Reshaping Quebec’s Electricity Sector

The Québec electricity sector is undergoing a transformative phase, marked by ambitious initiatives and regulatory reforms aimed at reshaping the province's energy landscape.

Recent developments include Hydro-Québec's commitment to significantly expand wind power capacity and the introduction of Bill 69, which proposes critical changes to energy governance and resource management. These shifts reflect Québec's strategic focus on sustainable energy solutions and efficient resource allocation.

Key Developments

In recent months, significant changes have reshaped Québec's electricity landscape. On May 30, Hydro-Québec unveiled its wind development strategy, outlining plans to develop 10,000 MW of wind power over the next decade.

On June 6, the Government of Québec introduced Bill 69, An Act to Ensure the Responsible Governance of Energy Resources and to Amend Various Legislative Provisions.

Additionally, on June 20, Hydro-Québec presented the results of the dialogue on its Action Plan 2035, which includes 40 commitments.

Bill 69 is poised to transform Quebec’s energy sector. Here are the key features that are relevant to you:

The Government of Québec is set to develop a new 25-year Integrated Resource Plan, which will include a variety of energy sources like gas, oil, propane, and renewables. This plan aims to accurately forecast and meet future demand, ensuring efficient resource allocation.

Bill 69 empowers Hydro-Québec to directly negotiate bilateral agreements with partners, rather than requiring requests for proposals. Bill 69 also modifies article 60 of the régie de l’énergie to allow behind-the-meter agreements for all renewable technologies, rather than just biomass.

How can companies get involved in the consultation process of Bill 69?

Consultations on bill 69 will take place from September 10-19 at the Committee on Agriculture, Fisheries, Energy and Natural Resources. Companies who wish to provide their comments and recommendations on the bill can do so by sending a memorandum to the committee before September 19. Sussex can assist in drafting these memorandums.

With all the changes in the Québec electricity market, here are some of the opportunities that we can help you explore:

We believe that recent policy changes in Québec present significant opportunities in large-scale wind energy, especially for companies with strong financial positions.

Solar energy is also poised for growth. Hydro-Québec’s Action Plan 2035 indicates a push towards behind-the-meter solar panel installations for residential and commercial clients, increasing the maximum allowed capacity from 50 kW to 1 MW. Nuclear energy is another area of interest for Québec. Hydro-Québec is exploring the possibility of deploying small modular reactors (SMRs) at the Gentilly facility.

Additionally, energy efficiency is a substantial opportunity. Hydro-Québec has identified it as a key pillar in achieving their additional 60 TWh objective by 2035. They plan to increase financial incentives, covering up to 50% of the cost for high-efficiency equipment such as heat pumps, smart thermostats, and water heater controls, to realize their energy efficiency potential of 25 TWh.