

Currently released so far... 12478 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AU
ASEC
AE
AF
AORC
AEMR
AMGT
ABUD
AFFAIRS
APER
AS
AMED
AY
AG
AR
AJ
AL
AID
AM
AODE
ABLD
AMG
AFIN
ATRN
AGAO
AFU
AN
AA
ALOW
APECO
ADM
ARF
ASEAN
APEC
AMBASSADOR
AO
ASUP
AZ
AADP
ACOA
ANET
AMCHAMS
ACABQ
ASECKFRDCVISKIRFPHUMSMIGEG
APCS
AGMT
AINF
AIT
AORL
ACS
AFSI
AFSN
ACBAQ
AFGHANISTAN
ADANA
ADPM
AX
ADCO
AECL
AMEX
ACAO
ASCH
AORG
AGR
AROC
ASIG
AND
ARM
AQ
ATFN
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
BL
BR
BO
BA
BD
BM
BK
BG
BU
BB
BH
BTIO
BY
BEXP
BP
BE
BRUSSELS
BF
BIDEN
BT
BX
BC
BILAT
BN
BBSR
BTIU
BWC
BMGT
CA
CASC
CVIS
CM
CH
CO
CU
CD
CWC
CI
CS
CY
CMGT
CF
CG
CR
CB
CV
CW
CE
CBW
CT
CPAS
COUNTERTERRORISM
CJAN
CODEL
CIDA
CDG
CDC
CIA
CTR
CNARC
CSW
CN
CONS
CLINTON
COE
CROS
CARICOM
CONDOLEEZZA
COUNTER
CL
COM
CICTE
CIS
CFED
COUNTRY
CJUS
CBSA
CEUDA
CLMT
CAC
COPUOS
CIC
CBE
CHR
CTM
CVR
CITEL
CLEARANCE
CACS
CAN
CITT
CARSON
CACM
CDB
CAPC
CKGR
CBC
EC
EG
EPET
ECON
ETRD
EFIN
EIND
EMIN
ENRG
EAID
EAGR
EUN
ETTC
EAIR
ENIV
ES
EU
EINV
ELAB
ECIN
EFIS
ELTN
EWWT
ECPS
ECONOMIC
ENGR
EN
EINT
EPA
ELN
ESA
EZ
ER
ET
EFTA
EINVECONSENVCSJA
EUMEM
ETRA
EXTERNAL
EI
EUR
EK
ERNG
ENGY
ETRDEINVECINPGOVCS
ENERG
EINVEFIN
ENVR
ECA
ELECTIONS
ETC
EUREM
ENNP
EFINECONCS
EURN
ECINECONCS
EEPET
EXIM
ERD
ENVI
ETRC
ETRDEINVTINTCS
ETRO
EDU
ETRN
EAIG
ECONCS
ECONOMICS
EAP
ECONOMY
EINN
EIAR
EXBS
ECUN
EINDETRD
EREL
EUC
ESENV
ECONEFIN
ECIP
EFIM
EAIDS
ETRDECONWTOCS
EUNCH
EINVETC
IZ
IT
IR
IS
IN
IC
IAEA
IO
ICAO
IWC
ID
IV
ISRAEL
IAHRC
IQ
ICTR
IMF
IRS
IDP
IGAD
ICRC
ICTY
IMO
IL
INRA
INRO
ICJ
ITU
IBRD
INMARSAT
IIP
ITALY
IEFIN
IACI
ILO
INTELSAT
ILC
ITRA
IDA
INRB
IRC
INTERPOL
IA
IPR
IRAQI
ISRAELI
INTERNAL
ISLAMISTS
INDO
ITPHUM
ITPGOV
ITALIAN
IBET
INR
IEA
IZPREL
IRAJ
ITF
IF
KDEM
KU
KPAL
KNNP
KCRM
KZ
KN
KS
KJUS
KTFN
KSCA
KV
KISL
KPAO
KPKO
KIRF
KTIA
KIPR
KFLO
KFRD
KTIP
KAWC
KSUM
KCOM
KAID
KE
KTDB
KMDR
KOMC
KWBG
KDRG
KVPR
KTEX
KGIC
KWMN
KSCI
KCOR
KACT
KDDG
KHLS
KSAF
KFLU
KSEO
KMRS
KSPR
KOLY
KSEP
KVIR
KGHG
KIRC
KUNR
KIFR
KCIP
KMCA
KMPI
KBCT
KHSA
KICC
KIDE
KCRS
KMFO
KRVC
KRGY
KR
KAWK
KG
KFIN
KHIV
KBIO
KOCI
KBTR
KNEI
KPOA
KCFE
KPLS
KSTC
KHDP
KPRP
KCRCM
KLIG
KCFC
KTER
KREC
KTBT
KPRV
KSTH
KRIM
KRAD
KWAC
KWMM
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KOMS
KX
KMIG
KRCM
KVRP
KBTS
KPAONZ
KNUC
KNAR
KPWR
KNPP
KDEMAF
KNUP
KNNPMNUC
KERG
KGIT
KPAI
KTLA
KFSC
KCSY
KSAC
KTRD
KID
KOM
KMOC
KJUST
KGCC
KREL
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KO
KNSD
KHUM
KSEC
KCMR
KCHG
KICA
KPIN
KESS
KDEV
KCGC
KWWMN
KPAK
KWNM
KWMNCS
KRFD
MOPS
MCAP
MPOS
MARR
MO
MNUC
MX
MASS
MG
MY
MU
ML
MR
MILITARY
MTCRE
MT
MEPP
MA
MDC
MP
MAR
MASSMNUC
MARAD
MAPP
MZ
MD
MI
MEETINGS
MK
MCC
MEPN
MRCRE
MAS
MIL
MASC
MC
MV
MTCR
MIK
MUCN
MEDIA
MERCOSUR
MW
MOPPS
MTS
MLS
MILI
MTRE
MEPI
MQADHAFI
MAPS
NO
NATO
NL
NP
NZ
NSF
NI
NH
NG
NAFTA
NU
NASA
NR
NATOPREL
NSSP
NSG
NA
NT
NW
NK
NPT
NPA
NATIONAL
NPG
NSFO
NS
NSC
NE
NGO
NDP
NIPP
NRR
NEW
NZUS
NC
NAR
NV
NORAD
OTRA
OPCW
OVIP
OAS
OREP
OPIC
OIIP
OPRC
ODIP
OEXC
OPDC
OSCE
OIC
OSCI
OECD
OFDP
OFDA
OMIG
OPAD
OFFICIALS
OVP
OIE
OHUM
OCS
OBSP
OTR
OSAC
ON
OCII
OES
PGOV
PREL
PHUM
PTER
PINS
PINR
PREF
PK
PROP
PA
PARM
PBTS
PMAR
PM
PGIV
PE
PRAM
PHUH
PHSA
PL
PNAT
PO
PLN
PAO
PSA
PHUMPGOV
PF
PEL
PBIO
POLITICS
PHUMBA
PAS
POL
PREO
PAHO
PMIL
POGOV
POV
PAK
PNR
PRL
PG
PREFA
PSI
PINL
PU
PARMS
PRGOV
PALESTINIAN
PAIGH
POLITICAL
PARTIES
POSTS
PROG
PORG
PTBS
PUNE
POLICY
PDOV
PCI
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PP
PS
PY
PTERE
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PRELP
PSEPC
PGOVE
PINF
PNG
PGOC
PFOR
PCUL
POLINT
PGGV
PHALANAGE
PARTY
PGOVLO
PHUS
PDEM
PECON
PROV
PHUMPREL
RS
RU
RELATIONS
RW
RO
RM
RP
ROOD
RICE
RUPREL
RSO
RCMP
REACTION
REPORT
REGION
RIGHTS
RF
RFE
RSP
RIGHTSPOLMIL
ROBERT
SU
SCUL
SNAR
SOCI
SF
SA
SHUM
SENV
SP
SR
SY
SANC
SC
SMIG
SZ
SARS
SW
SEVN
SO
SEN
SL
SNARCS
SNARN
SI
SG
SN
SH
SYR
SAARC
SPCE
SHI
SCRS
SENVKGHG
SYRIA
SWE
STEINBERG
SIPRS
ST
SNARIZ
SSA
SK
SPCVIS
SOFA
SIPDIS
SAN
TC
TI
TBIO
TH
TSPL
TRGY
TSPA
TPHY
TU
TW
TS
TAGS
TK
TX
TNGD
TZ
TF
TL
TV
TN
TD
TIP
TR
TP
TO
TT
TFIN
THPY
TERRORISM
TINT
TRSY
TURKEY
TBID
US
UK
UNGA
UP
UZ
UNMIK
USTR
UNO
UNSC
UN
UNESCO
UNAUS
UNHRC
UY
UG
UNHCR
UNCND
USOAS
USEU
UNICEF
UNEP
UV
UNPUOS
UNCSD
USUN
UNCHR
UNDC
USNC
UE
UNDP
UNC
USPS
USAID
UNVIE
UAE
UNFICYP
UNODC
UNCHS
UNIDROIT
UNDESCO
UNCHC
Browse by classification
Community resources
courage is contagious
Viewing cable 10VANCOUVER42, AS BC POSITIONS TO BECOME A CLEAN ENERGY LEADER, CRITICAL
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #10VANCOUVER42.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
10VANCOUVER42 | 2010-01-26 22:31 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Vancouver |
VZCZCXYZ0075
RR RUEHWEB
DE RUEHVC #0042/01 0262232
ZNR UUUUU ZZH
R 262231Z JAN 10
FM AMCONSUL VANCOUVER
TO RUEHC/SECSTATE WASHDC 0065
INFO ALL CANADIAN POSTS COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
UNCLAS VANCOUVER 000042
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ENRG ECON CA
SUBJECT: AS BC POSITIONS TO BECOME A CLEAN ENERGY LEADER, CRITICAL
POLICY GAPS REMAIN
¶1. Summary: Stakeholders in British Columbia's electricity sector
are finally beginning to see some clarity in the BC government's
approach to the procurement and possible export of electricity in
the province. The independent regulator, the British Columbia
Utilities Commission (BCUC), sent shock waves through the industry
in July, issuing a controversial ruling rejecting several major
premises of provincial Crown-owned BC Hydro's Long Term Acquisition
Plan, including the mandate for purchasing green renewable power
over traditional natural gas and large hydro projects. In October
and November, the administration of BC Premier Gordon Campbell
responded, issuing a Special Direction effectively sidelining the
aging natural gas generation plant in question and striking four
Green Energy Advisory Task Forces to provide further guidance.
Critical gaps remain in BC's electricity policy, including a clear
export policy and clarification on private power procurement
practices. In the long run, however, Campbell's administration is
pressing forward with a strong mandate for independent renewable
power for both domestic consumption and export to the U.S. End
Summary.
Background
¶2. BC Hydro is the dominant player in the generation, domestic
sales and export of electricity for British Columbia. As directed
by Campbell's administration in 2002 and reaffirmed in its 2007 BC
Energy Plan, BC Hydro must procure all new generation (with the
exception of one possible future source - the Site C dam on the
Peace River) from Independent Power Producers (IPPs) using
renewable sources, such as wind and water. Ninety percent of the
electricity generated in the province emits no greenhouse gases
(GHGs), and the administration has mandated via the Energy Plan
that it remain this way. All new generation must be GHG net
neutral, and coal and nuclear generation are prohibited for the
foreseeable future. The province must be "self-sufficient" in
energy production by 2016, with the ultimate goal of becoming a
consistent power exporter.
BCUC Says "No" to Private Renewable Power
3.(SBU) Against this backdrop, in its July ruling, the BCUC
rejected BC Hydro's heavy reliance (up to 72%) on Demand Side
Management (DSM)(conservation measures by BC Hydro customers via
various incentive and penalty programs) as being unrealistic, and
declining to endorse BC Hydro's estimates for purchasing IPP
renewable power to meet government's self-sufficiency standard.
Because the BCUC was unconvinced by BC Hydro's argument for DSM to
achieve self-sufficiency, it directed the utility to use the aging
and GHG-emitting 900 megawatt (MW) Burrard Thermal natural gas
power plant located in Metro Vancouver (at present only used for
emergency backup, at ten percent or less of its capacity
annually)to meet power consumption marks. The BCUC justified its
ruling on the basis of cost and reliability, arguing that
acquisition of power from Burrard was cheaper and more reliable
than using the IPPs (particularly given the higher price and
attrition rate of previous IPP projects). In doing so, it appeared
to ignore environmental concerns and goals outlined in the BC
Energy Plan. The July ruling was interpreted by most stakeholders
as a challenge to the government's policy on procurement of
additional renewable power from private producers. The ruling also
jeopardized the much-delayed results of BC Hydro's "Clean Power
Call" - its request for proposals (RFP) from the IPPs. The impact
of the ruling on the industry was immediate. Publicly listed IPPs
experienced sharp declines in their stock values. One IPP President
told us his stock has declined 40% since the BCUC decision was
announced in July. Prior to the BCUC decision, the IPPs had become
a favourite of investors looking to enter the clean energy market.
Companies such as U.S.-based General Electric have invested
significant funds in burgeoning IPPs in BC since 2008.
¶4. Analysts also suggest that the decision points to incomplete
policymaking on the part of the BC government in its directives to
the BCUC. They note that the Campbell administration is struggling
with setting appropriate guidelines for the independent regulator,
which should be considering power procurement decisions on the
basis of broader criteria than the traditional economic efficiency
model of low cost and reliability of sources. In jurisdictions
where renewable power is a policy priority, green attributes are
beginning to matter at least as much as reliability and low cost.
The critics argue that unless regulators have their decision
criteria re-aligned through legislation or special orders,
disconnects will continue to occur between government policy and
regulatory action.
BC Pushing Ahead with Clean Power Call
¶5. The BC government undertook several actions throughout the fall
of 2009 to mitigate the effects of the BCUC decision and get its
green Energy Plan back on track. In late October the Minister for
Energy, Mines and Petroleum Resources, Blair Lekstrom, issued a
Special Direction to the BCUC, clearly signalling the BC
government's intent to end reliance on the Burrard Thermal plant.
This in turn clears the way for BC Hydro to continue with its Clean
Power Call for up to 6,000 gigawatt hours (GWh) of renewable power
(1,000 GWh of which is expected from bioenergy). The much-delayed
call (results were expected in June 2009), has re-started, with a
more limited pool of proposals. The utility has dropped 21 of the
68 proposals initially submitted, accepted another 13 to move
forward, and invited 34 proponents to sharpen their pencils and
re-submit proposals to make them "more cost-effective". This move
has reassured some ratepayers with an interest in continuing to pay
among the lowest electricity rates in North America, while some IPP
project proponents feel that they are taking a loss by having to
re-quote at lower price levels. One IPP contact told us that the
high rate of project failures seen in earlier calls suggests that
the lowest-cost project is not necessarily a more viable project.
¶6. In other actions, the BC Premier announced the formation of
four Green Energy Advisory Task Forces, to incorporate expert
opinions on BC energy policy in the following areas:
a. Procurement and Regulatory Reform - will recommend
improvements to BC Hydro's procurement and regulatory regimes,
particularly concerning the promotion of clean and cost-effective
power generation.
b. Carbon Pricing, Trading and Export Market Development -
recommending ways to advance BC's interest in national or
international cap & trade system(s), and to maximise the value of
BC's green-energy attributes in power generation, domestic
distribution and trading.
c. Community Engagement and First Nations Partnerships - will
recommend ways to ensure First Nations and communities benefit from
renewable electricity generation, and have the opportunity for
input into project development in their regions.
d. Resource Development - will identify impediments to and
best practices for planning and permitting renewable generation in
an environmentally sustainable way, and will work with clean energy
sectors (including for forest fibre) to enhance competitiveness.
Most stakeholders view these task forces, which have been given a
very short time frame to deliberate and report (second week of
January 2010), as a tool to help close some of the policy gaps and
give rubber stamps for the Campbell administration's policies.
¶7. (SBU) Commentary: The BC government has brought the turmoil of
the BCUC decision on itself, providing inadequate guidance to the
regulators on evaluating future power sources in light of GHG and
climate change concerns, and more generally neglecting strategic
policymaking on resource procurement and distribution/export.
There is certainly much more to come with the results of the task
forces' reports, although it is unclear whether these will be made
public. However it likely that an updated Energy Plan is
forthcoming. With such a short time frame, and given the
composition of the task forces, it is safe to guess that their
conclusions and recommendations are pre-ordained. On the input
side, confidential readouts from our contacts suggest that the
relevant task force will recommend feed-in tariffs for IPP
renewable energy, as was recently legislated in Ontario (which
bills itself as the first North American jurisdiction to do so).
Feed-in tariffs set a guaranteed price paid by the utility for
renewable power (set higher than the market rate), typically
combined with ensured access to the electricity grid. On the
output side, there will more than likely be an overt export policy.
IPPs are calling for it, and have calculated that there will be too
much power procured for merely domestic consumption. Further,
their business cases are premised on profits from eventual exports.
It remains to be seen, however, if the domestic constituency will
support the BC government's plan of becoming a major power
exporter, particularly if it means paying higher electrical bills
at home to tap into all that renewable energy from the IPPs. BC
also faces other hurdles in becoming a net power exporter,
including aging transmission infrastructure and U.S. regulations.
We will report in later cables on the outcome of the task forces'
reports and BC's power export challenges. In particular, we will
report on whether BC follows Ontario's domestic input content
requirement for its feed-in tariff. End Comment.
CHICOLA