Summary

• BC Hydro is buying the Island Generation facility in Campbell River, ensuring reliability for Vancouver Island and supporting B.C.'s growing electricity needs
• The acquisition will secure a cost-effective, strategically located asset that can help meet peak demand as population growth, electrification, economic development drive increased power demand
• Island Generation complements BC Hydro’s Powering Growth strategy by providing dependable capacity while the utility continues to invest in conservation, hydroelectric upgrades, new renewable generation, battery storage and transmission infrastructure

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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.

Benefits for Vancouver Island, B.C.

The acquisition will provide several important benefits for customers and communities:

• secures a strategic, existing asset that can support the system as new clean-energy projects are developed
• provides capacity to support the provincial electricity grid during peak demand
• supports continued economic growth and electrification while maintaining affordable and reliable service

Supporting reliability, clean-energy future

British Columbia has one of the cleanest electricity systems in North America, with approximately 98% of BC Hydro’s electricity generated from clean or renewable resources.

Island Generation complements BC Hydro’s broader clean-energy strategy by providing system capacity, while the utility continues to invest in energy efficiency, hydroelectric upgrades, renewable generation, battery storage, transmission infrastructure and other projects needed to power B.C.’s growing economy.

“Our job is to ensure British Columbians have reliable, affordable electricity every day of the year, including during periods of exceptionally high demand,” said Charlotte Mitha, president and CEO, BC Hydro. “Island Generation provides capacity that complements our hydroelectric system and the significant investments we are making in energy efficiency, renewable generation, battery storage and transmission infrastructure.”

Powering B.C.’s growth

The acquisition complements BC Hydro’s broader investments to meet growing electricity demand through a balanced approach focused on conservation, optimization and new clean-energy development.

In 2025, Site C came into service, adding approximately 1,100 megawatts of clean electricity to BC Hydro’s system. As part of its strategy to optimize existing assets, BC Hydro is advancing a range of upgrades across its hydroelectric fleet that are expected to add more than 1,000 megawatts of additional capacity, including a sixth generating unit at Revelstoke Generating Station and upgrades at other generating stations throughout the province.

Combined with conservation programs, new renewable generation, battery-storage projects and transmission investments, these initiatives will help meet British Columbia’s growing electricity needs for decades to come.

Learn More:

• To learn more about how B.C. is powering growth, visit: https://www.bchydro.com/toolbar/about/strategies-plans-regulatory/supply-operations/powering-growth.html