We often hear that Hydro-Québec lacks energy during peak periods. In the Bécancour industrial park, there is a small power plant powered by natural gas which belongs to a Western oil company. I wonder how it is that it has, it seems, never worked and that Hydro pays several millions per year to respect its contract?
– Yvon Dupuis, Victoriaville
It is often said that history repeats itself and you have pointed to a good example. In 2003, the president of Hydro-Québec André Caillé and the government of Quebec announced that Quebec risked running out of energy in the coming years. The construction of a natural gas power plant is being considered because it could come into production quickly. The first planned project, Suroît, located in Beauharnois, in Montérégie, was abandoned due to the controversy it aroused. Hydro-Québec, however, has the support of the government to build a natural gas power plant in Bécancour.
A contract is concluded with TransCanada Energy to quickly build a 500 megawatt natural gas power plant. The power station built at a cost of 500 million was ready to operate in 2006 to supply Quebec with electricity for 20 years.
But in this short time, the context has changed. The envisaged electricity shortage has turned into a surplus, so that Hydro-Québec does not need the production of the Bécancour power station. The power plant never worked. But since it signed a 20-year supply contract with the Alberta company, the state-owned company must pay as if it were buying its production.
At the rate of approximately 50 to 75 million in compensation paid each year, several billion dollars were paid to TransCanada Energy in vain.
We move forward 20 years. In 2023, the president of Hydro-Québec and the government of Quebec announce that Quebec risks running out of energy in the coming years. Last November, Hydro-Québec published a 150 billion investment plan to increase its electricity production and meet growing demand during peak periods.
The restart of the Bécancour natural gas power plant is discussed, with its conversion to renewable natural gas.
CEO Michael Sabia’s action plan says this:
“We are considering converting TransCanada Energy’s existing thermal power plant in Bécancour to renewable natural gas (RNG) in order to ensure the stability of the network during the coldest days of winter and during peak hours. In other words, it will be used in a limited way as an insurance policy. The use of RNG for this reserve power plant would ensure consistency with Quebec’s decarbonization objective. »
This is not the first time that the possibility of resuscitating the production of the gas plant has been mentioned by Hydro-Québec.
Will this time be the right one? Perhaps so, because Hydro-Québec’s power requirements during peak periods continue to increase.
TransCanada Energy still owns the power station and the contract between Hydro-Québec and the Alberta company is still in force, said the spokesperson for the state-owned company, Maxime Huard-Lefebvre.
This contract concluded in 2006 will end in the fall of 2026, he said. The plant is still in working order. To be continued.