BC Hydro to build its first grid-scale battery storage facility | Daily Hive

Concept of a grid-scale battery facility. (Nova Scotia Power)

BC Hydro has begun searching for companies to design and build British Columbia’s first grid-scale battery energy storage facility, which is planned for a site near Duncan — located on the east side of Vancouver Island, roughly midway between Victoria and Nanaimo.

The Crown corporation began its bidding process last week, seeking companies with experience delivering large battery storage projects. The procurement process will close on Sept. 16, 2026.

Companies that meet the utility’s requirements could be shortlisted and invited to participate in the detailed bidding process of the Request For Proposals (RFP), which is expected to begin later in 2026.

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The planned battery system will be built next to the Vancouver Island Terminal Substation and provide at least 100 megawatts of capacity — equivalent to about nine per cent of the generating capacity of Site C, which was recently formally renamed as the John Horgan Dam and Generation Station. BC Hydro is aiming to have the battery facility operating by 2030.

Unlike a conventional power plant that continuously generates electricity, the battery system would charge during periods of lower electricity demand. The stored power could then be returned to the grid when demand is high or when additional support is needed.

This would give BC Hydro another tool to manage peak demand, respond to changing grid conditions and improve the reliability of electricity service on Vancouver Island.

BC Hydro intends to own and operate the facility, allowing the utility to control when the batteries are charged and when electricity is released onto the grid. Private companies would be contracted through the bidding process to provide expertise in the facility’s design and construction, and potentially its long-term maintenance.

The resulting shortlist could also be used for other battery storage projects contemplated by BC Hydro elsewhere in the province, in addition to the Vancouver Island facility.

“This procurement process marks an exciting step forward for BC Hydro and for battery storage in British Columbia,” said Charlotte Mitha, president and CEO of BC Hydro, in a statement.

“We are inviting experienced suppliers to help deliver a project that will strengthen reliability on Vancouver Island and provide valuable flexibility for our entire electricity system. As demand for clean electricity continues to grow, battery storage will become an increasingly important tool to help us serve customers and get the most value from our existing infrastructure.”

The Vancouver Island project forms part of BC Hydro’s Powering Growth plan, which has identified the potential for up to 500 megawatts of battery storage capacity across British Columbia.

The utility says these facilities could complement its existing hydroelectric system and help delay or reduce the need for some other infrastructure upgrades by making more efficient use of the electricity network already in place.

Electricity demand is expected to continue rising as British Columbia adds homes, residents, and businesses, sees further economic growth, attracts new industrial development, shifts more building systems from natural gas to electricity, and adopts more use of battery-electric vehicles.

Along with battery storage, BC Hydro’s broader strategy includes energy conservation, upgrades to existing facilities, and investments in new generating facilities and transmission infrastructure.

Today, BC Hydro also announced it will acquire the Island Generation natural gas power plant in Campbell River on Vancouver Island to help prevent electricity shortages over the coming years.

Moreover, the utility is investing heavily in intermittent wind power projects and has begun considering two additional hydroelectric dam projects: a fourth dam on the Peace River, east of the John Horgan Dam, and another dam north of the Sunshine Coast, about 250 km northwest of Vancouver.

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