New York State has just awarded a 25-year contract to Hydro-Quebec, which is the crown corporation’s largest export contract.
From 2025, Hydro-Québec will supply nearly 10.4 terawatt-hours (TWh) of electricity to New York State, which represents the electricity consumption of approximately one million households.
The announcement was made Monday by Governor Kathy Hochul during New York Climate Week. “The State of New York is taking a bold step towards decarbonization,” responded the CEO of Hydro-Quebec, Sophie Brochu, in a press release.
Hydro-Quebec has not disclosed the potential revenue that this contract would allow it to obtain, but it could represent tens of billions of dollars. On Twitter, the Prime Minister Francois Legault spoke of an “agreement in principle of over $ 20 billion over 25 years.” “This is huge news for the environment. Fossil energy will be replaced by renewable energy ”, reacted the Prime Minister.
This is the largest export contract in Hydro-Quebec’s history. Massachusetts has already signed a 20-year agreement for 9.45 TWh.
The contract is “win-win” for Quebec and New York, said in an interview Lynn St-Laurent, spokesperson for Hydro-Quebec. Not only does it provide a new source of revenue for the crown corporation, but it allows New York State to reduce its greenhouse gases. “It’s a huge climate gain,” she adds. Greenhouse gases know no borders; what is good for our neighbors is also good for Quebeckers. “
Fossil fuels represent nearly 85% of electricity supplies in the region. The state wants renewables to account for 70% of its energy consumption by 2030.
Hydro-Québec’s project will prevent the emission of 3.9 million metric tons of greenhouse gases. “It’s as if we were removing 44% of vehicles that circulate in New York”, illustrates Mme St-Laurent.
This is excellent news for the environment, believes Benoit Charrette, Minister of the Environment and the Fight against Climate Change. “Quebec fully assumes its leadership in the fight against climate change. We are gradually realizing our wish to become the Northeastern US Battery. “
The news was also well received by representatives of the business community. “I am very proud,” commented Michel Leblanc, President of the Chamber of Commerce of Metropolitan Montreal (CCMM). Our clean energy will help reduce the environmental footprint of America’s largest metropolis. The recovery will be even greener. “
The project
The Champlain Hudson Power Express (CHPE) project involves the construction of an underground and sub-river transmission line approximately 545 km long between the Canada-United States border and New York City.
It is Transmission Developers, a company of the Blackstone group, which will ensure the construction of the American route. Hydro-Quebec claims to have obtained all the necessary authorizations from the American authorities.
A 60 km portion will also have to be built in Quebec between the Hertel substation, in La Prairie, in the Montérégie region, and the American border. The Crown corporation will be co-owner of this portion with the Mohawk Council of Kahnawake.
The regulatory process to obtain all building permits is underway, Mr.me St-Laurent. “It will continue next year. Construction will start thereafter, probably in early 2023. “
Enough energy
Hydro-Quebec’s potential is sufficient to honor this contract while serving the energy needs of Quebecers. Last November, the company said it would have to find other sources of energy to meet its needs from 2027, according to its updated supply plan. The development of greenhouses, data centers and the electric car are among the factors contributing to the changes in forecasts.
At the Department of Energy and Natural Resources, it is estimated that additional renewable energy needs would be at least 1,400 megawatts by 2029.
“There is no doubt that Hydro-Quebec will be able to ensure the supply of electricity to Quebecers, even with the signing of the contract and the commissioning of the transmission line,” said Mr.me St-Laurent. We have the energy necessary to guarantee electricity supply service to Quebecers and meet the requirements of the contract. “
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