Hydro-Québec’s looming power shortage seen threatening climate goals
‘Experts doubt the utility can meet demand at home and abroad without serious compromises’
Skepticism about Hydro-Québec’s ability to meet rising local demand for green electricity has some concerned that not only will power rates in the province rise, but that attempts to decarbonize and meet climate-related goals will be impeded as well.
The utility, which for years has enjoyed surplus production that it committed to long-term export contracts, is now expected to face a power shortage of over 100 terawatt-hours as early as 2027, a May study by the Montreal Economic Institute found. The think-tank’s study noted that Hydro-Québec’s most recent strategic plan determined “unequivocally” that its current capacity is not enough to meet growing demand.
The utility has put a number of measures in place to address rising demand, such as dynamic pricing, adding new wind and renewable energy to its portfolio, and increasing the capacity of its generators. The utility has also requested that 270 megawatts of electricity originally slated for the blockchain sector — the technology that facilitates cryptocurrency trades — be put on hold.
But those efforts are not enough, said Gabriel Giguère, public policy analyst at the MEI and author of the May study. “Everything Québec is proposing to deal with the end of the energy surplus is either too little, too late, or a bit of both,” he said in a press release.
