The solar energy industry will have its first calls for tenders from Hydro-Québec which will be exclusively dedicated to it. The Quebec government wants to reserve an electricity block of 300 megawatts (MW) for this sector.
Even if Hydro-Québec already operates two experimental photovoltaic power plants, for a total production of 9.5 MW, the dedicated calls for tenders will allow the state company to measure the potential of this sector within the Quebec energy mix, believes the Minister of Energy and the Economy, Pierre Fitzgibbon.
“How much will it cost per kilowatt hour compared to other alternatives including wind power? Also, it will be to see if there are projects that make sense. We will see. People [promoteurs] are going to be innovative,” he explains in an interview.
For this energy block, we are aiming to set up several small solar parks of “a few” megawatts. These smaller projects in urban areas would have the advantage of being able to connect more easily to the state company’s distribution network.
Interested persons have 45 days to comment on the draft regulation.
The approach could represent a kick-off for the solar industry which is still little present in Quebec. In 2022, the production capacity of this sector will be around 22 MW in Quebec.
“This announcement is very good news,” comments Jimmy Royer, vice-president of the Énergie solar Québec association. 300 MW is a start. This could actually revive solar energy programs in Quebec. »
Promote the development of knowledge
By reserving a block of energy for solar, Hydro-Québec will promote the development of knowledge in this energy sector, believes Frédéric Côté, general director of the Gaspé research organization Nergica.
“What is interesting is that we are going to have a call for tenders which will highlight the attributes of solar. It will be very interesting to see this sector take off formally in Quebec. »
For his part, Pierre-Olivier Pineau, holder of the Chair of Energy Sector Management at HEC Montréal, is less enthusiastic about the usefulness of the solar sector in Quebec. “It was more for public relations purposes and to please certain solar industry lobbyists that it was done,” he said in an interview.
Mr. Pineau judges that solar energy is “ill-suited to the Quebec context.” “It obviously occurs according to the sun and the Quebec peaks, they are winter in the morning and evening, when unfortunately, it is still dark. […] It brings energy which can be useful, but which will be marginally useful. »
The professor emphasizes that Hydro-Québec had already made calls for tenders which were open to several sources of renewable energy, recently, but that no solar project had been selected. He sees this as a demonstration that solar energy is not competitive. “Are there any advantages to developing this? »
Mr. Côté judges, for his part, that it is necessary to develop more than one sector at a time when the energy transition will require a considerable increase in production. “Each sector has advantages and disadvantages, regardless of the technological choice we make. »
He notes that solar technology “is becoming more and more affordable” and that prices “have fallen drastically” over the past 15 years.
If the periods of sunshine do not coincide with the peak, the conditions are still favorable for production in Quebec, underlines Mr. Côté. “We have better sunshine than in Germany, for example, where there is much more solar energy deployed. Cold temperatures also help us because solar panels are more productive in cold or cool temperatures. »
Hydro-Québec must also develop its distribution network in order to respond to new production capacities. The fact that solar energy can be produced near places of consumption is also an advantage, adds Mr. Côté.
“It is an energy source that is more easily integrated there without necessarily requiring additional investments, at least in the short term, significantly in the transport network. »
In February, the Quebec Liberal Party (PLQ) affirmed that Quebec was “lagging behind” in the development of this sector compared to Ontario where production capacity is around 3,000 MW. Industry players also reported that production capacity was lower than what is done in Ontario and the United States.
“I would not say that we are grossly late,” retorts the Minister of Energy.
Hydro-Québec had not prioritized solar in particular because of the challenges linked to hours of sunshine and because the needs were mainly linked to the winter peak period, explains Mr. Fitzgibbon. Future electricity needs make the case for solar energy “make more sense,” he says.
“In Quebec, we are not strong in storage, but I think we will become so because we will have no choice,” he says. Because the more renewable there is, the more solar and wind, the more difficult it will be to balance. So, balancing will be done, among other things, with storage. »