Power Shortages Threaten Kelowna’s Development Boom

A Growing Crisis in Kelowna’s Development Sector

Kelowna, a city once thriving with rapid growth and development, is now facing an unexpected hurdle: a shortage of power. Developers in the region are being forced to Hit the brakes on new projects due to limited electrical capacity, with some being told they won’t have access to power until as late as 2028. This指导delay is causing widespread concern among developers, who are now grappling with the potential consequences of such a long-term setback. Ian Grannary, of Smith + Andersen, a leading development firm, highlighted the uncertainty faced by the industry. "We’re running into situations where developers are being told they won’t have power until 2027 or 2028 to fully energize their buildings," Grannary explained. The Pandosy project, a significant development by Smith and Andersen, is among those potentially delayed until at least 2028. Grannary emphasized the implications of such delays, stating, "That’s pretty vague, and that’s if everything goes well. If we’re four years out, that’s going to affect a lot of projects."

FortisBC Struggles to Meet Demand

FortisBC, the primary energy provider for the region, acknowledges the challenges and has proposed a solution: the expansion of local substations to increase power supply. However, these expansion projects are facing their own set of delays, further complicating the situation. Gary Toft, a communications representative for FortisBC, explained that the company is encountering difficulties in procuring essential equipment. "We’re seeing an increase in the amount of time it takes to receive equipment and supplies, such as transformers, breakers, and specialized equipment," Toft stated. In an effort to mitigate these delays, FortisBC has begun preordering and prepaying for the necessary equipment. Despite these efforts, the uncertainty surrounding the timeline for these expansions leaves developers with little clarity on when they can expect relief.

Developers Voice Their Concerns

The delay in power availability has led to a growing sense of frustration among developers, who fear the broader implications of these setbacks. Morgan Reynolds, director of construction for Argus Properties, outlined the potential consequences. "Kelowna risks failing to meet its housing mandates, losing provincial funding, the delayed projects jeopardize jobs, local businesses lose out on new customers, there’s financial uncertainty for developers as we wait on Fortis to act," Reynolds said. The delay not only affects the immediate projects but also has a ripple effect on the local economy, impacting jobs, businesses, and the city’s ability to meet its housing goals.

The Uncertainty Facing Developers

The uncertainty surrounding power availability has left developers in a difficult position, unsure whether to proceed with their projects or wait for a more stable situation. This dilemma is further compounded by the financial risks involved. "We’re not sure what the impact is going to be. There are a lot of developers scared that putting hundreds of millions of dollars into a development that may not be occupied for a few years, that’s problematic," Grannary remarked. The financial investment required for these projects is substantial, and the risk of delayed occupancy adds another layer of complexity, making it increasingly challenging for developers to make informed decisions.

FortisBC’s Commitment to Addressing the Issue

Despite the challenges, FortisBC has assured the development community that it is actively working to resolve the issue. The company is closely monitoring its energy systems and expanding its capacity as needed to manage the impact on all customers. "We’re working very closely with the development community and the City of Kelowna, and we’re asking developers to get in touch with us and let us know what their needs are so we can make sure that we’re ready for them," Toft stated. This proactive approach aims to ensure that the energy infrastructure is prepared to support the growing needs of the city.

A Call to Action and a Way Forward

As the situation continues to unfold, developers, city officials, and energy providers must collaborate to find a solution that balances the need for growth with the constraints of the current energy infrastructure. The city of Kelowna, known for its rapid development and growth, now faces a critical challenge that could have far-reaching consequences. It is imperative that all stakeholders work together to address this issue, ensuring that the city can continue to thrive without compromising its future development goals. The coming years will be crucial in determining how Kelowna navigates this power shortage and whether it can maintain its momentum as a growing and vibrant community.