C O M P A N Y O V E R V I E W
Regional Power Regional Power increases pr results with effective busines
CEO, Chris Lambeck, discusses the effective business stra to continue to produce clean, renewable energy in the hyrd Written by: Lindsey Ryan
Produced by: Michael Magno
roductivity and ss strategies
ategies Regional Power employs do business.
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C O M PA N Y N A M E
White River Project
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egional Power was created in 1985 and became a subsidiary of Manulife in 1996. Initially the opportunity was to profit from developing and selling hydro projects once they achieved commercial operation. The focus has now shifted to continuing to hold the assets once construction is complete. The company currently operates nine hydro-electric plants, with a total generating capacity of 88 megawatts of clean, renewable 4
energy, which is enough to power approximately 88,000 homes. Chris Lambeck, President and CEO, explains that once a hydro project is up and running, it generates a long-term and stable cash flow that is viewed as a very attractive asset for a long-term investor like Manulife. Finding Environmental Solutions All of the plants developed and
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operated by Regional Power have been certified “EcoLogo” under Environment Canada’s Environmental Choice labeling program or are in the process of being certified, and one of their plants was awarded the 2005 UNESCO International Hydropower Association Blue Planet Prize and the 2013 BC Clean Energy Stewardship Award. Lambeck expresses that “Regional Power has always prided itself in finding
solutions that not only are economic but they also do have an ability to enhance the natural environment.” So how does Regional Power continue to find solutions to sensitive environmental problems? It is the company’s strength in careful site selection, its research of the environmental aspects of the area and in maintaining positive relationships with the surrounding communities, government agencies and other stakeholders. The w w w. r e g i o n a l p o w e r. c o m
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SUPPLIER PR OFI LE
ELECTRICAL PROFESSIONALS SERVING CANADA’S ENERGY SECTOR
LONG LAKE HYDROELECTRIC PROJECT Long Lake hydro will provide clean, renewable energy to help meet Canada’s Commitment to reduce gas emissions. From water to Wire, BV Electric Ltd. has been the electrical contractor of choice for Regional Powers 31MW run of the river hydroelectric project.
REGIONAL POWER company has strong and long standing relationships with the First Nation communities it works with and is always looking to develop future relationships and opportunities with communities across Canada. Lambeck explains that the team has the skills at hand to mitigate potential risk that may occur during the development and construction of the project so that there are few surprises. Once the team is confident with their design, Regional Power manages the construction through to completion of the project and then operates the hydro plant for the life of the facility. According to Lambeck, “There are two sides of the business; one is to understand how you develop, construct and finance a project and then how you continuously optimize operations to maximize the project cash flows. In order to get to that end result, you need to have a very good understanding of what projects to identify and to filter only the projects that really make sense.” Financial Backbone Because Lambeck originally started in Manulife Project Finance, he
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has a clear understanding of the underwriting criteria and how the projects can be best used to match Manulife’s long duration liabilities. As a consequence, completed projects are important to Manulife, which provides Regional Power the financial stability needed to pursue the complicated and lengthy process of developing hydro projects. Lambeck is proud that “we have the financial backing of a committed party that sees a vertical integration benefit from owning hydro assets, and, more recently, other renewable types of generation, to match its long-term liabilities. A hydro asset is particularly valuable because it can be a perpetual asset if access and permitting to the resource can be renewed and the projects are properly maintained.” Solar and wind farms are also attractive assets because they are not subject to fuel price risk and have a shorter and lower development and construction risk, but their useful lives are considerably shorter. A wind farm has a life expectancy of 25 to 30 years, while solar panels are expected to degrade over time and are currently modeled out to w w w. r e g i o n a l p o w e r. c o m
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SUPPLIER P R O F I LE
7 Regional Power - Long Lake - Powerhouse
REGIONAL POWER around 20 years. Hydro facilities are generally modeled out to 40 years in Canada, but they are currently being contracted for up to 60 years in British Colombia and Lambeck is confident Regional Power can of fer power purchase agreements well in excess of 60 years. Continuous Development Regional Power recently completed the construction in British Columbia of two new hydro projects, the Bear Creek project and the Long Lake project that was commissioned
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in late December 2013. The Bear Creek project consists of two power stations, totaling 20 megawatts. Construction for those projects started in September of 2010 with the lower site being completed in December of 2011 and the upper site being commissioned in May 2012. The Long Lake project was different than many of the other hydro-electric plants being currently developed because the project benefits from a large reservoir. Lambeck notes, “we can manage the reservoir which allows us to
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generate electricity under what is referred to as a firm energy profile.� Also, with continuing advances in technology, Regional Power now can remotely monitor 10
and control all components of the project in fine detail in order to optimize operations. In addition, the completion of the project has helped improve the water quality
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of the Cascade Creek and Salmon River by providing a constant and predictable flow of water downstream of the powerhouse during the winter months when the natural flows are significantly reduced. This low flow augmentation helps provide dilution for the creek from historic but ongoing mining impacts. The site produces up to 31 megawatts solely for BC Hydro and because of its firm hourly energy profile it enables BC Hydro to better match its demand profile, making the project more valuable than a traditional run-ofriver project. Since August 2013, the company has been constructing two new projects on the White River in northern Ontario with a combined capacity of 19 megawatts that are owned through a 50/50 joint venture between Regional Power and the Pic Mobert First Nation. The projects will be completed in 2015 and will sell their output to the Ontario Power Authority pursuant to 40year electricity purchase agreements. Recently, Ontario has significantly expanded its renewable generation portfolio through a number of procurement initiatives led by the OPA. However, few hydro projects have been constructed because of permitting challenges and escalating civil construction costs. Regional Power looks to these struggling developments as future potential opportunities to use its skills to effectively add value.
Company Information HEADQUARTERS
6755 Mississauga Rd STE 308 TELEPHONE
905-363-4200
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REGIONAL POWER 6755 Mississauga Rd STE 308 905-363-4200 WWW.REGIONALPOWER.COM