Hydro-Québec is one of the largest electric utilities in North America. Its core mission is to supply Quebecers with electricity. A business-oriented government corporation, it also pursues endeavors in research and promotion in the fields of energy, energy conversion and conservation, and any field connected with or related to power or energy.

Hydro-Québec must, by law, ensure that Quebecers have a secure supply of electricity. It does so by relying on hydropower for the most part, and on other clean, renewable energy sources such as wind power.

Global Context

Canada is one of the world's largest hydropower producers in terms of installed capacity. With over 67 GW, the country ranked fourth, out of a total world hydropower output of 836 GW, in the 2004 statistics compiled by the International Energy Agency. At that time, nearly half (31.6 GW) of Canada's installed capacity was in Québec.

According to the International Wind Energy Development World Market Update 2006, world wind capacity totaled 74 GW in 2006. Canada had a total installed wind capacity of 1.86 GW at the end of 2007, and ranked ninth for installed capacity among the world's producers. With the facilities commissioned in 2007, Québec accounted for over 0.4 GW, compared with 0.5 GW in Ontario and 0.5 GW in Alberta, according to the Canadian Wind Energy Association.

Growth in Electricity Demand

Canadians, and Quebecers in particular, are among the world's largest consumers of electricity, mainly owing to the use of electric power for industrial and heating purposes.

In Québec, electricity demand tracks demographic and economic growth, and has risen at a moderate but steady pace for many years. We have more than 3.9 million customer accounts.

Our Electricity Supply Plan

To make sure we can meet future energy needs, we periodically file an Electricity Supply Plan with the Régie de l'énergie.

In the last progress report on our Electricity Supply Plan 2005–2014, the sales forecast was revised downward. Growth is now expected to average 1.0% per year over the period, compared with the plan's forecast of 1.2%, or about 2 TWh. Some of the items addressed in the plan are:

• 2005 to 2008: short-term supply
• 2006: calls for tender issued to meet short-term needs
• 2007: another long-term call for tender
• 2009 to 2017: awarding of contracts for a minimum of 3,500 MW of wind power

Focusing on Three Main Avenues of Development

• Energy efficiency (reduce our supply needs and help preserve the environment)
• Hydroelectricity and wind power (focus on the complementary development of renewable energies)
• Innovation and new technologies (pursue our efforts in various promising niches in order to maintain our technological leadership)

Hydroelectricity

Québec's hydroelectric output has doubled since 1975, while oil use, apart from the transportation sector, is a third of what it was. To meet electricity needs, Hydro-Québec now operates a fleet of 57 hydroelectric generating stations with a total installed capacity of 33,305 MW, representing 97% of its output. The remainder is thermal energy (including nuclear) and wind power, which will grow in importance in the coming years.

To ensure the profitability of our fleet and maximize value for the people of Québec, we export electricity. In addition to generating revenue, exports contribute to improving air quality in eastern North America, since Québec hydropower helps avoid the substantial greenhouse gas emissions resulting from thermal generation.

Wind Power

On February 25, 2005, we signed contracts with Cartier Wind Energy Inc. and Northland Power/Northland Power Income Fund for a total of 990 MW following a 2003 call for the purchase of wind power. These projects should generate total capital spending of $1.9 billion. The power will be delivered in stages from December 2006 to 2012.

In response to a tender call issued in 2005 for the supply of 2,000 MW of wind power, 30 proponents submitted 66 bids for a total of 7,724 MW in 10 different regions. The contracts are to be awarded in spring 2008.

With these new tender calls, we will have 3,500 MW of wind power, corresponding to 10% of our installed capacity, by 2017. Altogether, these power projects represent an outlay of approximately $5 billion in the province.

In 2007, we took delivery of wind power from the first tender call issued in 2003. The power comes from the 100.5-MW L'Anse-à-Valleau wind farm in the Gaspésie–Îles-de-la-Madeleine region.

Cogeneration

We signed a contract with Tembec in 2005 for 8.1 MW of electricity generated from forest biomass. We also purchased 1,400 GWh generated from biomass and waste reclamation.

In 2006, the Bowater wood biomass power plant in the Outaouais region was commissioned and supplied over 100 GWh.

In 2007, owing to the industrial slowdown, Hydro-Québec obtained permission from the Régie de l'énergie to suspend deliveries for one year from TransCanada Energy, which operates a 550-MW natural gas generating station in Bécancour. This decision will avoid 1.6 million tonnes of greenhouse gas emissions in 2008.

We also purchased the output of Lachute generating station in the Laurentians, a 10-MW privately owned facility fueled by the methane biogas from a nearby landfill site. Reclaiming this biogas will cut the site's GHG emissions by 350,000 tonnes.

Self-Generation

In February 2006, the Régie de l'énergie agreed to amend Hydro-Québec's Rates Bylaw to allow the company to purchase electricity produced from renewable sources (wind turbines, solar collectors, etc.) by residential customers who own power generating equipment. Under a special rate option called net metering, the customers receive a credit on their bill for any power they feed into the Hydro-Québec grid. This initiative helps bring down the overall costs of small generating facilities, as the owners (residential, farm [rate D or DM] or small-power [rate G] business customers) can offset the initial investment.