Rationale Behind Construction of Site C Dam on Peace River in BC Deeply Flawed

Thirty five years ago concerned ratepayers challenged BC Hydro, the BC Utilities Commission and the Provincial government to admit that electricity conservation and small power projects were preferable to flooding the farm lands of the Peace Valley. Building another dam was not the answer then, and it is not the answer today.

Image Credit:  http://www.straight.com

Sourced through Scoop.it from: vancouver.24hrs.ca

>” Roger Bryenton & Associates, 2015 […] Conservation, plus a variety of smaller, low impact green projects can save and produce more electricity at a lower cost, with less risk, than Site C.

British Columbia has demonstrated its responsibility to live in harmony with nature when building, living and developing resources; doing “more with less”. BC Hydro is to be commended on using conservation and Independent Power producers to supply a reliable and robust power system. Ratepayers recognize these efforts and will help by saving electricity, conservation, and using small scale, “flexible” projects which can readily be adjusted to changes in demand.

Presently, we are excluding the Columbia River Treaty benefits, Alcan and Teck-Cominco power resources, and time-of- use rates which could optimize the “provincial system”. Power from the Columbia River Treaty is being sold at market rates of 3 to 4 cents/kWh rather than be included in the supply equation, where it would be worth 8 to 10 (or more) cents/kWh. Alcan and Cominco have massive dams and plants that could contribute capacity when needed, while regulations presently prevent time-of-use rates to reduce peak demand, a technique used by leading utilities worldwide.

Site C is not needed for a number of reasons:

1. Columbia River Entitlement – Both the Capacity and the Annual Energy of Site C are close to what the Columbia River entitlement offers: Site C is 1,100MW and 5,100 GWh/yr while Columbia is 1,250 MW and 4,400 GWh/yr.

2. Cost – In the original submission, the cost estimate of Site C was $5.7 Billion, or $83/MWh (8.3 cents/kWh). During hearings this increased, first to $7.9 Billion , or $114/MWh (11.4 cents/kWh).  It has increased again, to the present $8.8 billion or $126 /MWh ( 12.6 cents /kWh). By BC Hydro’s own calculations, there are literally hundreds of clean, renewable small projects that can provide capacity and energy under $114, and many more under $126/MWh.

3. Timing – Even a small amount of new power will not be needed until 2027! A massive dam takes 8 to 10 years to complete. Conservation and small power plants require a few months to 3 years to complete. Building an 1,100 MW dam if we only need 100MW is “like using a sledge hammer to crack a nut” (A. Lovins). We will not need 1100MW even by 2033 when conservation and small plants can better follow growth .

4. Capacity – Firm Capacity is only needed for a few hours every year! We do not need a huge dam to do this.

– Time of use rates. By 2020 almost 400MW of savings at $31/kW-yr would be available by significantly shifting peak loads. BC Hydro does this operationally but has refused to include it in their submitted plan.
– Pumped storage at Mica and elsewhere is economical at these prices – we do not need to flood more farmland.
– Geothermal also offers firm capacity.
– An Agreement with Alcan for some peaking, a few hours each year is feasible, but not proposed in the Site C plan.

5. Energy – Conservation, doing “more with less”, has been effective during the past 35 years, when Site C hearings originally delayed this project!

“Deep DSM” – Demand-Side Management, Option 5 of BC Hydro’s Integrated Resource Plan, can save almost 1,600MW by 2020 with energy savings of 9,600 GWh/yr. This is almost 400MW and 2000 GWh/ yr more than DSM 2. The cost is only $49/MWh; roughly half of what Site C would cost!  […]”<

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Geothermal Energy Projects in BC Show Economic Promise

Two potential geothermal energy projects near Pemberton could generate electricity for about seven cents a kilowatt hour — only slightly higher than the 5.8 cents to 6.1 cents a kilowatt hour cost estimate of the Site C dam project.

Sourced through Scoop.it from: www.edmontonjournal.com

>” […]  There are no geothermal energy projects operating in B.C. but the study estimated the cost per kilowatt hour for the nine sites would range from 6.9 to 7.1 cents for Pebble Creek and Meager Creek near Pemberton to 17.6 cents for Clarke Lake near Fort Nelson.

BC Hydro senior strategic technology specialist Alex Tu said some of the projects appear promising but stressed the cost estimates are still “very uncertain” and carry a lot of risk.

“Even though it says seven cents a kilowatt hour, it’s still a risky proposition,” he said. “All the geothermal in the province is still looked at as very uncertain and very high risk but if you can make the project happen, seven cents is a good price.”

Tu noted BC Hydro invested tens of millions of dollars drilling at the two Pemberton area sites in the 1970s and 1980s but could only produce enough steam for a 20-kilowatt demonstration facility that operated for 18 months.

Geothermal power facilities work by drilling into the earth and redirecting steam or hot water into turbines that convert the energy from the fluid into electricity.

Tu said Hydro has always been open to geothermal power as an alternative energy source but no geothermal projects have ever been submitted to Hydro in any of its calls for power from independent power producers.

Hydro’s standing offer program offers to pay producers $100 a megawatt hour for smaller energy projects of up to 15 megawatts. The two Pemberton area geothermal sites each have estimated capacities of 50 to 100 megawatts.

Borealis GeoPower chief geologist Craig Dunn, whose Calgary-based firm hopes to build two geothermal power plants in B.C. by 2018, said he was excited by the Kerr Wood study, which was commissioned by BC Hydro and Geoscience BC.

“I think it’s a giant step forward in recognizing that geothermal is a viable energy opportunity for the province of British Columbia,” he said.

Dunn said the drilling and turbine technology associated with geothermal power continues to improve, making that form of energy more economically viable than ever.

“As a private developer, I know that my costs are significantly less than the estimates,” he said.

Tu estimated the cost of the two proposed Borealis geothermal sites near Valemount and Terrace at about $120 to $140 a megawatt hour but Dunn said current drilling economics — with many drilling rigs now inactive due to the oil industry slowdown — could cut that estimate by 25 to 50 per cent.  […]”<

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Mega-Project – BC’s Peace River Site C Dam to Break Ground Next Summer

“Clark said that it’s unknown how much the project will add to BC Hydro customers’ bills, but that the cabinet reached the decision after careful analysis and much discussion.”

Source: thetyee.ca

>” […] British Columbia plans to start construction of the $8.8-billion Site C dam on the Peace River next summer, Premier Christy Clark said today in a controversial announcement that was welcomed by some and panned by others.

“Once it is built, it is going to benefit British Columbians for generations, and that is why we have decided to go ahead with the Site C clean energy project,” Clark said at a press conference at the provincial legislature.

Clark said that it’s unknown how much the project will add to BC Hydro customers’ bills, but that the cabinet reached the decision after careful analysis and much discussion.

Site C was the most affordable, reliable and sustainable option available to meet B.C.’s growing power needs, she said. Over the next 20 years, the government is estimating that demand for energy will increase by 40 per cent as both the population and industry grows. Roughly one-third of that power is expected for residential use.

First proposed some 30 years ago, Site C will be the third of a series of dams on the Peace River and will flood an 83-kilometre long stretch of the river to generate 1,100 megawatt hours of electricity, enough to power 450,000 homes per year.

“If you accept the premise British Columbia is going to grow, then you also accept the premise we’re going to need more power,” said Clark. That power will come from a variety of sources, including the Site C dam, which will have a lifespan of 100 years, she said. […]

Impacts ‘that can’t be mitigated’: CEO

BC Hydro President and CEO Jessica McDonald said the Crown corporation has spent seven years consulting with First Nations. “We acknowledge and respect that there are impacts,” she said. “There are impacts that can’t be mitigated.”

Discussions are continuing and there are hopes they’ll reach an agreement on accommodation, she said. Courts have ruled that in certain situations it may be necessary to compensate an aboriginal group for any adverse impacts a project may have on its treaty rights. Compensation could include habitat replacement, job skills or training, or cash.

Energy and Mines Minister Bill Bennett said the project is in the long-term best interest of the province, though he acknowledged it comes at a cost to people in the Peace River valley. “There are impacts to people who live in the Northeast, and nobody is happy about that,” he said.

It’s a major project and worth building, he said. “It’s big, it’s expensive, it’s a huge project, but it’s eight per cent of the total electricity needs in the province.” […] “<

 

 

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Energy executive quits NEB, blasts Kinder Morgan review as ‘fraudulent,’

Marc Eliesen has withdrawn as an intervenor in the federal government’s review of Kinder Morgan’s Trans Mountain pipeline and oil tanker expansion project, detailing his reasons for quitting in a scathing 1,500 word letter to the National Energy Board.

Source: thetyee.ca

>” […] Given the Board’s lack of objectivity it is not surprising that out of the approximately 2000 questions not answered by Trans Mountain that Intervenors called on the Board to compel answers, only 5 per cent were allowed by the Board and 95 per cent were rejected.

The Board had stated that the elimination of cross-examination of the Proponent’s evidence can be evaluated through the two scheduled Information Requests. But we have a Kafkaesque outcome. Trans Mountain refuses to answer questions and the Board does not compel them to do so.

6. The Province of British Columbia stated that “Trans Mountain’s failure to file the evidence requested by the Province in Information Request No. 1 denies the Board, the Province and other Intervenors access to the information required to fully understand the risk posed by the Project, how Trans Mountain proposes to mitigate such risk and Trans Mountain’s ability to effectively respond to a spill related to the Project.”

The Province of British Columbia has the responsibility for undertaking due diligence on behalf of the public trust of British Columbians. The 80 questions Trans Mountain refused to answer — which the Province believed important enough to ask the Board for assistance and compel Trans Mountain to answer — were denied by the Board.

The Board has sided with Trans Mountain dismissing the Province of BC’s need for answers in pursuit of its duty to British Columbians. The NEB’s bias in support of the Proponent is reflecting poorly on the Province of BC in that it is unable to obtain necessary answers to conduct its due diligence. Accordingly, it raises the question as how it is possible for the Province of BC to continue to participate in this hearing process. The Province should cancel the Equivalency Agreement with the NEB on this project and undertake its own environmental assessment as the only meaningful way in which it will be able to effectively obtain the answers it seeks.

The National Energy Board is not fulfilling its obligation to review the Trans Mountain Expansion Project objectively. Accordingly it is not only British Columbians, but all Canadians that cannot look to the Board’s conclusions as relevant as to whether or not this project deserves a social license. Continued involvement in the process endorses this sham and is not in the public interest.

Yours truly,

Marc Eliesen “<

– See more at: http://thetyee.ca/Blogs/TheHook/2014/11/03/VIEW-energy-exec-blasts-Kinder-Morgan-quits/#sthash.lOr1uyt5.dpuf

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Fracking linked to BC’s liquefied natural gas gambit

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A surplus of natural gas in North America explains why the B.C. government is so desperate to launch a new industry

Duane Tilden‘s insight:

>“The prices that the [B.C.] government is looking at in paving the roads with gold is basically based on these short-term factors that are not likely to persist,” Lee said.

Natural Gas Development Minister Rich Coleman did not make himself available for an interview to respond to Lee’s comments.

B.C. misread U.S. energy revolution

The B.C. government missed the mark with its earlier forecasts on royalties because it failed to predict an explosion in U.S. energy production.

This largely came about through hydraulic fracturing, otherwise known as “fracking”, and horizontal drilling. Technological innovations in fracking generated huge new supplies, causing North American natural-gas prices to plummet.

The falling prices resulted in fewer royalties flowing into the B.C. government treasury.

Fracking involves pumping huge amounts of water along with sand and chemicals into shale-rock formations to free trapped gas.

Horizontal drilling enables companies to retrieve locked supplies by moving the drill bit across a deposit rather than going straight down.

A single platform can send horizontal drills in a multitude of directions, enhancing efficiency and saving money.

In his 2013 book, The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters (Penguin), Gregory Zuckerman chronicled how a handful of U.S. energy-industry outcasts refined these techniques and caused an American energy revolution.

“To me, it’s fascinating that this resurgence started in 2007 and 2008, which is right when America was sort of on its back,” he told the Straight by phone.

Zuckerman, a Wall Street Journal reporter, said that the United States is now producing about eight million barrels of oil per day, up from five million barrels per day in 2008.

In addition, U.S. natural-gas production rose more than 21 percent between 2008 and 2013.

ExxonMobil CEO Rex Tillerson has predicted that the U.S. will be energy self-sufficient by 2020.

The Frackers reveals that the people who spearheaded this sharp increase in energy production were not working for major oil companies like ExxonMobil, Shell, BP, or Chevron.

Rather, they were an assortment of little-known wildcatters from Texas and Oklahoma—George Mitchell, Aubrey McClendon, Tom Ward, and Harold Hamm—who became billionaires as a result.

They crisscrossed areas with shale reserves, buying drilling rights from property owners. Although there has been a lot of howling from environmentalists about the contamination of water supplies with fracking chemicals, the industry continues to grow.

“Everyone focuses on fracking—and fracking is key, as is horizontal drilling—but the most important thing is that innovators like Mitchell got it to work in shale, which everyone kind of ignored, especially the big guys and the experts,” Zuckerman said.

By targeting shale, Zuckerman maintained, Mitchell changed the country and the world.

That’s because manufacturers with high natural-gas input costs—such as makers of chemicals, tires, cement, and aluminum—are basing operations in the United States because of the low natural-gas prices. And Zuckerman said that this will give the U.S. a competitive advantage against other countries for years to come.

“Some economists say as many as two million jobs are going to be created,” he stated.<

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