BC Hydro Acquires Island Generation Plant to Secure Power Reliability

The public utility BC Hydro acquired the Island Generation power plant in Campbell River to ensure electricity reliability on Vancouver Island and support the province's growing energy needs. The 275-megawatt natural gas-fired facility, located on the site of the former Elk Falls pulp mill, typically operates about 15 days a year to supply power during peak demand.

Minister of Energy and Climate Solutions Adrian Dix stated the acquisition prevents the plant's closure, thereby protecting local jobs and the municipal tax base. The facility will serve as a peaking asset while the utility expands its clean energy portfolio, which is currently 98 percent renewable. This acquisition is part of a broader Powering Growth strategy aimed at meeting projected electricity demand increases of 20 percent by 2030 and 50 percent by 2050.

Financial terms for the purchase from Capital Power are being finalized for disclosure this fall, and the deal will not undergo review by the B.C. Utilities Commission. Mayor Kermit Dahl noted the asset's importance for emergency preparedness and the ability to attract future industrial investment to the community.