The moment of truth is approaching for industrial promoters who have submitted requests to Hydro-Québec for large blocks of electrical power. Minister Pierre Fitzgibbon will choose the winners next month.
The Minister of Energy will make public in June the energy-intensive industrial projects that will be selected among the 23 under study. In total, more than 3,200 megawatts (MW) of power are at stake. The energy should be delivered to them within approximately 1 to 5 years.
Projects that were submitted before the tabling of Bill 2, such as the Google data center in Beauharnois, Montérégie, and the Microsoft server center in Saint-Augustin-de-Desmaures, in the Quebec region, are however already assured of obtaining the energy requested, at least in the initial phases. These projects represent approximately 1700 MW of power.
In a well-received address to the Chamber of Commerce of Metropolitan Montreal (CCMM) at noon on Friday, the superminister, who also manages the strategic portfolio of the economy, listed the evaluation criteria that will guide his decisions: projects must be able to technically connect to the Hydro-Québec network, they must also create wealth, reduce greenhouse gas emissions and demonstrate their social acceptability.
Not all 23 projects under consideration will be accepted. Some will be accepted outright, others will be accepted conditionally, and many will be refused.
50 projects over 50 MW
“In the past 20 years, do you know how many projects over 50 MW have been carried out in Quebec? Mr. Fitzgibbon asked the audience during his speech. “Only one. Today, on my desk, there are more than fifty. Reality has changed, we had to change our ways of doing things. »
Since the adoption of Bill 2 on February 15, 2023, it is the Government of Quebec, in concert with Hydro-Quebec, which authorizes industrial projects that require more than 5 MW of power. Previously, the state corporation was required to connect all projects of less than 50 MW.
Voluble, the Minister addressed several themes in his speech. In particular, he gave an estimate of the value of Hydro-Québec if it were privatized. He spoke about export contracts, the need to add wind power and the growing electricity needs in the future.
Hydro-Quebec is worth up to 300 billion
” [Hydro-Québec] is an incredible legacy and our duty is to honor it, said the Minister. And it is a legacy that is worth dear. Put simply, as a private company in the standard North American energy market, Hydro would be worth at least $250-300 billion. People don’t realize it. But Hydro is our own industrial giant. It is the value of companies like Costco, Shell, Toyota, Nike or Disney. And this company is a public company that makes the fortune and the pride of Quebecers. »
No question of withdrawing from export contracts
“Over the past few weeks, I have heard many people raise questions about our two major export contracts signed in recent years. We have Massachusetts and we have New York. We can discuss it all we want, but Quebec will honor its commitments. At the time, if we had known the current context, would we have asked other questions? Of course. »
Still more wind power
“There are approximately 40 wind farms in service in Quebec. They produce almost 4000 MW of energy. I want the installed wind capacity to be quadrupled by 2040. That’s the minimum. Last March, I announced a call for tenders for a block of 1,500 MW of wind energy. We want to launch another even larger call for tenders in the coming months. Wind turbines have the merit of being built quickly and easily connecting to the Hydro-Québec network, depending on their location.
The figure of 100 TWh no longer holds
How much electricity does Quebec need to decarbonize its economy? We do not know the precise answer, but it will be more than 100 terawatt hours (TWh), said Pierre Fitzgibbon. ” [Ce chiffre] no longer holds up. We are not at 100,” he said. This figure came from Hydro-Quebec projections based on Quebec’s recent history. “In recent years, there has been only one project of more than 50 MW. Today, there are fifty,” repeated the minister.
An earlier version of the article incorrectly stated that 3000 MW would be awarded in June.