Jeff Ginalias

Joel Evans

Feb 20, 2008

PLAN 597
Presentation and Discussion Outline

Planning for Joint Water Energy Resources Projects
In the Developed World

Our presentation will address the technical and policy issues on utility scale projects that use water to generate energy. The primary emphasis will be on run-of-river projects, and to a lesser extent on dams. From the technical aspect, we will discuss the economic, environmental and social advantages and costs of these projects. We will then apply these concepts to the BC situation. We will identify the natural resources that allow the Province to reliably generate large amounts of hydro-power, as well as the methods it has employed in developing these resources.

We will then shift our focus to the current governance process for hydro projects in BC. We will discuss the policy issues that drive the demand for hydro projects in BC, and review the permitting process. Our inquiry will focus on the provisions of BC’s energy policy concerning hydro projects, its ecological and social impacts, as well as the potential long-term consequences from implementing the current policy. We will look at the current permitting and public participation process to identify strengths and flaws. Finally, we will provide a case study of a hydro project in BC that incorporates technical issues as well as governance challenges that highlight the complexities and values involved in developing hydro projects in developed areas.

Suggested reading (with links to authorâs web pages too):

Technical Aspects of Hydro Power

• Water: A Shared Responsibility. 2006. The United Nations World Water Development Report 2. Executive Summary Chapter 9.
• Run-of-River Hydropower in BC, A Citizenâs Guide to Understanding Approvals, Impacts and Sustainability of Independent Power Projects. 2007. Watershed Watch Salmon Society.

BC Energy Policy

• BC Energy Plan 2007. Scroll down and read the Backgrounder on Electricity, Energy Conservation and Efficiency Also, under Policy Actions review the section on Electricity, notably policies 10, 16, 18, 21, and 25. The Plan calls for electricity self sufficiency and conservation, yet also continues subsidizing electricity costs. Is this consistent?
• Lost in Transmission: A Comprehensive Critique of the BC Energy Plan. 2007. Marvin Shaffer & Associates Ltd. The first page (overview of all three papers), and the introductions for each of the three papers.
• Letter from the IPPBC in response to the critique above.

Governance Issues in BC Water Management for Power Projects

• SLRD Response to Bill 30. Read the two page letter, and skim the remainder to see who is involved in the issue.
• Ashlu River Project. Skim through to see the issues and process that led to enactment of Bill 30. Is this good governance?
• Upper Pitt River Water Power Project - Project Description. Skim the report, focusing on the Potential Impacts and Consultation Activities (pp.5-9). How does an interested party meaningfully participate and track the progress?
• Take Back the Power - The Upper Pitt River Project. Skim through to see the issues and stakeholders involved in this proposed energy project. How does good governance address these complex issues?
• BC Hydro Water Use Plans (WUPs). Review BC Hydro's Water Use Planning process involving BC Hydro assets and facilities. Is this a good IWRM model? New run-of-river projects are not BC Hydro facilities, but they sell their power to BC Hydro. Should run-of-river project proponents be required to incorporate the BC Hydro Water Use Planning principles in their process? Would it make a difference?

Presentation and Discussion Outline Format (POWERPOINT PRESENTATION)

I. Technical Overview (25 min)

Types of Energy Projects Reliant on Water (10 min)

Dams

Advantages

• Tremendous energy production

• Predictable power; can be well managed

• Provides a centralized energy production approachOnce constructed, low operations cost and long design life

• Facilitates the "firming" or "shaping" of variable energy coming from other renewable energy sources
  
  Disadvantages

• High initial investment

• Necessitates a well-developed transmission/distribution network

• Typically have a large environmental and social footprint

Run-of-River (RoR)

Advantages

• Provides distributed generation, redundancy, and diversity

• A viable option in rural, dispersed, or developing areas

• Typically have a much smaller environmental and social footprint for each installation (perhaps not on a per-kW basis)

Disadvantages

• Typically much more expensive (per kW) when used to augment or displace existing thermal or large hydro electricity production
  
• Variable energy resource (requires other dispatchable resources to “firm” aka fill in the gaps)

Why Water Energy Projects are Attractive (5 min)

• Simple construction

• Low operating costs (no „fuel‰ costs)

• Reduced environmental footprint

• No GHGs

• Ancillary benefits (flood control, recreation, water supply)

Are Water Energy Projects Really Green? (5 min)

• Environmental costs of construction, operation, links to grid
• With a reservoir, the decomposing organic material releases GHGs
• Without proper regional planning, non-optimal development may occur
• Non-optimal hydro projects results in more project

Water Energy Projects in BC context (5 min)

• BC has abundant hydro power potential and capacity
• Terrain geology and hydrology
• Large dam infrastructure already in place
• Existing transmission system severely limits what sites are viable, esp small sites

Initial Discussion Questions:  How do you balance these tradeoffs?  Are they measurable?  What should be the standards?  What about the scale (i.e., do you apply locally, regionally)?

II.        Energy Policy in BC   (20 min)

BC Energy Plan (10 min)

            Goals of the Energy Plan

• Electricity self-sufficient by 2016
• Require insurance power‚ to meet unexpected demand
• Clean or renewable electricity generation 90% of energy
• Meet 50% of increased resource needs through conservation
• All new power projects from the private sector
• Maintain heritage contracts‚ to keep electricity rates low (subsidy)
  
  Are these consistent? Does this result in undue stress on the water resource?

Energy Plan Critique  (10 min)

Marvin Shaffer report

• Credibility/issues of the author
• What are the identified shortcomings?
• Watershed Watch report
• Credibility/issues of the author
• What are the identified shortcomings?

Initial Discussion Questions:  The Energy Policy is “the will” of the Province.  How, and to whom, should criticism be directed?   What if the Energy Policy changes?  Are we “stuck” with all these hydro projects, energy purchase agreements, and the resulting infrastructure?

III.       Governance Issues for Hydro Projects in BC and Case Study  (30 min)

Permitting process       (10 min)

• lack of coordinated permitting review           
• multiple permits; separate agencies
• lack of review of cumulative impacts
• project review often does not consider entire watershed
• public participation - is it clearly defined?
• BC Hydro WUP  - an ideal IWRM model?

Bill 30 -  limits local government review of hydro projects      (5 min)

Ashlu River - what good is a provincial energy policy if local government can thwart efforts?

Pitt River - IPP with multiple stakeholders in a complex watershed  (15 min)

• What is the current governance model?
• What should be the model?

Initial Discussion Questions:  Should/can the permitting be more comprehensive?  Can a governance system be implemented to address the unique aspects of each specific project?   

IV.  Summary   (5 min)

Does BC’s Water Energy Policy reflect good principles of IWRM?  Does this policy provide for long-term certainty and stability of energy and water resource management?  Are the tradeoffs worth it?  Are the interests of the public adequately addressed?

V.  Wrap-up, Comments, and Critique (5 min)