Renewable energy companies in BC are jockeying for position in BC Hydro’s 2008 clean power call expected to be announced any time now. The call is an effort on BC Hydro’s part to align with the BC Energy Plan, which was released in February of 2007. The Plan mandates that as energy demand increases over the next couple of decades, BC should continue to generate 90% of its electricity from clean or renewable sources. Maintaining at 90% renewable electricity is a pretty steep goal, but the plan asks for more than that. It also stipulates that although BC is currently a net importer of electricity, by 2016 BC should be energy self-sufficient.

In order to meet demands of the ambitious plan, BC Hydro is seeking to contract 5000 GWh of energy per year from clean sources and proven technology. Nuclear is not eligible. Many BC companies with clean energy proposals are clambering for pole positions to obtain long term Energy Purchase Agreements (EPAs). Those that have extended in-service dates before 2016 are in the running.

Plutonic Power Corp. (TSX.V:PCC) is planning to propose 1100 MW of capacity from hydro run-of-river projects to the call. The EPA they want would guarantee that BC Hydro will buy power from Plutonic for an agreed price for a set term of somewhere between twenty and forty years.

“Without [an EPA] major investors will not risk capital on a power project,” said Paul Sweeney, Vice President of Business Development at Plutonic Power. Indeed an EPA with BC Hydro is a magic bullet for those in the power biz ensuring them attention from major investors and BC companies are waiting for the announcement.

Susan Danard, media relations at BC Hydro said,”We haven’t put the call out yet, but it’s close..”

Miningandmoney.com will be tracking the process. Check back for information over the next few weeks.

Plutonic was successful in earning an EPA with BC Hydro in 2006 for its $660 million Toba-Montrose project, the largest project to win in the 2006 call. Construction began on the Montrose and the East Toba projects, two of Plutonic’s hydroelectric projects in July 2007. In the 2006 EPA, BC Hydro agreed to purchase 745 GWh of electricity per year from Plutonic’s East Toba and Montrose project for a period of 35 years. Subsequent to making the agreement with BC Hydro, GE Energy Financial Services agreed, subject to closing, to invest CAD $112 million in the project, earning them 49% equity and 60% economic interest in the project. In addition GE Energy will lead a CAD $466 million secured debt offering and make a $30 million credit facility available to Plutonic so it can upgrade the capacity of the transmission line.

Currently Plutonic is preparing to submit a bid for its Upper Toba Valley project. The project includes three renewable power projects on the Upper Toba River, Dagleish Creek and Jimmie Creek sites. Power generated from the three sites would total 460 GWh/year–enough electricity for 35,000 homes, displacing about 235,000 tonnes of greenhouse gases per year.

The process of preparing a bid for the clean power call is rigorous and detailed. As well as being scrutinized for its financial, operational and organizational acumen, the project must also please environmental assessors and community and First Nations stakeholders.

Plutonic’s ultimate plans include a Green Power Corridor in southern BC. The project site areas are on rivers that drain into the Toba, Bute and Knight inlets, an area that is uniquely suited to run-of-river hydroelectric projects because of the presence of high rainfall and large drainage basin areas as well as steep terrain.

Run of river hydroelectric projects are considered more environmentally friendly than other hydroelectric power projects because they don’t require damming the river. Instead, water is fed through a penstock where gravity induces the water to turn a turbine creating electricity. The water then returns to the river.

PCC stock is currently trading for $8.50, up from below $7.40 earlier this month