Independent power producers across the province sent in their bids last Friday for BC Hydro's open call for power. "We will be looking to IPPs to play a lead role in filling the gap between existing supply and rising customer demand for electricity," Bev Van Ruyven, BC Hydro's senior vice-president of distribution, said in a press release.
BC Hydro received tender submissions from four IPPs on the Coast - of the province-wide total of 53 projects from 37 IPPs. Sound Energy Inc., Plutonic Power Corporation, Renewable Power Corp. and Hydromax Energy Ltd. submitted bids for run-of-river hydro projects on the Coast, according to BC Hydro.
Run-of-river projects typically include a powerhouse station, powerline, penstock structure and diversion structures. The projects divert water from a creek then return the water back to the creek. The electricity generated from IPP projects goes into BC Hydro's power grid.
To submit a bid, companies need to have a rezoning application for powerhouses pass at least first reading with the local regional district board. The Sunshine Coast Regional District (SCRD) held a public hearing Thursday, April 6, for Hydromax's proposed two powerhouses in Clowhom Creek in Area B at the end of Salmon Inlet. The Hydromax project has passed second reading and the company has met with referral agencies such as the Ministry of Environment, Integrated Land Management Bureau (ILMB), Department of Fisheries and Oceans (DFO) and the Sechelt Indian Band (SIB). Next the project will go back to the board for third reading and final approval.
Hydromax president Jim Gemmill and Coast Reporter were the only attendees for the IPP item at the public hearing. Gemmill noted Hydromax is well advanced in the process with the SCRD and the SIB.
Vancouver-based Hydromax is an amalgamation of Eaton Power Corporation of Vancouver and ENMAX Corporation of Calgary, formed in April, 2005 to develop run-of-river projects in B.C, according to its website. Some of Hydromax's directors formerly held senior management positions with BC Hydro.
Hydromax is continuing discussions with the Ministry of Environment, DFO and ILMB over the minimum in-stream flow requirements to ensure the project does not have negative impacts. Gemmill expects the issue to be resolved soon."It sounds like they are not far apart," said SCRD planner David Rafael.
Hydromax and the SCRD have reached a draft community benefits agreement - as per the SCRD's IPP policy that IPPs must benefit the local area. In it, Hydromax would agree to contribute toward certain amenities and community services - 0.4 per cent of Hydromax's annual gross revenues for amenity payments, in addition to a $50,000 upfront deposit for the community benefits fund, dependent on the project going ahead. The fund would be used only for capital programs benefiting the regional district, with company name recognition on the capital projects. The amenity payments would go into regional district services.
Sound Energy, which is proposing a project in Box Canyon near McNab Creek in West Howe Sound, recently submitted a rezoning application to the SCRD, according to Rafael. Plutonic Power's Rainy River project was on the April 13 planning agenda for first and second reading. Renewable Power's Tyson Creek project in Area B will be coming back to the board for third reading. BC Hydro will announce its contract awards in the late summer of 2006, including the bid prices.
