BC Hydro to buy Campbell River natural-gas plant for peak-demand backup

BC Hydro says it will acquire the 275-megawatt Island Generation natural-gas plant in Campbell River to provide backup electricity during periods of high demand.

The facility on eastern Vancouver Island has supplied electricity to BC Hydro under a long-term purchase agreement since 2002. The utility says it can also support the broader provincial grid during periods such as the coldest winter days. The purchase price was not disclosed.

Island Generation is not normally operated year-round. Over the past five years, it has generated power for an average of about 15 days annually, mainly when additional supply was needed to maintain reliability.

BC Hydro says rising population, housing and industrial development, along with electrification of buildings and vehicles, are increasing pressure on the grid. The acquisition would give the utility control of an existing plant that can be activated relatively quickly while it develops renewable projects, upgrades hydroelectric assets and expands transmission.

The utility says about 98 per cent of the electricity it generates comes from clean or renewable sources. It expects the natural-gas plant to remain a small part of the system and operate only when needed for reliability.