Further to its April announcement, BC Hydro is moving forward with its 2025 Call for Power (2025 Call). As part of the 2025 Call, BC Hydro issued a request for proposals (RFP) on July 28, 2025. The RFP aims to acquire up to 5,000 GWh/year of electricity from large, clean or renewable projects through partnerships between First Nations and independent power producers (IPP). BC Hydro also issued the RFP documents that proponents must submit to be considered for the 2025 Call (RFP Documents).
Background
The 2025 Call is a competitive energy procurement process that builds on the success of the 2024 Call for Power (2024 Call). Bennett Jones previously discussed the draft RFP documents and the final RFP documents for the 2024 Call (2024 Documents). Following the 2024 Call, BC Hydro awarded ten Electricity Purchase Agreements (EPA) that will provide nearly 5,000 GWh/year of clean, renewable electricity to the province's grid, surpassing their initial target of 3,000 GWh/year.
Before issuing the RFP in the 2025 Call, BC Hydro engaged with IPPs, First Nations and stakeholders from May to July 2025 on its planned approach for the RFP and RFP Documents. This feedback informed the current RFP Documents.
Key Terms of the RFP Documents
The RFP Documents include a Specimen EPA, which details the non-negotiable terms of an EPA between successful proponents and BC Hydro (Specimen EPA). Some key terms from the Specimen EPA are:
- Price and Payment Terms: Proponents will outline a bid price in their project proposals to BC Hydro. If accepted, this bid price is used in a payment calculation that is detailed in the Specimen EPA. This calculation considers available additions or reductions to the price depending on the project's terms.
- Commercial Operation Date (COD): Proponents will commit to a guaranteed COD in their proposals. The Specimen EPA grants proponents incentives to achieve commercial operation before their guaranteed COD, and it also permits proponents a one year grace period from their guaranteed COD if delays occur.
- Term: EPAs are effective for a term of 30 years from the COD.
Key Changes from the 2024 Documents
The RFP Documents largely parallel the 2024 Documents, with some key changes that emphasize funding opportunities and the importance of economic certainty for project proposals:
- First Nations Community Economic Benefits Credit: An additional credit for proposals that provide proof of a First Nation receiving economic benefits for their community (other than equity ownership). Such proposals will receive a C$1/MWh credit per First Nation agreement, to a maximum of C$2/MWh. This credit builds on the "non-economic benefit" for First Nation involvement from the 2024 Call, which offered a maximum C$1/MWh credit.
- Canadian Content Incentive: A new bonus payment for proponents who voluntarily procure Canadian-origin goods and services. The value of the bonus payment will be tied to the percentage of Canadian content achieved during project development and construction.
- Post Proposal Tariff Uncertainty: BC Hydro is working with stakeholders to develop a tariff adjustment mechanism that will address uncertainty regarding international tariffs as they relate to project costs. It has not committed to a timeline for implementing the new mechanism.
Other initiatives remain the same as the 2024 Call, including:
- Canada Infrastructure Bank (CIB) Credits: CIB will again provide an investment tax credit bridge loan (at the project level) and a loan to finance First Nations equity participation (at the First Nations Equity Ownership level) to successful proponents, subject to its due diligence. The CIB is anticipated to release more details in the summer of 2025. CIB support is widely viewed as pivotal to achieving the high levels of Indigenous inclusion sought by the BC government and achieved in the 2024 Call results.
The Specimen EPA largely parallels the 2024 Documents, with some notable changes, including:
- BC Hydro Right of First Refusal (ROFR): BC Hydro now has a ROFR if a third party offers to purchase a project from a project owner.
- Parent Company: Parent companies of project proponents are now parties to the EPA.
RFP Key Dates
Proponents must meet three key dates to participate in the RFP:
- September 2, 2025: Competitive Electricity Acquisition interconnection request (CEAP IR) pre-submission deadline.
- October 2, 2025: CEAP IR submission deadline (including deposits).
- January 5, 2026: Proposal submission deadline.
RFP results will be announced and EPAs executed in early 2026.
BC's Renewable Energy Strategy
The 2025 Call aligns with the BC government’s broader strategy to accelerate clean energy development, streamline regulatory processes and expand Indigenous participation in the energy sector. As highlighted in recent Bennett Jones commentary, the province is moving toward more frequent and coordinated procurement cycles to meet growing electricity demand and decarbonization goals.
With key deadlines approaching and important changes to the RFP Documents in place, proponents are now working to assess their eligibility and competitiveness under the new framework.
