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Canadian BC Hydro criticised for not looking into geothermal

Canadian BC Hydro criticised for not looking into geothermal Well MC6 being flowtested at Meager Creek, BC/ Canada (source: Western GeoPower)
Alexander Richter 12 May 2014

A report on a large hydro power project by Canadian utility BC Hydro by a review panel criticized the utility for not having seriously looked at and considered geothermal.

The public utility of the province of British Columbia in Canada, BC Hydro is currently in a public consultation process for a large hydro power project called Site C.

As part of the consultation process, a joint review panel established by the Federal Minister of the Environment of Canada and the British Columbia Minister of the Environment wrote an extensive report, among other criticising BC Hydro harshly for not having looked at the geothermal option seriously enough.

“The Panel concludes that a failure to pursue research over the last 30 years into B.C.’s geothermal resources has left BC Hydro without information about a resource that BC Hydro thinks may offer up to 700 megawatts of firm, economic power with low environmental costs.”

It further talks about that “First, if BC Hydro is to continually scan the resource and technology horizon for future supply and conservation possibilities, it must have a budget and a mandate to do so. Without these, long-term planning is seriously uninformed. Second, that mandate appears to have been encouraged by the regulator more than 30 years ago and confirmed by the shareholder in legislation just 4 years ago.the low level of effort is surprising, especially if it results in a plan that involves large and possibly avoidable environmental and social costs. Third, even the low level of effort invested in characterizing the geothermal opportunity leads to the conclusion that large amounts of firm power may be available at prices in the $100/MWh range. Fourth, the well logs from the oil and gas plays in northeast B.C. are an important source of information. There appears to be an unexploited opportunity for partnerships between two branches of the energy industry.”

The panel then points out a need for private development, but also highlights the great benefit for future development might be in the data already available and that this should be shared with potential IPP players.

As part of the consultation process, the “Canadian Geothermal Energy Association (CanGEA) objected to BC Hydro’s labelling of geothermal power in B.C. as technically unviable. It claimed that “BC Hydro has not properly informed themselves about the geothermal option and continues to perpetuate the just-ain’t-so information to the public, especially around using Meager Creek as their example of why the industry is not viable.” This was a different view than in many other areas of the world where geothermal power is used. It provided cases where geothermal energy has been installed in similar geology. CanGEA addressed the economics of geothermal power, noting that, in many countries, it is often the low-cost provider with power prices well below what BC Hydro has indicated in the IRP.

According to CanGEA, compared to Site C, geothermal offers:

  • Lower cost overrun exposure to ratepayers;
  • More jobs spread throughout B.C. and First Nations;
  • Less system-wide transmission upgrade (cost savings);
  • Fewer environmental impacts;
  • Lower GHGs;
  • High capacity factor;
  • Planning flexibility to follow the actual demand growth in the provincial system; and
  • The possibility using by-product heat for other industrial purposes

Source: Report of the Joint Review Panel, Site C Clean Energy Project, BC Hydro – May 1, 2014