BC Hydro will acquire the 275MW Island Generation power facility in Campbell River, Canada, from Capital Power as part of efforts to maintain electricity reliability on Vancouver Island.
The acquisition of the natural gas-fired power plant is expected to help BC Hydro manage rising demand for electricity across British Columbia (BC).
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The financial terms of the deal were not disclosed.
According to the BC Government, the facility helps support peak demand for power and has been used on average for around 15 days each year over the past five years in response to system requirements.
It further stated that the acquisition will provide secured capacity that can be brought online during periods of high electricity use.
The move comes as forecasts indicate BC will need additional power capacity sooner than previously anticipated, driven by population growth, further electrification and expanding industrial activity.
Island Generation will remain in operation as a standby resource while BC Hydro continues to develop new clean and renewable energy infrastructure to meet future needs.
BC Energy and Climate Solutions Minister Adrian Dix said: “British Columbia’s economy is growing, communities are expanding, and more homes, businesses and industries are choosing clean electricity. Securing Island Generation will help ensure we have capacity to support that growth, while making historic investments in conservation, renewables and the clean-electricity infrastructure our province needs.”
The purchase is part of BC Hydro’s Powering Growth plan, which focuses on energy conservation, optimisation of existing assets, and building new clean and renewable electricity infrastructure.
The provincial government said that BC Hydro’s acquisition of Island Generation offers a dependable and cost-effective capacity source. It will support the grid during peak demand periods and contribute to the stability of electricity supply for homes, businesses and industries throughout the province.
The move complements other recent BC Hydro projects on Vancouver Island, including the announcement of the utility’s first large-scale battery energy storage project. This, along with the acquisition, is expected to enhance the reliability of the regional power system and support the island’s long-term development and economic growth.
The acquisition is also said to ensure continued access to existing generation while BC Hydro pursues upgrades at other hydroelectric sites, battery storage projects and transmission infrastructure.
Site C, which began operation in 2025, added approximately 1.1GW of new clean energy capacity to BC Hydro’s portfolio. Further upgrades, including a sixth generating unit at the Revelstoke Generating Station, are expected to provide more than 1GW of additional capacity.
BC Hydro president and CEO Charlotte Mitha said: “Our job is to ensure British Columbians have reliable, affordable electricity every day of the year, including during periods of exceptionally high demand.
“Island Generation provides capacity that complements our hydroelectric system and the significant investments we are making in energy efficiency, renewable generation, battery storage and transmission infrastructure.”
In June 2026, BC Hydro finalised a 30-year electricity purchase agreement with Saulteau First Nations and EDF Power Solutions North America for the 200.6MW Taylor South Wind Project.
