The British Columbia government is acquiring the 275-megawatt Island Generation natural-gas-fired power facility in Campbell River to secure peak demand and support regional industrial growth, according to provincial officials. The plant, located on a former Catalyst mill site, has historically operated an average of roughly 15 days a year over the past five years when required for B.C. Hydro’s Island electricity grid, according to utility data.
Campbell River Facility Acquisition Details and Regional Stakes
Campbell River Mayor Kermit Dahl announced the acquisition alongside provincial representatives at the John Hart Dam, calling the deal vital for local municipal tax bases, emergency preparedness, and future industrial investment. According to Mayor Dahl, municipal leaders spent years lobbying the province to purchase the plant or renew its expiring contract with Edmonton-based Capital Power to prevent the infrastructure from being dismantled and shipped to another province. Capital Power acquired the facility after the Catalyst mill closed in October 2010 and maintained an electricity purchase agreement with B.C. Hydro.
Vancouver Island Energy Grid Capacity and Shifting Demand
Vancouver Island currently generates about 40 percent of its own electricity, split evenly between hydroelectric stations and contracted facilities, while the remaining 60 percent travels via underwater cable from the mainland, according to B.C. Hydro figures. The Island Generation gas-fired plant accounts for approximately one-quarter of the Island’s total generation capacity. B.C. Hydro noted that overall provincial power demand is projected to jump 20 percent within four years, requiring the province to double total electricity production by 2050 to keep pace with population growth, electric vehicles, data centres, and industrial users like mines and gas-export terminals.
Did You Know? Vancouver Island relies on underwater cables from the mainland for 60 percent of its electricity supply, making local assets like the 275-megawatt Campbell River gas plant critical for peak grid reliability.
Future Renewable Expansion and Industrial Development Plans
Hydro’s newly announced utility-scale battery energy storage project near Duncan. B.C. Hydro plans to keep Island Generation running in its traditional peak-support role while expanding wind, solar, and other clean energy resources. Mayor Dahl emphasized that businesses seeking to invest in the vacant mill site require dependable power, land, and water access, giving the municipal government renewed certainty for future economic development.
Frequently Asked Questions
How often does the Island Generation plant run?
Over the past five years, the facility has operated an average of about 15 days annually to support B.C. Hydro’s Vancouver Island grid during peak demand periods, according to utility records.
Who owned the Campbell River power plant before the province acquired it?
Edmonton-based Capital Power owned and operated the facility following the October 2010 closure of the adjacent Catalyst mill.
Why is Vancouver Island facing increased electricity pressure?
B.C. Hydro reports that regional demand is climbing due to population growth, the rise of electric vehicles, data centres, and expanding industrial customers such as mines.
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