Quebec eyes status as clean energy hub

Already largely reliant on hydroelectric power for much of its energy, the east Canadian province of Quebec looks set to cement its position as a clean energy hub through a multi-billion dollar project to build over two gigawatts of wind energy capacity.

French-Canadian electricity company Hydro Quebec announced last week that it has accepted 15 bids from third party power providers who will create 2,004MW of wind power for the east Canadian province.

The company, which is guided in its energy choices by the provincial Quebec government, had issued tenders to be answered by the end of October as it seeks to add wind power to its existing hydropower resources. Currently, 95 per cent of its power comes from its own hydropower installations, operated by the Hydro Quebec Production division, while five per cent of its power is purchased from other providers via Hydro Quebec Distribution.

The new wind contracts will increase the amount of power that it purchases from other plant owners to 10 per cent by 2015, said spokesperson Josee Marin. Roughly 40,000 MW of power will be provided by hydroelectricity, with 4,000MW coming from wind.

The wind infrastructure will cost roughly $5.5bn, said Marin. "Around $4.4bn will come from the investor – the ones that will produce the energy plants," she said. "And then you have $1.1bn to create the transmission infrastructure, from Hyrdo Quebec."

The average price for wind-powered electricity offered by the winning bids is 10.5 cents per kilowatt hour. Of that, 8.7c/kWh goes toward the wind energy, while another 1.3c/kWh is spent on transmission. The remaining half-cent will be spent on balancing services provided by Hydro-Quebec Production.

"We are lucky here in here Quebec because of the tidal and hydro power capacity," said Marin. "Even if there is some problem having wind power all the time. We can always count on the hydro power to cover any shortfall."