U.S. tariff threat adds urgency for B.C.’s energy independence: minister

VANCOUVER — The looming prospect of American tariffs raises the stakes for boosting the province’s energy independence, British Columbia Energy Minister Adrian Dix said Thursday.

There was urgency before the U.S. election last November, Dix said, but “there’s more now” as President Donald Trump threatens to impose 25 per cent tariffs on Canadian goods.

The minister was speaking at a news conference in Vancouver, where he announced the signing of a purchase agreement between the Saulteau First Nations and BC Hydro, supplying the utility with electricity from a 200-megawatt wind project in northeastern B.C.

The Saulteau First Nations hold a 51 per cent economic interest in the Taylor Wind project, which is expected to produce enough electricity to power about 60,000 homes.

Taylor Wind is one of 10 projects selected to advance from BC Hydro’s call for new renewable power projects last year, and Dix said it’s a “good step” on B.C.’s quest to become a world leader in renewables, while strengthening the province’s energy security.

“You bet, we’re going to work with everyone on Team Canada to have a comprehensive and united response,” he said of the tariff threat.

“Of course, energy is part of that. We’re going to support our industry here, and we’re going to the learn the lesson of this, I think, which is the absolute need to diversify.”

Dix said he expects to see BC Hydro issue more calls for power, and the province is working to speed up the permitting process for renewable energy projects.

“We have a growing and dynamic economy. We need this energy,” he said.

Former B.C. environment minister Barry Penner, who’s now the chair for the Energy Futures Institute, said the province faces a significant gap between its current capacity and the electricity that will be needed to meet clean energy targets and demand from population growth.

“I didn’t anticipate Donald Trump threatening tariffs, but I’ve been saying for more than a year now, it’s a risky proposition to be dependent on your neighbour to bail you out when you have an electricity crunch,” said Penner, adding utilities south of the border are facing their own challenges.

B.C. has been a net importer of electricity over the last two years, he noted, with the purchase of about 20 per cent of its power from Alberta in 2023 and 2024.

“That works out to about two Site C dams worth of electricity … in both of those years,” said Penner, referring to the mega-dam under construction in northeastern B.C.

A prolonged drought in the province has added to the challenge, he said, forcing BC Hydro to hold water back in its dams to ensure there’s enough electricity during times of peak demand.

Site C is expected to add about eight per cent more supply to B.C.’s electricity grid, though Penner said that just as it’s coming online, older dams are being taken out of service for maintenance and repairs.

The 10 wind projects first announced last December are also expected to boost the province’s power supply by eight per cent, generating about 5,000 gigawatt hours of electricity each year.

A statement from the Energy Ministry said electricity demand in B.C. is expected to increase by at least 15 per cent by 2030 due to population growth, housing construction, transportation and the shift away from fossil fuels.

This report by The Canadian Press was first published Jan. 23, 2025.

Brenna Owen, The Canadian Press