Wednesday, July 09, 2014

What Will The Site C Dam Cost Us In Sparkle Ponies?

AllTheBillionsThatFit
OnOurBacksVille


Apparently, quite a few of them.

Dan Potts explained recently, in The Province:

...B.C. Hydro has filed information that the cost of electric power from Site C will be in the range of $100 per megawatt hour. Current market prices are in the range of $30 per megawatt hour. If Site C was now operational, the market value of the power produced would be $350 million per year less than the cost. In order for electric power from Site C to be competitive on the market, natural-gas prices will have to increase by a factor of 3½ times. Given the availability of gas in North America, is such an increase a reasonable expectation?

This situation described above assumes the project is built for its estimated cost of $7.9 billion. There is a significant risk of substantial cost over-runs. There may be additional costs associated with First Nations accommodation. Such developments would further reduce the likelihood that Site C will be cost competitive...


Now there are arguments to be made in the positive for this behemoth, but there sure are a lot of negatives.

Mr. Potts lays out a whole bunch of the latter in his piece.

The entire thing is worth a read.


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We thank an Anon-O-Mouse, in a previous comment thread, for pointing us towards the writings of Mr. Potts which I'm pretty sure Hugh might like.

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3 comments:

Anonymous said...

http://www.vancouversun.com/business/Golden+Ears+Bridge+losing+million+each+year/8965050/story.html?__federated=1

http://www.theglobeandmail.com/news/british-columbia/government-accused-of-shadow-toll-on-sea-to-sky-highway/article4348915/

Let's not build another money losing mega project re site C ,30 dollar per mw when cost is 100 is insane.

Anonymous said...

The BC Hydro scam began way back, during Gordon Campbell's reign of terror. Campbell had thieved and sold BC's rivers.

The Site-C-Dam will also flood, the most valuable farmland in all of Canada.

The tar sand uses the Columbia Ice Fields, for their water. I used to live in that area. On a visit back to the Rockies? I was horrified to see, how far back the Columbia Ice Fields have receded

We also know? Greed trumps common sense every time. There is no shortage of greed, in this government.

Hugh said...

As our Hydro rates go up this year, and every year for years to come, people will get creative about using less electricity. Meaning demand in BC will probably go down. Meaning less need for Site C.