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British Columbia launches competitive process for clean power
The province and BC Hydro have launched a competitive process to manage rising electricity demand and support balanced development of AI and data-centre projects.
At a glance
Who: British Columbia; BC Hydro.
What: British Columbia and BC Hydro have announced a competitive process for clean power in high-demand sectors to help manage rising electricity demand given the rise of AI and importance of data centres to protect and secure Canadian data.
Why: It wants to responsibly manage the growth of AI and data centres, and balance critical energy needs.
When: The utility reports that the allocation targets for these projects are for as much as 400 megawatts for the first two years.
British Columbia and BC Hydro have announced a competitive process for clean power in high-demand sectors to help manage rising electricity demand.
The Canadian province reports that its artificial intelligence (AI) sector is rapidly growing and there is growing recognition of the importance of data centres to protect and secure Canadian data. At the same time, to responsibly manage the growth of AI and data centres, and balance critical energy needs, the province has made changes that will prioritise electricity service to projects in these emerging sectors that provide the greatest benefits and jobs for people in British Columbia, and do so at an appropriate pace.
Prioritises clean electricity
The new approach, enabled through Bill 31, prioritises clean electricity for projects that deliver the greatest long-term economic, community and environmental benefits for people in British Columbia.
“Clean electricity is essential to BC’s economic success, and demand is growing quickly,” said Adrian Dix, minister of energy and climate solutions. “By managing demand carefully and directing power to projects that deliver the greatest long-term benefits, we will build our province, while protecting affordability and reliability for British Columbians.”
“The new competitive process will give emerging proponents a fair, transparent pathway to access clean electricity in a way that protects long-term affordability and grid reliability for our customers”
Dix continued: “At the same time, we are creating a clear path for emerging industries, like AI, to quickly and efficiently get the power they need, positioning British Columbia as a leader in innovation and data sovereignty.”
Competitive selection for emerging high-load industries:
- Through Bill 31, the Energy Statutes Amendment Act, and a new regulation, there is now a requirement for prospective AI and data-centre projects to take part in a competitive selection process to access clean electricity
- This requirement does not apply to traditional industries, such as mining, liquefied natural gas (LNG), forestry, manufacturing or hydrogen for domestic use
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- The new approach enables projects that support job creation, reduce emissions, maintain affordability and contribute to long-term economic development
- In alignment with the objectives of the Look West strategy, this will ensure BC is protecting electricity capacity needed by long-standing industries, while supporting strategic growth in newer sectors that align with provincial priorities, such as data sovereignty and innovation.
BC Hydro will implement this legislation through the 2026 call for demand for emerging industries. The process is intended to provide a clear and predictable path, from application and screening to feasibility studies and final bids. Projects will be assessed based on price and their economic, community, data sovereignty and environmental benefits.
The utility reports that the allocation targets for these projects are for as much as 400 megawatts for the first two years.
The province reckons it is providing clarity for AI and data-centre projects that are well advanced in BC Hydro’s interconnection queue.
“By managing demand carefully and directing power to projects that deliver the greatest long-term benefits, we will build our province, while protecting affordability and reliability for British Columbians”
Projects with a signed facilities study agreement for transmission, or a design deposit for distribution, will continue under the existing interconnection process.
“Providing clarity for customers already advancing through our interconnection process is essential for maintaining confidence in the system,” said Charlotte Mitha, president and CEO, BC Hydro.
“At the same time, the new competitive process will give emerging proponents a fair, transparent pathway to access clean electricity in a way that protects long-term affordability and grid reliability for our customers.”
The competitive process opened 30 January 2026, with successful applicants expected to be notified in September 2026. The province and BC Hydro will continue working with First Nations, local governments and industry partners to ensure projects are developed responsibly and that BC’s clean electricity system continues to serve communities now and in the future.
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How does the competitive process prioritize clean electricity for AI projects?What criteria determine project selection in BC Hydro’s new allocation process?How will the new regulation impact data sovereignty in British Columbia?What role does Bill 31 play in managing electricity demand growth?How does BC Hydro ensure grid reliability while supporting emerging industries?AI and Machine LearningAI CityXchange - AI FoundationsCloud and edge computingConnectivity & DataDataData Centresdata privacyEnergy & EnvironmentRenewablessmart grids
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