Reality Check

Executive Summary

Thanks to the province’s abundant hydro power, British Columbians’ electricity bills are among North America’s lowest and half of what an Alberta household pays for power.

Thoughtful planning decades ago set the stage for an affordable and reliable electricity system that has underpinned the province’s economy and helped keep electricity bills low for B.C. households.

The future is electric. Not only is electricity a much more efficient power source than fossil fuels, going electric saves households and businesses money. For example, a Metro Vancouver family that adopts clean energy solutions—including EVs and heat pumps—could knock more than $700 off its average monthly energy bill compared to one largely reliant on fossil fuels (and that includes the upfront costs of equipment).

Despite this, some groups have argued that B.C.’s electricity grid isn’t up to the task, using these concerns to call for the rollback of key climate policies—like regulations to increase EV supply— that would impact electricity demand.

But these concerns are often not grounded in fact. The reality is that B.C.’s grid is well positioned for the demands of electrification, thanks in large part to the build-out of renewables and more-often-than-not advantageous power trading with our neighbours. In this report, we explore some of the most common misconceptions about B.C.’s electricity supply. We also unpack how and why the energy transition can, in fact, keep our energy bills enviably low.

As one example, meeting B.C.’s robust 2030 EV sales targets (that would see EVs make up 90% of car sales in 2030) would only increase electricity demand in the province by 2%. Heat pumps, meanwhile, have a nominal impact on the grid. Given that 42% of B.C. households use electric baseboard heating, moving these dwellings to heat pumps could save households around $500 per year on operational costs along with reducing overall provincial electricity demand by 5%. A heat pump is also three to five times more energy efficient than a natural gas furnace, resulting in less electricity demand than some commenters have assumed.

What’s more, because our grid is connected to the U.S. and Alberta, it is well set up to manage future power demand and even makes the province money. In fact, since 2019, the value of the province’s electricity exports was 35% higher than all of its imports. This profitable arrangement equates to lower bills for consumers. Electricity bills will be 10% lower in 2025 than they would otherwise be thanks to power trading, while similar benefits are forecasted for the years ahead—a mutually beneficial arrangement for B.C. and its neighbours. Case in point: Last January’s cold snap almost overwhelmed Alberta’s electricity grid, until B.C.’s power exports saved the day.

Finally, B.C. has a clear plan to meet future demand by building more low-cost renewable power, recently finalizing agreements to add 8% of supply from renewables to the grid, with all projects operational by 2032. With the Site C dam coming online this year and adding another 8% of supply, plus energy efficiency investments freeing up an additional 3% of supply, B.C. is on track to meeting a projected 15% increase in electricity demand by 2030, a number that will bring the province closer to achieving its climate and electrification goals this decade.

Renewables, like wind and solar, are now the cheapest sources of electricity globally and have been shown to help drive down power bills. The U.S. states with the highest shares of solar and wind (Iowa leads with 55%) also have electricity rates that are 25% lower than the U.S. average. Even Texas, which ranks eighth in wind and solar renewable share (35%), has average retail power prices around 25% below the U.S. average.

A look at other countries around the world offers plenty of examples of high wind and solar shares, such as 67% in Denmark, around 40% in Germany and the Netherlands, and 28% in Australia. In a scenario where Canada achieves a net-zero economy by 2050, wind and solar would be responsible for only 30% to 40% of required electricity production, which is less than some countries already produce today.