Small, clean energy projects coming online as additional power is needed would be cheaper in the long run than the “lumpy” power from the Site C dam being switched on a decade hence, a new report concludes.
Clean Energy BC commissioned London Economics International to do a cost comparison of Site C and renewable energy from the independent power producers that Clean Energy BC represents.
Based on a 70-year lifespan, the analysis concludes that buying power from independent power producers would save the province $750 million to $1 billion over 70 years.
The report was released October 16 at Clean Energy BC’s annual conference. It comes at a time when the provincial government is preparing to make a final investment decision on whether or not to move forward with the $7.9 billion Site C hydroelectric dam.
The report states that it makes more sense to let the private sector finance and build out a suite of new renewable energy assets – mostly wind farms and run-of-river power plants – as the energy is needed, rather than invest in a single, publicly funded project.
When a large hydroelectric dam like Site C comes online, it provides a sudden surplus of power that may take the province some time to grow into, the report states.
“Such a large supply addition takes time to be absorbed, raising the potential that export sales will be required at a loss,” the analysis states.
“You don’t have to commit to a big project like Site C today, wait 10 years for it to be built and then hit the big lumpy switch,” Clean Energy BC executive director Paul Kariya told Business in Vancouver.
“You can build our projects to load as it develops. If you don’t need all those projects all at once, because you don’t need all the power at once, then build to meet the load.”
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