The Legault government was “taken by surprise” by the electricity shortage that Quebec is about to experience, Pierre Fitzgibbon admitted Monday.
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“Yes, we were taken by surprise, clearly. Hydro-Québec too. Industrial projects had not been planned properly. But I think it’s a phenomenon that is relatively global,” declared the Minister of Economy, Innovation and Energy during an event organized by the Canadian Circle.
Mr. Fitzgibbon noted that several multinationals have turned to Quebec to carry out decarbonization projects, which aim in particular to convert industrial processes that are currently powered by fossil fuels to electricity.
“I think people had underestimated the implications of decarbonization” on Quebec’s electricity needs, argued the minister.
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“Incredulous”
Several industrialists were also taken by surprise by the abrupt end of electricity surpluses, which appeared at the start of 2022.
“Some are still a little incredulous,” said Pierre Fitzgibbon. That [faisait] so long that we [parlait] surplus that the adjustment is not yet completely well metabolized.”
More than 150 industrial projects totaling 13,500 megawatts (MW) – or a third of Hydro-Québec’s production capacity – are currently on the minister’s desk.
Barely a handful of them will receive the green light from the government. Quebec planned to announce the selected projects before the end of March, but the analysis took longer than expected. It will only be in a few weeks, when Hydro-Québec has concluded its own studies, that the lucky ones will be revealed.
“Only a few hundred [de MW] will be granted in the short term, said Mr. Fitzgibbon. […] It’s difficult to have to choose and to have to refuse good projects.”
In February, The newspaper revealed that Quebec does not have enough electricity to power projects that were officially “committed” in December 2022.
“Structuring” projects will have to wait
Hydro expects to be able to add about 3,300 MW to its production capacity, but not before 2029, unless the Crown corporation finds ways to speed up the work.
“Until then, we will have to grant megawatts very sparingly,” recalled the minister. There will be a certain pause in new structuring projects.”
Pierre Fitzgibbon did not want to say whether he would authorize Honda’s cathode factory project. On the other hand, he was open to the Japanese giant being granted “partial ownership” of Nemaska Lithium, a company of which the government is co-owner.
Mr. Fitzgibbon’s speech was disrupted by a demonstration by union members affiliated with the CSN and the Union of Government Professionals of Quebec. The protesters left the Palais des congrès de Montréal peacefully after about twenty minutes.