BC Hydro

Less costly Site C alternatives were ignored

Many self-interested people told us that non-destructive alternatives to hydropower would not work in British Columbia. These, they said, were unreliable and could not always send power to the grid on demand. Dispatchability was key, according to pseudo experts. This despite BC Hydro having reservoirs that act like giant batteries.

Both Liberal and NDP MLAs believed the megaproject offered political benefits, and politics always outrank prudent financial management.

The Guardian described how Uruguay, led by particle physicist Ramón Méndez Galain, installed about 50 windfarms across his country, decarbonised the grid and bolstered its hydropower.

Méndez Galain used his scientific training to find a solution to Uruguay’s energy problem. A 2023 paper by Brazilian academics says:

Uruguay’s per capita GDP is less than one-third of British Columbia’s so Méndez Galain could not spend billions of dollars building publicly owned windfarms. The country had to rely on private capital. It was forced into a position that British Columbia took voluntarily when BC Hydro contracted to buy private power.

However, the South American nation smartly relied on fixed-price contracts for 20 years. BC Hydro’s private power deals last as long as 75 years, each inflation-protected. Annual price escalators ensure that IPP profits and financial pain for BC consumers both grow steadily.

But we must remember that the $20 billion megaproject near Fort St. John was never about creating electricity for the least cost. It was about politics, corporate inertia, salaries and fees for executives and putative experts, but most of all, it was about privatizing public money.


Categories: BC Hydro, Site C

4 replies »

  1. BC produces bullshit jobs for bullshit projects. TMX, Site C and Coastal Gaslink are all economically unviable. The problem with TMX and Site C is that citizens are on the hook for the losses.

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    • The BC Government acknowledges geothermal as a potential energy source. It has chosen not to spend money to develop this technology, preferring instead to invest billions in fossil fuels. A provincial government website does provide a geothermal resource map but it was first published 32 years ago. I think that best illustrates the level of interest in the current NDP government.

      I wrote about geothermal in October: Boundless, scalable, clean energy

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