Quebec must improve its energy efficiency and focus on better use of resources in order to “ensure its future economic viability”, according to the 2024 edition of Prospera, an economic barometer which highlights that 50% of the energy produced “is lost “.
The barometer, designed by the firm BCF Avocats d’affaires and the consulting firm Quadrat, was presented Monday morning in the presence of the Minister of the Economy, Innovation and Energy, Pierre Fitzgibbon.
The report highlights that in Quebec, the province that produces the most electricity, “energy inefficiency remains a major challenge.”
Thus, the data indicates that in 2021, “nearly half of the total energy was lost and added no value to the economy”.
Three sectors would be responsible for a significant part of these losses: transport (34%), industrial (23%) and construction (15%).
“Quebec’s total energy demand is partly explained by industrial consumption linked to hydroelectricity, which has attracted energy-intensive industrial sectors to the province, as well as by energy consumption in transport and buildings (residential and commercial ) higher than that of European countries with a comparable or higher standard of living,” underlines the report.
Energy inefficiency and rising prices
The report highlights that Quebec produces, in total, more energy than Ontario.
Even though its total energy demand is less than Ontario, Quebec consumes more per capita than its neighbor.
This reality suggests “less efficient use of energy”.
During an industry panel with Minister Fitzgibbon, the issue of increasing electricity rates was discussed.
“Is it realistic to think that consumers will reduce their energy consumption in a context where our electricity price is one of the lowest in the world? », asked host Julie Doré, associate director at BCF.
“Without a price signal, it is difficult to think that people will invest in components that consume less and that they will take the actions that make the difference,” replied Hugues Girardin, vice-president of Boralex, who compared the behavior of Quebecers with that of citizens of other jurisdictions.
“In France, people turn off parking lot lights when they are not there,” he mentioned.
“In Texas, there are few people who leave their house in the morning to go to work leaving the air conditioning on all day,” added the president of CWP Énergie, Alain Brisebois.
“We see it in the office, Europeans turn off the lights when leaving their offices while Quebecers do not,” added the president of ESMIA consultants, Kathleen Vaillancourt.
The Legault government has committed to limiting the increase in Hydro-Québec rates to 3% for residential customers.
According to Minister Fitzgibbon, modulating prices “in order to encourage Quebecers to consume energy differently” can help change behavior.
The 3% increase limit “will not change until the end of the mandate” of the government, said the minister.
“What’s going to happen next?” We will see,” added Pierre Fitzgibbon, explaining that it may be necessary to consider “charging more for excess amperage consumption, for example.”
But “let’s start with incentive programs” and “working with the industrial side” to be more efficient, he added.
Quebec ahead of Ontario
The Prospera economic barometer is made up of 28 indicators, including economic growth, investment, human capital and energy and environmental issues.
The index was set at 100 in the early 1980s for Quebec, Ontario and Canada.
The barometer indicates that Quebec’s overall economy is positioned at the top of the ranking for the year 2022 with an index of 132.3, ahead of that of Canada (129.1) and that of Ontario (125.4).
“Once again this year, Quebec stands out and dominates the economic ranking. It demonstrates its continued economic performance, largely thanks to three main factors: investment, growth and human capital,” declared Alain Robichaud, founding president of Quadrat Conseils and designer of the barometer.