Hydro-Québec no longer wants to be content with the role of buyer for private players in the development of wind energy. Its president and CEO, Michael Sabia, announced Thursday that the state-owned company would become the prime contractor for large wind projects, which are expected to multiply in the coming years.
To add 10,000 megawatts (MW) of wind capacity by 2035, the size of projects must increase, judges Hydro-Québec. The average of Quebec wind farms is 90 MW, while the state company now wishes to develop projects of more than 1000 MW.
“We are adopting this strategy because it is the only way to make energy available in a socially acceptable way, faster and at the best possible cost,” Mr. Sabia declared at the outset at a press conference. . He added that wind power is an “essential part of the diversification of our system to succeed in the energy transition”, in a world where energy surpluses are a thing of the past.
Until now, wind projects have been entrusted to private companies through calls for tenders, then purchase contracts. Businesses were the main shareholders of the selected projects, in partnership with municipal and indigenous stakeholders. This type of model may remain, but will not be the “locomotive” of Quebec wind energy development.
Much larger projects will be prioritized. Hydro-Québec will be the coordinator and one of the main shareholders, along with community partners. Industry players will be involved in technical aspects, in order to leverage their expertise, and could potentially obtain shares in the projects.
By proceeding in this way, Hydro-Québec believes it will be able to achieve economies of scale of more than 20%, “by offering predictability and significant volumes to suppliers,” we can read in the strategy. “These savings will help keep electricity rates affordable and competitive,” the document states.
Mr. Sabia says he based his strategy on a major tour across Quebec, where he heard the concerns of hundreds of people about the wind power development model.
“The fundamental challenge is the mobilization of Quebecers, because it is not a transition, it is a transformation. The only way to successfully navigate this transformation is to work together,” said Mr. Sabia.
He assured his commitment to maintaining the public nature of Hydro-Québec. “Hydro-Québec belongs to Quebecers,” he insisted. The last thing we are going to do is privatization, whether completely or in part. It’s not something that’s going to happen. »
Further details will follow.