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Thursday, August 26, 2010

“Electron Laundering”: how British Columbia sells coal energy to California and calls it “green”

http://chuckdevore.com/2010/08/electron-laundering-how-british-columbia-sells-coal-energy-to-california-and-calls-it-green/

Enter government-owned BC Hydro and its Powerex subsidiary. With abundant hydro power potential, British Columbia is seeking to become the Saudi Arabia of “green” energy. California environmentalists don’t see the irony in British Columbia damming rivers to provide power to California, while in California, environmentalists fight to demolish dams as unsightly threats to salmon.

The irony gets even deeper, though. British Columbia, perhaps due to Premier Campbell’s business-friendly tax and regulatory policies, is growing. That, combined with a severe drought (yes, when California gets a good water year, British Columbia often sees a drought) means that BC Hydro will be importing $220 million more electricity than it did last year. You read it correctly, hydro energy colossus British Columbia will be importing almost a quarter billion dollars more electricity this year than last. In fact, BC Hydro has imported more energy than it has exported in 10 out of 11 years. And, from where does this energy come? Washington State and Alberta Canada. And, what is the source of this electricity? Brace yourself. Coal and gas-fired plants.

Electrons in a grid, like dollars in an account, are fungible, meaning that “clean green” electrons cannot be separated from “dirty coal” electrons and both are mixed in with electrons from nuclear power plants. So, when the Premier of British Columbia comes to California to urge us to continue to make our state even more dependent on his province for electricity as we strive to make the planet better we shouldn’t fool ourselves. The fact is, BC Hydro is buying “dirty” power and then, in an act I’ll dub “electron laundering” is repackaging it for the silly, naïve, environmental-minded Californians as pristine green hydro power—with a nice mark up, of course (Canadians have to pay for their national healthcare after all).

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