The era of surpluses is over at Hydro-Québec, and the Legault government is allowing it to launch the largest wind and renewable energy supply project in its history.
• Read also: Three wind projects totaling 1,200 MW north of Quebec
“There is a challenge of power,” said Prime Minister François Legault during an announcement yesterday in Gaspésie.
Quebec therefore authorizes the launch of two calls for tenders for new supplies of wind and renewable energy.
A 1000 megawatt (MW) energy block to the wind power sector and a 1300 MW energy block to the renewable energy sector.
“This is the launch of the largest market call for renewable energy in the history of Quebec,” said Mr. Legault, who wants to create jobs for “Quebec workers” thanks to companies “from here “.
There are also two conditions for calls for tenders: “take into account local content and community participation”, confirmed the Prime Minister.
Transition and wind power
When the CAQ was elected in 2018, Hydro-Québec assured that it had energy surpluses for the next 20 years. Export projects like the one to New York State and economic policies related to the energy transition have caused demand to explode, which is rapidly siphoning off surpluses from Quebecers.
“When we look at our projections, we go from energy surpluses to a deficit for the next few years,” indicated the Premier.
The development of the battery sector, agricultural greenhouse projects and those for green hydrogen add to this demand, which will be saturated by 2029.
According to Quebec, the costs associated with wind power have “decreased a lot” and they will make it possible to advantageously improve the energy supply. “Wind power, being now mature and competitive, must be more part of Quebec’s energy mix and contribute to meeting needs,” indicated the Minister of Energy and Natural Resources, Jonatan Julien.
Explosion of demand
Hydro-Québec estimates that Québec’s electricity demand will jump by 12% by the end of the decade. The state corporation is talking about a shortfall of 20 TWh, more than twice the annual production of the Romaine hydroelectric power station.
“The launch of calls for tenders for new supplies will allow Hydro-Québec to respond to this growth and help support the energy transition,” said Sophie Brochu, President and CEO of Hydro-Québec, in a press release.
These projects are in addition to the 300 MW of wind power and 480 MW of renewable energy launched last winter.
The news was well received by Quebec and Canadian renewable energy production associations, as well as by the Quebec Federation of Municipalities.
2300 new MW granted to Hydro by Quebec
◆ Block of 1000 MW in wind projects
◆ Block of 1300 MW in renewable energy projects (geothermal, solar, small hydroelectric plants, etc.)
* For comparison: the Apuiat wind project, on the North Shore, of 200 megawatts is estimated at $600 million. Hydro-Québec will be able to buy this energy at the price of 6 cents per kilowatt/hour. This project was first canceled by the Legault government in 2018 due to surpluses and because the kilowatt/hour was too expensive. It was finally revived in 2021 due to the decrease in surpluses and the downward adjustment in wind prices.