(Quebec) The Minister of Economy and Energy, Pierre Fitzgibbon, has granted nearly 1,000 megawatts (MW) of electricity to 11 corporate projects thanks to a new power that he attributed to himself. He ruled out ten other projects.
In a press release, he announced Thursday the selection of the first business projects requiring a connection with a power of 5 MW and more under a law adopted in February.
As of March 31, 21 companies have submitted a project under the new rules and have made supply requests to Hydro-Québec equivalent to a total of 2,671 MW. The Minister accepted eleven projects representing 956 MW. He rejected the others.
The companies whose projects have received the green light from the Minister are not named at this time. The list will be released “over the next few weeks”.
“Hydro-Québec will promptly communicate with the representatives of the selected projects in order to agree on the precise parameters of the connection to the network”, specifies one.
The Minister advises that “the analysis of projects whose form was duly completed and submitted after March 31, 2023 continues”.
“It is now imperative to use our clean energy strategically if we are to succeed in our energy transition, decarbonize our economy and create wealth,” he said in a written statement. For the first time, our government has selected projects of 5 MW or more that will be served by Hydro-Québec. The projects were chosen taking into account the economic benefits as well as the social and environmental impacts, and are in line with our ambition for a greener and more prosperous Quebec. »
Last February, Pierre Fitzgibbon had the National Assembly adopt the law “aimed in particular at capping the price indexation rate of Hydro-Québec’s domestic distribution tariffs at 3% and at increasing the supervision of the obligation to distribute electricity”.
This law notably ensures that Hydro-Québec is no longer obliged to accept all power requests submitted by companies and less than 50 megawatts. It is now possible to refuse requests of 5 MW or more.
Under the law, it is the minister who has the power to choose which business projects will benefit from the megawatts and which will not. The legislative text specifies that Hydro-Québec must now “obtain the authorization of the Minister to distribute electricity” to businesses.
Also according to the law, “before issuing a distribution authorization, the Minister takes into account, in particular, the technical capacities (of Hydro-Québec) for the connection as well as the economic spinoffs and the social and environmental impacts of the use of the electricity requested”.
In parliamentary committee, Pierre Fitzgibbon said he intended to be “parsimonious in the granting of megawatts” and to “choose wisely the projects that will benefit from them”. He warned that at most half of the many power requests made by companies to Hydro-Québec will get the green light. These requests then totaled 23,000 MW – the equivalent of 13 hydroelectric complexes like La Romaine. “We will probably end up at 8,000-10,000 MW of industrial projects that should be done” to allow Quebec “to reach its GHG reduction targets while creating wealth over the next few years,” he said.
Hydro-Quebec was calling for the changes in the law because it is overwhelmed with requests for supply and cannot afford to accept all those of 50 MW or less.
In May, Pierre Fitzgibbon reported that there was barely 1,000 MW left for business projects. He suggested delaying certain projects, the time to have more power in the network. This shows how much, in the business community, we eagerly awaited the Minister’s choices regarding the granting of the coveted energy.
The energy portrait has changed rapidly. The era of surpluses is coming to an end, and Quebec lacks electricity for the future. The government needs at least 100 TWh of additional energy to achieve carbon neutrality by 2050. This is 50% of Hydro-Québec’s current production.