As Minister of Economy and Innovation, Pierre Fitzgibbon led the way, very broadly. François Legault did not hide that this pillar of his cabinet would be reappointed.
But now we learn that the Prime Minister plans to create an economic superministry, tailor-made for Mr. Fitzgibbon, which would swallow up the Energy portfolio—that is to say, the responsibility of Hydro-Québec and the government’s energy strategy. Already, it was Pierre Fitzgibbon who had defined the orientations, everything to the Economy, of the presence of Quebec abroad, although he did not bear the title of Minister of International Relations.
It was the CEO of Hydro-Quebec, Sophie Brochu, who attached the bell during an interview with Paul Arcand on Wednesday. Commenting on rumors about her departure, she insisted on the integrity of the state corporation’s “governance framework” and the needs of Quebec’s “energy system”. In its 2022-2026 Strategic Plan, Hydro-Québec emphasizes accelerating the energy transition and “its central role in establishing a green and sustainable economy”. The plan advanced that, to achieve carbon neutrality in 2050, Quebec would need 100 terawatt hours (TWh) more, or 50% of the current capacity of Hydro-Quebec, the equivalent of 12 complexes of La Romaine.
For his part, Pierre Fitzgibbon, like a formidable traveling salesman, has multiplied the steps abroad in order to attract large-scale companies by presenting himself with a solid sales argument: green energy at a price (again ) tantalizing. He returned with some 50 investment projects in his pocket, to which are added the decarbonization and expansion projects of the aluminum smelters already present in the territory, an industrial activity that consumes the most energy. All these plans would total a consumption of 15 TWh, an energy that we do not have.
By assuming responsibility for the energy strategy and for Hydro-Québec, the economic superminister could choose the companies to which electricity would be supplied, taking into account the economic spinoffs they would generate and their strategic importance. This department is better placed than the Crown corporation to assess the business potential of the various projects in relation to their energy demand, it is argued.
However, there are trade-offs to be made between economic development and the achievement of carbon neutrality objectives. Thus, the new sources of electricity, necessarily limited, can be used to supply new companies or to decarbonize existing activities. In the first case, economic growth prevails; in the second, it is the goal of carbon neutrality.
The effect on Hydro-Québec rates is also crucial. Whether we are talking about wind power or new dams, the additional energy will cost much more than current sources. It follows that the more we have these new economic activities, the more the average cost of electricity supply will rise. There is therefore a balance to be struck between economic growth associated with costly energy inputs, rising tariffs and climate objectives. Not sure that entrusting these difficult to reconcile elements to a single mega-minister, able to behave like an elephant in a china shop, is the wisest decision.