New legislation powers economy with clean energy, North Coast Transmission Line

Press Release

Oct. 20, 2025

VICTORIA – The Government of British Columbia is launching a bold set of actions designed to drive investment in major projects that will grow the economy, diversify markets and create new jobs, enabling province- and nation-building industrial projects that will unlock the full economic potential of northern B.C.

These actions will also address unprecedented demand for electricity and ensure that B.C. and Canadian economic interests are reflected in the allocation of British Columbia’s growing clean-electricity supply.

“B.C. will be the economic engine that drives a more independent Canadian economy – powered by clean energy, built through partnership with First Nations and driven by the hard work of British Columbians,” said Premier David Eby. “This legislation will help us move faster on the North Coast Transmission Line, a nation-building project that will deliver clean electricity to responsibly power industrial growth and job creation to increase prosperity for families, communities, our province and our country.”

There are significant opportunities in British Columbia’s traditional natural resource sectors, including mining, natural gas and LNG, and in emerging sectors, such as data centres and artificial intelligence (AI). The success of proposed major projects hinges on access to reliable, clean electricity at a competitive industrial rate.

Other jurisdictions have been challenged to address electricity demands from emerging sectors and, in many cases, have placed significant rate increases on the backs of ratepayers. B.C. is taking a unique and proactive approach to avoid the missteps seen in other jurisdictions and to establish a publicly owned electricity system as the backbone of a growing economy.

“We must act with urgency to leverage our clean-electricity advantage and grow and diversify our economy,” said Adrian Dix, Minister of Energy and Climate Solutions. “Our new allocation framework will prioritize vital growth in sectors like mining, natural gas and lowest-emission LNG, while ensuring our clean energy is directed to projects that deliver the greatest benefit to British Columbians. We’re taking action to build the North Coast Transmission Line as fast as possible to accelerate the development and construction of major industrial projects and bring good, well-paying jobs to people in B.C.”

The energy statutes amendment act, tabled in the legislature on Monday, Oct 20, 2025, would:

• expedite the construction of the North Coast Transmission Line (NCTL) in partnership with First Nations, advancing economic growth and reconciliation;
• ensure electricity is available for sectors that produce jobs, generate public revenues, and have the greatest opportunity to decarbonize, including mining, upstream natural gas, LNG and manufacturing; and
• enable a process for emerging sectors such as data centres, AI and hydrogen to grow in a manner that results in the greatest benefit to people in British Columbia and the economy.

Government will also implement several regulatory and policy changes in fall 2025 that will:

• accelerate the timelines for the development and construction of the NCTL, and provide cost certainty for large industrial customers seeking to access clean power from the line;
• address growing demand for electricity from emerging sectors by enabling energy connections and growth by putting limits on the power available for data centres and AI, and enabling hydrogen production for export, prioritizing the most beneficial projects from these, with engagement on regulatory changes to begin in fall 2025; and,
• permanently ban new BC Hydro connections to the electricity grid for cryptocurrency mining to preserve the province’s electricity supply and avoid the overburdening of the electricity grid.

Legislative amendments will expedite the construction of the North Coast Transmission Line, one of 18 priority projects identified by the Province as essential to expanding B.C.’s electricity grid, diversifying the provincial economy and supporting the development of new mines, LNG facilities and port expansions. The 18 major projects identified include mines, renewable energy such as wind and solar, and natural gas that can be accelerated through government action.

Twinning the existing line from Prince George to Terrace and out to Bob Quinn Lake will unlock tens of billions of dollars in real, shovel-ready industrial projects across northwestern B.C., including the north coast.  Once operational, the NCTL project is expected to create approximately 9,700 direct full-time jobs, contribute nearly $10 billion per year to GDP and generate approximately $950 million annually in public revenues for the province and municipal governments. Additionally, it will help prevent two to three million tonnes of carbon emissions annually, supporting B.C.’s climate goals while powering economic growth.

The next major steps for the NCTL project will be finalizing the details of the route and initiating select construction permitting. Construction is expected to start in summer 2026, with phased-in completion of the project targeted for 2032-34.

Regulations and directives related to the allocation of electricity for industrial projects in British Columbia will be implemented in November 2025, and a competitive process to access electricity for data centres and AI will be launched by BC Hydro in January 2026.

Quotes:

Charlotte Mitha, president and CEO, BC Hydro –

“We’re seeing unprecedented demand from traditional and emerging industries. The Province’s strategy empowers BC Hydro to manage this growth responsibly, keeping our grid reliable and our energy future clean and affordable. The North Coast Transmission Line is key to powering B.C.’s next generation of industrial development, and we’re proud to advance it in partnership with First Nations and the Province.”

Wes Sam, Chief of Ts’il Kaz Koh and chair, K’uul Power –

“Enabling BC Hydro to form a true partnership with First Nations is an essential step toward our vision of co-owning the North Coast Transmission Line from construction through its full life. Our team has invested thousands of hours to reach this point and there’s still work ahead. But we’re committed, because NCTL is just one piece of a larger picture: a future of major projects co-owned by First Nations that will showcase Indigenous leadership, prosperity and self-determination on a national and global scale.”

Sharleen Gale of Fort Nelson First Nation, executive chair of the board, First Nations Major Projects Coalition (FNMPC) –

“The proposed legislative changes would establish a pathway for B.C. First Nations to pursue equity ownership in new transmission lines, and the FNMPC stands ready to support our members who decide to explore these opportunities.”

Michael Goehring, president and CEO, Mining Association of British Columbia –

“As a nation-building project that will bring clean electricity to mining projects in northwest and central B.C., the North Coast Transmission Line will strengthen Canada’s position as a leading global supplier of critical minerals and metals and unlock more than $45 billion in near-term economic activity for British Columbians and all Canadians. We are pleased to support the Province’s efforts to advance this important transmission line towards construction, in partnership with First Nations.”

Martin Turenne, president and CEO, FPX Nickel –

“The changes announced today will help to unlock British Columbia’s massive critical-mineral endowment while leveraging the province’s clean-energy advantage. With its commitment to Indigenous reconciliation, abundant clean power and world-class environmental-protection regime, British Columbia is leading the way in responsible critical-mineral production.”

Eva Clayton, president, Nisga’a Nation –

“With this important legislation, the B.C. government is helping to unlock new opportunities in a region that has the real potential to drive our economy forward, supporting Indigenous and rural communities, and the industries that can sustain and build a more prosperous future. The Nisg̱a’a Nation knows that when Indigenous peoples are true partners in development, the results are better for our communities, our environment and for everyone who calls this land home. This is how we help advance nation-building projects that are not only environmentally best in class, but Indigenous-led and supported from the ground up.”

Learn More:

To view a map of the North Coast Transmission Line, visit: https://www.bchydro.com/content/dam/BCHydro/customer-portal/documents/projects/north-coast-electrification/north-coast-electrification-project-map-full-size.pdf

For more information about B.C. legislation, visit: https://strongerbc.gov.bc.ca/Legislation

Two backgrounders follow.

Contacts:

Ministry of Energy and Climate Solutions
Alanah.Connie@gov.bc.ca
250 880-4935

BC Hydro
Media Relations
media@bchydro.com
604 928-6488

BACKGROUNDER 1

Electricity transmission is the backbone for economic growth in the North

There is significant opportunity for the growth and diversification of British Columbia’s economy through private sector investment in mining and critical minerals, LNG, manufacturing and technology projects. Much of the opportunity for the growth of the mining and LNG sectors is situated in the North Coast region of the province. Demand for electricity to unlock investments in these projects exceeds the capacity of the existing 500-kilovolt transmission line serving the region, which runs approximately 450 kilometres from Prince George to Terrace. New transmission infrastructure is required to unlock new, clean economic growth.

The North Coast Transmission Line (NCTL) project will twin the existing line to more than double the electricity capacity in the region and expand electricity access north of Terrace for major mining projects.

The NCTL is being developed in three phases:

• Phase 1 will run from Prince George to Fraser Lake (about 164 kilometres).
• Phase 2 will run from Fraser Lake to Terrace (about 275 kilometres).
• Phase 3 includes new transmission infrastructure north of Terrace to Aiyanish and Bob Quinn Lake (about 350 kilometres). Planning is underway for additional improvements to connect customers located beyond Terrace.

The NCTL is a nation-building opportunity for B.C. and Canada that will unleash the economic potential of the North Coast and develop critical mines, port expansions and LNG and resource development, powering growing communities. The project will enable the generation of thousands of good-paying jobs, billions of dollars in private investment and historic First Nations partnerships, while enabling the avoidance of significant greenhouse-gas emissions.

Industries seeking to build or expand operations in the North Coast using clean electricity from the NCTL require certainty about the timelines to build the line and the cost of connections.

Getting it built

To streamline the approvals and permitting process and accelerate the development and construction of the NCTL, the Province passed the Renewable Energy Projects (Streamlined Permitting) Act in spring 2025. The Act simplifies the decision-making process for renewable energy projects and transmission lines by eliminating the need for cross-ministry and agency permitting. The Act delegates authority to the B.C. energy regulator to lead permitting and authorizations related to the NCTL and provide regulatory oversite of the construction and operation of the project.

The need for the NCTL project was firmly established in 2023 when a BC Hydro expression-of-interest process to assess customer interest and electricity requirements in the northwest resulted in submissions from a range of industries identifying approximately 5,000 megawatts of potential industrial load (about five times the capacity of the Site C hydroelectric project).

Based on this clear demonstration of need, the Province will exempt BC Hydro from the requirement to obtain a Certificate of Public Convenience and Necessity (CPCN) from the B.C. Utilities Commission (BCUC). A CPCN is a determination that a proposed project is needed and in the public interest and is required for projects over $250 million. The preparation of a CPCN application and ensuing regulatory proceeding would take approximately 12-18 months, resulting in delays to the start of NCTL construction and increasing investment uncertainty for important industrial projects that will drive new jobs and economic growth at a critical time for the province.

Advancing historic First Nations partnerships

The transmission line provides the opportunity to expand First Nations ownership and economic development opportunities in the clean energy sector.

Since early 2023, the Province and BC Hydro have been discussing potential co-ownership arrangements with First Nations for the NCTL.

In July 2025, six First Nations including Hereditary leaders of the Wet’suwet’en, along with the Province and BC Hydro signed term-sheet agreements for Phase 2 of the line. The term sheets lay the groundwork for comprehensive legal partnerships providing First Nations the opportunity to earn returns on their investment over the economic life of the project. Negotiations continue with First Nations along Phase 1 of the proposed route to finalize similar agreements.

Shared ownership of a major transmission line is a new opportunity in B.C. that is not covered by existing legislation and regulations governing BC Hydro.

The energy statutes amendment act will amend the Hydro and Power Authority Act to clarify the capacity of BC Hydro to enter into co-ownership arrangements for transmission infrastructure and enable BC Hydro to enter into partnership agreements with First Nations to develop and build the NCTL together.

As BC Hydro will operate and maintain the line, the Province is also developing regulations that will exempt First Nations partnerships (for the NCTL) from regulation as public utilities by the B.C. Utilities Commission (BCUC). BC Hydro is already a regulated public utility and would continue to perform this function as co-owner and operator of the infrastructure.

Reducing financial barriers for industry

To support positive final investment decisions from industries interested in connecting to the line, it is essential that the Province address existing BC Hydro tariffs (interconnection charges) for large, energy-intensive projects.

Under BC Hydro’s current industrial tariff:

• financial security for the entire NCTL may only be collected from a single customer that is first in the interconnection queue; and,
• industrial customers requiring more than 150 megawatts of electricity are assigned the full cost of both incremental electricity generation and upgrades to BC Hydro’s bulk (500 kV) transmission infrastructure.

These upfront costs for large industrial projects, which can total billions of dollars, would make projects financially unviable for industrial customers looking to power their operations with clean electricity.

Without changes to the tariff, critical-mineral mining and First Nations-owned LNG projects in the north simply won’t move forward. That would mean walking away from thousands of good-paying jobs and billions of dollars in private investment.

To address these barriers, the Province will develop regulations setting a new BC Hydro electricity tariff for NCTL industrial customers that:

• brings investment certainty to potential large connections to the line; and,
• allows security to be collected from multiple customers seeking electricity service from the NCTL, instead of just the first connecting customer.

Industries connecting to the NCTL will still be required to:

• provide financial security to connect to the NCTL;
• pay standard industrial electricity rates; and,
• pay for lines from their projects to BC Hydro’s interconnection point on the NCTL.

Everyone in British Columbia will benefit from the economic, social and climate-action benefits flowing to the province from the electrification of large natural resource projects in the Northwest, including new jobs, increased tax revenue and royalties, and reduced carbon emissions.

Contacts:

Ministry of Energy and Climate Solutions
Alanah.Connie@gov.bc.ca
250 880-4935

BC Hydro
Media Relations
media@bchydro.com
604 928-6488

BACKGROUNDER 2

A new approach ensures electricity access brings greatest benefit to British Columbia

Economic growth and electrification are driving an unprecedented volume of requests to BC Hydro for electricity service from mining, upstream natural gas and LNG sectors, and from emerging energy-intensive industries including artificial intelligence (AI) and data centres. BC Hydro currently has industrial projects in its connection queue for almost 6,800 megawatts (MW), more than six times the total capacity of the Site C hydroelectric project.

Under its existing interconnection policy, BC Hydro is obligated to provide electricity service to potential customers on a first-come, first-served basis, without consideration of what the end use of the power or resultant economic benefit will be. This policy did not contemplate the speed of innovation in the tech sector or emerging energy resources, such as hydrogen production. The rapid scalability of these industries in an electricity system with limited resources requires government intervention and action.

There is a need for the Province to modernize BC Hydro’s interconnection process to prioritize industries such as the natural-resource sector that have long been the backbone of B.C.’s economy and that contribute meaningfully to jobs, long-term economic development and public revenues, while also supporting the expansion of new and emerging industries.

Maximizing the benefits for British Columbia

The energy statutes amendment act, if passed, will amend the Utilities Commission Act and enable government to make regulations to establish a new B.C. electricity allocation framework for industry that:

• prioritizes electricity connections for natural-resource projects that provide the most benefits to people in B.C.; and,
• puts limits on the power available for data centres and AI, and enables hydrogen production for export in a paced way, prioritizing the most beneficial of such projects.

Building out the natural resource sector

The new framework will not impact electricity service or the BC Hydro interconnection process for natural-resource projects, including mining and critical minerals, oil and gas, LNG, manufacturing, forestry and hydrogen for domestic consumption.

• BC Hydro will continue to bring on energy and capacity resources to match demand;
• there will be no limit, or allowance on the amount of power available to these industries; and,
• they will pay the standard industrial rate for electricity.

Supporting emerging sectors

The growth of emerging industries including data centres, AI, and hydrogen for export will continue to be enabled. However, these projects generally provide fewer jobs and revenues for the province than natural-resource projects, while consuming large volumes of power.

To manage this growth responsibly and balance critical energy needs throughout B.C., the Province will introduce changes through regulation that will prioritize electricity service to projects in emerging sectors that provide the greatest benefit for British Columbians, and do so at an appropriate pace.

BC Hydro will launch a competitive call for projects in early 2026 for a two-year period that allocates 300 megawatts (MW) for AI, 100 MW for data centres, and amounts for hydrogen exports that will be set at a later time, as market conditions warrant.

Projects that are applying to the process will be assessed to ensure alignment with B.C.’s economic objectives, such as jobs and benefit to provincial interests, while remaining within the total energy volumes allocated to these specific sectors.

Cryptocurrency mining will remain excluded from this process in line with existing regulations prohibiting new connections for cryptocurrency mining, due to its disproportionate energy consumption and limited economic benefit. New BC Hydro connections for cryptocurrency mining will be banned permanently.

Striking a balance

Data centres and AI can offer tremendous potential for innovation, information technology and data sovereignty, and AI adoption will continue to improve productivity and competitiveness for B.C. industies. However, their rapid expansion and high energy consumption require balanced, forward-looking planning.

A new B.C. electricity allocation framework will encourage investment in natural-resource industries that create well-paying jobs, avoid emissions and keep energy affordable for people in British Columbia. It will also support growth in emerging sectors by prioritizing the projects that deliver the greatest benefit to British Columbia, while ensuring B.C.’s overall energy needs are responsibly and sustainably met.

Contacts:

Ministry of Energy and Climate Solutions
Alanah.Connie@gov.bc.ca
250 880-4935

BC Hydro
Media Relations
media@bchydro.com
604 928-6488

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