Transformation Through Innovation

Transcription

1 Transformation Through Innovation Presentation for the PWC Global Forest & Paper Industry Conference 2010 Cam Matheson Executive Vice-President, Customer Care and Conservation May 11, 2010

2 Agenda BC Hydro Overview BC Hydro Supply and Demand Outlook Long-term Need 3 Key Strategies Load Forecast for Forestry & Paper Opportunities for Industry Supply Side Offers Demand Side Offers Innovation through Integration Integrated Power Offer Clean Energy Act

3 What We Do WE MAKE ELECTRICITY 90% Hydro 94% Clean WE BUY ELECTRICITY Independent Power Producers Electricity markets Customers WE MOVE ELECTRICITY 75,000 km of Distribution and Transmission lines WE SELL ELECTRICITY WE SELL ELECTRICITY 1.8 million customers 95% of British Columbia population

4 Our System

5 Long-term Need 85,000 80,000 BC Hydro's electricity gap BC Hydro's Supply and Demand Outlook Historical Data Forecast Customer Demand Range Existing BC Hydro Supply Historical Customer Demand Mid Forecast of Customer Demand Mid Forecast after DSM Forecasted Data 85,000 80,000 Energy (GWh) 75,000 70,000 65,000 60,000 55,000 BC Hydro's electricity demand is forecast to grow between 20 and 40 per cent over the next 20 years. DSM 75,000 70,000 65,000 60,000 55,000 Energy (GWh) 50,000 45,000 Burrard reliance reduced to 0 GWh per Government s direction. Demand for F2010-F2012 will be met with non-critical water, market or thermal resources. Supply drop reflects the removal of 2,500 GWh allowance in 2016 DSM fills 64 per cent of the energy gap in F ,000 45,000 40, Fiscal Year (year ending March 31) 40,000

6 3 Key Strategies Conserving More Buying More Small Hydro Bioenergy Wind Solar Building More 8

7 Forestry & Paper Transmission Load (GWh) Decline due to: Internet displacing newsprint Growing self-generation Kraft mill closures Cyclical Slowdown 8000 GWh Economic recovery boosting mill production Recession causes further mill curtailments Electrically intensive, mechanical pulp lines (benefitting from good fibre and low rates) Fiscal Year

8 Forestry and Paper Opportunities BC Hydro s s Energy Solutions for Industry Demand Power Smart Partners Programs Energy Management Project Incentives Conservation Rates Technology Innovation (Demonstrations) Net Metering Integrated Power Offer* Supply Standing Offer Bilateral agreements Clean Power Call Bioenergy Calls*

9 BC Hydro Bioenergy Initiatives Bioenergy Call for Power Phase I Request for Proposals Phase I is complete 4 Electricity Purchase Agreements (EPAs) were accepted by the British Columbia Utilities Commission on July 31, 2009 Bioenergy Call for Power Phase II Biomass Projects Request for Proposals A competitive call for larger-scale biomass projects, with a target to acquire up to 1,000 GWh per year of cost-effective electricity Community-Based Biomass Power Call Request for Qualifications Seeking output from smaller scale (no greater than 5 MW in size) community-based energy solutions using biomass

10 Bioenergy Call Phase I Successful Projects: Proponent Name Canfor Pulp Limited Partnership Project Location Prince George Domtar Pulp and Paper Products Kamloops PG Interior Waste to Energy Ltd. Prince George Zellstoff Celgar Limited Partnership Castlegar Call details available at 12

11 Bioenergy Call Phase II - Highlights A Request for Proposals targeting 1000 GWh/yr of new supply Any form of biomass will be eligible, including w ood waste sourced from new opportunities to access fiber enabled through the Clean Energy Act New greenfield generation projects located in BC Proponents assume fuel availability risk over the contract term The Phase II RFP is expected to be issued this spring 11

12 Innovation Through Integration Integrated Power Offer (IPO) BC Hydro s approach to support BC Pulp & Paper customers to take advantage of the NRCAN Green Transformation Program (GTP), through Integration of energy efficiency and self-generation offers to P&P customers Negotiation one-to-one with customers to understand unique customer circumstances Objective is to acquire cost effective energy through supply side and demand side customer projects, and Leverage $1 billion GTP fund and maximize allocation to BC Capitalize on large potential of energy efficiency and selfgeneration opportunities at BC P&P facilities

13 Clean Energy Act Highlights 66% Conservation Target 93% System Clean Target BCTC / BCH re-alignment Focus on renewable energy development and supply including bio-energy Regulatory approval exemption for Bio-Call I & II, IPO, CPC, Standing Offer Approval for several large expenditures including, Site C, NWT, Mica 5&6, Rev. 6, SMI Integrated Resource Plan filed with Government Burrard Thermal emergency back-up only