The provincial government in British Columbia has set ambitious goals to lower greenhouse gas (GHG) emissions in 2030, 2040, and 2050, by 40, 60, and 80 percent respectively from its 2007 emissions levels.
Many of BC’s emissions reduction efforts fall within the province’s CleanBC Plan. (British Columbia, 2023a) A part of the province’s strategy is to replace fossil fuel use with clean electricity sources, including hydro, wind, geothermal, biomass, and solar power. Below are some of the initiatives:
Other plans include strengthening regulations to reduce methane emissions, mandating energy conservation in buildings and homes, and improving the efficient use of energy in construction and industrial operations.
To make progress, two factors must be addressed. British Columbia must substantially increase electricity production, to meet the demand created by both industry and individual citizens. The province also needs to expand transmission and distribution capacity since much of the electricity generated may be far from where it is ultimately used. One important aspect of CleanBC’s plan is regulations to rapidly electrify light-duty vehicles,
This paper will examine the feasibility of the BC government's mandate to replace internal combustion engine vehicles with electric vehicles (EVs) within an accelerated timeframe, while also considering the additional energy and infrastructure needed for electric vehicle adoption in British Columbia.
The broader question of whether wholesale electric vehicle adoption is the best method for mitigating GHG emissions in the transportation sector is beyond this paper’s scope and is not covered.
The provincial government originally legislated that by 2025, a minimum of 10 percent of all new vehicle sales in British Columbia must be zero-emission That number grew to 30 percent by 2030 and 100 percent by 2040. (British Columbia, 2023b) Amendments enacted in 2023 aim accelerated required zero-emission vehicle adoption to 26 percent by 2026, 90 percent by 2030, and 100 percent by 2035. (Legislative Assembly of BC, 2023) To incentivize EV adoption, the provincial government has offered a purchase subsidy program of up to $4,000, along with financial incentives for installing charging stations [2].
Electric vehicles have some features that are favourable compared to conventional-powered vehicles,most notably, they do not emit any tailpipe emissions [3]. However, EVs contribute to considerable GHG emissions during both battery production and vehicle assembly, as well as through the energy sources used for electricity generation – collectively referred to as life cycle emissions. There are also uncertainties that put in doubt their ability to fully replace internal combustion engine (ICE) vehicles [4].
British Columbia’s proposed accelerated targets for zero-emission vehicle sales are modelled on California’s electric vehicle plans. However, BC’s 2030 targets are more ambitious than Canada’s national New Electric Vehicle Availability Standard and the targets set by both the US Biden Administration and the California plan.
The EPA lacks the authority to regulate new vehicle sales in the United States. Instead, the EPA is setting increasingly stringent emission standards over time, which will prompt auto manufacturers to shift towards EVs for compliance. So, while automakers must still meet strict emission targets, they can adjust their new vehicle offerings in any way they wish, offering more flexibility in the marketplace.
While the Canadian federal government’s standards aligned with those of the EPAboth the federal and BC governments have chosen to require automakers to sell specific proportions of battery and plug-in EVs.
Mandating specific EV sales numbers poses several challenges. Automakers could face difficulties in planning, given the need to reconcile differing new vehicle compositions for the US and Canadian markets.
Furthermore, discrepancies between EV market demand and government targets could arise. If EV sales in BC fall short of expectations, automakers may have to limit the sale of conventional combustion engine vehicles in order to comply with percentage targets and avoid significant financial penalties. However, doing so would likely drive-up prices of new and used conventionally powered vehicles, adversely affecting the finances of many British Columbians.
The pace at which the government mandates new zero-emission vehicle sales is one factor affecting how quickly the province must provide additional electricity infrastructure for EV charging.
The proposed accelerated timeline presents several challenges, notably the need for faster development of a province-wide public and private charging network. The BC government aims to have 10,000 public EV chargers in use by 2030. (British Columbia, 2024a) This amount is likely inadequate. Table 2 summarizes what other jurisdictions deem necessary for public charging.
As of March 2024, British Columbia had 5,000 public chargers. (British Columbia, 2024b) If we take an average of all estimates listed in table 2, 44,436, and subtract the chargers already installed, over 15 new public chargers will need to be installed in British Columbia every day between now and 2030 [5]. Of course, these numbers do not include the tens of thousands of private chargers that will need to be installed in individual resident garages.
However, achieving the 2030 target is just an interim step. While BC’s target is for 90 percent of new vehicles sold to be zero-emission, approximately 70 percent of the vehicles on BC roads in 2030 will still be gas-powered. The growth in EV stock will mostly occur between 2030 and 2040.
A report prepared for Natural Resources Canada (NRCan) estimates that there will need to be one public charger for 43 EVs when 90 percent of vehicles on the road will be electric. (Natural Resources Canada, 2022) Given the 43:1 EV to public charger ratio and assuming four million vehicles, the province will need a cumulative total of 93,000 public chargers by 2040.
The installation costs for these chargers will be high. The NRCan report states that installing one level 2 charger costs $8,000, while a fast charger costs $150,000. Using the same report’s proportion of level 2 to fast chargers, the estimated cost for British Columbia is $700 million by 2030 and $1.1 billion between 2031 – 2040 [6]. The total cost, excluding the already-installed public chargers, is estimated to be $1.8 billion.
The proposed, more aggressive zero-emission targets introduced in 2023 have sparked concern within the automotive sector.
Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, remarked that “there is no obvious pathway to 90 percent by 2030.” (Mertl, 2023) The president of BC’s New Car Dealers Association also expressed concern over the shorter timeframe. (Mertl, 2023) Similar concerns in the US from both the automotive industry and unions resulted in the EPA easing its shorter-term emission targets.
High EV prices, even with purchase subsidies, an underdeveloped charging network, and range anxiety are all factors that have inhibited widespread adoption. A sales mandate does not negate the existence of these challenges.
A large influx of electric vehicles will have a significant impact on BC’s electricity system. When determining the viability of the province’s zero-emission mandate, it’s important to understand whether British Columbia actually has sufficient electricity to meet the anticipated increase in demand.
It’s important to note that even if the 100 percent sales target is met, most of the stock of BC’s vehicles will still be conventionally powered vehicles for some time.
Several factors influence the amount of electricity needed for electric vehicles. These include the vehicle’s average lifespan, charging station availability, and the vehicle's energy usage, which is largely determined by its size. Additionally, the proportion of plug-in hybrid vehicles to full-battery electric vehicles affects electricity requirements.
Table 3 is a forecast that provides some insight into how much more electricity the province needs in order to meet its zero-emission new vehicle plans.
Table 3 indicates that about 2,700 GWh of electricity is required to meet the 2030 objective. The amount required more than doubles by 2035 and is almost 9,700 GWh by 2040. BC Hydro would need to produce even more than that amount, as on average, 6.3 percent of power is lost through its transmission facilities.
Other studies have estimated similar amounts of additional electricity required by the province to meet the transition to EVs, under the government’s targets [7].
For comparison, the Site C dam will be capable of producing 5,100 GWh annually assuming average water flows (which we did not have last year and seem unlikely to have this year). (BC Hydro, 2024) Therefore, BC will require additional electricity equivalent to more than one Site C dam by 2035, and approximately two dams by 2040. Site C is estimated to cost $16 billion and will take 10 years to build. (Kurjata & Bains, 2021) (British Columbia, 2018)
The province is unlikely to build another large dam in the short to medium term. Instead, it intends to turn to other clean energy sources for new electricity generation. One option is wind. The Buffalo Plains Wind Farm project in Alberta is an example. It is expected to be operational by December 2024 and will be the largest single wind farm in Canada. (Power Technology, 2023a) Planning, permitting and construction will have taken just under 7 years. (Buffalo Plains Wind Farm, n.d.) It will be able to generate 1,500 GWh of electricity per year. (Power Technology, 2023b) By 2030, BC will need almost two times the energy production of the Buffalo Plains wind farm and seven times the equivalent by 2040 to meet its electric vehicle charging needs.
Solar and wind power, while generally cost-competitive and mostly GHG-free, have a significant drawback – they are intermittent. Solar panels generate electricity only when the sun shines, and wind turbines only generate electricity when the wind blows. Consequently, utilities must have backup sources to meet variable load demands. This always means having dispatchable power available through facilities such as natural gas plants. Fortunately, BC dams have ample reservoir backup storage, capable of meeting power needs during solar or wind intermittency. Therefore, the likelihood of incurring large capital costs to procure additional such systems is low.
CleanBC’s Roadmap To 2030 asserts that “B.C’s abundant supply of clean electricity is one of our greatest allies in the fight against climate change.” (CleanBC) While the province may have once had an abundant supply of electricity, for five of the last 13 years BC Hydro has been a net importer of electricity. The following points undermine the notion that there is ample electricity available to fulfil the government’s electrification plans:
Adding to the expected insufficient reserve margins is BC Hydro’s plan to stop using gas-fueled electrical generation by 2030 (amounting to an energy output of roughly 2,300 GWh) [11]. (NERC, 2023)
BC does not have a sufficient electricity supply to meet CleanBC’s ambitious electrification plans. In June 2023, BC Hydro announced its intention to add 3,000 GWh of clean electricity by 2030 through an upcoming call for power in April 2024. (BC Hydro, n.d.) BC Hydro is also exploring shorter-term solutions to generate an additional 700 GWh per year before 2029. (Ingram, 2024)
As important as the need to generate additional electricity is, equally important is having the necessary transmission and distribution infrastructure. Based on growing EV demand, electric utilities in BC will need an integrated focus not only on new power generation but on upgrading the distribution system as well.
This conclusion is consistent with a 2021/2022 Natural Resources Canada (NRCan) national request for information, aimed at industry stakeholders on electric system readiness for electric vehicles. NRCan summarized the replies into several common elements. Regarding infrastructure readiness and availability, NRCan stated,
Respondents said that the current grid infrastructure will be unable to meet higher loads. (original in boldface) [They] anticipate increasing investment needs in grid readiness measures in order to reliably meet the increase in EV-related load.” (NRCan, 2022)
The challenge in meeting the additional demand from EVs is generally a distribution system issue, which is the portion of the electrical grid connected to homes and buildings. Upgrades to substations, transformers, and distribution powerlines are needed, and while this type of work by electric utilities is standard, the extra load required by EVs will make this work more challenging.
EV adoption will not be uniform in all neighbourhoods. Older neighbourhoods specifically may require more upgrading. (ICF Canada, 2021) Largescale population growth and incremental electricity requirements from CleanBC initiatives, such as heat pump installations, play a contributing role in determining which regions have a more urgent demand for distribution system upgrades.
A Business in Vancouver article highlights the stress BC Hydro’s distribution system is facing in parts of Metro Vancouver. The article quotes the Delta city manager stating that major areas for development are “challenged for appropriate [access to electricity] ”. (Mitham, 2023) Another example is the Cloverdale sports complex, whose 2024 opening may be delayed “because BC Hydro’s distribution grid can’t keep up.” (Mitham, 2023)
The BC government has set ambitious targets requiring 90 percent of all light-duty new vehicle sales to be zero-emission by 2030 and 100 percent by 2035. These targets surpass those set by the Canadian federal government, the United States federal government, and even the state of California.
However, the approach to meeting these targets varies by country. The federal US government requires automakers to meet stringent emission standards rather than specific targets for new EV sales. This allows automakers in the US to determine their own mix of gasoline-powered, hybrid, plug-in hybrid, and fully electric vehicles as long as they meet the overall emission standards. This provides a degree of flexibility in the marketplace while still achieving overall goals.
Conversely, British Columbian (and federal) regulations are prescriptive, requiring that new EV sales constitute a certain proportion of overall sales. If the demand for EVs is insufficient for an automaker to reach the government’s target, the automaker may stop selling gasoline-powered or hybrid vehicles to avoid large financial penalties. This could lead to insufficient vehicle supply and substantially higher prices for new and used gas or hybrid vehicles.
The current public charging infrastructure is insufficient to meet the provincial government’s ambitious goals, with a need far exceeding BC’s 5,000 existing public chargers. Whether the chargers can be installed to meet the accelerated sales timeline is questionable. The high cost of a province-wide public charging network will also be very significant.
The electricity required for EVs is substantial, with an estimated 2,700 GWh needed by 2030 and 9,700 GWh by 2040. Even more electricity will be needed to meet expected population growth as well as CleanBC’s ambitious plans to electrify BC’s economy.
However, just generating more electricity isn’t enough. It needs to be delivered to where it will be consumed and where vehicles will be charged, whether at individual homes, workplaces or public parking lots. BC Hydro faces challenges in upgrading the distribution network in parts of Metro Vancouver and elsewhere, which could affect the ability to install sufficient charging stations in a timely manner.
The timeline for bringing more power online is lengthy, and while BC Hydro has issued a call for power, it may lack the internal capacity to review and approve proposals in a timely manner, given the passage of time since the last call for power. In addition, permitting delays in British Columbia are widely known and appear to have been increasing, as acknowledged by Premier David Eby in April 2023 [12].
Given these concerns, this report makes two recommendations:
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Jerome Gessaroli is a senior fellow with the Macdonald Laurier Institute. He writes on economic and environmental matters, from a market-based principles perspective. Jerome teaches full-time at the British Columbia Institute of Technology’s School of Business, courses in corporate finance, security analysis, and advanced finance. He was also a visiting lecturer at Simon Fraser University’s Beedie School of Business, teaching their undergraduate and executive MBA programs.
Jerome is the lead Canadian co-author of 4 editions of the finance textbook, Financial Management Theory and Practice. He holds a BA in Political Science and an MBA from the Sauder School of Business, both from the University of British Columbia. Prior to teaching, he worked in the securities industry. Jerome also has international business experience, having worked for one of Canada’s largest industrial R&D companies developing overseas business opportunities in China, Hong Kong, Singapore, and India.
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