Independent power producers in British Columbia

[1] Starting in the 1980s, independent power producer projects became popular in British Columbia due to growing demands for energy that could no longer be supported by BC Hydro alone.

[3] New provincial regulations addressed the issue of how to manage the energy budget and recommended the creation of new programs to help supply the domestic demand.

Despite the growing popularity, there has been a reduction in the need for IPPs, as a result of the province's mandate to reduce BC Hydro's utility cost on consumers.

In BC Hydro's submissions to the BCUC they stated that new storage, wind and geothermal IPP projects could substitute for cancelling the Site C dam.

There have been several reasons discussed for the preference of these small projects, such as private financing, less government bureaucracy and generation methods other than hydro.

[11] Some ecological concerns have been raised over rural areas that may have remained untouched by ranching, logging and mining, now being developed with roads and transmission lines.

[13] There is a considerable amount of woody biomass from lumber mills, roadside debris, and standing pine which have the potential to generate 2,300 megawatts of electricity.

[16] However, the impact of such projects on fish habitats and marine environments along BC's coast are of concern, and little research is being conducted due to the extremely high costs of implementation.

[15][19] As of April 2017 BC Hydro was purchasing electricity under contract with private companies which deliver 20,788 gigawatts of power annually.

[11] The 2002 policy allows for new projects to be produced at lower costs and spares public expenditure by shifting the financial responsibilities to those operating in the private sector, rather than BC Hydro.

Although IPPs produce clean energy, the means of establishing these power projects may not necessarily be environmentally friendly.

Construction of infrastructures, such as roads and transmission lines, may negatively impact the surrounding natural environment and wild fish habitats and bird populations.

Public opinion will become more important as the provincial government begins to make decisions regarding the future of these projects and assessments on where new IPPs should be located in the province.