Hydro-Québec and the Energy Transition - First Nations of ...
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P R E S E N T E D T O T H E F IR S T N AT IO N S O F Q U E B E C AN D L AB R AD O R S U S T AIN AB L E D E VE L O P M E N T IN S T IT U T E Hydro-Québec and the Energy Transition M AR C - AN T O I N E P O U L I O T , D IR E C T O R – C O MMUN I C AT I O NS M AT H I E U B O U C H E R , D IR E C T O R – IND IGE NO U S R E L AT IO NS F R É D É R I K AU C O I N , MANA GE R – MAR K E T D E VE L O P ME NT AND E NE R GY E XP E R T IS E H YD R O- QU É B E C , F E B R U ARY 3 , 2 0 2 2 1 Hyd ro -Q u é b e c
H Y D R O - Q U É B E C AN D T H E E N E R G Y T R AN S IT IO N
Agenda
Energy transition: Hydro-Québec and The shift to energy
New paradigms shaping
Indigenous nations: efficiency:
Hydro-Québec’s vision Partners in the energy Available programs
transition
2 Hyd ro -Q u é b e c
Energy transition: New paradigms shaping Hydro-Québec’s vision
E NE RGY TRA NS IT I O N : NE W PA RA D IGM S
1. Energy and capacity balances
20.0 Growth in Québec’s electricity demand over the 2019–2029 period:
✓ Strong economic outlook
TWh ✓ Electrification of Québec (2030 Plan for a Green Economy)
(+12%) ✓ Increased growth in the hydrogen and battery sectors
Increasing demand: New capacity supplies will be required as of winter 2026–
2027 and new energy supplies will be needed as of 2027.
Relying on the value of our clean energy:
Pursue electrification Promote the efficient Contribute to the
to decarbonize the use of electricity decarbonization of
economy neighboring markets
4 Hyd ro -Q u é b e c
Energy and capacity balances (cont.)
Energy balance Capacity balance
New supplies required
as of 2026–2027
5 Hyd ro -Q u é b e c
Hydro-Québec: The battery powering northeastern North America
E NE RGY A ND C A PA C ITY
B A L A NC E S
QUÉBEC
Contribute to the NEIGHBORING MARKETS
decarbonization of
GENERATION
neighboring
markets DEMAND
Hydro-Québec’s hydroelectricity can support intermittent
generation from renewable sources in neighboring markets
Two long-term power purchase agreements have been signed:
• Massachusetts: New England Clean Energy Connect (9.45 TWh)
6 Hyd ro -Q u é b e c
• New York: Champlain Hudson Power Express (10.40 TWh)
E NE RGY TRA NS IT I O N : NE W PA RA D IGM S
2. Supply costs
Hydro-Québec is responsible for meeting the demand for electricity in Québec.
Heritage pool Other supplies
• Independent power producers who generate
• A volume of 165 TWh of heritage pool
electricity from a variety of facilities: wind,
electricity biomass, small hydro
• Highly competitive price of 3¢/kWh • Average cost for electricity in excess of the
heritage pool: approx. 11¢/kWh
To meet the increased demand for electricity, calls for tenders were issued in late 2021.
Additional calls for tenders will also be required to meet anticipated needs over the next few years.
7 Hyd ro -Q u é b e c
E NE RGY TRA NS IT I O N : NE W PA RA D IGM S
3. Network design and operation
A more complex reality:
✓ Growth of intermittent renewable energy sources
✓ Emergence of new digital technologies
From a traditional
More interactive solutions:
unidirectional power grid
to a multidirectional one
Intelligence on
Flexibility and Greater
our network and
energy integration of new
process
interchanges energy sources
optimization
Some examples:
→ Collaboration between Hydro-Québec and Ekuanitshit for the development of a pilot
project for energy-efficient buildings in the community
→ Lac-Mégantic microgrid
→ The Hilo and Evlo subsidiaries
→ Pilot project for smart charging of electric vehicles
8 Hyd ro -Q u é b e c
E NE RGY TRA NS IT I O N : NE W PA RA D IGM S
4. Investments in infrastructure
We will need to invest in many of our facilities over the
next few years.
In some cases, significant improvements can be made, particularly in
terms of increased output.
→ E.g., Refurbishment of Trenche generating station, the largest generation
facility on the Rivière Saint-Maurice.
Our approach
✓ Ensure the long-term sustainability, reliability and compliance of
our facilities.
✓ Optimize resource allocation and maximize the impact of our
investments.
9 Hyd ro -Q u é b e c
Hydro-Québec and Indigenous nations: Partners in the energy transition
Background
➢ Relationships historically developed within a project context:
- Several agreements since the 1970s, with the type of agreement and the measures included
changing over time.
➢ Many collaborative successes.
➢ Development related to the energy transition requires collaboration:
- Our objective is to go beyond traditional agreements.How? ➢ Working together to design methods ➢ Adapted partnerships ➢ Acting from within
Working together to design methods
➢ No single solution:
- Opportunities should be identified through relationships.
➢ Indigenous relations team:
- 21 people in 6 areas in Québec
- Objective: increased presence in the communities, sustained relationships
- Extensive experience and expertise
➢ Better internal and external communications:
- Address priorities and issues internally
- Gain a better understanding of issues and interestsAdapted partnerships
➢ They can take different forms and there is room for innovation when it comes to how to collaborate on
investment projects or operational activities. Examples:
➢ Partnership with the Mohawk Council of Kahnawà:ke for the Hertel–New York project:
- Commercial agreement with contributions from both partners
➢ Reconciliation process with Uashat mak Mani-utenam (ITUM):
- New basis for discussionAdapted partnerships (cont.)
➢ Discussions with various communities on cohabitation and the
presence of structures on traditional territories:
- Adapted to the realities and priorities of the communities
concerned
➢ Mashteuiatsh–Hydro-Québec business development committee:
- Discussions on business and partnership opportunities
➢ Conversion of off-grid systems:
- Role as project proponent for the Nation and the northern
villagesAdapted partnerships (cont.)
➢ Hydro-Québec purchases energy generated by the communities:
- Apuiat project
- Project to purchase energy generated by biomass
➢ Other types of agreements contributing to community development:
- Communications
- Energy efficiency
- Employment, training
- Pilot project for energy-efficient buildings in EkuanitshitActing from within
➢ Willingness to increase the number of Indigenous
employees.
➢ Team dedicated to the Indigenous workforce with the
following mandate:
- Promote the recruitment, training, integration and
retention of Indigenous employees.
- Create a healthy and inclusive work environment.
- Promote skill development.
➢ Hydro-Québec is willing to consider new forms of
collaboration to support training in fields related to our
activities.➢ Québec’s energy development will take place in cooperation with the First Nations and the Inuit Nation. Our ambition: ➢ To foster, value and embrace Indigenous promise in every aspect of Hydro-Québec’s activities, as a partner, an employer, a supplier and a purchaser of goods and services.
The shift to energy efficiency
E NE RGY E F F IC IE NC Y
Hydro-Québec’s contribution
450,000
More than households
10 TWh
in electricity
savings
More than By about
$1 billion 2029
in financial 8.2 TWh
support An ambitious
provided goal
Since 2003 Beginning now
Aiming higher, going further: the evolution
and innovation of energy efficiency
Promoting the more complex measures
There is tremendous potential in energy efficiency. We can do better. Energy efficiency . . . is driving our very own energy transition!
Sophie Brochu, President and CEO, Hydro-Québec
20 Hyd ro -Q u é b e cThe Case for It pays to save energy—any way
you look at it!
Energy Efficiency
▪ Optimize their consumption and
reduce their electricity bill
Continuing the tradition of energy Customers ▪ Improve their competitiveness and
promote the acquisition of new
efficiency for the benefit of our society
markets
Energy
efficiency
▪ Keep rates among the lowest in North
America
▪ Increase awareness in the community ▪ Minimize new investments
about how to use our resources ▪ Keep our rates as low as possible
properly Society HQ ▪ Manage our resources better
▪ Promote electrification in the context of
climate change
▪ Address government and societal
concerns
21 Hyd ro -Q u é b e cEnergy efficiency means using less
The three Rs of energy energy to obtain the same or similar
service.
efficiency In other words, for the same need, less
energy is consumed and wasted.
The b e s t p r a c ti c e fo r e ne r g y e ffi c i e nc y i s to a p p ly the
thr e e R s in t h e fo llo wi n g o r d e r.
Reduce Recover Replace
1. 2. 3.
Measures to reduce energy waste Measures to recover energy losses, Measures that target equipment that
that are the easiest, cheapest and etc. is more efficient and uses less
often overlooked energy
22 Hyd ro -Q u é b e cBusiness programs E N E R GY S AV IN GS
EMS
Electricity Efficient Farming
Management Products Program
Systems
To support its business customers as At the center of
they navigate the energy transition in an these programs:
increasingly competitive market, Hydro-Québec Efficient Solutions
offers an enhanced and integrated range of Program
programs tailored to market realities. TBD
Technology
and Business
Demonstration
Innovative
Projects
ProgramE F F IC IE N T S OL UTIO NS P ROGRA M
Expansion Up to twice as much
financial assistance as
Incentive compensation for
business partners and
before aggregators who
accompany their business
clients throughout the
implementation of their
energy efficiency projects
New
Rolled out in June 2020
Efficient electrification support New measures outlined in
for business customers who an easy-to-use calculation
have made the decision to tool
reduce their GHG emissions
and choose electricity as a
clean and renewable energy
source for the installation of
energy-efficient electrical
equipment
25 Hyd ro -Q u é b e cOther business programs
Financial support for industrial clients (max.
Rebates to purchase and install efficient $175,000/site) for:
Efficient farming products: • Diagnostic analysis Electricity
Farming • LED lighting (for general or horticultural • Electricity management system (EMS) Management
Products purposes) Systems
• Energy management information system (EMIS)
Program • Milking equipment
Additional bonus for implementing new eligible energy
• Piglet warmers efficiency measures (1¢/kWh/year)
• Fans
Financial support (up to 75% of eligible costs Financial support to promote the development of
or a maximum of $500,000) to promote high-performance energy-efficient real-estate
innovative energy-saving or power demand projects for:
optimization solutions involving the
Technology and following: • Real-estate promoters and building contractors (max.
$8 million) Innovative
Business • New technology or new application of an
• Consulting engineering firms that support their clients Projects
Demonstration existing technology
with their expertise in energy efficiency (max. Program
• Potential for significant energy savings or $50,000/project)
power demand optimization
Targeted measures: efficient technologies and
• Market potential innovative electromechanical systems
26 Hyd ro -Q u é b e cResidential programs E N E R GY S AV IN GS
Adapted
solutions
Programs with
financial
support
The gateway to
energy efficiency
To help its residential customers contribute Diagnostic
more to energy efficiency, Hydro-Québec tools
intends to enhance its program offering in
tandem with other market players and to step Education
up its awareness and support efforts.
General
awarenessResidential programs
Program that provides a range of tools and
relevant information to help customers use
Financial assistance for the purchase and electricity more wisely for various uses:
With installation of certain efficient products • Heating General
financial • Cold climate heat pump • Hot water awareness
assistance
• Water- and energy-saving products • Air conditioning
• Other products to come • Phantom power
• Other types of consumption
Diagnostic
tools
00Watt Toolkit
Low-income households
• Educational energy efficiency kits offered • Energy efficiency retrofit program to financially
to grade 5 and 6 teachers to help teach support the implementation of energy efficiency
youngsters how to use electricity measures in social and community housing
responsibly. Adapted
Education • Refrigerator replacement program (to be
Wattson kit phased in by region over the course of 2022) in solutions
• Kits for high school students (launch partnership with ACEFs
planned for 2022) to increase their Off-grid systems
awareness of the importance of reducing
electricity use. • Residential and business programs tailored to
the realities of these customers
29 Hyd ro -Q u é b e cOF F - GR ID S YS TE M S
Energy efficiency in action
ÎLES-DE-LA-MADELEINE
OPITCIWAN LED lighting
Efficient Energy Use
Compression system
Program
optimization (sawmill)
00Watt Toolkit
KAWAWACHIKAMACH
SCHEFFERVILLE
Awareness raising and LA ROMAINE
Dare to Compare contests
Efficient Heat Pump Program Home Diagnostic
NUNAVIK
ÎLE D’ANTICOSTI
Energy audits MATIMEKOSH
Lighting
30 Hyd ro -Q u é b e cDemand management measures P OW E R D E M AN D R E D U C T ION S
Rates/Rate
options
Dynamic pricing
DR – Business
Interruptible electricity Hilo
Blockchain curtailment
Dual energy
To offset the expected increase in power
demand, Hydro-Québec intends to prioritize Power demand
the development of demand response reduction
programs
measures for all customer categories. Three-element
water heaters
Thermal storage
unitsHilo
Who are we?
Hilo is a Hydro-Québec subsidiary that offers a
complete smart energy service for your home and
business.
33 Hyd ro -Q u é b e cSmart power management
Self-generation
through different offers
Energy storage
Electric mobility
Energy
efficiency
(fine telemetry Hilo, a catalyst
and building
Automated demand intelligence) for the energy
response (DR) transition
34 Hyd ro -Q u é b e cSTART NOW BY TAKING SMALL STEPS!
Every step—no matter how
small—results in big changes
The energy transition starts with energy efficiency.
Collectively, we can make this transition a reality.
We can reduce our environmental footprint by immediately
beginning to reduce and recover.
Together, let’s shift from words to actions and begin
implementing our projects. Let’s do everything we can in our
daily lives to innovate and change our ways of doing things,
our habits and our energy culture, and let’s invest in efficient
and clean technologies.
35 Hyd ro -Q u é b e cMikwetc Jawenh Wli Wni
Chiniskomiitin Thank you Thank you
Tshinashkumitin Welaliog Nia:wen
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