This text is taken from the Courrier de la Planète. Click here to subscribe.
Why does Hydro-Québec take the liberty of concluding major contracts to export electricity to the United States rather than supplying projects that large consumers want to develop in Québec? asks a reader, Mario Tremblay. Indeed, in recent years, Hydro-Québec has entered into two major electricity export contracts with the United States.
First, there is the Champlain Hudson Power Express project, which plans to send 10.4 terawatt hours (TWh) annually to New York City. The New England Clean Energy Connect projects the annual export of 9.45TWh to Massachusetts. Large-scale projects which, if they come to fruition, will alone represent nearly 20TWh, or nearly 10% of the state-owned company’s total electricity production capacity.
If the interest in turning to the United States is explained by a desire to decarbonize activities there, it is the financial motivations that remain the foundation. “The export projects that have been signed are very lucrative for Hydro-Québec. It is very, very profitable! recalled this spring Pierre Fitzgibbon, Quebec Minister of the Economy. Last year, the delivery of electricity to our neighbors to the south contributed $865 million to the net profit of the state corporation.
However, these two important contracts come in a particular context: the demand for clean electricity is increasing significantly. Hydro-Quebec projects a growth of 20TWh in electricity demand between 2019 and 2029. More than 100TWh of additional clean electricity will be required for Quebec to achieve carbon neutrality in 2050, the equivalent of nearly half of the current production capacity of Hydro-Québec.
Moreover, to meet the increase in demand, the possibility of building new dams has not been ruled out. “Depending on the evolution of demand, we could therefore need new hydroelectric production capacities in the future”, and Hydro-Québec is evaluating the “sites which present the best potential for the development of hydroelectric capacities”, can we read in the organization’s most recent Strategic Plan.
Questioned on the subject, the pd.g. from Hydro-Québec, Sophie Brochu, answered the To have to that “there is nothing in the cards” for the next ten years, but that “it is impossible to say ‘never'”. All scenarios are on the table, including the construction of new dams.
Until production capacities increase, choices will necessarily have to be made. “We are seeing unprecedented enthusiasm for clean energy in Quebec and we have received an exceptional number of major projects wishing to be connected to our network,” explained Hydro-Québec in an email sent to To have to. Some of these projects may therefore never see the light of day.
The state corporation, for its part, puts the impact on major projects into perspective: “You have to keep in mind that those that are the subject of an analysis and whose development could be limited are the very, very large projects: those over 50 MW, or the equivalent of 18,000 homes. Projects below this threshold are not targeted, advances Hydro-Quebec. For those who are above this bar, everything will depend on the content of the project, we answer.
Questions? Write U.S!