Hydroelectricity, the ultimate asset in a rapidly changing energy sector

This is the phrase most repeated in recent years in the energy sector: that it is in full transformation, punctuated by an energy transition that has accelerated in recent years with increased awareness of global warming.

Thus, the Apuiat wind project (Nation innue and Boralex), deemed unnecessary barely two years ago, has just been signed, and this is not trivial: a 200 megawatt wind farm, which will make it one of the largest wind power projects in Quebec, which already houses nearly 4,000 megawatts integrated into the Hydro-Quebec network.

It is a good thing for Quebec to diversify its sources of electricity production, to involve aboriginal and local communities, to acquire expertise in other rapidly growing fields.

This reversal in favor of the Apuiat project testifies to the acceleration of possibilities on the energy scene: spectacular fall in the prices of wind and solar energy; better battery performance; breakthrough of electric vehicles; confidence to produce, with carbon-free electricity, large quantities of hydrogen, which can then be used in heavy transport and petrochemicals.

Does this push towards these disruptive technologies, moreover in a context of slowing demand due to the pandemic, represent the swan song of hydroelectricity in Quebec?

In the long term, there is the end of the Churchill Falls (Labrador) contract, which is on the horizon (2041). Since this is a very large slice of the production available for Quebec (more than 5,000 megawatts), and a hydroelectric project takes a good 10 years to be developed, we will have to start thinking about it in the coming years.

In the shorter term, the positioning of this flagship Quebec product will of course depend on the evolution of export markets.

Québec's neighboring states, particularly in the United States, have set themselves ambitious greenhouse gas reduction targets.

They are developing their own energies, including offshore wind, with turbines that can each produce more than 10 megawatts, a capacity five times greater than 20 years ago. These projects are in competition with Quebec hydroelectricity.

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But there is one thing that our hydroelectricity brings them compared to other forms of energy: the guarantee of delivery, ie a supply within specific time slots, especially during their peak periods.

On the wind power supply side — and this is a relatively unknown aspect — operators, such as Hydro-Québec, must supplement them with firm assurances of the availability of equipment to cover the significant needs encountered during peak periods.

This “wind integration service” allows Hydro-Québec to ensure uniform energy deliveries in winter, due to the variable nature of wind power. In specialized language, we speak of a power guarantee. Hydro's last call for tenders for this purpose dates back to 2020. ¹

It is a service which must be provided for the reliability of supply and which must therefore be paid for, a cost assumed by the customers.

However, the vast network of hydroelectric production equipment in Quebec (power stations, dams), with its reservoirs that can cope with high variability in hydraulic inputs over several years, offers both energy and power.

This is the great advantage of Quebec hydroelectricity for export compared to other forms of renewable energy: it can be operated at will, with little delay and reliably and continuously available in critical time slots. consumption of neighboring networks.

At those very specific times of the year when the needs are great, when the margins of error are reduced, when the buyer outside Quebec bets at all costs on a guaranteed supply, Quebec hydroelectricity can deliver the goods. In the world of energy, it is the ultimate asset.

¹ Consult the call for tenders for the acquisition of a wind turbine integration service