC
B.C. Hydro's challenge: Powering province through surging demand, drought and trade war
British Columbia's power utility is facing transformational challenges of drought, rising costs and a trade war with the United States as it works to meet electricity demand that's surging after two decades of relative stability. An expected demand increase of 15 per cent by 2030 is sparking questions about whether B.C. Hydro is ready, with one former B.C. environment minister saying the province faces a power gap. The Crown utility says it imported a net 13,600 gigawatt hours of power in the 2024 fiscal year, a figure representing about 22 per cent of all supply sources according to a service plan forecast issued last February. But the utility says it has been a net exporter for eight of the past 15 years, and its outgoing CEO is unequivocal: "We have enough power." Customers "should feel confident that [B.C. Hydro] will be able to meet their needs in a range of circumstances over time," Chris O'Reily said in an interview after addressing the Greater Vancouver Board of Trade on Thursday. O'Reily told the board tariffs on Canadian goods launched by U.S. President Donald Trump have been "weighing on everyone's minds." But Canada's trade challenges are also an opportunity to strengthen energy security, expand clean power and drive long-term prosperity, he said. "By fostering homegrown solutions, by reinforcing regional collaboration, we can reduce our reliance on foreign markets and boost B.C.'s economy and create well-paying jobs in the renewable power sector," said O'Reily, who retires this year. He pointed to additional capacity coming online with the Site C dam in northern B.C., as well as 10 renewable energy projects selected through B.C. Hydro's call for power in 2024 and another call set to launch this year. O'Reily also highlighted B.C. Hydro's capital plan, released in January. It allocates $36 billion over 10 years to replace aging infrastructure, expand distribution capacity and connect new electricity sources to the grid, he said. Barry Penner, who served as B.C.'s environment minister between 2005 and 2010 under the B.C. Liberal Party is skeptical about the utility's readiness. He said the province isn't generating enough electricity on its own, particularly given threats from south of the border. "We're importing electricity on a net basis, meaning, yes, there are still brief periods where we're selling electricity, but we're importing a lot more than we're selling." B.C. is on track to be a net importer again this year, buying most from the United States, said Penner, who chairs the Energy Futures Institute. "Is there a guarantee we'll be able to buy that electricity tomorrow, or next year? Can you promise that President Trump won't curtail electricity sales?" Penner said. "I hope he won't. But he's been demonstrated to be rather unpredictable and not necessarily a reliable ally to Canada." Penner said drought has been the driver behind imports, forcing B.C. Hydro to hold back water in reservoirs to ensure supply during peak demand. In an application to the B.C. Utilities Commission in March, the utility said "persistent drought conditions and low snowpack since the fall of 2022" had required higher-than-planned electricity import costs amounting to $1.5 billion. O'Reily said that's partly why customers saw a rate increase of 3.75 per cent on April 1, with the same bump set to kick in next year. Each increase amounts to about $3.75 per month for the average residential customer, he said. WATCH | 3.75% rate increase for B.C. Hydro customers: B.C. Hydro customers face 3.75% rate increase for next 2 years 2 months ago Duration 2:22 B.C. Hydro customers can expect a rate increase this year and next, which will add $3.75 per month to the average household bill. Energy Minister Adrian Dix issued a directive to the B.C. Utilities Commission allowing hydro rates to be raised by 3.75 per cent a year for the next two years. Dix said even with the rate increase, British Columbians have among the lowest electricity rates in North America, paying almost half of what Albertans pay. In addition to drought, B.C. Hydro's submission to the B.C. Utilities Commission said it faced "extraordinary inflation and market escalation," though it had benefited from higher-than-expected energy trading income. O'Reily said the latest rate increases also reflect an "offset" provided by profits from Powerex, B.C. Hydro's electricity trading business. Over the last five years, he said, the average annual profit from Powerex has been about $550 million. "All of that gets put back to our customers, and it reduces rates. So it reduces rates by about nine per cent," he said, and B.C. maintains some of the lowest rates in North America. A report from Clean Energy Canada in February said B.C. imported 16 per cent more power than it exported between January 2019 and November 2024, but the value of exports was 35 per cent higher than the cost of the imports. Another former member of the province's Environment Ministry, however, said B.C. appears to be in "reasonably good shape" to meet growing demand for power. Mark Zacharias, who served as deputy minister between 2017 and 2020, said the Site C dam and the 10 renewable energy projects selected through the call for power last year are expected to boost B.C.'s capacity by 16 per cent. At the same time, B.C. is becoming more efficient in using electricity, said Zacharias, now a special adviser with Clean Energy Canada. "There are a lot of technological improvements happening very rapidly around us … that are also going to contribute to future grid stability and basically help offset whatever might be happening with climate change and reservoir levels," he said. B.C. Hydro has projected its energy efficiency plan could result in up to 2,000 gigawatt hours of savings by 2030, equivalent to powering 200,000 homes. Penner, meanwhile, said electricity from the 10 projects selected in the last call for power — nine wind and one solar — may take five years or more to hit the grid, and B.C. Hydro itself has acknowledged a risk. "This risk may materialize as projects failing to reach commercial operation, delivering less energy than anticipated, or delivering the expected energy at a later date," it told the utilities commission in February. The earliest guaranteed commercial operation date among the projects is 2031, though the submission said the province is working to accelerate timelines. Where O'Reily, Penner and Zacharias agree, though, is on the need to reduce reliance on the United States, in part by strengthening ties with the rest of Canada. B.C. and Canada should be "energy and electricity sovereign," Zacharias said.
National Observer
20-05-2025
- Business
- National Observer
BC Hydro's challenge: Powering province through increased demand, drought and trade war
British Columbia's power utility is facing transformational challenges of drought, rising costs and a trade war with the United States as it works to meet electricity demand that's surging after two decades of relative stability. An expected demand increase of 15 per cent by 2030 is sparking questions about whether BC Hydro is ready, with one former BC environment minister saying the province faces a power gap. The Crown utility says it imported a net 13,600 gigawatt hours of power in the 2024 fiscal year, a figure representing about 22 per cent of all supply sources according to a service plan forecast issued last February. But the utility says it has been a net exporter for eight of the past 15 years, and its outgoing CEO is unequivocal: "We have enough power." Customers "should feel confident that (BC Hydro) will be able to meet their needs in a range of circumstances over time," Chris O'Reily said in an interview after addressing the Greater Vancouver Board of Trade on Thursday. O'Reily told the board tariffs on Canadian goods launched by US President Donald Trump have been "weighing on everyone's minds." But Canada's trade challenges are also an opportunity to strengthen energy security, expand clean power and drive long-term prosperity, he said. "By fostering homegrown solutions, by reinforcing regional collaboration, we can reduce our reliance on foreign markets and boost BC's economy and create well-paying jobs in the renewable power sector," said O'Reily, who retires this year. He pointed to additional capacity coming online with the Site C dam in northern BC as well as 10 renewable energy projects selected through BC Hydro's call for power in 2024 and another call set to launch this year. O'Reily also highlighted BC Hydro's capital plan released in January. It allocates $36 billion over 10 years to replace aging infrastructure, expand distribution capacity and connect new electricity sources to the grid, he said. Barry Penner, who served as BC's environment minister between 2005 and 2010, is skeptical about the utility's readiness. He said the province isn't generating enough electricity on its own, particularly given threats from south of the border. "We're importing electricity on a net basis, meaning, yes, there are still brief periods where we're selling electricity, but we're importing a lot more than we're selling." BC is on track to be a net importer again this year, buying most from the United States, said Penner, who chairs the Energy Futures Institute. "Is there a guarantee we'll be able to buy that electricity tomorrow, or next year? Can you promise that President Trump won't curtail electricity sales?" Penner said. "I hope he won't. But he's been demonstrated to be rather unpredictable and not necessarily a reliable ally to Canada." Penner said drought has been the driver behind imports, forcing BC Hydro to hold back water in reservoirs to ensure supply during peak demand. In an application to the BC Utilities Commission in March, the utility said "persistent drought conditions and low snowpack since the fall of 2022" had required higher-than-planned electricity import costs amounting to $1.5 billion. O'Reily said that's partly why customers saw a rate increase of 3.75 per cent on April 1, with the same bump set to kick in next year. Each increase amounts to about $3.75 per month for the average residential customer, he said. In addition to drought, BC Hydro's submission to the BC Utilities Commission said it faced "extraordinary inflation and market escalation," through it had benefited from higher-than-expected energy trading income. O'Reily said the latest rate increases also reflect an "offset" provided by profits from Powerex, BC Hydro's electricity trading business. Over the last five years, he said the average annual profit from Powerex has been about $550 million. "All of that gets put back to our customers and it reduces rates. So it reduces rates by about nine per cent," he said, and BC maintains some of the lowest rates in North America. A report from Clean Energy Canada in February said BC imported 16 per cent more power than it exported between January 2019 and November 2024, but the value of exports was 35 per cent higher than the cost of the imports. Still, Penner said it's the recent trend that's concerning. He said drought was the subject of a December 2023 letter sent by the CEO of Powerex to the governing body of the Western Energy Imbalance Market that facilitates cross-border and interstate energy transfers between utilities. The letter from Tom Bechard, who has since retired, said BC had been experiencing a "prolonged, widespread and severe drought" requiring "large volumes of ongoing net imports" from Powerex. In 2023, Powerex had been a net importer for about 10,000 gigawatt hours, "greatly exceeding the previous annual net import record," the letter said. Another former member of the province's Environment Ministry, however, said BC appears to be in "reasonably good shape" to meet growing demand for power. Mark Zacharias, who served as deputy minister between 2017 and 2020, said the Site C dam and the 10 renewable energy projects selected through the call for power last year are expected to boost BC's capacity by 16 per cent. The province has announced BC Hydro is planning another call for power this year with the goal of adding another eight per cent capacity, he said. At the same time, BC is becoming more efficient in using electricity, said Zacharias, now a special adviser with Clean Energy Canada. "There are a lot of technological improvements happening very rapidly around us … that are also going to contribute to future grid stability and basically help offset whatever might be happening with climate change and reservoir levels," he said. BC Hydro has projected its energy efficiency plan could result in up to 2,000 gigawatt hours of savings by 2030, equivalent to powering 200,000 homes. Penner, meanwhile, said electricity from the 10 projects selected in the last call for power — nine wind and one solar — may take five years or more to hit the grid, and BC Hydro itself has acknowledged a risk. "This risk may materialize as projects failing to reach commercial operation, delivering less energy than anticipated, or delivering the expected energy at a later date," it told the utilities commission in February. The earliest guaranteed commercial operation date among the projects is 2031, though the submission said the province is working to accelerate timelines. Where O'Reily, Penner and Zacharias agree, though, is on the need to reduce reliance on the United States, in part by strengthening ties with the rest of Canada. BC and Canada should be "energy and electricity sovereign," Zacharias said. "We need to look east-west across Canada, particularly when the (United States) is no longer a stable trading partner." O'Reily, too, said BC Hydro is interested in strengthening ties with Alberta and the rest of Canada, moving away from the traditional north-south linkages. "More independence from the United States, I think, is a pretty reasonable thing to do given events," he said. "But we are going to remain connected. We generate significant revenue from that interconnection … It's part of how we keep rates down here." This report by The Canadian Press was first published May 20, 2025.
