BC Hydro Signs Agreements for New Renewable Energy Projects at Lower Costs February 12, 2025
BC Hydro has taken a significant step toward expanding British Columbia’s renewable energy capacity by securing Electricity Purchase Agreements (EPAs) with ten new renewable energy projects. The agreements, filed with the BC Utilities Commission, mark a milestone in BC Hydro’s efforts to ensure a sustainable and cost-effective power supply for the province.
Lower Costs, Greater Impact
The newly selected projects—comprising nine wind farms and one solar farm—will collectively generate approximately 4,830 gigawatt hours of electricity per year. This is enough to power 500,000 new homes and represents an 8% increase in BC Hydro’s current electricity supply.
What makes this announcement even more significant is the cost reduction achieved in this latest procurement round. The weighted average levelized price for these projects is $74 per megawatt hour (2024), reflecting a 45% cost reduction compared to BC Hydro’s last clean power call in 2010 (adjusted for inflation). This aligns with BC Hydro’s goal of maintaining affordable electricity rates for its customers while expanding its renewable energy portfolio.
Economic and Job Growth Across the Province
The development of these renewable projects is expected to attract between $5 billion and $6 billion in private investment. During construction, they are projected to generate an estimated 800 to 1,500 jobs annually across various regions of British Columbia. This economic boost not only enhances local economies but also accelerates the province’s shift towards cleaner energy sources. However, some companies argue that the weighted average levelized price for certain projects is too low, which may lead BC corporations to allocate their capital elsewhere.
First Nations Ownership and Economic Reconciliation
A standout feature of these agreements is the strong First Nations participation. All selected projects have significant First Nations ownership, with nearly all having majority ownership. This represents between $2.5 billion and $3 billion in First Nations equity, reinforcing BC Hydro’s commitment to economic reconciliation and fostering lasting partnerships with Indigenous communities.
Regulatory Review and Next Steps
As required under the Utilities Commission Act, BC Hydro has submitted its application for review by the BC Utilities Commission. This independent review will assess whether the agreements align with the public interest and the objectives outlined in the Clean Energy Act.
BC Hydro’s Official Statement
Please be advised that BC Hydro has filed an application with the BC Utilities Commission regarding EPAs for the projects selected from the 2024 Call for Power. Please see the BC Hydro news release here and key excerpts below:
“The weighted average levelized price for these successful projects is $74 per megawatt hour (2024), which is around 45 per cent lower than the contracts awarded in BC Hydro’s last call for clean power, after adjusting for inflation.”
“The development and construction of these projects are expected to attract between $5 billion and $6 billion in private capital investments, creating approximately 800 to 1,500 jobs annually on average during the construction phase across nearly every region in the province.”
With this strategic move, BC Hydro continues to solidify its role as a leader in renewable energy while ensuring a more sustainable and cost-efficient future for British Columbia.
Source: https://www.bchydro.com/news/press_centre/news_releases/2025/call-for-power-epas.html