Agreement between Hydro-Québec and Énergir | “It’s the fastest and cheapest way”

The agreement between Hydro-Québec and Énergir to convert the heating of buildings from natural gas to electricity provoked an outcry, but voices were raised to describe it as the least bad solution for reducing gas emissions to greenhouse effect (GHG) in Quebec.

Helene Baril
The Press

“It’s the quickest and cheapest way to reach our greenhouse gas emission reduction targets,” argues Philippe Dunsky, consultant and independent energy expert.

The agreement provides that Hydro-Québec will pay 400 million to Énergir to compensate for the drop in natural gas sales to customers who will switch from all gas to dual energy. Quebecers’ electricity rates should increase by 1.4%, in addition to the annual increase, to absorb this additional cost for Hydro-Québec.

The Union des consommateurs denounces the high cost that will be borne by Hydro-Québec customers to reduce Énergir’s GHG emissions, and environmentalists protest that the agreement will prolong the consumption of fossil energy in Quebec.

This agreement is not perfect, recognizes Philippe Dunsky, who has examined the other possible solutions. “To decarbonize, it takes more electricity and the challenge of electricity is peak management,” he explains. And it is not given. »

Electrifying everything would allow Quebec to achieve its GHG reduction objectives, but at a very high cost for Hydro-Quebec customers, according to him. The agreement between Hydro-Québec and Énergir makes it possible to do the same thing, at a more affordable cost, he says.

According to Hydro-Québec, completely electrifying the heating of buildings would require the construction of new production facilities of 2,000 megawatts, the equivalent of another hydroelectric complex such as La Romaine.

With the agreement between the two distributors, Hydro-Québec customers and those of Énergir will pay more, “but we avoid the staggering costs that we don’t need,” says Philippe Dunsky.

In addition to increases in electricity and natural gas rates, the cost of converting heating systems will be subsidized by the Quebec government.

In a way, it is society as a whole that pays for the reduction of greenhouse gas emissions, and not just those who emit the most, agrees Philippe Dunsky. “Part of the cost is socialized, but that’s how big changes are made,” he believes.

“The right energy in the right place”

The Conseil du patronat du Québec (CPQ) is also in favor of the agreement concluded between Hydro-Québec and Énergir, because it ensures that natural gas will remain available in Québec. “We say it takes the right energy in the right place, and dual energy is a good idea,” says CPQ vice-president and chief economist Norma Kozhaya. “There is a limit to what electricity can accomplish. [pour réduire les émissions de GES]. Dual energy makes it possible to maintain the competitiveness of gas infrastructures and to keep this transition energy. »

Eventually, the Énergir network will be able to transport renewable natural gas, says the economist, who also stresses that it is important for companies not to depend on a single source of energy.

The CPQ is concerned, however, about the impact that the cost of the agreement will have for the industrial customers of Hydro-Québec and Énergir. In principle, the agreement stipulates that all natural gas and electricity consumers will pay more to reduce Québec’s polluting emissions. The distribution of these price increases remains to be seen.

It may be necessary to distribute the burden differently so as not to harm the competitiveness of companies, says Norma Kozhaya.

The Conseil patronal de l’environnement du Québec is also in favor of the agreement, but its president and CEO, Hélène Lauzon, preferred not to speak publicly on the subject. In a letter sent to the Régie de l’énergie, Mr.^me Lauzon argues that the agreement between the two Quebec energy distributors is “a promising solution for reducing GHG emissions from the building sector, without jeopardizing the electricity supply for other sectors.”