Big players in the industrial and residential sectors are concerned about the consequences of the new life-and-death powers the government has just granted itself to any new project requiring more than 5 megawatts (MW) of power.
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“It is clear that there are challenges in terms of demand and the amount of power that Hydro-Québec can provide,” admits Broccolini Group CEO Roger Plamondon. If the minister’s office now decides whether we have electricity for the projects or not, then it will become more dangerous. »
Broccolini’s number one spoke on the sidelines of an Urban Development Institute of Quebec (IDU) conference on the new ways of doing things for the city of Montreal in terms of real estate development. Apparently, the semblance of politicization of the project arbitration Quebec is considering raises eyebrows.
Fitzgibbon has the last word
Quebec recently passed Bill 2 introduced by Secretary of Economy, Innovation and Energy Pierre Fitzgibbon. Among other things, its provisions aimed to give the minister the power to authorize (or ban) any project that in future requires a power threshold reduced to 5 MW or more, instead of the current 50 MW or more.
When asked, Roger Plamondon explained that the smallest industrial project today requires an output of 3.5 MW of electricity. Once a company is robotized or has charging needs for a large fleet of electric trucks, “it doesn’t take long to go from 3.5MW to more than 5MW. »
“Will we have electricity for our projects? And if so, for how long and at what cost? Can we do the project? ‘ he asked before blurting out any other questions. “And if I’m ready to develop tomorrow but the power isn’t there, what do we do? »
These concerns, these unanswered questions, this impression of being left in the dark, is what the director of the IDU, Jean-Marc Fournier, has been saying about his members for about six months.
capital flight
“I’ve been told for months that Hydro no longer has the means to act and even give the slightest answer to the questions asked,” said the former Liberal minister.
“Builders are all the more worried about this – and not just Broccolini, he specifies – because they are the first to see projects being shelved, postponed or even lost. [au profit d’autres juridictions], due to the current uncertainty. It’s not fear. This is a reality that, of course, is not good for the economy. »
Without denying the difficulties facing the industry, Hydro-Québec assures us that the project selection process is “in full swing”. Proponents of projects requiring more than 5MW of power must fill out a special form from Crown Corporation.
ELECTRICITY SHORTAGES ON THE HORIZON
20,000 MW
Total requirement for projects from 50 MW
3000MW
Total requirements for projects below 50 MW
5000MW
Hydro-Québec’s goal to increase its production capacity by 2035
Source: Hydro Quebec