The door opened by the city of Montreal to the elimination of natural gas on its territory is a false good idea, according to Hydro-Québec, which believes on the contrary that without dual energy, the decarbonization of buildings will be very expensive or will simply be impossible. . Others see it as a significant risk.
“The conversion of all buildings currently running on gas to 100% electricity is not at all realistic,” explained a spokesperson for the state-owned company, reacting to the Commission’s main recommendation on the water, the environment, sustainable development and large parks which was well received by the municipal administration.
The transmission and distribution network that supplies Montreal simply does not have the capacity to accommodate such a sustained load, explains Maxence Huard-Lefebvre.
Hydro-Québec wants to convince the city of Montreal that eliminating natural gas could compromise other electrification projects and even the economic development of the metropolis.
The Commission on Water, the Environment, Sustainable Development and Large Parks recommends that the city decarbonize energy consumption as much as possible by immediately prohibiting the connection of new buildings to the natural gas network and gradually removing heating systems existing. All other natural gas-powered appliances, such as stoves, should also be banned, the commission recommends.
A restricted use of natural gas, for certain types of buildings such as heritage buildings, could remain, provided that it is limited to 15% and only during peak periods.
For Hydro-Quebec, this is insufficient. The government corporation’s decarbonization strategy is based on an agreement with the gas distributor Énergir, which provides for the replacement of natural gas heating systems with a dual-energy system that would use 70% electricity and 30% natural gas.
“We absolutely need dual energy to achieve our objectives,” says the Hydro spokesperson. The state corporation is banking on energy efficiency with heat pumps and thermal stores and on its demand management tools like Hilo and modulated rates like the winter credit and the Flex rate, but natural gas is essential in this panoply of means, she argues.
Without the contribution of natural gas, Hydro-Québec would not only have to increase its supplies to meet the winter peak, but also build substations and power lines on the island of Montreal, which is complex and expensive in urban areas, specifies the ‘business.
The possibility of the elimination of natural gas on the island of Montreal does not please industrial energy consumers either, who see it above all as a risk. “From the point of view of energy security, it’s never a good idea to put all your eggs in one basket,” observes Jocelyn Allard, president of the Quebec Association of Industrial Electricity Consumers, several of whose members consume both electricity and natural gas.
“When you want to attract investors, it’s more difficult if you depend on a single energy source,” he adds, adding that historically, natural gas has always been cheaper than electricity. .
The Coalition of environmental organizations in energy, with other environmental organizations, is of the opinion that natural gas has no place in the heating of buildings and testified to this effect before the Commission on water, environment, sustainable development and large parks.
Its spokesperson, Jean-Pierre Finet, is however of the opinion that certain essential services, such as hospitals, should have spare systems powered by natural gas or other fuels for safety reasons. However, the safety aspect should not be exaggerated, according to him, because natural gas heating systems generally work with an electric furnace.
Reduced profits
It is on the territory of Montreal, well served by natural gas, that the gains in terms of decarbonization are the most significant for Hydro-Québec. Its agreement with Énergir would reduce GHG emissions related to building heating by 50% by 2030.
Hydro-Québec wanted its customers to pay the cost of the compensation that will be paid to Énergir, which will see its sales volume decrease, but while continuing to assume the costs of maintaining its distribution network.
In a decision published last week, the Régie de l’énergie refused to allow the decarbonization bill for Énergir customers to be passed on to Hydro-Québec customers. The state-owned company has indicated that it will still go ahead with the conversion of heating systems to dual energy by assuming the cost itself, estimated at 63 million by 2025.
Hydro-Québec had estimated that its agreement with Énergir would result in a rate increase of 1.4% for all of its customers, including 1% for new electricity supplies.
Without natural gas, more investment would be needed in the supply and in the distribution network, which would result in an even higher rate increase of 3%, says Hydro-Québec.