By: Kelsey Sonntag, Chad Eggerman, Janelle Anderson, Glenn Wright
This is the sixth article in an 8-article series, Renewable Energy in Canada 2024, which covers each provincial jurisdiction and the territories, released by the Energy Group at Procido LLP. The Renewable Energy in Canada 2024 series aims to provide an overview of the current state of renewable energy across the country. The fifth article Renewable Energy in Saskatchewan: What Lies Ahead? reported on Saskatchewan. This article provides an update for Québec.
Section 92A (1)(c) of the Constitution Act, 1867 of Canada grants exclusive powers to the provinces to enact laws related to the “development, conservation and management of sites and facilities in the province for the generation and production of electrical energy”.
Quebec Renewable Energy Framework
Québec has long been a Canadian leader in renewable energy generation. With around 94% of its power coming from hydroelectric sources, Québec boasts one of the cleanest electricity grids in North America. This hydroelectric infrastructure provides a solid foundation for further investments in other forms of renewable energy, such as wind, solar, and biomass.
The province’s commitment to transitioning away from fossil fuels is embedded within its policies, aimed at not only reducing greenhouse gas emissions but also fostering economic growth and energy independence. At the heart of Québec’s renewable energy strategy is Hydro-Québec, the provincial utility that generates and distributes the majority of the province’s electricity. Their extensive generating fleet is made up of 63 hydropower stations and 28 reservoirs. These reservoirs allow for the connected facilities to ramp up electricity generation to match peak hours of demand and to store the water during low periods of use. This hydroelectric infrastructure provides a solid foundation for further investments in other forms of renewable energy, such as wind, solar, and biomass.
In recent years, the government of Québec has encouraged the development of wind energy. The province is home to numerous wind farms, which contribute significantly to the overall energy mix, such as the Seigneurie de Beaupré Wind Farms. This diversification not only helps to enhance grid stability but also creates jobs in rural areas where many of these projects are located. The government has established targets for expanding wind energy capacity, reflecting its commitment to achieving a more balanced and sustainable energy portfolio.
Solar energy is also gaining traction in Québec, with initiatives aimed at increasing both residential and commercial solar installations. The province has introduced various incentive programs to encourage citizens and businesses to adopt solar technologies. These programs aim to reduce barriers to entry, making solar energy more accessible to a wider audience. As technological advancements continue to lower costs, the potential for solar energy to contribute to Québec’s energy needs is increasingly recognized.
In addition to wind and solar, biomass energy is emerging as a viable alternative in Québec’s renewable landscape. By utilizing organic waste and residues from agriculture and forestry, biomass offers a way to produce energy while simultaneously addressing waste management challenges. This aligns with Québec’s broader goals of circular economy principles, which emphasize resource efficiency and waste reduction.
Energy Procurements
In order to achieve the province’s goal of diversifying its energy grid and increasing long-term energy supplies, the Québec Government announced on March 26, 2024, that it will set aside a block of 300 MW for an upcoming solar energy procurement by Hydro-Québec. Under the proposed regulation, Hydro-Québec would issue RFPs totalling 300 MW. The first could be launched before the end of 2024. Currently, there are no large-scale solar projects developed in the province. While Hydro-Québec does operate two experimental photovoltaic plants, they only generate a combined 9.5 MW. This RFP is expected to favour projects located in urban areas that could make use of existing infrastructure, such as large rooftops, parking lots, and urban brownfields, thus minimizing environmental impacts.
This call for power could represent the beginning of the development for a solar industry in Québec. However, there are people opposed to the exploration of photovoltaic generated power. Pierre-Olivier Pineau, holder of the Chair in Energy Sector Management at HEC Montréal, is less enthusiastic about the potential of developing solar energy in the province as he believes the source is “poorly adapted to the Québec context.” Pineau points out that no solar projects have been selected in the past and he sees this as a demonstration of how energy generation from solar resources is not competitive.
On the other side of the debate is Frédéric Côté, general director of the Gaspé research organization Nergica. He believes this will promote the development of knowledge in the solar sector and that the call for power will highlight the attributes of solar energy. The Canadian Renewable Energy Association has also welcomed the Québec government’s intention to move forward with a multi-phase solar acquisition. Encouraging the “predictability that this proposed regulation would provide,” and also pointing out that Québec would benefit from incorporating more solar energy into its electricity grid.
Hydro-Québec announced in May 2024 that it will be developing and operating wind farms, which until now was solely a practice of the private sector. It is unclear why Hydro-Québec abandoned its past practice of engaging independent power producers (IPPs) to develop and operate wind farms. This unfortunate and troubling development will undoubtedly be discussed further in the future. The work that Hydro-Québec undertakes will be done in close collaboration with First Nations and municipalities, who Hydro-Québec has promised will also become equity owners in these projects. Hydro-Québec’s goal is to add 10,000 MW of capacity through wind energy. To achieve this, its wind farms will have to be of an unprecedented size and scale for Canada with each site needing several hundred wind turbines. The Seigneurie de Beaupré wind farm, which is currently one of the largest wind farms in Canada, has 164 turbines for an installed capacity of 364 MW. Social acceptability is crucial for these types of projects or, as we discussed in the Saskatchewan article with the RMs pushing back on Enbridge’s proposed wind farm, the local community may become upset. Therefore, Hydro-Québec is focusing on vast, open spaces in the north of the province where such development would have minimal impact on communities.
Indigenous Financial Assistance
The Indigenous Initiatives Fund IV (IIF IV) is a financial assistance program for Indigenous communities in Québec and it covers a five-year period (2022‑2023 to 2026-2027). It has seven components, administered by the Secrétariat aux affaires autochtones:
- Economic Development
- Community Infrastructure
- Loan Guarantees
- Community Action
- Social Development
- Support for Consultation
- Assistance for Indigenous People in Urban Environments
IIF IV will provide financial support for promising projects that have demonstrated potential for significant and positive benefits to Indigenous communities. Funding from IIF IV will complement other sources of government assistance. To be eligible, each application must meet the criteria of the requisite component for which it is submitted. The program specifically targets Indigenous communities, Indigenous businesses, female Indigenous entrepreneurs, Indigenous business leaders aged 35 and under, Indigenous social economy enterprises, organizations with a mandate to represent Indigenous nations and communities, Indigenous community action organizations, and non-profit organizations.
Public support for renewable energy in Quebec is comparatively strong, driven by a collective awareness of the need for sustainable practices. Citizens are increasingly engaged in discussions about energy policies and climate change, pushing for greater accountability and transparency from their government. This foundation of support complements the provincial government’s initiatives, creating a robust framework for the transition to a low-carbon economy.
In summary, Quebec’s renewable energy framework is a comprehensive and forward-thinking approach that leverages the province’s rich natural resources while addressing the pressing challenges of climate change. Through investments in hydroelectric, wind, solar, and biomass energy, along with a commitment to research and public engagement, Quebec is positioning itself as a leader in the transition to a sustainable energy future. As the province continues to evolve its energy policies, it remains focused on creating a resilient, environmentally responsible energy landscape that benefits both current and future generations.
Procido LLP’s Energy Group advises Indigenous groups, developers, suppliers, and landowners on renewable energy projects. The 7th article in the Renewable Energy in Canada 2024 series will cover Nova Scotia.Canada 2024 series will cover Quebec.
Disclaimer
This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice. Contact Procido LLP (www.procido.com) if you require legal advice on the topics discussed in this article.