Hydro-Québec's Strategic Plan 2022-2026: For an Efficient Energy Transition

MONTRÉAL, March 24, 2022 /CNW Telbec/ - Against the backdrop of the colossal task of decarbonizing our economy, Hydro-Québec is pleased to present its Strategic Plan 2022–2026, a roadmap that establishes not only the company's priorities for the coming years, but also charts the course for decades to come.

"Hydro-Québec is at a turning point. By 2050, over 100 TWh of additional clean electricity will be required to attain carbon neutrality in Québec. It is a colossal challenge, but also an incredible opportunity," said Sophie Brochu, Hydro-Québec's President and Chief Executive Officer.

Our plan was drawn up following a broad-based consultation of our employees, representatives from the economic, energy, municipal, academic and environmental spheres from across Québec, as well as members of various Indigenous nations. Quebecers also took part in the Collective Energy initiative, through which close to 27,000 people shared their opinions and ideas. The participation of our various stakeholders enriched our understanding, our thinking and our strategies.

"Building on our core business and drawing inspiration from best practices around the world, Hydro-Québec will fully assume its responsibility and determining role in the transition to a low-carbon economy. This task is rendered even more challenging by the fact that this deep structural change to our economy must be implemented as cost-effectively as possible for society. The collective strength of all Quebecers must be mobilized, and our ambition is to act as a catalyst," added Ms. Brochu.

Four new paradigms to contend with

1. Our energy and capacity balances are getting tighter.
   After several years marked by large volumes of energy that exceeded our needs, the situation has changed. The demand for our clean energy, in Québec and in neighboring markets, has increased significantly.
   
   
2. Additional electricity purchases will cost more.
   Thanks to our heritage pool of hydropower, our electricity supply costs have historically been low and stable. However, the cost of additional electricity purchases required to meet our future needs will be higher.
   
   
3. Our power system is evolving.
   Our current power grid is unidirectional, delivering electricity from the generating station to our customers. The grid of tomorrow will allow two-way energy exchanges with our customers and give them the ability to manage their energy use more efficiently and even interact among themselves.
   
   
4. Our investments will increase.
   Significant investments will be required to reinforce our grid and equip it to handle higher demand, especially as some of our assets are aging and must be replaced or upgraded.

Taking into account the full measure of these challenges and mindful of ensuring a reliable supply of electricity at the lowest possible cost, we are working on driving the efficient decarbonization of Québec and preparing our power system for the needs of tomorrow. We will cultivate innovation to increase Québec's collective prosperity and involve our customers, teams and partners in the fulfillment of our goals.

The Plan includes the following concrete actions:

• Step up our energy efficiency efforts to achieve 8.2 TWh of additional recurring savings by 2029, that is, the equivalent of the annual generating capacity of the La Romaine complex. 
• Ramp up the rollout of demand response measures to encourage our customers to reduce their electricity use during peak periods.
• Spur public reflection into adapting our legislative and regulatory frameworks and rate structure to meet the needs of the energy transition in a cost-effective way.
• Increase our generation capacity by 5,000 MW in collaboration with our community partners:
• Launch projects designed to add 2,000 MW of capacity to our existing hydropower generating stations by 2035.
• Develop a portfolio of wind energy projects totaling 3,000 MW that will be implemented as demand grows.
• Maintain an ongoing dialogue and strengthen our relations with Indigenous communities and other communities.
• Attain carbon neutrality of our operations by 2030:
• Supply our off-grid systems with 80% renewable energy by 2030 by replacing fossil fuels currently in use.
• Partner with Québec municipalities to add 4,500 new standard charging stations in urban centers by 2028 and operate 2,500 fast-charge stations by 2030.
• Commission new interconnections with neighboring markets and enhance the bidirectional flow capacity of our existing interconnections, which will enable us to maximize the benefit of our energy storage capacity.

Québec has committed to an ambitious project: the transition to a low-carbon economy. It is a tall order. Regardless of the pace and magnitude of this transition, Hydro-Québec is fully committed to meeting this challenge.

SOURCE Hydro-Québec

Maxence Huard-Lefebvre, Media relations, Hydro-Québec, 514 289-5005