An Electrification Plan Part 6: Achieving Future Goals Requires Decisive Action Today
British Columbia can, and must, be a leader in climate initiatives. However, our goals require us to act more decisively than we have in the past. Similarly, both our economic and environmental objectives need to be reframed into a vision that includes First Nations reconciliation.
At the same time, BC has the opportunity to fundamentally re-cast its economy around natural gas development, with new levels of extraction, new pipelines, new processing facilities, and new export terminals. In doing this, however, it should come as no surprise that equally significant policy shifts would be needed to protect the interest of First Nations and the environment.
The magnitude of this challenge is why the policy recommendations in the Plan are so significant. A critical aspect of the policy shifts necessary to transform industry in the Province will include powering the new industrial base with a strategy of broad-based electrification.
This Plan would provide a viable roadmap for new industry in the region to proceed, by using electric power at a time when permitting and obtaining the necessary social license to power such facilities with natural gas looks increasingly unlikely. Further, the Plan, by providing a workable electrification framework, opens an avenue to become a climate leader in the global arena, while simultaneously achieving the economic, and reconciliatory objectives crucial to Government.
The Plan proposes four related policy actions: creation of a SEZ in the Northwest, establishment of a Northwest Power Authority (“NWPA”), deployment of the Heritage Assets to ensure adequate capacity, and agreement to a concession model.
These actions are designed to meet the criteria for building an adequate framework for electrification in Northwest BC while simultaneously being intended specifically to achieve Government’s goals. By doing so, and by considering the implications of electrification, the Plan has defined the broad contours of change that are required to harmonize BC’s economic, environmental, and First Nations reconciliation policies in just one region of the Province: The Northwest. Substantial and concentrated effort is needed to turn that sketch into a workable plan. That plan must have First Nations at its centre, along with other levels of government and industry.
In particular, further conversation needs to be given to the role, structure, and responsibilities of the new NWPA. Such a vehicle is essential to First Nations interests, and as a mechanism to ensure the ultimate public ownership of new electrical infrastructure. New transmission infrastructure must be built to deliver clean generation, and all of this must be developed on a time frame useful to new industry. A pricing system must be developed to ensure that investors and BC ratepayers are fairly compensated, and that consumers, including industrial users, pay fair and realistic rates. Matters such as power security and effective shaping of electricity supplies need careful study and thoughtful solutions.
The work is going to be challenging and demanding, but none of the issues are insurmountable. However, an open-mind will be required, to both the scope of change required, and to a willingness to reconsider long-held and received wisdom, including that trading revenues, not climate or reconciliation goals, represents the highest and best use of the Heritage Assets.
Much is at stake. However, if government objectives of development, reconciliation, and GHG reductions are to be met, it is essential to undertake new and innovative ways of proceeding. The framework set out in this Plan is one of these.
Preliminary modelling indicates that BC can impose electrification mandates that are cost-competitive for industry, for government, and for BC Hydro ratepayers. This proposition needs to be carefully evaluated and refined.
With First Nations, BC, and Canada aligned in the vision of driving new investment in clean electricity, but CleanBC highlighting the fact that no comprehensive plan towards achieving such a vision has been identified, the time is now for government to get serious with regard to policy.
The Plan set out here provides such an opportunity, and represents a strategy of clean growth, one that will lead towards realizing a better BC. Moving forward, Government should instruct the relevant ministries and BC Hydro to work with First Nations, industry and environmental interests to establish the mechanisms necessary to study, develop, and, where viable, implement the policies discussed in this Plan. By doing so, BC would be making explicit recognition of two important facts:
Our climate and First Nations reconciliation goals cannot be met without a broad-based commitment to electrification; and
Broad-based electrification cannot be achieved without a fundamental shift in how – technically, financially, and commercially – BC Hydro addresses new industrial requests for electric service.
Importantly, policies such as those proposed in this Plan can be announced immediately, yet costs would only arise once developing industry committed to electric service. At that time, avenues would also open for Federal support, ensuring that new infrastructure investments, and the development of existing Heritage Assets, are cost effective from the perspective of industry, the Province, and BC Hydro’s ratepayers.