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BC Hydro’s Green Energy Initiatives

Jim Scouras, Strategy Manager Green & Alternative Energy Division

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Green Energy - Outline

Overview of BC Hydro’s green energy objectives

Approaches we are taking to meet our goals The link between green programs and

sustainability

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BC Hydro’s Green Energy Objectives

Acquire a credible, low-cost green generation portfolio that meets corporate acquisition targets and market demand for green energy

Become a national leader in advancing green energy

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Green Power Objectives

Approach:

Production

Near-commercial projects

Wholesale

Competitive acquisition process with private sector

Retail

Green Power Certificates

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Green Programs: Production

Goal to develop near-commercial technologies to enable and incubate new green deployment and investment Wind mapping, modelling and monitoring Green energy demo project on Vancouver Island Community Energy Planning pilots with First Nations

communities Resource studies of green energy potential in BC --

Phase 1: Vancouver Island; Phase 2: rest of BC

Near-commercial projects

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Green Programs: Production

New Wind Monitoring Tower on Monarch Mountain (Atlin)

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Green Programs: Production

Will assess the following energy resources: Wind Small/micro hydro Wave

Sited on Vancouver Island Demand crunch in BC will occur here first Phase 1 study had positive preliminary results

JV Partners Wave - Energetech and Ocean Power Delivery Wind - AXOR

Demonstration Project

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Green Programs: Wholesale

BC Hydro has a target to obtain a minimum of 10% of new load growth from new green sources

Goal to acquire “commercial” green through Independent Power Producers (IPPs)

Small hydro with some biomass and landfill gas First call in 2001 - contracts signed with IPPs for 23

projects; combined potential output: 980 GWh/year Second call: to be issued October 2002;

800 GWh/year cap

Competitive acquisition process

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Green Programs: Wholesale

Hystad green small hydro IPP project

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Green Programs: Wholesale

Standard term contract Mechanism to ensure portfolio diversity Competitive pricing Working with IPPs that sign Energy Purchase

Agreement to ensure projects meet BC Hydro's green criteria

Holding dialogue with IPPs to identify useful and practical improvements going forward to streamline processes and lower transaction costs

2002 Green Call process will involve:

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Green Programs: Retail

Goal to create market-driven demand for additional green energy development in BC

Piloting sale of Power Smart Green Power Certificates to business customers Premium product that helps purchasers meet

environmental goals and build a competitive edge Represents the environmental and social benefits

associated with green electricity, separated from the actual electrons

Green Power Certificates

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Green Power Diagram

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Green Programs: Retail

100% made-in-BC electricity generated from qualified green sources and purchased from facilities built and operated by IPPs

Launched in September 2002 with 20 charter purchasers, including: VanCity Savings Credit Union, Vancouver 2010 Bid Corporation, Fisheries and Oceans Canada, GVRD, two municipalities, Canada Place Corporation, and several private companies, including Prism Engineering and Flagel Lewandowski Ltd.

Green Power Certificates

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Green Energy Supports Sustainability

Environment: GHG-free resource in post-Kyoto times Smaller environmental footprint

Social: Reflect community values

Economic: Supporting growth of green domestic and trade

markets Driving future investment and development

opportunities