Major players in the industrial and residential construction sector are concerned about the consequences of the new life-or-death powers that the government has just granted itself on any new project requiring power of more than 5 megawatts (MW).
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“It is clear that there are challenges regarding the needs and the quantity of electricity that Hydro-Québec is able to provide,” admits the CEO of the Broccolini Group, Roger Plamondon. Now, if the decision falls on the minister’s office to decide whether or not we will have electricity for the projects, well then it becomes more dangerous. »
Broccolini’s number one was speaking on the sidelines of a conference of the Urban Development Institute of Quebec (IDU) on the new ways of doing things for the City of Montreal in terms of real estate development. Obviously, the appearance of politicization of the project arbitration process that Quebec is considering raised eyebrows.
Fitzgibbon has the last word
Quebec recently adopted Bill 2, introduced by the Minister of Economy, Innovation and Energy, Pierre Fitzgibbon. Its provisions aimed, among other things, to give the Minister the power to authorize (or prohibit) any project henceforth requiring a power threshold reduced to 5 MW and more, rather than 50 MW and more as before.
Questioned, Roger Plamondon explained that the smallest industrial project today requires a power of 3.5 MW of electricity. As soon as a company is robotized or has recharging needs for a large fleet of electric trucks, “it doesn’t take long for it to go from 3.5 MW to more than 5 MW. »
“Are we going to have electricity for our projects? And if so, how long and at what cost? Are we going to be able to do the project? “, he asked, before still bursting out other questions. “And if I’m ready to develop tomorrow, but the electricity isn’t there, what do we do? »
These concerns, these unanswered questions, this impression of being kept in the dark, the CEO of the IDU, Jean-Marc Fournier, says he has been hearing them from his members for about six months.
Capital flight
“I have been told for months that Hydro no longer has the means to act and to provide the slightest answer to the questions that are put to it,” said the former Liberal minister.
“Builders are all the more worried about it – and not only Broccolini, he specifies – because they are the first to see projects being put on hold, postponed or downright lost. [au profit d’autres juridictions], due to the current uncertainty. It is not a fear. This is a reality, which is obviously not good for the economy. »
Without denying the difficulties facing the industry, Hydro-Québec assures us that the project selection process “is well underway”. Proponents of projects that require more than 5 MW of power must complete a specific form from the Crown corporation.
ELECTRICITY SHORTAGE ON THE HORIZON
20 000 MW
Total demand for projects of 50 MW and more
3000 MW
Total demand for projects under 50 MW
5000 MW
Hydro-Québec’s objective to increase its production capacity by 2035
Source: Hydro-Quebec