Power Perspectives 2026

British Columbia Overview

INTRODUCTION

In 2025, the clean energy policies of British Columbia ("BC") matured as measurable progress was achieved across the provincial power sector. The Site C hydroelectric facility entered into service after a decade of construction as BC Hydro and Power Authority ("BC Hydro") launched a new call for power for a second consecutive year (the "2025 Call") and announced significant new policies to support the electrification of the provincial economy. The government of British Columbia (the "BC Government") also introduced new legislation, partnered with BC Hydro on key policies, and allocated new funding for power and clean energy initiatives. Moreover, progress continued on all five of BC's current major liquified natural gas ("LNG") projects.

2024 BC HYDRO CALL FOR POWER

As discussed in our previous publication, BC Hydro initiated a competitive call for power in 2024 (the "2024 Call") for the first time in fifteen years. The 2024 Call breathed new life into a provincial renewables industry poised for development, which had been largely dormant since the standing offer program was suspended in 2019. The 2024 Call sought to procure approximately 3,000 gigawatt hours ("GWh") per year ("GWh/y") of renewable, emissionfree electricity for delivery as early as fall 2028. After receiving 21 proposals representing over 9,000 GWh/y of electricity, BC Hydro has now awarded electricity purchase agreements ("EPAs") to nine wind energy projects and one solar energy project (ten EPAs in total) with a combined electricity supply of almost 5,000 GWh/y and total private capital spending of C$5-6 billion. Each project has between 49% and 51% Indigenous equity ownership and a guaranteed commercial operation date ("COD") between October 2028 and October 2031.

2025 BC HYDRO CALL FOR POWER

Introduction

In a May 5, 2025, news release, the BC Government confirmed that BC Hydro would be launching the 2025 Call to build on the momentum of the 2024 Call, and BC Hydro formally launched the 2025 Call on July 28, 2025. The 2025 Call aims to add an additional 5,000 GWh/y of clean electricity to the provincial power grid with projects coming in service by October 2033. Proposal submissions closed January 5, 2026, and EPAs are expected to be awarded in Q1 2026. As with the 2024 Call, each project submitted under the 2025 Call is required to have at least 25% Indigenous equity ownership and can receive a credit to its bid price by up to C$4.00 per megawatt hour for having up to 51% Indigenous equity ownership. A new feature of the 2025 Call is the appointment of a First Nations Clean Energy Representative to provide independent guidance to First Nations about the 2025 Call and the request for proposal ("RFP") process to help ensure that First Nations are meaningfully informed, supported, and engaged throughout the procurement timeline. The First Nations Clean Energy Representative is discussed further in the Aboriginal Law chapter of this publication.

The 2025 Call aims to add an additional 5,000 GWh/y of clean electricity to the provincial power grid with projects coming in service by October 2033. Proposal submissions closed January 5, 2026, and EPAs are expected to be awarded in Q1 2026. As with the 2024 Call, each project submitted under the 2025 Call is required to have at least 25% Indigenous equity ownership and can receive a credit to its bid price by up to C$4.00 per megawatt hour for having up to 51% Indigenous equity ownership. A new feature of the 2025 Call is the appointment of a First Nations Clean Energy Representative to provide independent guidance to First Nations about the 2025 Call and the request for proposal ("RFP") process to help ensure that First Nations are meaningfully informed, supported, and engaged throughout the procurement timeline. The First Nations Clean Energy Representative is discussed further in the Aboriginal Law chapter of this publication.

Electricity Purchase Agreement Provisions

The specimen EPA (the "Specimen EPA") posted by BC Hydro on the 2025 Call website, which is the form of EPA that all successful call participants will enter into with BC Hydro, contains several new provisions introduced in the 2025 Call which were absent from the 2024 Call and other past procurements, reflecting changes in the political and economic environment since the 2024 Call:

1. BC Hydro's right of first refusal (the "ROFR");
2. provisions applicable to projects in the region of BC Hydro's new North Coast Transmission Line Project (the "NCTL Project");
3. a tariff adjustment mechanism;
4. a Canadian content level price adder; and
5. a community economic benefits credit.

We discuss each one of these in further detail below.

BC Hydro's Right of First Refusal

The Specimen EPA contains the ROFR, which is triggered if a bona fide written offer is received for a "Third Party Transaction", which is defined as any of the following:

• a "Third Party Asset Transaction" being a transfer of all or substantially all of the project assets;
• a "New Ownership Interest Transaction" being the issuance of a new ownership interest in the seller under the EPA (the "Seller"); or
• an "Ownership Transfer Transaction" being a transfer by an "Owner" of its ownership interest to another person.

The Seller's "Owners" are also now required to be party to the EPA and comply with the ROFR provisions. Once the ROFR is triggered, the EPA contains detailed provisions regarding notification of BC Hydro, an opportunity for BC Hydro to exercise its ROFR, a specified date on which the transfer transaction will close if BC Hydro exercises its ROFR, and a maximum time period within which the Seller must close the transfer transaction if BC Hydro does not exercise its ROFR. If a "Third Party Transaction" is completed other than in compliance with the ROFR provisions in the EPA, BC Hydro will have the right to terminate the EPA.

There are limited exceptions to the ROFR which allow for transfers to BC Hydro, to First Nations within whose traditional territory the project is located and to certain affiliates of the Seller strictly for the purpose of tax or internal corporate reorganizations.

The NCTL Project and BC Hydro's Termination Right

On October 8, 2025, BC Hydro issued Addendum 5 to the RFP, which includes detailed new provisions in the Specimen EPA for projects in the North Coast region of BC (being any project that will interconnect with the BC Hydro transmission system at any point west of Williston substation near Prince George). According to the October 16, 2025, Q&A responses by BC Hydro on the NCTL Project, BC Hydro identified through system planning that any project in the North Coast region that is awarded an EPA through the 2025 Call will likely be dependent on the completion of the NCTL Project in order to interconnect to the BC Hydro system. As a result, the EPA for any such project will contain termination rights in favour of BC Hydro if the NCTL Project is not completed and a requirement for the NCTL Project to be in-service as a condition to achieving COD under the EPA.

The NCTL Project was deemed by the federal government to be of national importance and significance and was referred to the Major Projects Office (the "MPO"), Ottawa's new agency for advancing large economic development projects across Canada (discussed further in the Fast-Tracking Nation-Building: Canada's Major Projects Office chapter of this publication). Construction of the NCTL Project is expected to start in the summer of 2026, with phased completion targeted for 2032–34. Of the NCTL Project's estimated cost of C$6 billion, the Canada Infrastructure Bank has already loaned C$139.5 million to support early works.

Tariff Adjustment Mechanism

A new tariff adjustment mechanism has been included, which is designed to reduce uncertainty and share risk between BC Hydro and project developers. Under these provisions, if import tariffs on key project components change after bid submission but before COD, the energy price can be adjusted to reflect the actual cost impact. By allowing post-award adjustments, BC Hydro aims to provide greater financial predictability, support project financing, and ensure that unforeseen tariff changes do not jeopardize project viability. These changes mark a significant shift from earlier calls for power, where tariff risk was borne entirely by proponents.

Canadian Content Level Price Adder

A Canadian content price adder is now available for sellers that include a specified "Canadian Content Level" in their project. "Canadian Content Level" is defined as percentage that Canadian goods and services (i.e. goods originating in the territory of Canada, or services provided by a Person formed or continued in a Province of Canada or federally in Canada and that has its headquarters in Canada or over 100 employees in Canada) represent of the total capital expenditures of the project. Within 30 days after COD, Sellers must submit a detailed calculation and statutory declaration of the Canadian Content Level. Price adders range from C$0.10/MWh for content between 20 to 30%, to C$0.30/MWh for content of 50% or more.

Community Economic Benefits Credit

Sellers can add an optional credit of C$1/MWh or C$2/MWh to their proposal if they include an attestation from one or more First Nations that do not have equity ownership in the project, confirming the intent to finalize a Community Economic Benefits Agreement if awarded an EPA. A credit of C$1/MWh applies for an attestation from one First Nation, and C$2/MWh for two or more First Nations. Prior to COD, Sellers must provide letters confirming these agreements have been executed, with failure to do so resulting in a permanent energy price reduction equal to the credit.

CLEAN POWER POLICY UPDATES

BC Clean Power Action Plan

Concurrent with the announcement of the 2025 Call, BC Hydro and the BC Government unveiled the Clean Power Action Plan, a consolidated policy for clean power and economic development in the province. The Clean Power Action Plan is based on five key initiatives:

1. carrying out the 2025 Call;
2. issuing a Request for Expression of Interest to explore the development of capacity projects and firm baseload electricity supply (the "RFEOI for Capacity");
3. issuing a Request for Expression of Interest to identify clean-technology solutions for energy savings ("PowerSmart RFEOI");
4. a strategic investment of over C$12.3 million from the BC Innovative Clean Energy Fund to spur innovation in clean technology (the "Strategic Investment"); and
5. accelerating connections by streamlining access to electricity for new and growing consumers.

Some of the notable initiatives from the Clean Power Action Plan are discussed in further detail below.

RFEOI for Capacity

The RFEOI for Capacity seeks to identify baseload energy projects, including geothermal, pumped storage hydro, and traditional storage hydro projects, but excluding nuclear energy, to meet peak demands and support intermittent wind and solar power generation. As discussed in our prior publication, such grid-level planning is required to address changing power consumption trends resulting from the rapid electrification of the provincial economy and the widespread uptake of intermittent renewable energy generation technologies. We expect this trend to continue. The response period for the RFEOI for Capacity closed on September 8, 2025 and 106 submissions representing 19 gigawatts of potential generation capacity cross multiple technologies, including storage hydro, geothermal and biomass were received. Proponents with proposals of interest will be contacted by BC Hydro directly.

Clean Technology Investment and Innovation

The PowerSmart RFEOI aims to identify commercially viable technologies that can contribute to energy efficiency in the province. This initiative dovetails with BC Hydro's larger C$700 million expanded Energy Efficiency Plan, which aims to use technology, programming, and rebates over the next three years to save over 2,000 GWh of electricity by 2030. Of BC Hydro's C$700 million Energy Efficiency Plan, C$250 million is dedicated to industrial and commercial power consumption, C$110 million to demand response, C$100 million to each of portfolio initiatives and solar & batteries, C$80 million to income qualified, social housing, and Indigenous programs, and C$60 million to residential.

The Strategic Investment, part of C$124 million invested by the BC Government's BC Innovative Clean Energy Fund since 2008, is a three-year call to procure BC-based clean energy technology solutions. The first targeted call of C$3.335 million was issued in May 2024 and was awarded to technologies focused on electrical vehicle charging load management, residential, and industrial solar integration, waste heat reclamation, and energy auditing. Up to C$9 million will be allocated in November 2025 to technology solutions that reduce the cost and/or increase the feasibility of electrifying residential, commercial, and institutional energy use, and optimizing electrical utility energy management.

Legislative Updates

The BC Government passed two key pieces of legislation in 2025 related to power projects in BC, being Bill 14: Renewable Energy Projects (Streamlined Permitting) Act ("Bill 14") and Bill 31: Energy Statutes Amendment Act ("Bill 31").

Bill 14: Renewable Energy Projects (Streamlined Permitting) Act Bill 14, which received royal assent on May 29, 2025, is the legislative complement to the Clean Power Action Plan. It allows for streamlined regulation of power projects by exempting all nine successful wind projects under the 2024 Call and the NCTL Project from the provincial Environmental Assessment Act and by establishing "single window" regulation for them under the BCER. The same treatment for other renewable energy projects can also be prescribed through regulation.

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