We don’t yet know what Michael Sabia’s tenure as head of Hydro-Québec will look like, but we do know one thing: the new CEO won’t spend the next five years with his feet on the desk, calmly watching the water flow in the dams.
Firstly because zenitude is not one of the character traits of this workaholic, known for his sanguine temperament.
But then and above all because he is taking the helm of Hydro-Québec at a crucial moment in its history. As Québec begins its energy transition, the government corporation is called upon to become the backbone of this transformation.
It is no exaggeration to say that Hydro-Québec will have to reinvent itself. The consultations on energy which have just started are getting the ball rolling.
As the architect of this change, Mr. Sabia will have to remain open to new ideas, avoiding any dogmatic approach.
We already hear that the manager is not the man for the job because he has no expertise in energy. Let us remember that he was criticized for not knowing anything about asset management when he took over as head of the Caisse de depot in 2009. He was able to confuse the skeptics.
Hydro-Quebec is not short of engineers, any more than Quebec is short of energy experts. Mr. Sabia’s role will be to listen to them and mobilize them.
Here are some of the major projects awaiting this former senior official:
Multiply the electrons
Our electricity surpluses are melting like snow in the sun and we must quickly develop new production capacities to decarbonize transport, heating and industrial processes. It is already certain that wind turbines will multiply in the landscape. Should we build more dams? The Legault government has a bias in favor of hydroelectric power, which has the immense advantage of being able to be modulated according to our needs. Experts claim, however, that by managing our energy differently, we could do without additional dams. Michael Sabia will have to analyze things coldly, without a priori, and counterbalance the government if necessary. We do not flood thousands of square kilometers for the simple pleasure of elected officials.
Retype network
To say that the Hydro-Quebec network is hanging on would be grossly exaggerated, but the auditor general showed last December how fragile it is. Quebecers had a very concrete illustration of this last April, when the ice storm caused outages lasting several days in Montreal and elsewhere. Hydro-Québec has a plan to modernize its infrastructure, but it is being deployed far too slowly. We don’t go to war with peashooters and we don’t make an energy transition with a failing network. This is a clear priority for Michael Sabia.
Energy efficiency, from myth to reality
In Quebec, energy efficiency gains are a bit like the Lake Memphremagog monster: we talk about it, but we have never seen the color of it. Michael Sabia will have to turn the legend into reality. Hydro-Québec was previously aiming for too modest gains of 8 TWh. She now says she wants to approach 25 TWh. This is positive, but some experts claim that even more could be done. As our production costs increase, the kilowatts saved will be more and more profitable to fetch. These same experts warn, however, that it will be necessary to go through regulation to make significant gains. We hope that Michael Sabia dares to defend such an approach with the government.
Arbitrate the megawatts
Use our megawatts to attract businesses or to accelerate the energy transition? Between the former CEO of Hydro-Quebec Sophie Brochu and the Minister Pierre Fitzgibbon, the current was visibly no longer flowing on this subject. However, with the end of the surplus in sight, the issue risks being exacerbated. For each megawatt, it will be necessary to ask whether it is better to direct it towards export, decarbonization or economic development. Michael Sabia will have to weigh the environmental, social and economic gains – and, again, not be afraid to contradict elected officials if necessary.
Integrate research
We tend to consider Hydro-Québec as a producer and distributor of electricity, but that is to forget its research capacity. The Hydro-Québec Research Institute (IREQ) has 500 employees, not counting the work done in universities and elsewhere. However, this research is not fully deployed in the field. Smart grids, energy storage, electrification of processes: yet we need innovative solutions in several areas. A fine legacy of Michael Sabia would be to stimulate this research and, above all, to make room for it in operations.
Weave the spider’s web
He can sell in Nova Scotia without selling in Quebec. And it can be much colder in Saguenay than in New York. This is why it is desirable for Québec to weave interconnections with its neighbours. The advantage for the province is to import at low prices when there are surpluses elsewhere, and to export at high prices when demand explodes among neighbours. The Atlantic Loop, which should strengthen connections between Quebec and the Maritimes, has been on the table for (too) long. Hydro-Québec must push to connect its web to others.