A new 1,200 megawatt (MW) electricity transmission line between Quebec and New York City could cost Hydro-Quebec (HQ) nearly $ 4 billion.
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While in New York on Tuesday, Prime Minister François Legault said he was thinking of Hydro-Quebec directly financing a new transmission line project.
- Journalist Pierre Couture was the guest of Benoit Dutrizac on QUB radio:
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“We are talking about a project for a buried line that could cost up to $ 4 billion and which could stretch over several years,” a government source told Tuesday. Journal.
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On Tuesday, at HQ, no one was available to comment on the matter.
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Arriving in New York on Sunday, Mr. Legault said it was “very likely” that Quebec would sign a major electricity export contract with the City and State of New York.
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Sand in the gear
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It does appear, however, that there is sand in the gear.
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The Blackstone investment fund now owns TDI, which holds the permits for a submarine cable project that would cross Lake Champlain and the Hudson River. As of yet, there is no further transmission line project, which puts Blackstone in a strong position. The company wants to be the intermediary.
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“Currently, a lot of TDI is negotiating with New York City. They take the price of electricity from Hydro-Quebec and add a contribution for their line. What I would prefer is for HQ to offer a price in New York and then add to that price the cost of a transmission line, whether it’s with Blackstone or someone else, ”said the Prime Minister.
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In 2010, TDI estimated the costs of its transmission line between the Quebec border and New York City at US $ 2 billion. In current dollars and with the exchange rate, the bill reaches C $ 3.1 billion today.
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Hydro-Quebec will also have to build its own line in Quebec at an estimated cost of nearly $ 700 million.
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Potential partners
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Hydro-Québec could call on partners to finance part of the costs of this new electricity transmission line.
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The Caisse de depot et placement and the Canada Infrastructure Bank (CIB) could thus become active investors.
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–With the collaboration of Charles Lecavalier
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Potential contract with New York City
- Power: 1200 megawatts (MW)
- Duration: 20 years
- Estimated potential revenue: $ 10 billion
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