BC Hydro launches $1-billion customer efficiency push to delay new infrastructure | Daily Hive

BC Hydro launches $1-billion push to help customers reduce power use and delay costly new infrastructure

BC Hydro office building. (Ramon Cliff/Shutterstock)

With the pivot away from some fossil fuels and the resulting accelerated pace of the electrification of building heating systems and the adoption of battery-electric vehicles, along with a growing population and economy, British Columbia is increasingly struggling to keep up with the growing demand for electricity — even after accounting for the major capacity gained from the recent completion and full operation of the Site C hydroelectric dam.

For this reason, BC Hydro announced today it is rolling out what it calls the largest energy-conservation investment in the utility’s history: a $1-billion plan aimed at helping households and businesses lower electricity costs, while reducing strain on the province’s power grid.

The initiative, branded Power Smart 2.0, expands BC Hydro’s long-running conservation programs with new rebates, rewards and technology incentives designed to make energy-saving upgrades more accessible.

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This program could help many residents cut a significant portion of their annual electrical bills, while also delaying the need for costly new electrical infrastructure projects, which entail not only new power generating sources, but also major upgrades to transmission lines and substations across the province.

The program includes expanded rebate programs and new incentives for customers who reduce electricity use. BC Hydro notes that households that fully participate in the programs could offset up to one-third of their yearly electricity costs, and in some cases nearly 50 per cent.

Among the most notable additions is a planned rollout of free smart thermostats for homes using electric baseboard heating, beginning in Fall 2026. The devices, valued at about $350, are expected to help automate energy savings and improve home comfort. Residential customers will also be able to earn up to $200 annually through new reward programs tied to energy conservation, while income-qualified households could receive as much as $325 each year through expanded support measures.

A new BC Hydro smartphone app is also scheduled for launch later this year, allowing customers to monitor electricity usage, manage accounts, and access conservation programs more easily. The utility is also increasing instant in-store rebates on energy-efficient products at more than 300 retailers across the province.

Businesses are also expected to benefit from the expanded initiative. Commercial and industrial customers will have access to increased funding for efficiency upgrades, including coverage for up to the full cost of some qualifying projects.

“This $1-billion investment is about unlocking savings at every level — from households to large industries. We’re giving customers the tools, incentives and support they need to make lasting improvements that benefit them and the broader system,” said Charlotte Mitha, president and CEO of BC Hydro, in a statement.

Adrian Dix, B.C. Minister of Energy and Climate Solutions, added, “Together, we can save money, reduce the need for new energy infrastructure and ensure our competitive, low rates stay that way.”

The broader goal is to reduce overall electricity demand as B.C.’s population and industrial needs continue to grow. By 2030, the provincial government expects this multifaceted program will generate 800 megawatts of capacity savings and reduce annual electricity consumption by 2,200 gigawatt hours (GWh) — enough energy to power roughly 220,000 homes. In contrast, the Site C dam can produce roughly 5,100 GWh of electricity annually, powering roughly 500,000 homes.

In 2023, BC Hydro first announced that it would need to increase its electrical capacity much sooner than anticipated. It subsequently launched a multibillion dollar procurement process to buy more electricity before the end of the decade, specifically from new intermittent wind power projects.

It is anticipated that Power Smart 2.0’s resulting reductions could avoid or defer more than $2 billion in future spending on new generation, transmission, and distribution infrastructure.

In 2024, BC Hydro announced a $36-billion expansion of its its electrical network over 10 years, including $10 billion for infrastructure to support continued electrification and greenhouse gas reductions, over $5 billion to address load growth and increased customer connections, and $21 million for the ongoing maintenance of existing infrastructure.

The provincial government estimates the expanded energy conservation plan will generate about $1.4 billion in economic growth and support up to 3,500 jobs annually through energy-efficiency projects, home retrofits, and clean-energy upgrades.

Since 2008, B.C.’s energy-efficiency programs have reduced annual electricity demand by more than 7,500 GWh, according to the utility — enough to power about 750,000 homes.

This spring, there has been some discussion of looking at considering other major reliable options of generating more power, including an additional dam on the Peace River — in addition to Site C.

Major construction work on the controversial Site C dam project began in July 2015, and the total cost was last stated at $16 billion. This was the most expensive infrastructure project in B.C.’s history, but it almost did not happen.

Shortly after the BC NDP formed government in 2017, they seriously considered cancelling the Site C project mid-construction, which had been advanced by the previous BC Liberals government. Critics at the time, including the BC Green Party and some members of the BC NDP, argued that Site C’s electrical capacity would not be necessary in the long run.

In 2025, BC Hydro permanently banned power connections for new cryptocurrency mining businesses as an effort to conserve power.

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