

Currently released so far... 12404 / 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 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 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
ASEC
AE
AF
AM
AR
AJ
AU
AORC
AG
AEMR
AMGT
APER
AGMT
AL
AFIN
AO
AMED
ADCO
AS
ABUD
ABLD
ASUP
ASECKFRDCVISKIRFPHUMSMIGEG
APECO
AID
AND
AMBASSADOR
AN
ARM
AY
AODE
AMG
ASCH
AMCHAMS
ARF
APCS
APEC
ASEAN
AGAO
ANET
ADPM
ACOA
ACABQ
AORL
AFFAIRS
ATRN
ACS
AFSI
AFSN
ADANA
ASIG
AA
AX
AUC
AC
AECL
AADP
AGRICULTURE
AMEX
ACAO
ACBAQ
AQ
AORG
ADM
AINF
AIT
ASEX
AGR
AROC
ATFN
AFGHANISTAN
AFU
AER
ALOW
AZ
AVERY
BA
BY
BU
BR
BE
BL
BO
BK
BM
BILAT
BH
BEXP
BF
BTIO
BC
BBSR
BMGT
BTIU
BG
BWC
BB
BD
BX
BP
BRUSSELS
BN
BIDEN
BT
CW
CH
CF
CD
CV
CVIS
CM
CE
CA
CJAN
CLINTON
CIA
CU
CASC
CI
CO
CACM
CDB
CN
CMGT
CS
CG
CBW
CIS
CR
CONDOLEEZZA
CPAS
CAN
CWC
CY
COUNTER
CDG
CL
CT
CIC
CIDA
CSW
CHR
CB
CODEL
COUNTERTERRORISM
CTR
COM
CICTE
CFED
CJUS
CKGR
CBSA
CEUDA
CARSON
CONS
CITEL
CLMT
CROS
CITT
CAC
CVR
CDC
CAPC
COPUOS
CBC
CBE
CARICOM
COE
COUNTRY
CLEARANCE
CACS
CTM
CNARC
ECON
EFIN
ETRD
EUN
EFIS
EG
ETTC
EZ
EPET
EAID
EAGR
ENRG
ECUN
EU
ELAB
ECPS
EAIR
EINV
ELTN
EWWT
EIND
EMIN
EI
ECIN
ENVR
ELECTIONS
EINVEFIN
EN
ES
ER
EC
EUC
EINT
EINVETC
ENGR
ET
EK
ENIV
ETRDEINVECINPGOVCS
ECONOMY
EAP
EFTA
EUR
EUMEM
EXIM
ERD
ENERG
EUREM
ESA
ERNG
EXTERNAL
EPA
EINVECONSENVCSJA
ECONOMICS
ELN
EINN
EFINECONCS
ENNP
EEPET
ETRDEINVTINTCS
ENVI
ETRO
ESENV
ECINECONCS
ECONOMIC
EAIDS
EDU
ETRA
ETRN
EFIM
EIAR
ETRC
EAIG
EXBS
EURN
ECIP
EREL
ECA
ENGY
ECONCS
ECONEFIN
ETC
ETRDECONWTOCS
EUNCH
EINDETRD
IR
IZ
IS
IAEA
INRB
IRAJ
IQ
IN
IT
IMO
INTERPOL
ICAO
IO
IC
ITALY
ITALIAN
IRAQI
ICTY
ID
IPR
IWC
ILC
INTELSAT
IL
IBRD
IMF
IA
IRC
ICRC
ILO
ITU
ITRA
IV
IDA
IAHRC
ICJ
ISRAELI
IRS
INMARSAT
ISRAEL
ISLAMISTS
INDO
IZPREL
ITPHUM
ITPGOV
ITF
IBET
IEFIN
INR
IACI
INTERNAL
IDP
IGAD
IEA
ICTR
IIP
INRA
INRO
IF
KJUS
KSCA
KNNP
KU
KCOR
KCRM
KDEM
KTFN
KHLS
KPAL
KWBG
KACT
KGHG
KPAO
KTIA
KIRF
KWMN
KS
KG
KZ
KN
KMDR
KISL
KSPR
KHIV
KPRP
KAWK
KR
KUNR
KDRG
KCIP
KGCC
KTIP
KSUM
KPKO
KVIR
KAWC
KPIN
KGIC
KRAD
KIPR
KOLY
KCFE
KMCA
KE
KV
KICC
KNPP
KBCT
KSEP
KFRD
KFLU
KVPR
KOCI
KBIO
KSTH
KMPI
KCRS
KOMC
KTBT
KPLS
KIRC
KREL
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFLO
KBTS
KSTC
KTDB
KFSC
KX
KFTFN
KNEI
KIDE
KREC
KMRS
KICA
KPAONZ
KCGC
KSAF
KRGY
KCMR
KRVC
KVRP
KSEO
KCOM
KAID
KTEX
KNUC
KNAR
KNUP
KNNPMNUC
KLIG
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCRCM
KHDP
KGIT
KNSD
KOMS
KWMM
KPAI
KHSA
KTLA
KO
KMFO
KRCM
KCSY
KSAC
KTRD
KPWR
KID
KWNM
KRIM
KPOA
KCHG
KOM
KSCI
KFIN
KMOC
KESS
KWAC
KMIG
KSEC
KIFR
KDEMAF
KPRV
KBTR
KERG
KTER
KDDG
KPAK
KRFD
KHUM
KDEV
KCFC
KWWMN
KWMNCS
KJUST
MARR
MOPS
MU
MTCRE
MNUC
MY
MASS
MCAP
MOPPS
MAR
MPOS
MO
ML
MR
MASC
MX
MD
MP
MA
MTRE
MIL
MCC
MZ
MK
MDC
MRCRE
MAPS
MV
MI
MEPN
MAPP
MEETINGS
MAS
MTS
MLS
MILI
MTCR
MG
MC
MARAD
MIK
MILITARY
MEDIA
MEPI
MUCN
MEPP
MT
MERCOSUR
MW
MASSMNUC
MQADHAFI
NZ
NATO
NG
NI
NO
NATIONAL
NU
NPT
NIPP
NL
NPG
NS
NA
NGO
NP
NSG
NDP
NAFTA
NR
NC
NH
NE
NSF
NPA
NK
NSSP
NRR
NATOPREL
NSC
NT
NW
NORAD
NEW
NV
NSFO
NAR
NASA
NZUS
OTRA
OVIP
OPRC
OPDC
OSCE
OAS
ODIP
OIIP
OFDP
OVP
OREP
OFFICIALS
OSAC
OEXC
OPCW
OIE
OIC
OFDA
OSCI
OPIC
OBSP
OECD
ON
OCII
OHUM
OES
OCS
OMIG
OPAD
OTR
PGOV
PREL
PHUM
PINR
PTER
PSOE
PINS
PARM
PK
PBTS
PEPR
PM
POLITICAL
PARTIES
PREF
PBIO
PROP
PA
PSI
PINT
PO
PKFK
PL
PAK
PE
POLITICS
PINL
POL
PHSA
PU
PF
POV
PFOR
PHALANAGE
PARTY
PARMS
PRGOV
PNAT
POLINT
PRAM
PMAR
PG
PAO
PROG
PRELP
PPA
PCUL
PSEPC
PSA
PREO
PAHO
PGIV
PREFA
PALESTINIAN
PAIGH
POSTS
PTBS
PGOVLO
PORG
PGOVE
PLN
PINF
PAS
PUNE
POLICY
PDEM
PDOV
PCI
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PHUMPGOV
PMIL
PNG
PP
PS
PHUH
PECON
POGOV
PY
PHUMPREL
PHUS
PRL
PGOC
PNR
PGGV
PROV
PTERE
PGOF
PHUMBA
PEL
RS
RU
RW
REGION
RP
RICE
ROBERT
RSP
RUPREL
RM
RO
RCMP
RSO
RELATIONS
REACTION
REPORT
RIGHTS
ROOD
RF
RFE
RIGHTSPOLMIL
SP
SA
SY
SF
SYR
SENV
SCUL
SOCI
SNAR
SO
SU
SG
STEINBERG
SHUM
SW
SMIG
SR
SZ
SIPRS
SI
SAARC
SPCE
SARS
SN
SYRIA
SANC
SL
SCRS
SC
SENVKGHG
SAN
SNARCS
SHI
SWE
SNARIZ
SIPDIS
SEN
SNARN
SPCVIS
SEVN
SSA
SH
SOFA
SK
ST
TPHY
TU
TRGY
TI
TX
TS
TW
TC
TFIN
TD
TSPA
TH
TT
TIP
TBIO
TSPL
TZ
TERRORISM
TRSY
TN
THPY
TINT
TF
TL
TV
TK
TO
TP
TURKEY
TNGD
TBID
TAGS
TR
UP
US
UNSC
UK
UZ
UE
UNESCO
UV
UNGA
UN
UNMIK
UNO
UY
UAE
UNEP
UG
UNHCR
UNHRC
USUN
UNAUS
USTR
USNC
USOAS
UNCHR
UNCSD
UNDP
USEU
USPS
UNDC
UNDESCO
UNCHC
UNFICYP
UNC
UNODC
UNPUOS
UNCND
UNICEF
UNCHS
UNVIE
USAID
UNIDROIT
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 22:10 | 2011-04-28 00:12 | 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