SITE C CLEAN ENERGY PROJECT Presentation to AIEQ March 26th, 2015 Thomas Assimes Chief Financial Officer, Site C ABOUT BC HYDRO • BC Hydro is one of Canada’s largest electric utilities, serving 95 per cent of B.C.’s population • Crown corporation legally mandated to provide electricity to its customers – Delivers electricity to approximately 1.9 million customers in B.C. – Operates 31 hydroelectric facilities and three thermal generating plants 2 DEMAND TO INCREASE 40% IN 20 YEARS 3 DEMAND DRIVEN BY POPULATION GROWTH… 4 … AND ECONOMIC EXPANSION Key Industrial Drivers of Electricity Demand: • Oil and gas / LNG industry • Mining • Forestry 5 MEETING LONG-TERM ELECTRICITY DEMAND • Conservation is first and best choice 66% of future demand growth to be met through demand-side management • Re-investing in Existing Assets Upgrades to aging infrastructure Expansion of existing facilities • Buying from IPPs ~25% of current system and growing (e.g., wind, run-of-river, bioenergy) • New Energy and Capacity Resource Site C Clean Energy Project 6 7 BUILDS ON EXISTING RESOURCES • As third project on Peace River, Site C will rely on Williston Reservoir for most of its water storage • Enables Site C to produce 35% of energy of WAC Bennett Dam with 5% of the reservoir area 8 W.A.C. BENNETT DAM PEACE CANYON DAM 10 DAM SITE C Transmission Lines • Type: Earthfill Dam • Length: 1,050 metres • Height: 60 metres • Capacity: 1,100 MW • Energy: 5,100 GWh/yr. RESERVOIR Generating Station Auxiliary Spillway • Earthfill Dam • Length: 83 km Reservoir Width: 2-3 times current river (on average) Spillway Access Roads 11 OTHER PROJECT COMPONENTS SITE C Transmission Lines Generating Station Auxiliary Spillway Spillway • Realignment of 30 kilometres of Highway 29 • Shoreline protection at Hudson’s Hope • Two new 500 kilovolt AC transmission lines • Access roads and a temporary Reservoir construction access bridge • Two ten-metre-diameter tunnels and associated cofferdams • Worker accommodation Earthfill Dam Access Roads 12 BENEFITS OF SITE C • Clean and renewable electricity for 100+ years • Dependable energy to meet peak demand • Lowest cost to ratepayers Intermittent • Integrates intermittent power from IPPs (e.g., wind and run-of-river) Dependable • Low GHG emissions • Economic development and job creation Dependable Intermittent Dependable Dependable 13 ECONOMIC DEVELOPMENT 14 JOB CREATION 15 ENVIRONMENTAL ASSESSMENT COMPLETE • 7+ years of consultation with First Nations, public and communities • 14,000+ entries in First Nations consultation log • 500+ consultation meetings with the public and stakeholders, property owners, and local governments • Multiple years of field studies for fish, wildlife, socio-economic, environment • 15,000+ pages in the Site C Environmental Impact Statement • 70+ pages of mitigation, management and monitoring measures proposed • 7,094 information requests responded to • Two-month public hearing process (December 2013 to January 2014) • 29,572 pages of evidence filed 16 ABORIGINAL CONSULTATION There has been meaningful consultation with the potentially affected Aboriginal groups…” and “… consultation has been carried out in good faith and that the process was appropriate and reasonable in the circumstances. - Conclusion of federal/provincial Consultation and Accommodation Report • Consulting and engaging with Aboriginal groups since 2007. • Offers of accommodation have been made to all First Nations the Joint Review Panel deemed most affected. • Significant procurement opportunities being negotiated. • Will continue working with First Nations to address concerns, identify opportunities for benefits and enhance relationships. 17 KEY MITIGATION MEASURES • Relocating six portions of Highway 29 • Providing upstream fish passage through a trap and haul facility • Upgrading roads • Building new boat launches and recreation sites • Establishing a $20 million agricultural compensation fund • Creating new wildlife habitat • Supporting habitat enhancement projects in the region • Funding skills training initiatives • Encouraging Aboriginal participation in the work force and in procurement opportunities • Funding community services where appropriate • Funding additional daycare spaces to support participation in the labour market • Building 40 new permanent housing units to be used by the project 18 PROJECT APPROVED • Project received approval from the provincial government in December 2014. • Approval followed extensive due diligence process that found Site C provides most affordable clean electricity, compared to alternatives. • Construction planned to start in summer 2015. 19 SITE C PROCUREMENT APPROACH • Number of large contracts for major project components – – – – • • Turbines and Generators Main Civil Works Generating Station and Spillways Worker Accommodation Multiple small and medium contracts for supporting activities and ancillary works Approach supports project objective of providing economic opportunities for Aboriginal groups, northern communities and the province 20 SITE C PROCUREMENT OBJECTIVES • Achieve value for money for ratepayers – Maximize cost-effective project performance (generation capacity, energy and flexibility) – Structure a fair and competitive procurement process • Meet project schedule • Meet project budget • Optimally manage project risks • Support Site C project objectives, including providing economic opportunities for Aboriginal groups, northern communities and the province 21 PROCUREMENT OBJECTIVES Driver Measurable Procurement Objectives Cost/Value & Finance • Deliver project within budget, maximize cost certainty • Optimize UEC Schedule • Minimize schedule interfaces; incentives to meet or exceed schedule milestones Interfaces • Does the packaging minimize the number and criticality of interfaces that BC Hydro has to manage? Risk • Allocate risk to party best able to manage that risk Contractor Capability • Maximize interest from qualified proponents; minimum of three competitive bids to be received for each package from qualified and Capacity proponents First Nations and Regional Participation • Meet project objectives and obligations Governance • Ensure fit between BC Hydro’s competencies and the requirements of the contractors’ role Quality • Maximize owner’s responsibility for level of quality and oversight of QM 22 PROCUREMENT APPROACH Category Site Preparation Generating Facilities Supporting Works Component Procurement Model Early Clearing Design-Bid-Build contracts (& Direct Awards) Access Roads and Bridge Design-Bid-Build contracts (& Direct Awards) Worker Accommodation Design-Build-Finance-Operate-Maintain Main Civil Works Design-Bid-Build with Design-Build elements Generating Station and Spillways Design-Bid-Build with Design-Build elements Turbines and Generators Design-Build Clearing Design-Bid-Build (& Direct Awards) Highway 29 Ministry of Transportation and Infrastructure to determine Transmission Line Design-Bid-Build or Design-Build Site C Substation Design-Bid-Build or Design-Build 23 SUMMARY OF PROCUREMENTS UNDERWAY Component Description Status Turbines and Generators Supply and installation of six 183 MW vertical axis Francis turbines Worker Accommodation Camp accommodation at the dam site – structures, infrastructure and services – to house a peak workforce of 1,600 RFP issued to: • Alstom • Andritz • Voith Contract late 2015/16 RFP issued to: • Peace River Housing Partners • Plenary Living Main Civil Works Excavation, bank stabilization, diversion works, earthfill dam, RCC buttress Site Preparation: North Bank Building access roads, excavation, producing / stockpiling aggregate materials • Two Rivers Lodging Group Contract spring 2015 RFP issued to: • ABFD JV • CLENGROUP Constructors • Peace River Hydro Partners • Salini Impregilo S.p.A Contract summer 2015 RFP issued November 12, 2014 RFP close February 2015 24 SUMMARY OF PROCUREMENTS UPCOMING Component Description Anticipated Timing Generating Station and Spillways Civil works, hydromechanical equipment, transformers and balance of plant Qualification process: 2015 to 2016 Clearing Removal of timber and vegetation, salvage of merchantable timber Construction start 2015 North Bank MOTI Roads Upgrades to 240, 269, 271 and Old Fort Road Qualification process: Spring 2015 Highway 29 Realignment of multiple sections of Highway 29 over a total distance of approx. 30km Qualification process: 2016 Transmission Line Two new 500 kV transmission lines Qualification process: 2016 Site C Substation New substation connecting the generating station to the transmission lines Qualification process: 2016 25 SITE PREPARATION Component Description Anticipated Construction South Bank Early Clearing South bank rail siding, access road and clearing of dam site, south bank and lower reservoir area 2015 North Bank Site Preparation Includes building access roads, excavation, and producing and stockpiling aggregate materials 2015 Other Infrastructure Includes site power and communications and 2015 - 2016 a temporary construction bridge 26 GENERATING FACILITIES Upgrades in progress at Ruskin Component Description Anticipated Construction Main Civil Works Includes excavation, diversion works, earthfill dam and roller compacted concrete buttress Start 2015 Generating Station and Spillways Includes powerhouse, spillways, intakes, penstocks, hydro-mechanical equipment, transformers and balance of plant Start 2017 Turbines and Generators Includes supply and installation of six 183 MW turbines and six generators and associated equipment Installation: 2018 27 SUPPORTING WORKS Anticipated Construction Component Description Worker Accommodation Camp facilities on the north bank of the dam site to Start 2015 accommodate a peak workforce of ~1,600 Reservoir Clearing Includes clearing and removal of timber and vegetation, and salvage of merchantable timber Start 2016 Public Road Infrastructure Realignment of sections of Highway 29 and upgrades to Old Fort Road, 240 Road, 269 Road and 271 Road Start 2015 Transmission Line Includes two 77 km 500kV transmission lines from Site C substation interconnecting at Peace Canyon Start 2016 substation; decommissioning of existing 138kV transmission lines Site C Substation Includes substation connecting Site C generating station to the two 500kV lines from Peace Canyon and the 138kV local power supply Start 2017 28 UPCOMING PROCUREMENT GENERATION STATION AND SPILLWAY • Description: Includes powerhouse, spillways, intakes, penstocks, hydromechanical equipment, transformers and balance of plant 3D Rendering of Powerhouse 29 GENERATION STATION AND SPILLWAY • Procurement Type: a Design-Bid-Build with Design-Build elements • Anticipated timing: Request for Qualifications is anticipated for late fall 2015 30 30 REGIONAL, ABORIGINAL BUSINESS ENGAGEMENT • 825 companies registered in the Site C Business Directory • 770 attendees at Business Information Sessions 2011-2013 • Business-to-Business Networking Sessions – Worker Accommodation: 181 attendees – Main Civil Works: 207 attendees 31 31 NEXT STEPS • Continued planning for Site C construction start in summer 2015 • Ongoing consultations with Aboriginal groups and affected communities • Procurements underway • Provincial permits and federal authorizations required 32 STAYING INFORMED • Website: www.sitecproject.com • Email: [email protected] • Phone: 1.877.217.0777 (toll-free) • Sign up for Site C Business Directory • Attend business information meetings; participate in business-to-business networking sessions • Get to know BC Bid: http:// www.bcbid.gov.bc.ca/ 33 QUESTIONS? www.sitecproject.com 34
© Copyright 2024