B.C. Hydro buys natural-gas power plant in Campbell River to secure peak-demand power for Vancouver Island as demand grows
Adrian DixEvan PivnickAjay KumarKermit DahlB.C. HydroIsland GenerationCapital PowerB.C. Utilities CommissionClean Energy B.C.

B.C. Hydro buys natural-gas power plant in Campbell River to secure peak-demand power for Vancouver Island as demand grows

B.C. Hydro has acquired the Island Generation natural-gas power plant in Campbell River to meet growing electricity demand on Vancouver Island, which is projected to increase by 20% by 2030. The facility will serve as a crucial backup during peak periods, particularly in winter months.

Times Colonist Times Colonist+2 sources6 August 2026 · 10:43 UTC
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B.C. Hydro's acquisition of the Island Generation facility in Campbell River is a strategic move to address the anticipated 20% increase in electricity demand by 2030.3

The facility, which has operated about 15 days a year during peak demand, is essential for supporting Vancouver Island's growth, especially during extreme weather conditions.

Energy Minister Adrian Dix emphasized the importance of the facility, stating, "Securing Island Generation will help ensure we have capacity to support that growth."4

The province aims to double electricity production by 2050, driven by rising demand from data centers, electric vehicles, and industrial customers.

Campbell River Mayor Kermit Dahl expressed optimism, noting, "This asset matters for reliability, emergency preparedness, local jobs, and our ability to attract future industrial investment to our community."2

Despite the reliance on natural gas, which Evan Pivnick from Clean Energy B.C. described as an "unfortunate necessity," the province continues to invest in renewable energy sources, with 98% of B.C.'s energy coming from renewables.

The purchase price remains confidential, but the acquisition is seen as a critical step in ensuring long-term power reliability for Vancouver Island.

B.C. Hydro has been considering this purchase since 2002, highlighting the ongoing need for reliable energy sources as the region's economy grows.

Key Insight
“The 275-megawatt Island Generation facility has operated only about 15 days a year over the past five years, but the province projects a 20% power demand increase within four years. Mayor Kermit Dahl called the purchase essential for reliability, emergency preparedness, and attracting industrial investment to the former mill site.”
CuriousCats studied:
1
Times ColonistTimes Colonist
“The province is acquiring a natural-gas-fired power-generation facility in Campbell River, calling it a key power source during periods of peak demand and for future growth on Vancouver Island.”
Times Colonist →
2
cbc.ca
“The province says the purchase of the Island Generation facility will ensure the long-term reliability of power on the Island.”
cbc.ca →
3
Yahoo News CanadaYahoo News Canada
“The province says the purchase of the Island Generation facility will ensure the long-term reliability of power on the Island.”
Yahoo News Canada →
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