BC Hydro will acquire Island Generation, a generating facility in Campbell River, to secure electricity reliability on Vancouver Island and provide capacity to support British Columbia’s growing demand for electricity.

Island Generation will provide capacity that can be called upon during periods of peak demand. The natural gas-fired facility has operated an average of approximately 15 days a year over the past five years when needed for reliability. It will continue to serve that role while BC Hydro expands its portfolio of clean and renewable-electricity resources to meet demand.

“British Columbia’s economy is growing, communities are expanding, and more homes, businesses and industries are choosing clean electricity,” said Adrian Dix, Minister of Energy and Climate Solutions. “Securing Island Generation will help ensure we have capacity to support that growth, while making historic investments in conservation, renewables and the clean-electricity infrastructure our province needs.”

The acquisition supports BC Hydro’s Powering Growth plan to conserve energy, optimize existing assets and build new clean and renewable electricity infrastructure. It ensures BC Hydro can continue delivering reliable electricity during peak demand periods as demand grows throughout the province. This investment complements BC Hydro’s recently announced first utility-scale battery energy storage project on Vancouver Island, which will strengthen regional reliability and support the Island’s long-term growth.

“Today’s announcement is an important step for Campbell River and Vancouver Island, and one that council has strongly advocated for on behalf of our community,” said Kermit Dahl, mayor, Campbell River. “The Island Generation facility plays a critical role in supporting energy reliability during peak demand and emergencies, while helping create the certainty needed for future industrial investment. We support the continued expansion of clean and renewable energy alongside practical, dependable capacity that helps keep communities, businesses and critical services safe and supported as Vancouver Island’s energy system evolves.”

Recent load forecasts show British Columbia will require additional capacity sooner than previously anticipated, driven by population growth, electrification and expanding industrial development. Island Generation will provide BC Hydro with a dependable and cost-effective source of capacity that can support the grid when demand is highest, like the coldest days of the year, while helping ensure reliability for homes, businesses and communities throughout the province.

The 275-megawatt facility has supplied electricity to BC Hydro under a long-term electricity purchase agreement since 2002 and plays an important role in supporting reliability on Vancouver Island and the provincial electricity system. Island Generation supports 15 full-time jobs locally. Acquiring the facility will secure long-term access to this existing asset while BC Hydro continues advancing significant investments in new clean-energy resources and infrastructure.